EXHBIT 99.1                                                                                                                                   

                                                                                                  

                                                                                              

Contact:  Kathleen Campbell, Marketing Director		First Citizens Community Bank
570-662-0422		15 S. Main Street
570-662-8512 (fax)		Mansfield, PA 16933

MANSFIELD, PENNSYLVANIA— July 29, 2016 – Citizens Financial Services, Inc. (OTC BB: CZFS), parent company of First Citizens Community Bank, released today its unaudited financial results for the three and six months ended June 30, 2016.

For the six months ended June 30, 2016, net income totaled $6,314,000 which compares to net income of $6,309,000 for the first six months of 2015.  Basic earnings per share of $1.88 for the first six months of 2016 compares to $2.06 for the first six months last year.  Annualized return on equity for the six months ended June 30, 2016 and 2015 was 10.34% and 12.41%, while return on assets was 1.06% and 1.36%, respectively.

For the three months ended June 30, 2016, net income totaled $3,031,000 which compares to net income of $3,189,000 for the second quarter of 2015, a decrease of $158,000.  Basic earnings per share of $.91 for the second quarter of 2016 compares to $1.04 for the second quarter last year.  Annualized return on equity for the three months ended June 30, 2016 and 2015 was 9.88% and 12.45%, while return on assets was 1.02% and 1.36%, respectively.

Net interest income before the provision for loan loss has increased from $15,148,000 for the six months ended June 30, 2015 to $18,376,000 for 2016, an increase of $3,228,000 or 21.3%.  For 2016, interest income increased $3,349,000, while interest expense increased $121,000.  The net interest margin decreased from 3.81% last year to 3.62% for 2016, which is a decrease of 19 basis points.  The interest rate environment, competitive pressures and the integration of FNB have resulted in a 28 basis point decline in the yield on interest earning assets.  However, the cost of interest bearing liabilities has decreased 11 basis points in 2016 compared to the first six months 2015.  The provision for loan losses for the six months ended June 30, 2016 totaled $270,000, in comparison to $240,000 for the six months ended June 30, 2015.

CEO and President Randall E. Black stated, "Our strategic efforts, while creating very positive potential future growth, have resulted in increased operating expenses of $3.5 million for the six months ended June 30, 2016 compared to the same period last year.  Along with the acquisition, we have added two lending teams and several administrative personnel to support the anticipated growth.  We continue to invest in technology, including the transition to a new debit card processing system which includes up to date technology to help fight debit card fraud. The economic climate continues to challenge all of us, however we are excited about our strategic initiatives and growth opportunities that lay before us."

At June 30, 2016, total assets were $1.18 billion which compares to $1.16 billion at December 31, 2015.  Available for sale securities of $360.9 million at June 30, 2016 increased only $1.2 million from December 31, 2015 due to the unfavorable investment environment and strengthening loan pipelines.  Net loans increased $13.8 million compared to the end of last year, and we expect even stronger growth for the remainder of the year due to our expansion efforts.  Since December 31, 2015, deposits have increased $15.5 million, to a total of $1.0 billion at June 30, 2016.

Stockholders' equity totaled $124.5 million at June 30, 2016, which compares to $119.8 million at December 31, 2015, an increase of $4.7 million.  Net income for the six months of 2016 totaling $6.3 million was offset by cash dividends of $2.8 million and net treasury share purchases of $1.1 million.  As a result of changes in interest rates impacting the fair value of investment securities, the unrealized gain on available for sale investment securities increased $2.3 million from the end of 2015.  A cash dividend of $.415 per share, along with a 1% stock dividend, was paid on June 30, 2016 to shareholders of record on June 23, 2016.  "This regular quarterly cash dividend is an increase of 2.5% over the regular dividend declared a year ago, and continues to reflect the Board of Directors' desire to provide total shareholder return to our shareholder base", added Mr. Black.

Citizens Financial Services, Inc. has nearly 1,700 shareholders, the majority of whom reside in markets where offices are located.

Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.  Forward-looking statements are not guarantees of future performance.  Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.  Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere periodically by the Company or on its behalf.  The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

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