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CONTACT : KATHLEEN CAMPBELL , MARKETING DIRECTOR 570-662-0422 570-662-8512 ( FAX ) FIRST CITIZENS COMMUNITY BANK 15 S. MAIN STREET MANSFIELD , PA 16933 CITIZENS FINANCIAL SERVICES , INC . REPORTS UNAUDITED SECOND QUARTER 2021 FINANCIAL RESULTS MANSFIELD , PENNSYLVANIA— July 23 , 2021 - Citizens Financial Services , Inc. ( OTC Pink : CZFS ) , parent company of First Citizens Community Bank , released today its unaudited consolidated financial results for the three and six months ended June 30 , 2021 . • Highlights The financial results of the Company continue to benefit from the acquisition of MidCoast Community Bancorp , Inc. that closed in the second quarter of 2020 . Net income was $ 15.1 million for the six months ended June 30 , 2021 , which is 53.1 % higher than the net income for 2020's comparable period . The effective tax rate for the six months ended June 30 , 2021 was 16.9 % compared to 16.4 % in the comparable period in 2020 . Net income was $ 6.6 million for the three months ended June 30 , 2021 , which is 24.5 % higher than the net income for 2020's comparable period . The effective tax rate for the three months ended June 30 , 2021 was 17.9 % compared to 16.5 % in the comparable period in 2020 . Net interest income before the provision for loan losses was $ 32.7 million for the six months ended June 30 , 2021 , an increase of $ 3.5 million , or 11.9 % , over the same period a year ago . Non - performing assets decreased $ 2.2 million from year end and $ 3.3 million since June 30 , 2020 and totaled $ 10,942,000 as of June 30 , 2021. As a percent of loans , non - performing assets totaled 0.77 % , 0.93 % and 1.04 % as of June 30 , 2021 , December 31 , 2020 and June 30 , 2020 . Return on average equity for the three and six months ( annualized ) ended June 30 , 2021 was 13.19 % and 15.19 % compared to 12.28 % and 11.90 % for the three and six months ( annualized ) ended June 30 , 2020 . Return on average tangible equity for the three and six months ( annualized ) ended June 30 , 2021 was 15.77 % and 18.22 % compared to 14.98 % and 14.31 % for the three and six months ( annualized ) ended June 30 , 2020 ( non - GAAP ) . ( 1 ) Return on average assets for the three and six months ( annualized ) ended June 30 , 2021 was 1.32 % and 1.54 % compared to 1.25 % and 1.24 % for the three and six months ( annualized ) ended June 30 , 2020 . If the life insurance proceeds on a former employees are excluded , the return on average equity and average assets would be 14.03 % and 1.42 % , respectively , for six months ( annualized ) ended June 30 , 2021 ( non - GAAP ) . ( 1 )