Citizens Financial Services Reports $7.6 Million Net Income for Q1 2025

Citizens Financial Services, Inc. reported a net income of $7.6 million for the first quarter of 2025, reflecting an increase of 8.5% compared to $7.0 million in the same period of 2024. This translates to a basic earnings per share of $1.60, up from $1.48 year-over-year. The company's net interest income also saw a significant rise, reaching $23.0 million, a 9.8% increase from $20.96 million in the prior year. The provision for credit losses decreased to $625,000 from $785,000, contributing to a net interest income after provision of $22.4 million, compared to $20.2 million in the previous year.

Total assets for Citizens Financial Services stood at $3.02 billion as of March 31, 2025, a slight decrease from $3.03 billion at the end of 2024. The decline was primarily attributed to a reduction in loans held for sale and other assets. Total loans increased marginally by $2 million to $2.31 billion, while total deposits decreased by $17.2 million to $2.36 billion. The company’s borrowed funds increased to $302 million, up from $297.7 million, indicating a strategic move to bolster liquidity amid fluctuating deposit levels.

In terms of operational metrics, the company reported a total of 48 banking facilities, including 38 branches, following its recent expansion into southeast Pennsylvania through the HVBC acquisition. The company continues to focus on its core markets in Pennsylvania and Delaware, with a particular emphasis on commercial real estate lending, which represented 306.5% of consolidated risk-based capital as of March 31, 2025. The company has implemented heightened risk management procedures to address potential concentration risks in this area.

The non-interest income for the first quarter of 2025 totaled $3.4 million, a decrease of 31.1% from $5.0 million in the previous year. This decline was driven by lower gains on loans sold and reduced earnings from bank-owned life insurance, which were impacted by a significant death benefit received in the prior year. The company’s non-interest expenses also saw a slight reduction, totaling $16.4 million, down from $16.6 million, reflecting cost management efforts amid a competitive banking environment.

Looking ahead, Citizens Financial Services remains cautious about potential economic fluctuations and their impact on loan demand and credit quality. The company is focused on maintaining adequate capital levels and managing interest rate risk, particularly as it navigates a changing market landscape. The management anticipates that ongoing strategic initiatives, including geographic expansion and product diversification, will support future growth and profitability.