CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY

12 Months Ended

Dec. 31, 2018

19. CONDENSED FINANCIAL INFORMATION - PARENT COMPANY ONLY

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

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED BALANCE SHEET

	December 31,
(in thousands)	2018		2017
Assets:
Cash	$	5,576	$	6,238
Available-for-sale securities		516		91
Investment in subsidiary:
First Citizens Community Bank		140,298		130,402
Other assets		813		369
Total assets	$	147,203	$	137,100

Liabilities:
Other liabilities	$	474	$	589
Borrowed funds		7,500		7,500
Total liabilities		7,974		8,089
Stockholders' equity		139,229		129,011
Total liabilities and stockholders' equity	$	147,203	$	137,100

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED STATEMENT OF INCOME
	Year Ended December 31,
(in thousands)	2018		2017		2016
Dividends from:
Bank subsidiary	$	8,248	$	7,507	$	5,842
Equity securities		7		60		92
Total income		8,255		7,567		5,934
Realized securities gains (losses)		-		1,021		31
Expenses		642		824		463
Income before equity
in undistributed earnings
of subsidiary		7,613		7,764		5,502
Equity in undistributed
earnings - First Citizens Community Bank		10,421		5,261		7,136
Net income	$	18,034	$	13,025	$	12,638
Comprehensive income	$	17,510	$	11,578	$	11,482

CITIZENS FINANCIAL SERVICES, INC.
STATEMENT OF CASH FLOWS
	Year Ended December 31,
(in thousands)	2018			2017			2016
Cash flows from operating activities:
Net income	$	18,034		$	13,025		$	12,638
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(10,421	)		(5,261	)		(7,136	)
Investment securities (gains) losses, net		-			(1,021	)		(31	)
Other, net		(251	)		629			230
Net cash provided by operating activities		7,362			7,372			5,701
Cash flows from investing activities:
Purchases of equity securities		(425	)		(94	)		(1	)
Proceeds from the sale of available-for-sale securities		-			2,828			201
Net cash provided by (used in) investing activities		(425	)		2,734			200
Cash flows from financing activities:
Cash dividends paid		(6,116	)		(5,177	)		(5,081	)
Purchase of treasury stock		(1,483	)		(979	)		(3,227	)
Reissuance of treasury stock to employee stock purchase plan		-			43			59
Purchase of restricted stock		-			-			-
Net cash used in financing activities		(7,599	)		(6,113	)		(8,249	)
Net (decrease) increase in cash		(662	)		3,993			(2,348	)
Cash at beginning of year		6,238			2,245			4,593
Cash at end of year	$	5,576		$	6,238		$	2,245