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

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED BALANCE SHEET
	December 31,
(in thousands)	2014	2013
Assets:
Cash	$ 7,911	$ 1,611
Available-for-sale securities	1,556	914
Investment in subsidiary:
First Citizens Community Bank	98,542	97,024
Other assets	511	459
Total assets	$ 108,520	$ 100,008

Liabilities:
Other liabilities	$ 492	$ 452
Borrowed funds	7,500	7,500
Total liabilities	7,992	7,952
Stockholders' equity	100,528	92,056
Total liabilities and stockholders' equity	$ 108,520	$ 100,008

CITIZENS FINANCIAL SERVICES, INC.
CONDENSED STATEMENT OF INCOME
	Year Ended December 31,
(in thousands)	2014	2013	2012
Dividends from:
Bank subsidiary	$ 14,332	$ 4,142	$ 5,045
Available-for-sale securities	56	51	51
Total income	14,388	4,193	5,096
Investment securities losses, net	-	183	58
Expenses	555	638	611
Income before equity in undistributed
earnings of subsidiary	13,833	3,738	4,543
Equity in undistributed
earnings - First Citizens Community Bank	(448)	9,637	9,672
Net income	$ 13,385	$ 13,375	$ 14,215
Comprehensive income	$ 15,377	$ 7,519	$ 13,897

CITIZENS FINANCIAL SERVICES, INC.
STATEMENT OF CASH FLOWS
	Year Ended December 31,
(in thousands)	2014	2013	2012
Cash flows from operating activities:
Net income	$ 13,385	$ 13,375	$ 14,215
Adjustments to reconcile net income to net
cash provided by operating activities:
Equity in undistributed earnings of subsidiaries	448	(9,637)	(9,672)
Investment securities (gains) losses, net	-	(183)	(58)
Other, net	174	309	394
Net cash provided by operating activities	14,007	3,864	4,879
Cash flows from investing activities:
Purchases of available-for-sale securities	(602)	(1)	(141)
Proceeds from the sale of available-for-sale securities	-	538	110
Net cash provided by (used in) investing activities	(602)	537	(31)
Cash flows from financing activities:
Cash dividends paid	(6,121)	(3,558)	(4,601)
Purchase of treasury stock	(814)	(1,483)	(1,348)
Purchase of restricted stock	(170)	(115)	(142)
Net cash used in financing activities	(7,105)	(5,156)	(6,091)
Net decrease in cash	6,300	(755)	(1,243)
Cash at beginning of year	1,611	2,366	3,609
Cash at end of year	$ 7,911	$ 1,611	$ 2,366