Citizens Financial Corp. Reports 40% Increase in Year-To-Date Earnings to $7.0 Million - Increases Annual Dividend by 14%

ELKINS, W. Va.--(BUSINESS WIRE)--Nathaniel S. Bonnell, President & CEO of Citizens Financial Corp. (Citizens) (OTCID: CIWV), the parent company of Citizens Bank of West Virginia, Inc. announced that, for the three months ended June 30, 2026, Citizens had consolidated net income of $3,515,000, or $1.95 per common share and $2.05 per class A common share, for an increase of $958,000, or 37.5%, from $2,557,000, or $1.43 per common share and $1.50 per class A common share, for the three months ended June 30, 2025.

For the six months ended June 30, 2026, Citizens had consolidated net income of $7,024,000, or $3.90 per common share and $4.10 per class A common share, for an increase of $2,022,000, or 40.4%, from $5,002,000, or $2.79 per common share and $2.93 per class A common share, for the six months ended June 30, 2025.

The Board of Directors of Citizens Financial Corp., the bank holding company of Citizens Bank of West Virginia, declared their quarterly dividend at their July Board meeting of $0.30 per common share, an 11% increase over the previous quarter’s dividend of $0.27, and a 20% increase over last year’s second quarter dividend of $0.25. The dividend was declared for shareholders of record on July 18, 2026, and is payable on July 29, 2026.

“Given Citizens’ strong performance in 2026, the Board is pleased to provide shareholders a significant increase to the dividend this year,” stated Nathaniel S. Bonnell, President & CEO. “We raised the quarterly dividend from $0.25 per common share last year to $0.27 per common share in January of this year and now to $0.30 per common share in July. These increases emphasize our commitment to sustained shareholder returns.”

Additional financial highlights are included below:

CITIZENS FINANCIAL CORP. FINANCIAL HIGHLIGHTS

Selected Financial Data: (in thousands)							As of Year
	As of Period Ended						Ended
	6/30/2026			6/30/2025			12/31/2025
Total assets	$	772,465		$	682,467		$	704,628
Securities		106,536			77,734			75,559
Loans and leases, net		604,462			534,864			553,532
Deposits		678,488			601,512			620,661
Shareholders' equity		67,845			56,384			61,815
Significant Ratios	6/30/2026			6/30/2025			12/31/2025
Net interest margin		4.39	%		3.99	%		4.13	%
Return on average assets		1.92	%		1.49	%		1.49	%
Return on average shareholders' equity		21.80	%		18.64	%		17.96	%

Citizens’ assets of $772.5 million are an increase of $90.0 million, 13.2%, from $682.5 million at June 2025. The amount increased $67.9 million, 19.3% annualized, from $704.6 million at December 2025. Net loans have increased $69.8 million, 13.1%, to $604.5 million at June 2026 from $534.7 million at June 2025 and increased $51.0 million, 18.4% annualized, from $553.5 million at December 2025. Deposits of $678.5 million have increased $77.0 million, 12.8%, from the June 2025 balance of $601.5. This is an increase of $57.8 million, 18.6% annualized, from the December 2025 deposits of $620.7 million.

Summary of Operations: (in thousands, except per share data)	Quarter-to-Date Ended				Year-to-Date Ended
	6/30/2026		6/30/2025		6/30/2026		6/30/2025
Interest income	$	11,062	$	9,732	$	21,312	$	19,308
Interest expense		3,130		3,359		6,218		6,727
Net interest income		7,932		6,373		15,094		12,581
Provision for anticipated credit losses		500		450		1,550		900
Net interest income after provision for anticipated credit losses		7,432		5,923		13,544		11,681
Non-interest income		1,435		1,099		4,333		2,125
Non-interest expense		4,338		3,762		9,362		7,421
Income before income taxes		4,529		3,260		8,515		6,385
Income tax expense		1,014		703		1,491		1,383
Net income	$	3,515	$	2,557	$	7,024	$	5,002
Basic and fully diluted earnings per common share	$	1.95	$	1.43	$	3.90	$	2.79
Basic and fully diluted earnings per class A common share	$	2.05	$	1.50	$	4.10	$	2.93
Cash dividends declared per common share	$	0.30	$	0.25	$	0.57	$	0.50
Cash dividends declared per class A common share	$	0.32	$	0.26	$	0.60	$	0.53

Citizens’ earnings per common share were $3.90 for the six months ended June 2026 for an increase of $1.11, or 39.8%, from $2.79 for the six months ended June 2025. The earnings per common share for the three months ended June 2026 was $1.95 for an increase of $0.52, or 36.4%, from the $1.43 per common share for the three months ended June 2025. The dividend declared per common share for the six months ended June 2026 increased $0.07, or 14.0%, to $0.57 from $0.50 per common share for the six months ended June 2025. The dividend declared for the three months ended June 2026 was $0.30 per common share, that is an increase of $0.05, or 20.0%, per common share from $0.25 for the three months ended June 2025.

Summary of Operations: (in thousands, except margin)	Quarter-to-Date Ended						Year-to-Date Ended
	6/30/2026			6/30/2025			6/30/2026			6/30/2025
Average interest earning assets	$	729,292		$	646,446		$	703,909		$	645,751
Net interest income ^1	$	8,059		$	6,465		$	15,335		$	12,765
Net interest margin ^1		4.43	%		4.01	%		4.39	%		3.99	%
^1- Net interest income and net interest margin noted at tax rate of 21% on tax-exempt assets.

Citizens’ net interest margin increased to 4.39% for the six-months ended June 2026, for an increase of 0.40%, or 10.0%, to the June 2025 six-month net interest margin of 3.99%. The net interest margin for the three months ended June 2026 was 4.43% for an increase of 0.42%, or 10.5%, to the three-month June 2025 net interest margin of 4.01%. Net interest income for the six months ended June 2026 has increased $2.5 million, or 19.5%, to $15.3 million from $12.8 million for the six months ended June 2025. Net interest income for the three months ended June 2026 has increased $1.6 million, or 24.7%, to $8.1 million from $6.5 million for the three months ended June 2025. Average earning assets for the six months ended June 2026 were $703.9 million for an increase of $58.1 million, or 9.0%, from the average earnings assets of $645.8 million for the six months ended June 2025. The June 2026 three-month average earning assets increased $82.8 million, or 12.8%, to $729.3 million from the June 2025 three-month average earning assets of $646.5 million.

Shareholders' Equity and Outstanding Shares (In thousands, except share data)	6/30/2026			6/30/2025			12/31/2025
Shareholders' equity	$	67,845		$	56,384		$	61,815
Intangible assets, net	$	5,878		$	4,154		$	4,027
Accumulated other comprehensive loss	$	(2,308	)	$	(3,284	)	$	(2,084	)
Common stock shares outstanding		1,702,408			1,700,658			1,695,988
Class A common stock shares outstanding		91,886			89,341			92,550

Citizens’ shareholders’ equity at June 2026 of $67.8 million is an increase of $11.4 million, or 20.3%, from $56.4 million at June 2025. This is an increase of $6.0 million, or 19.5% annualized, from the December 2025 equity amount of $61.8 million. Accumulated other comprehensive loss decreased $1.0 million, or 29.7%, to $2.3 million at June 2026 from $3.3 million at June 2025. This loss increased $0.2 million, or 10.8%, from the $2.1 million loss at December 2025.

Allowance and Nonperforming Assets (In thousands)	6/30/2026		6/30/2025		12/31/2025
Allowance for credit losses	$	6,318	$	5,363	$	5,741
Total nonperforming assets ^2	$	3,782	$	2,679	$	2,413
Accruing loans past greater than 90 days	$	-	$	-	$	341
^2- Total nonperforming assets are comprised of nonaccrual loans and other real estate owned.

Citizens’ allowance for credit losses increased $0.9 million, or 17.8%, to $6.3 million at June 2026 from $5.4 million at June 2025. This is an increase of $0.6 million, or 10.1%, from the December 2025 amount of $5.7 million. Total nonperforming assets at June 2026 of $3.8 million increased $1.1 million, or 41.2%, from $2.7 million at June 2025 and $1.4 million, or 56.7%, from $2.4 million at December 2025. Citizens’ accruing loans past due greater than 90 days decreased to zero at June 2026 from $341,000 at December 2025.

ABOUT CITIZENS

Citizens Financial Corp. (OTCID: CIWV) is the parent company of its wholly-owned subsidiary, Citizens Bank of West Virginia, with $772 million in assets, provides integrated financial services including retail and commercial banking, wealth management, and mortgage services from eight financial centers in West Virginia, including Elkins, Bayard, Beverly, Buckhannon, New Martinsville, Parsons, and Thomas, as well as one location in Oakland, Maryland. Citizens Bank is 5-star rated and ranked among the strongest banks in the nation by Bauer Financial, the nation's leading independent bank rating firm. The bank ranked No. 19 on American Banker's list of Top-Performing Publicly Traded Community Banks Under $2 Billion in Assets and was the only West Virginia bank to earn a place on the list. Citizens Bank is also recognized among West Virginia's Top 10 Performing Banks by the Bank Performance Report. Citizens ranks No. 22 on American Banker's Best Banks to Work For list and has received numerous regional honors, including WV Living's Best Corporate Citizen; The Inter-Mountain's People's Choice Awards for Best Bank, Mortgage Lender, Customer Service, and Employer; and The Record Delta's Best Place to Work and Best Mortgage Provider awards. Additionally, Citizens Bank has been recognized by Newsweek's America's Best Banks list as the Best Small Bank in West Virginia, named SBA West Virginia Community Lender of the Year, and ranked No. 9 nationally by the Independent Community Bankers of America in the consumer/mortgage category for banks with $300 million to $1 billion in assets. For more information, visit www.citizenswv.com.

FORWARD LOOKING STATEMENTS

Certain statements made in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about the Company's growth strategy and deployment of capital. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from those expressed or implied by such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law.