21. SEGMENT REPORTING

The Company’s reportable segment is determined by the Chief Executive Officer, who is the designated the chief operating decision maker, based upon information provided about the Company’s products and services offered, primarily banking operations. The segment is also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business such as branches, which are then aggregated if operating performance, products/services, and customers are similar. The chief operating decision maker will evaluate the financial performance of the Company’s business components such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the Company’s segment and in the determination of allocating resources. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance and evaluate return on assets. The chief operating decision maker uses consolidated net income to benchmark the Company against its competitors. The benchmarking analysis coupled with monitoring of budget to actual results are used in assessment performance and in establishing compensation. Loans, investments, and deposits provide the revenues in the banking operation. Interest expense, provisions for credit losses, payroll, and occupancy expenses provide the significant expenses in the banking operation. All operations are domestic.

Accounting policies for the segment are the same as those described in Note 1. The measure of segment assets is reported on the balance sheet as total consolidated assets. Segment performance is evaluated using consolidated net income. Information reported internally for performance assessment by the chief operating decision maker follows, inclusive of reconciliations of significant segment totals to the consolidated financial statements (in thousands):

	Community Banking
	2025		2024		2023
Total Interest and Dividend Income	$	159,168	$	154,317	$	127,118
Total non-interest income		14,344		15,401		11,605
Total Consolidated Revenues		173,512		169,718		138,723
Less:
Interest Expense		61,167		67,862		46,858
Segment net interest income and non-interest income		112,345		101,856		91,865
Less:
Provision for credit losses		2,375		2,587		5,528
Salaries and employee benefits		39,402		39,347		34,990
Occupancy		5,299		5,013		4,123
Other segment expenses		20,181		21,226		25,709
Income Taxes		8,516		5,865		3,704
Segment net income/consolidated net income	$	36,572	$	27,818	$	17,811

Historical Timeline

Fiscal Year	Filed
2025	Mar 12, 2026	Showing above
2024	Mar 6, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

CITIZENS FINANCIAL SERVICES INC Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures