Citizens Financial Services Inc (NASDAQ: CZFS) is a Pennsylvania-based bank holding company that operates First Citizens Community Bank, a full-service commercial bank serving individual, business, governmental, and institutional customers. The company makes money primarily through net interest income on loans and deposits, with supplemental non-interest income from service charges, trust and investment services, brokerage and insurance, and gains on loans sold. First Citizens Community Bank held 34.1% of FDIC-insured deposits in Bradford, Potter, and Tioga Counties, Pennsylvania as of June 30, 2025, ranking second among eight financial institutions in that market, and 6.1% of FDIC-insured deposits in Allegany County, New York. The bank operates across northern Pennsylvania and adjacent New York markets, with a concentration in commercial real estate lending. Non-owner-occupied commercial real estate loans represented 287.0% of consolidated risk-based capital as of December 31, 2025. Non-interest income totaled $14.3 million in FY2025, down from $15.4 million in FY2024.

Revenue model

Net interest income on a portfolio of residential mortgage, commercial real estate, commercial and industrial, agricultural, construction, and consumer loans funded by checking, savings, and time deposit accounts. Secondary income streams include service charges, trust and investment fees, brokerage and insurance commissions, and gains on loans sold.

Products and services

Checking, savings, and time deposit accounts; residential mortgage loans; commercial and agricultural real estate loans; commercial and industrial loans; construction loans; consumer loans; private student loans; trust and estate services; mineral management; retirement services; brokerage and insurance products; bank-owned life insurance; USDA Farm Service Agency guaranteed loans.

Customers and end markets

Individual retail depositors and borrowers; small and mid-size businesses; agricultural operators including dairy, swine, and poultry farmers; governmental and institutional entities; trust and estate clients. Agriculture is a material end market in the bank's core Pennsylvania footprint.

Value-chain role

Community bank acting as deposit-gathering and credit-intermediation institution. Originates and holds loans on balance sheet, with selective loan sales generating gain-on-sale income. Competes against larger institutions that can achieve greater economies of scale and offer broader product sets at lower cost.

Geographic exposure

Primary markets in Bradford, Potter, and Tioga Counties in north-central Pennsylvania, and Allegany County, New York. Secondary presence in southeastern Pennsylvania and Delaware markets, expanded through the HVBC acquisition.

Competitors

Eight financial institutions with offices in Bradford, Potter, and Tioga Counties, Pennsylvania (unnamed in filing)

Source: SEC 10-K, filed 2026-03-12

Industry: State Commercial Banks Peers: First Business Financial Services Inc FVCBankcorp Inc PCB Bancorp PCSB Financial Corp PNC Financial Services Group Inc USCB Financial Holdings Inc Unity Bancorp Inc