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

CITIZENS FINANCIAL SERVICES, INC.

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

(Dollars in thousands, except per share data)

As of

June 30

2025

2024

Tangible Equity

Stockholders Equity – GAAP

$          313,653

$           286,470

Intangible Assets

(88,288)

(89,002)

Tangible Equity – Non-GAAP

225,365

197,468

Shares outstanding adjusted for June 2024 stock Dividend

4,807,000

4,806,559

Tangible Book value per share – Non-GAAP

$              46.88

$               41.08

As of

June 30

2025

2024

Tangible Equity per share

Stockholders Equity per share – GAAP

$              65.25

$               59.60

Adjustment for intangible assets

(18.37)

(18.52)

Tangible Book value per share – Non-GAAP

$              46.88

$               41.08

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2025

2024

2025

2024

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

Average Assets – GAAP

$       2,988,727

$        2,945,690

$            3,015,695

$       2,965,049

Average AOCL

(22,098)

(28,200)

(22,581)

(27,308)

Average Assets, Excluding AOCL – Non-GAAP

3,010,825

2,973,890

3,038,276

2,992,357

Net Income – GAAP

$              8,463

$               5,275

$                 16,084

$           12,299

Annualized Return on Average Assets-GAAP

1.13 %

0.72 %

1.07 %

0.83 %

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

1.12 %

0.71 %

1.06 %

0.82 %

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2025

2024

2025

2024

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

Average Stockholders Equity – GAAP

$          311,239

$           285,184

$               308,078

$          283,834

Average AOCL

(22,098)

(28,200)

(22,581)

(27,308)

Average Stockholder’s Equity, Excluding AOCL – Non-GAAP

333,337

313,384

330,659

311,142

Net Income – GAAP

$              8,463

$               5,275

$                 16,084

$           12,299

Annualized Return on Average Stockholder’s Equity-GAAP

10.88 %

7.40 %

10.44 %

8.67 %

Annualized Return on Average Stockholder’s Equity, Excluding AOCL – Non-GAAP

10.16 %

6.73 %

9.73 %

7.91 %

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2025

2024

2025

2024

Return on Average Tangible Equity

Average Stockholders Equity – GAAP

$          311,239

$           285,184

$               308,078

$          283,834

Average Intangible Assets

(88,388)

(89,119)

(88,479)

(89,220)

Average Tangible Equity – Non-GAAP

222,851

196,065

219,599

194,614

Net Income – GAAP

$              8,463

$               5,275

$                 16,084

$           12,299

Annualized Return on Average Tangible Equity Non-GAAP

15.19 %

10.76 %

14.65 %

12.64 %

For the Three Months Ended

For the Six Months Ended

June 30,

June 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

$              8,463

$               5,275

$                 16,084

$           12,299

After tax gain on sale of Braavo, net of legal fees

(712)

After tax provision associated with Braavo loans remaining after sale

898

1,427

Net Income excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans
remaining after sale – Non-GAAP

$              8,463

$               6,173

$                 16,084

$           13,014

Average Assets

2,988,727

2,945,690

3,015,695

2,965,049

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

1.13 %

0.84 %

1.07 %

0.88 %

Average Stockholders Equity – GAAP

$          311,239

$           285,184

$               308,078

$          283,834

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

10.88 %

8.66 %

10.44 %

9.17 %

Average Tangible Equity – Non-GAAP

222,851

196,065

219,599

194,614

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

15.19 %

12.59 %

14.65 %

13.37 %

For the Three Months Ended

For the Six Months Ended

June 30,

June 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

$              8,463

$               5,275

$                 16,084

$           12,299

After tax gain on sale of Braavo, net of legal fees

(712)

After tax provision associated with Braavo loans remaining after sale

898

1,427

Net income excluding one time items – Non-GAAP

$              8,463

$               6,173

$                 16,084

$           13,014

Number of shares used in computation – basic

4,797,716

4,796,000

4,797,642

4,795,596

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

$                1.76

$                 1.29

$                     3.35

$               2.71

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

Reconciliation of net interest income on fully taxable equivalent basis

2025

2024

2025

2024

Total interest income

$            38,749

$             37,902

$                 77,763

$           75,835

Total interest expense

15,101

16,602

31,113

33,577

Net interest income

23,648

21,300

46,650

42,258

Tax equivalent adjustment

256

245

504

495

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

$            23,904

$             21,545

$                 47,154

$           42,753

Go to Source