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CONTACT : KATHLEEN CAMPBELL , MARKETING DIRECTOR FIRST CITIZENS COMMUNITY BANK 15 S. MAIN STREET 570-662-0422 570-662-8512 ( FAX ) MANSFIELD , PA 16933 CITIZENS FINANCIAL SERVICES , INC . REPORTS UNAUDITED THIRD QUARTER 2021 FINANCIAL RESULTS MANSFIELD , PENNSYLVANIA— October 22 , 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 nine months ended September 30 , 2021 . Highlights . • • Net income was $ 22.2 million for the nine months ended September 30 , 2021 , which is 24.0 % higher than the net income for 2020's comparable period . The effective tax rate for the nine months ended September 30 , 2021 was 17.3 % compared to 17.2 % in the comparable period in 2020 . Net income was $ 7.1 million for the three months ended September 30 , 2021 , which is 11.8 % less than the net income for 2020's comparable period . The effective tax rate for the three months ended September 30 , 2021 was 18.3 % compared to 18.0 % in the comparable period in 2020 . Net interest income before the provision for loan losses was $ 49.2 million for the nine months ended September 30 , 2021 , an increase of $ 3.6 million , or 7.9 % , over the same period a year ago . Non - performing assets decreased $ 2.9 million from year end and $ 5.4 million since September 30 , 2020 and totaled $ 10,218,000 as of September 30 , 2021. As a percent of loans , non - performing assets totaled 0.71 % , 0.93 % and 1.14 % as of September 30 , 2021 , December 31 , 2020 and September 30 , 2020 . Return on average equity for the three and nine months ( annualized ) ended September 30 , 2021 was 13.65 % and 14.66 % compared to 17.36 % and 13.85 % for the three and nine months ( annualized ) ended September 30 , 2020 . Return on average tangible equity for the three and nine months ( annualized ) ended September 30 , 2021 was 16.25 % and 17.53 % compared to 21.11 % and 16.72 % for the three and nine months ( annualized ) ended September 30 , 2020 ( non- GAAP ) . ( 1 ) Return on average assets for the three and nine months ( annualized ) ended September 30 , 2021 was 1.40 % and 1.49 % compared to 1.75 % and 1.43 % for the three and nine months ( annualized ) ended September 30 , 2020 . Covid 19 pandemic response and loan profile . During 2021 , the Company participated in the Paycheck Protection Program ( PPP ) for loans provided under the auspices of the Small Business Administration ( SBA ) . As of September 30 , 2021 , 267 loans with a balance of $ 20.8 million remain outstanding under this program . From January 1 , 2021 to September 30 , 2021 , we issued 388 loans with aggregate balances of $ 24.3 million . As of September 30 , 2021 , 26 loans that were issued under this program in 2020 remain outstanding and have a balance of $ 2.9 million . The loans earn interest at 1 % per annum and the processing fee paid by the SBA will be accreted into income over the life of the loans . The SBA has issued guidance for forgiveness with a streamlined approach for loans of $ 150,000 or less . Of the PPP loans outstanding , 226 loans , or 84.6 % of the remaining PPP loans , had an original balance less than $ 150,000 . The outstanding balance for these 226 loans as of September 30 , 2021 was approximately $ 7.1 million .