19 21 65 59 74 150 0 113 186 83 84 84 248 157 56 Investor
Presentation 4th Quarter 2025 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 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: •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 and Agricultural
Consumer Fee Businesses Retail Banking with 43 branches and 29 ATMs Mobile & Online Banking C&I Lending SBA and USDA 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: $3.06B Gross Loans: $2.35B Deposits: $2.38B YTD Return on Average Assets: 1.21% YTD Return on Average Tangible Common Equity : 15.94%(3) Company Overview (1) Market Cap as of January 27, 2026 (2) Branches &
Employees data as of January 28, 2026 (3) Please see appendix for non-GAAP reconciliations Note: Holding Company data shown; Data as of December 31, 2025 Headquarters Mansfield, PA Founded 1872 Chartered 1932 Ticker NASDAQCM:
CZFS Market Cap(1) $293.9 Branches(2) 43 Employees(2) 376 FT – 39 PT Institutional Ownership 28.14% 3 Mo. ADTV 9,806 52 Week H/L $69.30 / $49.96 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 2025Q4 vs. 2025Q3 December 31, 2025 Diluted EPS $2.18 Diluted EPS $7.62 Net Income $10.5M Net Income $36.6 M Core ROATCE 17.01% Core ROATCE(1) 15.94% Net Interest
Margin 3.69% vs. 3.60% Core ROAA (1) 1.37% vs. 1.33% YTD Core ROAA(1) 1.21% vs. 1.16% Efficiency Ratio 54.03% vs. 55.16% Total Assets $3.1B 0.3% Growth Total Loans and Leases $2.3B 0.6% Growth Total Deposits $2.4B (1.4%)
Growth NPAs / Assets Ratio 0.95% vs. 0.75% NPLs / Gross Loans Ratio 1.14% vs. 0.88% Reserves / NPLs Ratio 85.0% vs. 109.2%
Experienced Leadership Executive Title Years of Banking Experience Joined
FCCB Randall E. Black Vice Chairman, President & CEO 32 1993 Stephen J. Guillaume Executive VP & CFO 16 2009 David Z. Richards Jr. Sr Executive VP & Board Director 48 2017 Jeffrey L. Wilson Sr Executive VP & Chief
Credit Officer 38 1987 LeeAnn Gephart Executive VP & Chief Banking Officer 19 2021 Jeffrey R White Executive VP & COO 8 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
Citizens Financial Services, Inc. has continually been ranked one of the top 100
best performing community banks in the nation. 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 and PA. In 2022 FCCB was
included in the ABA Nasdaq Community Bank Index – an indication of our progress and leadership capabilities in the market. FCCB maintains its "Bank On" Certification (awarded 2022), a national standard promoted by the CFE Fund, validating our
commitment to providing safe, affordable, and accessible banking accounts for all. Recognized for our dedication to serving military families. FCCB is also a proud participant in the Veterans Benefits Banking Program (VBBP), ensuring safe and
accessible banking for veterans. First Citizens Community Bank (FCCB) has been honored with the Federal Home Loan Bank of Pittsburgh's (FHLBank) 2025 Pillars of the Community Award. This is FHLBank's highest organizational honor 2025 and
2024: FCCB was recognized by Newsweek and Plant-A Insights Group as one of the top regional banks in the U.S. This distinction is based on a rigorous evaluation of profitability, financial relevance, risk exposure, and customer metrics. 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 December 31, 2025 September 30, 2025 $ in Thousands $ in Thousands Cash and Cash Equivalents $37,916 $34,700 FHLB Borrowing Capacity Remaining 636,189 630,634 Brokered
Deposits Capacity 590,629 550,853 FRB Borrowing Capacity 29,546 40,221 Total $1,294,280 $1,256,408 Investments US Gov't & Agency $181,297 $190,949 MBS & CMO
$149,310 $149,542 Municipals $120,608 $120,474 Corporates $11,304 $11,280 Less: Pledged Securities (364,216) (374,865) Net Unpledged Securities $98,303 $97,380 Total Liquidity Sources $1,392,583 $1,353,788
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 (1) & ROATCE
(1) (1) Please see appendix for non-GAAP reconciliations
History of Strong Asset Quality Historical NPAs/Assets Trends NCOs/Avg
Loans: 0.06% 0.03% 0.00% 0.03% 0.11% 0.03%
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 12/31/2023 12/31/2024 12/31/2025 3/31/2025 6/30/2025 9/30/2025 12/31/2025 Total common equity $279,666 $299,734 $338,051 $308,296
$313,653 $327,682 $338,051 Total intangible assets 89,408 88,650 87,979 88,464 88,288 88,132 87,979 Tangible common equity $190,258 $211,084 $250,072 $219,832 $225,365 $239,550 $250,072
Total assets $2,975,321 $3,025,724 $3,064,564 $3,016,338 $2,967,274 $3,056,269 $3,064,564 Total intangible assets 89,408 88,650 87,979 88,464 88,288 88,132 87,979
Tangible assets $2,885,913 $2,937,074 $2,976,585 $2,927,874 $2,878,986 $2,968,137 $2,976,585 Accumulated other comprehensive gain (loss)
income ($24,911) ($23,521) ($12,377) ($20,239) ($21,026) ($14,650) ($12,377) TCE / TA 6.59% 7.19% 8.40% 7.51% 7.83% 8.07% 8.40% TCE / TA (Excl.
AOCI) 7.46% 7.99% 8.82% 8.20% 8.56% 8.56% 8.82% Tangible Book Value Per Share $39.63 $43.91 $52.02 $45.73 $46.88 $49.83 $52.02
Non-GAAP Reconciliation