Citizens Financial Services (CZFS) investor relations material

Executive summary

• Net income for the first six months of 2026 was $20.6 million, up 27.9% year-over-year, driven by higher net interest income and a lower provision for credit losses.

• 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.

• Annualized return on average equity improved to 11.84% for the first half and 11.64% for Q2 2026.

Financial highlights

• Net interest income before provision for credit losses rose 11.1% year-over-year to $51.8 million for the first half of 2026.

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

• Non-interest income for the first half was $7.7 million, up $612,000 year-over-year, mainly from higher BOLI earnings.

• Non-interest expenses increased by $993,000 year-over-year, primarily due to higher salaries, legal fees, and fraud-related costs.

• Effective tax rate decreased to 17.9% for the first half and 17.5% for Q2 2026.

Outlook and guidance

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

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