materialimpairment.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C., 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported):
|
September
17, 2008
|
|
|
|
|
|
|
|
|
|
|
CITIZENS
FINANCIAL SERVICES, INC.
|
(Exact
name of registrant as specified in its charter)
|
|
|
|
|
|
Pennsylvania
|
|
0-13222
|
|
23-2265045
|
(State
or other jurisdiction of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S.
Employer Identification No.)
|
|
|
|
|
|
15
South Main Street, Mansfield, PA
|
|
16933
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
|
|
|
Registrant’s
telephone number, including area code:
|
(570)
662-2121
|
|
|
|
N/A
|
(Former
name or former address, if changes since last
report.)
|
ITEM
2.06 MATERIAL
IMPAIRMENTS
Citizens
Financial Services, Inc. (the “Company”) determined that, as a result of actions
taken on September 7, 2008 by the United States Treasury Department and the
Federal Housing Finance Agency with respect to the Federal Home Loan Mortgage
Corporation (“Freddie Mac”), it will record an other-than-temporary impairment
and take a non-cash charge to its earnings for the third quarter of 2008 related
to its investments in preferred equity securities issued by Freddie
Mac. The value of these securities has decreased
materially and it is unclear if, or when, their financial condition will
improve. The Company will record a non-cash, other-than-temporary
impairment charge of approximately $2.2 to $2.5 million in the
third quarter relating to its investments in these preferred stocks, before
any potential tax benefit. The Company does not own any common stock
or other equity securities issued by Freddie Mac or Fannie Mae. After
the write-down of these securities, the Company and its subsidiary, First
Citizens National Bank, will both remain “well-capitalized” under regulatory
standards.
|
Citizens Financial Services,
Inc. |
|
|
|
|
|
September
17, 2008
|
By:
|
/s/ Mickey
L. Jones |
|
|
|
Mickey
L. Jones |
|
|
|
Executive
Vice President and Chief Financial Officer |
|
|
|
|
|