UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 30, 2024

CITIZENS FINANCIAL SERVICES INC
(Exact name of registrant as specified in its charter)

Pennsylvania
 
001-41410
 
23-2265045
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)

15 S MAIN ST
MANSFIELD, Pennsylvania
 
16933
(Address of principal executive offices)
 
(Zip code)

Registrant's telephone number, including area code (570) 662-0444

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, Par Value $1.00 Per Share
 CZFS
 NASDAQ Capital Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter):

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01. Regulation FD Disclosure.

Citizens Financial Services, Inc. (the “Company”) intends to use the materials furnished herewith in one or more meetings with investors . A copy of the investor presentation is furnished hereto as Exhibit 99.1 and is hereby incorporated by reference herein.

The information contained in this Item 7.01, including Exhibit 99.1 attached hereto, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information or exhibit be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

(d)
Exhibits
     
Exhibit
Number
  
Description
   
 
     
104
  
Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL)
   


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  CITIZENS FINANCIAL SERVICES, INC.
  
       
October 30, 2024
By:
/s/ Stephen J. Guillaume
  
    Stephen J. Guillaume
  
    Chief Financial Officer
  
       






 19  21  65  59  74  150  0  113  186  83  84  84  248  157  56  Investor Presentation  3rd Quarter 2024  Financial information 
 
 Legal Disclosures  Forward-Looking Statements (p. 1 of 2)  We have made forward-looking statements in this document, and in documents that we incorporate by reference, that are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future results of operations of the Company, the Bank, First Citizens Insurance, Realty or the Company on a consolidated basis. When we use words such as “believes,” “expects,” “anticipates,” or similar expressions, we are making forward-looking statements. Forward-looking statements may prove inaccurate. For a variety of reasons, actual results could differ materially from those contained in or implied by forward-looking statements:  •The continuing impact of the COVID-19 pandemic may have an adverse effect on our business and operations, our customers, including their ability to make timely loan payments, our service providers, and on the economy and financial markets more significant that we expect.  •Interest rates could change more rapidly or more significantly than we expect.   •The economy could change significantly in an unexpected way, which would cause the demand for new loans and the ability of borrowers to repay outstanding loans to change in ways that our models do not anticipate.   •The financial markets could suffer a significant disruption, which may have a negative effect on our financial condition and that of our borrowers, and on our ability to raise money by issuing new securities.  •It could take us longer than we anticipate implementing strategic initiatives, including expansions, designed to increase revenues or manage expenses, or we may be unable to implement those initiatives at all.   •Acquisitions and dispositions of assets and companies could affect us in ways that management has not anticipated.  •We may become subject to new legal obligations or the resolution of litigation may have a negative effect on our financial condition or operating results.   •We may become subject to new and unanticipated accounting, tax, regulatory or compliance practices or requirements. Failure to comply with any one or more of these requirements could have an adverse effect on our operations.  •We could experience greater loan delinquencies than anticipated, adversely affecting our earnings and financial condition.   •We could experience greater losses than expected due to the ever increasing volume of information theft and fraudulent scams impacting our customers and the banking industry.   •We could lose the services of some or all of our key personnel, which would negatively impact our business because of their business development skills, financial expertise, lending experience, technical expertise and market area knowledge. 
 
 Legal Disclosures  Forward-Looking Statements (p. 2 of 2)  •The agricultural economy is subject to extreme swings in both the costs of resources and the prices received from the sale of products as a result of weather, government regulations, international trade agreements and consumer tastes, which could negatively impact certain of our customers.   •Loan concentrations in certain industries could negatively impact our results, if financial results or economic conditions deteriorate.   •Companies providing support services related to the exploration and drilling of the natural gas reserves in our market area may be affected by federal, state and local laws and regulations such as restrictions on production, permitting, changes in taxes and environmental protection, which could negatively impact our customers and, as a result, negatively impact our loan and deposit volume and loan quality. Additionally, the activities the companies providing support services related to the exploration and drilling of the natural gas reserves may be dependent on the market price of natural gas. As a result, decreases in the market price of natural gas could also negatively impact these companies, our customers.     Additional factors are discussed in this Annual Report on Form 10-K under “Item 1A. Risk Factors.” These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made and the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date of the forward-looking statements or to reflect the occurrence of unanticipated events. Accordingly, past results and trends should not be used by investors to anticipate future results or trends. 
 
 About Citizens Financial Services, Inc. 
 
 Company Profile  Lines of Business  Retail Banking  Commercial  Consumer  Fee Businesses  Retail Banking with 44 branches and 32 ATMs  Mobile & Online Banking  C&I Lending  SBA Lending  Treasury Management  Card & Payment Services  Business Banking  Home Lending  Personal Lending  Indirect Auto Lending  Secured & Unsecured Consumer Loans  Retail Plan Admin / Custody Services  Business, Personal, & Life Insurance   Institutional Life Insurance  Brokerage & Advisory Services  Trust Services  Financial Highlights  Assets: $3.0B  Gross Loans: $2.3B  Deposits: $2.4B  YTD ROAA: 0.88%  YTD ROATCE: 13.39%  Company Overview  (1) Market Cap as of October 28, 2024  (2) Branches & Employees data as of October 29 2024  (3) Please see appendix for non-GAAP reconciliations  Note: Holding Company data shown; Data as of September 30, 2024  Headquarters  Mansfield, PA  Founded  1872  Chartered  1932  Ticker  NASDAQCM: CZFS  Market Cap(1)  $283.1  Branches(2)  44  Employees(2)  383 FT – 29 PT  Institutional Ownership  23.67%  3 Mo. ADTV  12,074  52 Week H/L  $65.86 / $38.52  Chairman  R. Joseph Landy  CEO, President & Vice Chairman  Randall E. Black  Executive VP & CFO  Stephen J. Guillaume 
 
 Financial Highlights  (1) Please see appendix for non-GAAP reconciliations  MRQ – Highlights - YTD  Profitability  Balance Sheet  Credit  2024Q3 vs. 2024Q2  September 30, 2024  Diluted EPS  $1.59  Diluted  EPS  $4.17  Net Income  $7.5 M  Net   Income  $19.8 M  Core ROATCE  14.82%  Core ROATCE(1)  13.87%  Net Interest Margin  3.09%  vs. 3.15%  Core ROAA  1.00%  vs. 0.83%  Core ROAA(1)  0.91%  vs. 0.87%  Efficiency Ratio  61.77%  vs. 63.51%  Total Assets  $3.0B  2.7% Growth  Total Loans and Leases  $2.3B  3.34% Growth  Total Deposits  $2.4B  7.8% Growth  NPAs / Assets Ratio  0.79%  vs. 0.61%  NPLs / Gross Loans Ratio  0.92%  vs. 0.68%  Reserves / NPLs Ratio  100.6%  vs. 149.6% 
 
 Experienced Leadership  Executive  Title  Years of Banking Experience  Joined FCCB  Randall E. Black  Vice Chairman, President & CEO  31  1993  Stephen J. Guillaume  Executive VP & CFO  14  2009  David Z. Richards Jr.  Executive VP & Board Director  47  2017  LeeAnn Gephart  Executive VP & Chief Banking Officer  18  2021  Jeffrey L. Wilson  Executive VP & Chief Lending Officer  37  1987  Zerick D. Cook  Executive VP & Chief Credit Officer  28  2020  Jeffrey R White  Executive VP & COO  7  2024 
 
 Investment Highlights  Long history of creating shareholder value and operating successfully  Tenured management with strong track record of operating high value companies   Experienced, disciplined and prudent acquirer   Strong geographic diversification presents opportunities   Steady record of high profitability  Diversity of interest earning assets  Long-term focus on shareholder returns 
 
 For the past 16 years, Citizens Financial Services, Inc. has been ranked one of the top 100 best performing community banks in the nation with assets less than $2 billion. This ranking is based on a 3-year ROAE. Our 2012 performance ranked us as number ONE in the nation. We also continue to be ranked in the top 100 Ag lenders nationwide, 2nd for banks HQ’d in PA.  In 2022 FCCB was included in the ABA Nasdaq Community Bank Index – an indication of our progress and leadership capabilities in the market.   In 2017, Forbes Magazine began conducting customer satisfaction surveys for all banks across the nation. First Citizens Community Bank was voted “Best in State Bank” by our customers in a Forbes Magazine survey in 2018 and 2019.   FCCB was celebrated for outstanding 2020 performance in the prestigious Bank Directors Performance Scorecard, placing 29th in the nation and as the highest-ranking Pennsylvania bank.  In 2022 FCCB received the Bank On Certification, a certification promoted by the CFE Fund that is nationally awarded to banks that meet account criteria that ensures everyone has access to a safe, affordable transactional banking account.  In 2020, Banking Mid Atlantic magazine ranked FCCB as the third bank in North Central, Pennsylvania for overall quality.   In a 2021 Rivel Banking benchmark study, FCCB was ranked 5th in the state of Pennsylvania for the quality of our response to the COVID-19 pandemic.  2023 and 2024: FCCB was recognized by Newsweek and Plant-A Insights Group as one of the top 250 regional banks in the United States. This distinction was awarded based on a thorough evaluation of profitability, financial relevance, risk exposures, overall health, and stability, including social media and app store reviews.  A Recognized High Performer 
 
 Business & Financial  Highlights 
 
 Key Financial Highlights  Top Tier Consolidated 
 
 Liquidity Position and Sources  Note: Bank level regulatory data shown  Liquidity Well-Managed to Cover Short-Term Needs  Liquidity Sources  September 30, 2024  $ in Thousands  Cash and Cash Equivalents   $40,388  FHLB Borrowing Capacity Remaining  690,141   Brokered Deposits Capacity  462,999   FRB Borrowing Capacity  17,806   Total  $1,211,334  Investments  US Gov't & Agency  $225,257  MBS & CMO   $103,058  Municipals  $104,005  Corporates  $13,436  Less: Pledged Securities  (363,279)  Net Unpledged Securities  $82,477  Total Liquidity Sources  $1,293,811 
 
 Deposit Mix  Deposit Mix Analysis   Note: Bank level regulatory data shown 
 
 Loan Portfolio Mix  Loan Type Analysis  Note: Bank level regulatory data shown 
 
 History of Successful Growth  Total Asset Growth since 2000 ($000)  Note: Dollars in thousands 
 
 Consistent & Attractive Returns  Historical Core ROAA & ROATCE  (1) Please see appendix for non-GAAP reconciliations 
 
 History of Strong Asset Quality  Historical NPAs/Assets Trends  NCOs/Avg Loans:  0.02%  0.06%  0.03%  0.00%  0.03%  0.15% 
 
 Note: Financial and transaction value shown as of announcement of transaction  Successful Track Record of Prudent Acquisitions  Transaction:  FNB of Fredericksburg  MidCoast Community Bancorp, Inc.  HV Bancorp, Inc.  Total Whole Bank Acquisitions Since January 1, 2015  Geography:  Fredericksburg, PA  Wilmington,   DE  Doylestown,  PA  --  Date Closed:  12/11/2015  4/17/2020  6/16/2023  --  Locations:  7  3  12  22  Purchase Price:  Cash & Stock:  $23.0 million  Cash & Stock:  $29.5 million  Cash & Stock:  $67.9 million  --  Target Assets   ($M):  $232  $269  $571  $1,072  Target Loans   ($M):  $146  $231  $391  $769  Target Deposits ($M):  $214  $213  $482  $909  CZFS Acquisitions since January 1, 2015 
 
 appendix 
 
 Non-GAAP Reconciliation – Tangible Book Value  For the Twelve Months Ended,  For the Quarter Ended,  Dollars in thousands     12/31/2021  12/31/2022  12/31/2023  12/31/2023  3/31/2024  6/30/2024  9/30/2024                 Total common equity  $212,492   $200,147   $279,666   $279,666   $282,674   $286,470   $298,654   Total intangible assets      33,003    32,468    89,408    89,408    89,208    89,002    88,841   Tangible common equity  $179,489   $167,499   $190,258   $190,258   $193,466   $197,468   $209,813   Total assets  $2,143,863   $2,333,393   $2,975,321   $2,975,321   $2,921,103   $2,947,531   $3,026,468   Total intangible assets      33,003    32,468    89,408    89,408    89,208    89,002    88,841   Tangible assets  $2,110,860   $2,300,745   $2,885,913   $2,885,913   $2,831,895   $2,858,529   $2,937,627   Accumulated other comprehensive gain (loss) income  ($155)  ($33,141)  ($24,911)  ($24,911)  ($26,620)  ($25,932)  ($18,916)  TCE / TA  8.50%  7.28%  6.59%  6.59%  6.83%  6.91%  7.14%  TCE / TA (Excl. AOCI)  8.51%  8.72%  7.46%  7.46%  7.77%  7.82%  7.79%  Tangible Book Value Per Share  $44.11  $41.29  $40.02  $40.02  $40.70  $41.49  $44.08 
 
 Non-GAAP Reconciliation 
 
v3.24.3
Document and Entity Information
Oct. 30, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 30, 2024
Entity File Number 001-41410
Entity Registrant Name CITIZENS FINANCIAL SERVICES INC
Entity Central Index Key 0000739421
Entity Incorporation, State or Country Code PA
Entity Tax Identification Number 23-2265045
Entity Address, Address Line One 15 S MAIN ST
Entity Address, City or Town MANSFIELD
Entity Address, State or Province PA
Entity Address, Postal Zip Code 16933
City Area Code 570
Local Phone Number 662-0444
Title of 12(b) Security Common Stock, Par Value $1.00 Per Share
Trading Symbol CZFS
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
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