The Board of Directors of Citizens Financial Services Inc. declared a one-time special cash dividend for Citizens Financial Services shareholders. A cash dividend of $0.05 per share will be paid on December 10, 2009 to shareholders of record on November 16, 2009. This one-time special cash dividend results in an overall increase of 4.04% in dividends declared this year versus 2008.

On November 2, 2009, Carol J. Tama notified Citizens Financial Services Inc. that, effective immediately, she was resigning from the Boards of Directors of the Company and its wholly owned subsidiary, First Citizens National Bank (Mansfield, PA).

Citizens Financial Services Inc. reported consolidated unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net interest income of $6,390,000, net income before provision for income taxes of $5,990,000, net income of $2,388,000 or $0.83 earnings per share on total interest income of $9,667,000 as compared to net interest income of $5,963,000, net loss before provision for income taxes of $898,000, net loss of $1,052,000 or $0.37 earnings per share on total interest income of $9,345,000 for the same period last year. Return on average assets was 1.35% and return on average equity was 16.84% as compared to negative return on average assets was 0.69% and negative return on average equity was 8.01% for the same period last year. For nine months, the company reported net interest income of $18,819,000, net loss before provision for income taxes of $9,147,000, net loss of $7,206,000 or $2.51 earnings per share on total interest income of $28,893,000 as compared to net interest income of $17,201,000, net loss before provision for income taxes of $4,894,000, net loss of $3,415,000 or $1.19 earnings per share on total interest income of $27,739,000 for the same period last year. Return on average assets was 1.39% and return on average equity was 17.46% as compared to return on average assets was 0.76% and return on average equity was 8.93% for the same period last year. Book value per share at September 30, 2009 was $20.09 compared with $17.59 last September, an increase of 14.2%. The company declared in October, a cash dividend of $0.25 per share and will be paid on October 30, 2009 to shareholders of record, as of October 16, 2009, an increase of 4.2% over the October 2008 dividend.