The following is condensed financial information for Citizens Financial Services, Inc.:

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED BALANCE SHEET

	December 31,
(in thousands)	2017		2016
Assets:
Cash	$	6,238	$	2,245
Available-for-sale securities		91		2,735
Investment in subsidiary:
First Citizens Community Bank		130,402		125,973
Other assets		369		564
Total assets	$	137,100	$	131,517

Liabilities:
Other liabilities	$	589	$	749
Borrowed funds		7,500		7,500
Total liabilities		8,089		8,249
Stockholders' equity		129,011		123,268
Total liabilities and stockholders' equity	$	137,100	$	131,517

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED STATEMENT OF INCOME
	Year Ended December 31,
(in thousands)	2017		2016		2015
Dividends from:
Bank subsidiary	$	7,507	$	5,842	$	5,582
Equity securities		60		92		71
Total income		7,567		5,934		5,653
Realized securities gains		1,021		31		76
Expenses		824		463		892
Income before equity
in undistributed earnings
of subsidiary		7,764		5,502		4,837
Equity in undistributed
earnings - First Citizens Community Bank		5,261		7,136		6,789
Net income	$	13,025	$	12,638	$	11,626
Comprehensive income	$	11,578	$	11,482	$	10,623

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED STATEMENT OF CASH FLOWS
	Year Ended December 31,
(in thousands)	2017			2016			2015
Cash flows from operating activities:
Net income	$	13,025		$	12,638		$	11,626
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(5,261	)		(7,136	)		(6,789	)
Investment securities gains, net		(1,021	)		(31	)		(76	)
Other, net		629			230			322
Net cash provided by operating activities		7,372			5,701			5,083
Cash flows from investing activities:
Purchases of available-for-sale securities		(94	)		(1	)		(901	)
Proceeds from the sale of available-for-sale securities		2,828			201			113
Net cash provided by (used in) investing activities		2,734			200			(788	)
Cash flows from financing activities:
Cash dividends paid		(5,177	)		(5,081	)		(5,151	)
Purchase of treasury stock		(979	)		(3,227	)		(2,455	)
Reissuance of treasury stock to employee stock purchase plan		43			59			-
Purchase of restricted stock		-			-			(7	)
Net cash used in financing activities		(6,113	)		(8,249	)		(7,613	)
Net decrease in cash		3,993			(2,348	)		(3,318	)
Cash at beginning of year		2,245			4,593			7,911
Cash at end of year	$	6,238		$	2,245		$	4,593