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olivLaw · US equity research

Citizens Financial Services, Inc. CZFS

State Commercial Banks · SIC 6022 · Vertical: State Commercial Banks (SIC 6022)

84.87USD−1.36% · 1 dayClose 06 Nov 2026

Citizens Financial Services, Inc. is the holding company of First Citizens Community Bank, a regional bank in north central Pennsylvania with expansion into southeast Pennsylvania, Delaware and southern New York. Its business centers on local lending and deposits, and in 2026 net interest income grew while non-performing assets rose noticeably, a point relevant to credit quality.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 06 Nov 2026, Citizens Financial Services, Inc. (CZFS) stock was 84.87 USD (−1.36% on the day), with market capitalisation 408.3 m USD, P/E 9.5 on diluted EPS of 8.94 USD over the last 12 months, dividend yield 2.38%, beta 0.70, 52-week range 53.79–87.30 USD. Latest reported quarter (Q3 2026): revenue of 2.7 m USD (−1.7% YoY), net income of 11.9 m USD (+19.2% YoY), diluted EPS 2.48 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
408.3 m USD
shares as of 29 Oct 2026
P/E (TTM)
9.5
Diluted EPS TTM 8.94 · TTM to 30 Sept 2026
E/P (TTM)
10.54%
TTM to 30 Sept 2026
Dividend yield
2.38%
DPS 12m 2.02
Beta (2y)
0.70
Volatility (1y) 33%
52-week range
53.7987.30

Price history

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Technical reading

RSI (14)
57.1
strong (55–70)
Bollinger (20, 2)
77.11 – 88.53
in the upper half of the band · %B 0.68 · band width 13.8%
SMA 50 / 200
81.59 / 71.24
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
1.52 / 1.26
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+7.5%−5.4%+13.0 pp—
3 months+5.6%−4.9%+10.5 pp—
6 months+33.0%−0.3%+33.3 pp—
Year to date+48.8%+7.8%+41.1 pp—
1 year+53.6%+9.8%+43.8 pp+23.5%
3 years+57.4%+68.5%−11.1 pp+79.8%
5 years+42.2%+57.0%−14.9 pp—
Max drawdown (1y)
−14.4%
04 Feb 2026 → 18 Mar 2026
Max drawdown (5y)
−56.3%
12 Jun 2023 → 21 Jun 2024
Compound annual growth (5y)
+7.3%
S&P 500 +9.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
2.7 m USD
−1.7% YoY
Net income
11.9 m USD
+19.2% YoY
Diluted EPS
2.48
+18.7% YoY
net / operating
437.8% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue2.3 m2.4 m2.4 m2.8 m2.3 m2.3 m2.4 m2.7 m
Depreciation & amortisation425.0 k449.0 k472.0 k ≈493.0 k ≈690.0 k470.0 k444.0 k ≈417.0 k ≈
Pre-tax income9.7 m9.4 m10.4 m12.4 m12.9 m12.7 m12.3 m14.5 m
Income tax1.8 m1.8 m2.0 m2.4 m2.5 m2.3 m2.2 m2.6 m
Net income8.0 m7.6 m8.5 m10.0 m10.5 m10.4 m10.2 m11.9 m
Diluted EPS1.66 ≈1.591.762.092.18 ≈2.162.122.48
Operating cash flow10.5 m10.9 m6.0 m ≈2.9 m ≈16.7 m18.0 m-89.0 k ≈5.3 m ≈
Capex462.0 k585.0 k495.0 k ≈145.0 k ≈71.0 k125.0 k287.0 k ≈234.0 k ≈
Dividends paid2.3 m2.4 m2.4 m ≈2.4 m ≈2.4 m2.4 m2.5 m ≈2.5 m ≈
Share repurchases-2.0 k57.0 k239.0 k ≈77.0 k ≈-15.0 k158.0 k147.0 k ≈13.0 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 40 percentile of its own 40-quarter history (min 7.0, median 10.4, max 16.7; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue6.5 m6.9 m6.7 m7.7 m8.6 m9.0 m9.6 m9.9 m
Revenue YoYunavailable+6.4%−3.8%+16.2%+11.0%+4.5%+7.1%+2.8%
Net income18.0 m19.5 m25.1 m29.1 m29.1 m17.8 m27.8 m36.6 m
Net income YoY+38.5%+8.1%+28.8%+16.0%−0.2%−38.7%+56.2%+31.5%
Diluted EPS5.045.416.467.247.173.985.797.62
Diluted EPS YoY+37.3%+7.3%+19.4%+12.1%−1.0%−44.5%+45.5%+31.6%
net %276.9%281.4%376.9%376.3%338.4%198.5%289.5%370.1%
Free cash flow21.0 m21.3 m10.9 m37.6 m31.6 m23.9 m31.9 m35.2 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
34.3 m USD
Financial debt
unavailable USD
Net debt
unavailable USD
Equity
338.1 m USD
Total assets
3.1 bn USD
Debt / equity
unavailable
Current ratio
unavailable
ROE
11.5%
ROA
1.2%
FCF margin
356.6%

Financial statements (source on every figure)

Revenue and net income (USD)

Income statement · USD

Net interest income
2023
80.3 m
2024
86.5 m
2025
98.0 m

SEC (XBRL)· 12 Mar 2026verified

Net fee income
2023
11.6 m
2024
15.4 m
2025
14.3 m

SEC (XBRL)· 12 Mar 2026verified

Non-interest expense
2023
64.8 m
2024
65.4 m
2025
64.7 m

SEC (XBRL)· 12 Mar 2026verified

Pre-tax income
2023
21.6 m
2024
33.9 m
2025
45.2 m

SEC (XBRL)· 12 Mar 2026verified

Net income
2023
17.8 m
2024
27.8 m
2025
36.6 m

SEC (XBRL)· 12 Mar 2026verified

Diluted EPS
2023
3.98
2024
5.79
2025
7.62

SEC (XBRL)· 12 Mar 2026verified

Dividend per share
2023
1.90
2024
1.93
2025
1.98

SEC (XBRL)· 12 Mar 2026verified

Balance sheet · USD

Cash
2023
52.8 m
2024
42.2 m
2025
34.3 m

SEC (XBRL)· 12 Mar 2026verified

Loans
2023
2.2 bn
2024
2.3 bn
2025
2.2 bn

SEC (XBRL)· 05 Nov 2026verified

Total assets
2023
3.0 bn
2024
3.0 bn
2025
3.1 bn

SEC (XBRL)· 12 Mar 2026verified

Deposits
2023
2.3 bn
2024
2.4 bn
2025
2.4 bn

SEC (XBRL)· 12 Mar 2026verified

Total liabilities
2023
2.7 bn
2024
2.7 bn
2025
2.7 bn

SEC (XBRL)· 12 Mar 2026verified

Equity
2023
279.7 m †
2024
299.7 m †
2025
338.1 m †

SEC (XBRL)· 12 Mar 2026verified

Cash flow · USD

Dividends paid
2023
8.5 m
2024
9.3 m
2025
9.5 m

SEC (XBRL)· 12 Mar 2026verified

Share repurchases
2023
265.0 k
2024
202.0 k
2025
358.0 k

SEC (XBRL)· 12 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
2.8%
computed by olivLawFY 2025
Revenue CAGR 3Y
4.8%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
8.2%
computed by olivLawFY 2020 → FY 2025
Net income growth (YoY)
31.5%
computed by olivLawFY 2025
Net income CAGR 3Y
8.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
7.8%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
31.6%
computed by olivLawFY 2025
EPS CAGR 3Y
2.0%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
3.4%
computed by olivLawFY 2020 → FY 2025

Profitability

Net margin
438.2%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
12.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
1.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
22.6%
computed by olivLawTTM to 30 Sept 2026

Market and valuation

Market capitalisation
408.3 m USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
9.5x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
9.5x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
10.5%
computed by olivLawTTM to 30 Sept 2026
P/B
1.2x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
41.6x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
2.4%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
2.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Banking

Net interest margin
3.3%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cost-to-income
55.2%
computed by olivLawTTM to 30 Sept 2026
Loan-to-deposit
94.2%
computed by olivLawbalance sheet at 30 Sept 2026
NPL ratio
unavailable
input data missing
CET1 ratio
unavailable
input data missing
Cost of risk
unavailable
input data missing

32 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 56 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

84.87 USD

06 Nov 2026Source: olivLaw, closing series

Market cap: 408.3 m USD

Key indicators

Market capitalisation
408.3 m USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
9.5x
computed by olivLawTTM to 30 Sept 2026
P/B
1.2x
computed by olivLawbalance sheet at 30 Sept 2026
ROE
12.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
438.2%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
2.8%
computed by olivLawFY 2025
Dividend yield
2.4%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

15/20 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 29 Oct 2026
Source: SEC (XBRL)published 05 Nov 2026
verified 2373derived 149

Score by group

  • Quality57
  • Growth30
  • Balance sheet14
  • Returns41
  • Valuation86

Estimated value range

Low
87.95
USD per share
Mid
100.37
USD per share
High
113.31
USD per share
Price: 84.87 USD
The price is below the range
Potential to the central value: 18.3% (value / price − 1)
Margin of safety: 15.4% (1 − price / value)
Agreement between methods: high · 4 methods used · 3 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 76.90 – 127.87 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • Residual income76.90 – 80.44 (Mid 78.64)
  • Justified P/B95.08 – 127.87 (Mid 109.07)
  • Dividend discount (DDM)outside the aggregate26.02 – 34.99 (Mid 29.85)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
  • Peers: P/E94.52 – 119.03 (Mid 107.92)
    34 companies used · median multiple 12.1x · quartiles 10.6x – 13.3x
    BFST, BNY, BOH, BOTJ, BSRR, CFG, CIVB, COLB, COSO, EWBC, FBP, FCCO, FITB, FUSB, GABC, GBFH, INBK, ISBA, JMSB, LKFN, MCB, MTB, MVBF, NTRS, OFG, PCB, PEBK, QCRH, RBB, STT, SYBT, TCBK, UBCP, WASH
  • Peers: P/B81.37 – 107.59 (Mid 92.81)
    34 companies used · median multiple 1.3x · quartiles 1.1x – 1.5x
    BFST, BOH, BOTJ, BSRR, CBFV, CFG, CIVB, COLB, COSO, EWBC, FBP, FCCO, FITB, FUSB, GABC, GBFH, INBK, ISBA, JMSB, LKFN, MCB, MTB, MVBF, OFG, PCB, PEBK, QCRH, RBB, STT, SYBT, TCBK, UBCP, UCB, WASH
Multiple comparisons use the SIC vertical: State Commercial Banks (SIC 6022)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 56/100

FactorValueScoreWeight used
ROE · Quality12.7%61 (vs peers)19%
ROA · Quality1.3%66 (on a fixed band)7%
Cost-to-income · Quality55.2%39 (on a fixed band)12%
Net interest margin · Quality3.3%70 (on a fixed band)7%
EPS CAGR 3Y · Growth2.0%17 (on a fixed band)10%
Revenue CAGR 3Y · Growth4.8%48 (on a fixed band)7%
NPL ratio · Balance sheetunavailableunavailable—
Cost of risk · Balance sheetunavailableunavailable—
Loan-to-deposit · Balance sheet94.2%14 (on a fixed band)5%
P/B · Valuation1.2x72 (vs peers)12%
P/E (TTM) · Valuation9.5x100 (vs peers)12%
Dividend yield · Returns2.4%41 (vs peers)10%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial14/100 · 1/3 factors with a value
  • Growth30/100 · 2/2 factors with a value
  • Quality57/100 · 4/4 factors with a value
  • Returns41/100 · 1/1 factors with a value
  • Valuation86/100 · 2/2 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

CITIZENS FINANCIAL SERVICES, INC. (CZFS). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: net interest income 98.0 m USD in 2025; YoY growth 2.8%; net margin 438.2%; ROE 12.7%.

The estimated value range is 87.95–113.31 USD per share (median of 4 methods, agreement: high); assumptions are illustrative. Against the central value of 100.37 USD, the price of 84.87 USD leaves a potential of 18.3% (value / price − 1) and a margin of safety of 15.4% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 56/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net interest margin: 3.3%
  • P/B: 1.2x
  • P/E (TTM): 9.5x
  • The price is below the estimated value range

What contradicts it

  • EPS CAGR 3Y: 2.0%
  • Loan-to-deposit: 94.2%

Not assessed (insufficient data or a ratio without meaning): NPL ratio, Cost of risk.

Versus the vertical median

State Commercial Banks (SIC 6022) · same industry (4-digit SIC) · compared with 39 companies

Multiples and returns vs the median

P/E
9.5x
vertical median 12.1x
below median (−21.6%)
EV/EBITDA
—
vertical median —
P/S
41.6x
vertical median 23.6x
above median (+76.1%)
P/B
1.2x
vertical median 1.3x
below median (−10.9%)
ROE
12.7%
vertical median 11.5%
above median (+9.8%)
Net margin
438.2%
vertical median 188.8%
above median (+132.0%)
EBIT margin
—
vertical median —
Revenue YoY
2.8%
vertical median 4.5%
below median (−37.4%)
Net debt/EBITDA
—
vertical median —
Dividend yield
2.4%
vertical median 2.6%
below median (−7.3%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
BNYThe Bank Of New York Mellon Corporation99.4 bn16.215.0%32.6%+7.8%+32% / +206%
FITBFifth Third Bancorp47.9 bn17.89.4%—−2.0%+22% / +83%
STTState Street Corporation45.0 bn13.313.1%23.8%+7.3%+39% / +127%
NTRSNorthern Trust Corporation31.3 bn13.318.4%28.8%−2.5%+32% / +118%
MTBM&T Bank Corporation31.2 bn11.210.6%175.6%+7.5%+14% / +70%
CFGCitizens Financial Group Inc26.5 bn12.58.9%25.4%+5.6%+17% / +132%
EWBCEast West Bancorp, Inc.17.7 bn12.216.6%—+4.4%+21% / +105%
COLBColumbia Banking System, Inc.8.4 bn10.511.2%471.8%+18.8%+10% / +36%
UCBUnited Community Banks, Inc.4.4 bn31.14.1%17.8%+11.7%+21% / +50%
FBPFirst Bancorp3.9 bn11.019.4%28.4%+2.4%+32% / +73%
BOHBank Of Hawaii Corporation2.7 bn12.013.6%202.1%−0.1%+6% / +20%
SYBTStock Yards Bancorp, Inc.2.5 bn15.313.6%—+3.4%+20% / +80%
OFGOFG Bancorp2.1 bn9.716.6%—unavailable+28% / +51%
GABCGerman American Bancorp, Inc.1.9 bn12.912.8%28.8%+37.8%+26% / +74%
TCBKTriCo Bancshares1.7 bn12.110.6%254.5%+4.1%+8% / +52%
QCRHQcr Holdings, Inc.1.6 bn11.912.7%—+46.3%+24% / +103%
LKFNLakeland Financial Corporation1.5 bn13.715.4%—−2.1%+5% / +10%
MCBMetropolitan Bank Holding Corp.1.2 bn9.713.1%1,040.8%−53.8%+28% / +145%
BFSTBusiness First Bancshares, Inc.1.0 bn11.310.1%768.0%+1.2%+24% / +59%
WASHWashington Trust Bancorp Inc737.4 m11.612.0%26.4%+127.6%+36% / +44%
CIVBCivista Bancshares, Inc.587.4 m10.211.0%302.4%−0.5%+25% / +81%
BSRRSierra Bancorp537.1 m10.714.0%—unavailable+33% / +121%
RBBRbb Bancorp429.9 m10.08.4%766.0%−2.4%+30% / +68%
PCBPcb Bancorp422.3 m10.110.8%1,323.5%+4.5%+38% / +94%
CZFSCitizens Financial Services, Inc.408.3 m9.512.7%438.2%+2.8%+54% / +57%

1- and 3-year price returns: for CZFS from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
50.25
Total return -39% · Per year -39%
88.82
Total return 7% · Per year 7%
133.77
Total return 61% · Per year 61%
3 years
49.05
Total return -37% · Per year -14%
97.53
Total return 23% · Per year 7%
161.25
Total return 100% · Per year 26%
5 years
47.88
Total return -34% · Per year -8%
107.10
Total return 40% · Per year 7%
194.36
Total return 147% · Per year 20%
What moves the 3-year price the most
  • Exit P/E± 24.38
  • Net margin± 17.07
  • Annual revenue growth± 13.97
  • Annual dilution± 1.43

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (05 Nov 2026), 8-K (30 Oct 2026 · results).

In brief

Citizens Financial Services, Inc. is the holding company of First Citizens Community Bank, a regional bank in north central Pennsylvania with expansion into southeast Pennsylvania, Delaware and southern New York. Its business centers on local lending and deposits, and in 2026 net interest income grew while non-performing assets rose noticeably, a point relevant to credit quality 123.

SWOT

Strengths

  • A long-established local customer base and physical presence across several counties in Pennsylvania, New York and Delaware provide stable deposit funding 1. Loan to deposit ratios and capital measures such as the leverage ratio point to a sound structure 12.
  • The rise in net interest margin and return on equity in 2026 shows management's ability to handle funding costs 3.
  • Diversification through the trust division and the insurance agency brings fee income that depends less on interest rates 1.

Weaknesses

  • The portfolio is concentrated in commercial and real estate loans, which carry higher loss risk than residential mortgages 1.
  • Non-performing assets grew significantly in the first half of 2026 while specific reserves stayed broadly flat 3.
  • Dependence on the regional economy, including natural gas and agriculture, limits geographic diversification 1.

Opportunities

  • Local loan demand has grown, and expansion in southeast Pennsylvania could create new business relationships 13.
  • If the net interest margin stays elevated, growth in interest income could continue 3.
  • Trust and investment services could attract additional assets from existing clients 1.

Threats

  • A weaker economic cycle could raise loan delinquencies and require additional provisions 1.
  • Competition from large banks, fintech firms and non-bank lenders could compress margins 1.
  • Geopolitical conflict and agricultural price shocks could affect customers' ability to repay 3.

Risks

  • Commercial loan qualityhigh

    The rise in non-performing assets in 2026, linked to commercial and real estate relationships past due, could generate larger losses if collateral does not cover the balances 3.

  • Interest rate exposuremedium

    Funding costs and asset yields may move at different speeds, and a prolonged inversion of the yield curve could compress the net margin 1.

  • Agricultural sectormedium

    Agricultural loans are sensitive to product prices, weather and animal disease, which could raise default risk 1.

  • Dependence on natural gas activitymedium

    Economic activity in north central Pennsylvania depends on gas exploration, and a fall in prices could affect the bank's customers 1.

  • Fraud and operational risklow

    Higher expenses from fraudulent activity on customer credit line accounts point to operational exposure that could raise costs 3.

Investment thesis

What would need to be true (bull case)

  • The net interest margin rose substantially in 2026, and net income advanced by close to 28% in the first six months, showing growing earnings power 3.
  • Loan growth has been steady, and a loan to deposit ratio near 100% shows the bank is putting its deposit base to work 12.
  • Expansion into southeast Pennsylvania and New Jersey, along with trust and insurance diversification, could support long-term growth 1.

What would break the thesis

  • Non-performing assets rose quickly in the first half of 2026, which could lead to higher provisions in coming quarters 3.
  • Concentration in commercial and real estate loans and in agriculture leaves the portfolio exposed to a weaker regional economy 1.
  • If funding costs rise or competition for deposits intensifies, the net margin could fall back to lower levels 13.

What to watch

  • Trend in non-performing assets and provisions for credit lossesQ3 2026
  • Development of the net interest margin amid funding costsQ3 2026
  • Impact of the geopolitical conflict on agricultural customers and diesel prices2026
  • Next annual report disclosures on portfolio quality and risksnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (05 Nov 2026), 8-K (30 Oct 2026 · results).

The business

Citizens Financial Services, Inc. (CZFS), a Pennsylvania corporation incorporated in 1984, owns First Citizens Community Bank, a full-service bank offering deposit accounts and residential, commercial, agricultural and consumer loans, along with trust and investment services 1. Through First Citizens Insurance Agency, Inc. and, until 2024, 1st Realty of PA LLC, the group adds insurance and real estate services 1. At December 31, 2025 it had 405 employees, and the bank operated 38 full service offices, two limited branch offices and two mortgage centers 1. Total assets reached 3.19 billion USD at June 30, 2026 2.

The core activity is classic financial intermediation: the bank gathers deposits through its branch network and turns them into loans, and profitability depends mainly on the spread between interest earned and interest paid 1. Net interest income before the provision for credit losses was 51.807 million USD in the first six months of 2026, an increase of 11.1% 3. The trust division managed assets of over 194 million USD at December 31, 2025 1.

The company is geographically dependent on its regional economy: north central Pennsylvania is strongly influenced by natural gas activity in the Marcellus and Utica formations, and agricultural loans remain a meaningful part of the portfolio 1. The acquisition of HV Bancorp in June 2023 extended operations into southeast Pennsylvania and New Jersey 1.

Segments

Commercial and real estate loans

Loans secured by commercial real estate made up 51.8% of the portfolio at December 31, 2025, the largest exposure of the bank 1. Commercial and real estate loans are more interest rate sensitive and carry higher yields than residential mortgages, but also a greater risk of non-payment 1.

Agricultural loans

Agricultural loans, about 16.1% of the portfolio at year-end 2025, relate to dairy, beef, poultry and swine operations in the area 1. The sector is exposed to swings in product prices and input costs, weather and trade policy, and 2026 pressures were also linked to diesel and fertilizer prices 13.

Deposits, trust and insurance

Customer deposits are the main funding source, and the loan to deposit ratio reached 100.02% at June 30, 2026 12. The trust division and First Citizens Insurance Agency add fee-based income, with assets under management of 194.841 million USD at year-end 2025 1.

Market context

The bank operates in north central and central Pennsylvania, southeast Pennsylvania near Philadelphia, southern New York and the Wilmington and Dover areas of Delaware 1. Competition is intense: larger regional banks compete with community banks, credit unions, consumer finance companies, fintech and government-sponsored credit agencies 1. Loan growth of 6.8% since June 2025 points to active demand in these markets 3.

The local market is shaped by natural gas activity and agriculture, which makes the bank's performance sensitive to those industries 1. Pressure on fees and margins could emerge if competition for deposits intensifies, a point the annual report states explicitly 1.

Trends

  • Interest rate path and net marginmixed

    The tax-effected net interest margin rose from 3.36% to 3.69% in the first six months of 2026, supported by a lower cost of interest-bearing liabilities 3. The risk is that an inverted or flattened yield curve could compress the margin if funding costs rise faster than asset yields 1.

  • Asset qualityheadwind

    Non-performing assets rose noticeably in the first half of 2026, reaching 1.81% of loans, mainly because several commercial real estate relationships passed 90 days past due 3. If this trend continues, provisions could rise and weigh on profitability 3.

  • Loan growthtailwind

    Loans grew 6.8% since June 2025, and excluding the student loan portfolio grew at an annualized 8.2% since year-end 2025 3. If demand in local markets stays solid, growth could continue to support interest income 3.

  • Geopolitical tensions and costsheadwind

    The conflict with Iran is cited in the quarterly report as a factor behind the provision, through its effect on diesel and fertilizer prices for farmers 3. A prolonged conflict could strain agricultural borrowers and raise credit losses 3.

Competitive position

The bank faces competition from local and regional banks, non-bank financial providers, fintech companies and government-sponsored credit agencies that seek both loan and deposit growth 1. The annual report describes competitive pressure as increasing in its service areas 1.

The bank is generally competitive with all institutions in its service areas on deposit rates, service charges and loan rates 1. Differentiation rests on local presence, relationships with regional farmers and businesses, and trust services 1.

  • Larger regional banks

    Compete for commercial loans and deposits in the bank's larger markets with broader networks and product ranges 1.

  • Local community banks

    Compete directly for customers in the smaller markets of north central Pennsylvania and the southern tier of New York 1.

  • Credit unions

    Offer deposits and consumer and mortgage loans, especially to residential customers 1.

  • Fintech and internet entities

    Present a growing pressure on deposits and consumer credit, as described in the annual report's competition section 1.

News & filings

In the press

The latest news item in our archive is from 22 Sept 2026; the newest SEC filing is from 05 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Citizens Financial Services, Inc. · 12 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Citizens Financial Services, Inc. · 06 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Citizens Financial Services, Inc. · 30 Jul 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.