Citizens Financial Corp. Reports 39.4% Increase in Year-to-Date Earnings to $10.62 Million and Announces Stock Repurchase Program
Citizens Financial Corp. (OTCID: CIWV), the parent company of Citizens Bank of West Virginia, Inc., has reported significant growth in earnings, improved net interest margins, and continued expansion in its balance sheet for the third quarter and first nine months of 2026. The company also announced that its Board of Directors has authorized a stock repurchase program, providing management with additional flexibility to allocate capital and potentially enhance shareholder value.
Nathaniel S. Bonnell, President and Chief Executive Officer of Citizens Financial Corp., announced that the company recorded consolidated net income of $3.596 million for the three months ended September 30, 2026. This represents an increase of $978,000, or 37.4%, compared with net income of $2.618 million reported for the corresponding quarter in 2025.
Earnings per common share for the third quarter of 2026 reached $2.00, compared with $1.46 in the third quarter of the previous year. Earnings per Class A common share increased to $2.10 from $1.54 over the same period, reflecting stronger profitability and improved operating performance.
For the nine months ended September 30, 2026, Citizens Financial Corp. reported consolidated net income of $10.620 million, an increase of $3 million, or 39.4%, from $7.620 million for the comparable period in 2025. Earnings per common share rose to $5.90 from $4.25, while earnings per Class A common share increased to $6.20 from $4.47.
These results demonstrate the company’s ability to expand earnings while growing its lending activities and deposit base. Higher net interest income, improved net interest margins, and increased non-interest income contributed to the overall improvement in financial performance.
Board Authorizes Stock Repurchase Program
Alongside its quarterly earnings announcement, Citizens Financial Corp. disclosed that its Board of Directors has authorized a share repurchase program. Under the program, the company may purchase shares of its common stock from time to time through open-market transactions or privately negotiated arrangements.
The program is intended to provide flexibility in managing the company’s capital position and responding to market conditions. The timing, amount, and pricing of any repurchases will be determined at management’s discretion, taking into account several considerations, including market conditions, trading activity, capital levels, regulatory requirements, business performance, and other corporate opportunities.
The authorization does not require Citizens Financial Corp. to repurchase a specific number of shares. The company may also modify, suspend, or discontinue the program at any time without prior notice.
Commenting on the initiative, Bonnell said the repurchase program reflects management’s confidence in the company’s financial strength and long-term prospects. He noted that the authorization gives management and the Board the flexibility to repurchase shares when market conditions and the company’s valuation make such transactions an appropriate use of capital.
Although the program creates an additional option for capital allocation, actual repurchases will depend on management’s assessment of financial and market conditions. The announcement does not specify a mandatory purchase volume or guarantee that shares will be repurchased.
Balance Sheet Expansion Reflects Continued Growth
Citizens Financial Corp. reported total assets of $782.177 million as of September 30, 2026, compared with $685.603 million a year earlier. The increase of $96.574 million represents year-over-year growth of approximately 14.1%.
Compared with total assets of $704.628 million at December 31, 2025, the September 2026 balance increased by $77.549 million, equivalent to approximately 11.0% over the nine-month period, or 14.7% on an annualized basis.
Loan growth remained a significant component of the company’s balance sheet expansion. Net loans and leases increased to $618.907 million at September 30, 2026, from $544.590 million at September 30, 2025. The increase of $74.317 million represents growth of approximately 13.6%.
Compared with the year-end 2025 balance of $553.532 million, net loans and leases increased by $65.375 million, or approximately 11.8% over nine months. On an annualized basis, the increase was approximately 15.8%.
Deposits also recorded substantial growth. Total deposits reached $675.688 million at September 30, 2026, compared with $602.760 million a year earlier. This represents an increase of $72.928 million, or approximately 12.1%.
Relative to December 31, 2025, deposits increased by $55.027 million from $620.661 million, representing growth of approximately 8.9% over the nine-month period, or 11.8% on an annualized basis.
The company’s securities portfolio increased to $98.036 million from $82.617 million at September 30, 2025, while shareholders’ equity rose to $69.871 million from $59.288 million.
Together, these figures indicate continued expansion in lending, deposits, and overall assets, accompanied by growth in the company’s equity base.
Net Interest Income and Margin Show Strong Improvement
Net interest income was a major contributor to Citizens Financial Corp.’s improved earnings during the first nine months of 2026.
For the nine months ended September 30, 2026, net interest income totaled $23.347 million, compared with $19.284 million in the same period of 2025. This represents an increase of $4.063 million, or approximately 21.1%, based on reported net interest income before the provision for anticipated credit losses.
Interest income increased to $32.760 million from $29.307 million, while interest expense declined to $9.413 million from $10.023 million. The combination of higher interest income and lower interest expense supported the improvement in net interest income.
For the third quarter of 2026, net interest income reached $8.253 million, compared with $6.703 million in the third quarter of 2025, an increase of approximately 23.1%. Quarterly interest income increased to $11.448 million from $9.999 million, while interest expense declined to $3.195 million from $3.296 million.
The company also reported improvement in its net interest margin, an important measure of how effectively a financial institution generates income from its interest-earning assets.
For the nine months ended September 30, 2026, net interest margin increased to 4.44%, compared with 4.05% a year earlier. This represents an improvement of 0.39 percentage points.
For the third quarter, net interest margin rose to 4.53% from 4.18% in the corresponding quarter of 2025, an improvement of 0.35 percentage points.
Average interest-earning assets increased to $714.721 million for the first nine months of 2026, compared with $645.586 million in the same period of 2025. For the third quarter, average interest-earning assets rose to $735.992 million from $645.263 million.
The expansion in average interest-earning assets, together with improved net interest margins, helped strengthen the company’s core interest income generation.
For analytical purposes, Citizens also reported tax-equivalent net interest income of $23.735 million for the nine-month period and $8.400 million for the third quarter. These figures adjust for the tax treatment of certain tax-exempt assets and are used in calculating the corresponding tax-equivalent net interest margins.
Operating Income Increases Despite Higher Credit Provisions and Expenses
Beyond net interest income, Citizens Financial Corp. recorded an increase in non-interest income during the first nine months of 2026.
Non-interest income totaled $5.733 million, compared with $3.258 million in the corresponding period of 2025. This represents an increase of $2.475 million, or approximately 76.0%.
For the third quarter, non-interest income increased to $1.400 million from $1.133 million, reflecting growth of approximately 23.6%.
Non-interest expenses also increased as the company expanded its operations. Expenses for the first nine months of 2026 reached $13.811 million, compared with $11.483 million a year earlier. Quarterly non-interest expenses rose to $4.449 million from $4.062 million.
The company recorded a provision for anticipated credit losses of $2.150 million for the first nine months of 2026, compared with $1.350 million in the same period of 2025. For the third quarter, the provision increased to $600,000 from $450,000.
After accounting for the provision, net interest income for the first nine months totaled $21.197 million, compared with $17.934 million in 2025.
Income before income taxes increased to $13.119 million for the nine-month period, compared with $9.709 million a year earlier. Income tax expense rose to $2.499 million from $2.089 million.
For the third quarter, income before income taxes reached $4.604 million, compared with $3.324 million in the corresponding period of 2025. Income tax expense increased to $1.008 million from $706,000.
Despite higher provisions and operating expenses, the company delivered substantial growth in pretax income and net income, supported by stronger interest income and non-interest revenue.
Returns on Assets and Equity Improve
Citizens Financial Corp. reported stronger profitability ratios in September 2026 than in both September 2025 and December 2025.
Return on average assets increased to 1.89% as of the September 2026 reporting period, compared with 1.50% a year earlier and 1.49% at December 31, 2025.
Return on average shareholders’ equity rose to 21.37%, compared with 18.39% in September 2025 and 17.96% at year-end 2025.
These measures indicate that the company generated higher earnings relative to its average asset base and shareholders’ equity. The improvements are consistent with the reported increase in net income and net interest margin.
Shareholders’ Equity and Dividends
Shareholders’ equity reached $69.871 million at September 30, 2026, an increase of $10.583 million, or approximately 17.9%, from $59.288 million a year earlier.
Compared with $61.815 million at December 31, 2025, shareholders’ equity increased by $8.056 million, or approximately 13.0%, over the first nine months of 2026.
The company’s accumulated other comprehensive loss increased to $3.308 million from $2.500 million at September 30, 2025, and $2.084 million at December 31, 2025. This component of equity can fluctuate with changes in certain investment valuations and other accounting items.
Citizens Financial Corp. also increased cash dividends declared per share.
For the nine months ended September 30, 2026, dividends declared per common share totaled $0.87, up from $0.75 in the corresponding period of 2025. This represents an increase of $0.12, or 16.0%.
Dividends declared per Class A common share increased to $0.91 from $0.79, an increase of approximately 15.2%.
For the third quarter, the dividend declared per common share increased to $0.30 from $0.25, representing growth of 20.0%. The dividend declared per Class A common share rose to $0.32 from $0.26, an increase of approximately 23.1%.
As of September 30, 2026, Citizens had 1,702,408 common shares outstanding and 91,286 Class A common shares outstanding. The company had 1,695,988 common shares and 92,550 Class A common shares outstanding at September 30, 2025.
The new stock repurchase authorization provides an additional potential means of returning capital to shareholders alongside the company’s dividend policy, although any future purchases remain subject to management’s discretion and prevailing conditions.
Credit Quality and Nonperforming Assets
Citizens Financial Corp. reported an allowance for credit losses of $6.324 million at September 30, 2026, compared with $5.426 million at September 30, 2025, and $5.741 million at December 31, 2025.
The allowance increased by approximately 16.5% year over year and 10.2% compared with year-end 2025. The allowance represents funds set aside to cover estimated credit losses on relevant financial assets.
Total nonperforming assets increased to $3.410 million at September 30, 2026, from $2.715 million a year earlier and $2.413 million at December 31, 2025. The September balance represents an increase of approximately 25.6% year over year and 41.3% compared with year-end 2025.
Nonperforming assets consist of nonaccrual loans and other real estate owned. The increase warrants attention alongside the company’s continued loan growth and higher provision for anticipated credit losses.
Accruing loans past due by more than 90 days totaled $42,000 at September 30, 2026, compared with no such loans at September 30, 2025. However, the balance was lower than the $341,000 reported at December 31, 2025.
These credit indicators provide additional context for evaluating the company’s financial performance. While earnings, lending, and deposits expanded, continued monitoring of nonperforming assets and credit-loss reserves will remain important.
Citizens Financial Corp.’s results for the first nine months of 2026 reflect strong year-over-year earnings growth, a larger balance sheet, higher net interest margins, and increased shareholder distributions.
Net income rose to $10.620 million, while assets expanded to $782.177 million and net loans and leases reached $618.907 million. The company also strengthened its dividend payments and authorized a stock repurchase program that provides flexibility in future capital allocation decisions.
At the same time, higher credit-loss provisions and an increase in nonperforming assets remain important factors to monitor as the company continues to grow.
The repurchase program does not guarantee future purchases, and management’s decisions will depend on market conditions, capital requirements, regulatory considerations, business performance, and the availability of other investment opportunities.
Overall, Citizens Financial Corp.’s third-quarter and year-to-date results highlight improved profitability and continued business expansion. The company’s ability to sustain earnings growth, maintain credit quality, manage expenses, and allocate capital effectively will be important in determining whether its strong 2026 performance can continue through the remainder of the year and beyond.
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