----

----

| For the quarterly period ended | March 31, 2009 |
|--------------------------------|----------------|

| CITIZENS FINANCIAL CORP.                               |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

| Delaware                                                       | 55-0666598                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 213 Third Street, Elkins, West Virginia  | 26241      |
|------------------------------------------|------------|
| (Address of principal executive offices) | (Zip Code) |

| (304) 636-4095                                       |
|------------------------------------------------------|
| (Registrant's telephone number, including area code) |

| Not Applicable                                                                      |
|-------------------------------------------------------------------------------------|
| (Former name, former address and former fiscal year, if changed since last report.) |

| Large accelerated filer £ | Accelerated filer £    |
|--------------------------------|-----------------------------|
| Non-accelerated filer £   | Smaller reporting company T |

|   | Class                       | Outstanding at May 12, 2009 |   |
|--------|-----------------------------|-----------------------------|--------|
|   |                        |                        |   |
|   | Common Stock ($2 par value) | 1,829,504                   |   |

----

----

----

FORM

|     |                                                                                                                      | Page No.            |
|----------|---------------------------------------------------------------------------------------------------------------------------|---------------------|
|     |                                                                                                                      |                |   |
| Part I.  | Financial Information                                                                                                     |                |   |
|     |                                                                                                                      |                |   |
|     | Item 1. Financial Statements                                                                                              |                |   |
|     |                                                                                                                      |                |   |
|     | Condensed Consolidated Balance Sheets March 31, 2009 and December 31, 2008                                                |                | 3 |
|     |                                                                                                                      |                |   |
|     | Condensed Consolidated Statements of Income Three Months Ended March 31, 2009 and March 31, 2008                          |                | 4 |
|     |                                                                                                                      |                |   |
|     | Consolidated Statements of Comprehensive Income/Loss Three Months Ended March 31, 2009 and March 31, 2008                 |                | 5 |
|     |                                                                                                                      |                |   |
|     | Condensed Consolidated Statements of Changes in Shareholders' Equity Three Months Ended March 31, 2009 and March 31, 2008 |                | 6 |
|     |                                                                                                                      |                |   |
|     | Condensed Consolidated Statements of Cash Flows Three Months Ended March 31, 2009 and March 31, 2008                      |                | 7 |
|     |                                                                                                                      |                |   |
|     | Notes to Condensed Consolidated Financial Statements                                                                      |                | 8-15 |
|     |                                                                                                                      |                |   |
|     | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations                             |                | 16-22 |
|     |                                                                                                                      |                |   |
|     | Item 3. Quantitative and Qualitative Disclosures About Market Risk                                                        | Not Applicable |
|     |                                                                                                                      |                |   |
|     | Item 4. Controls and Procedures                                                                                           |                | 23 |
|     |                                                                                                                      |                |   |
| Part II. | Other Information and Index to Exhibits                                                                                   |                |   |
|     |                                                                                                                      |                |   |
|     | Items 1 through 6                                                                                                         |                | 23 |
|     |                                                                                                                      |                |   |
|     | Signatures                                                                                                                |                | 24 |
|     |                                                                                                                      |                |   |
|     | Certification by Executive Officers Pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002                    |                | 25-28 |

----

Index

PAR

|                                                                     |   | March 31, 2009 |    |   | December 31, 2008 |   |
|--------------------------------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                                                     |   | (Unaudited)         |    |   |                   | *      |   |
| ASSETS                                                                   |   |                |    |   |                   |   |   |
|                                                                     |   |                |    |   |                   |   |   |
| Cash and due from banks                                                  |   | $                   | 4,623   |   |                   | $      | 3,943 |   |
| Interest bearing deposits with other banks                               |   |                | 361     |   |                   |   | 9,438 |   |
| Securities available for sale, at fair value                             |   |                | 70,342  |   |                   |   | 80,859 |   |
| Restricted Investments                                                   |   |                | 1,924   |   |                   |   | 1,192 |   |
| Loans, less allowance for loan losses of $2,225 and $2,232, respectively |   |                | 173,971 |   |                   |   | 175,721 |   |
| Premises and equipment, net                                              |   |                | 4,076   |   |                   |   | 4,106 |   |
| Accrued interest receivable                                              |   |                | 1,221   |   |                   |   | 1,410 |   |
| Other assets                                                             |   |                | 5,295   |   |                   |   | 5,865 |   |
| Total Assets                                                             |   | $                   | 261,813 |   |                   | $      | 282,534 |   |
|                                                                     |   |                |    |   |                   |   |   |   |
|                                                                     |   |                |    |   |                   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                     |   |                |    |   |                   |   |   |   |
|                                                                     |   |                |    |   |                   |   |   |   |
| Deposits:                                                                |   |                |    |   |                   |   |   |   |
| Noninterest bearing                                                      |   | $                   | 28,922  |   |                   | $      | 29,553 |   |
| Interest bearing                                                         |   |                | 174,091 |   |                   |   | 187,876 |   |
| Total deposits                                                           |   |                | 203,013 |   |                   |   | 217,429 |   |
| Short-term borrowings                                                    |   |                | 24,452  |   |                   |   | 31,526 |   |
| Long-term borrowings                                                     |   |                | 7,765   |   |                   |   | 7,865 |   |
| Other liabilities                                                        |   |                | 5,061   |   |                   |   | 4,873 |   |
| Total liabilities                                                        |   |                | 240,291 |   |                   |   | 261,693 |   |
|                                                                     |   |                |    |   |                   |   |   |   |
| Commitments and contingencies                                            |   |                |    |   |                   |   | - |   |
|                                                                     |   |                |    |   |                   |   |   |   |
| SHAREHOLDERS' EQUITY                                                     |   |                |    |   |                   |   |   |   |
|                                                                     |   |                |    |   |                   |   |   |   |
| Common stock, $2.00 par value, authorized 4,500,000 issued 2,250,000     |   |                | 4,500   |   |                   |   | 4,500 |   |
| Retained earnings                                                        |   |                | 21,628  |   |                   |   | 21,110 |   |
| Accumulated other comprehensive income/(loss)                            |   |                | (774    | )      |                   |   | (937 | ) |
| Treasury stock at cost, 420,496 shares                                   |   |                | (3,832  | )      |                   |   | (3,832 | ) |
| Total shareholders' equity                                               |   |                | 21,522  |   |                   |   | 20,841 |   |
| Total Liabilities and Shareholders' Equity                               |   | $                   | 261,813 |   |                   | $      | 282,534 |   |

----

Index

CITIZ

|                                                   |   | Three Months Ended March 31, |      |
|--------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                   |   | 2009                              |      |   | 2008 |   |
|                                                   |   | (Unaudited)                       |      |
| INTEREST INCOME                                        |   |                              |      |   |   |   |
|                                                   |   |                              |      |   |   |   |
| Interest and fees on loans                             |   | $                                 | 2,656     |   |   | $ | 3,123 |   |
| Interest and dividends on securities:                  |   |                              |      |   |   |   |   |   |
| Taxable                                                |   |                              | 602       |   |   |   | 393 |   |
| Tax-exempt                                             |   |                              | 208       |   |   |   | 211 |   |
| Interest on interest bearing deposits with other banks |   |                              | 39        |   |   |   | 24 |   |
| Interest on federal funds sold                         |   |                              | -         |   |   |   | 2 |   |
| Total interest income                                  |   |                              | 3,505     |   |   |   | 3,753 |   |
|                                                   |   |                              |      |   |   |   |   |   |
| INTEREST EXPENSE                                       |   |                              |      |   |   |   |   |   |
|                                                   |   |                              |      |   |   |   |   |   |
| Interest on deposits                                   |   |                              | 1,040     |   |   |   | 1,514 |   |
| Interest on short-term borrowings                      |   |                              | 117       |   |   |   | 126 |   |
| Interest on long-term borrowings                       |   |                              | 74        |   |   |   | 31 |   |
| Total interest expense                                 |   |                              | 1,231     |   |   |   | 1,671 |   |
| Net interest income                                    |   |                              | 2,274     |   |   |   | 2,082 |   |
| Provision for loan losses                              |   |                              | 109       |   |   |   | 126 |   |
| Net interest income after provision for loan losses    |   |                              | 2,165     |   |   |   | 1,956 |   |
|                                                   |   |                              |      |   |   |   |   |   |
| NONINTEREST INCOME                                     |   |                              |      |   |   |   |   |   |
|                                                   |   |                              |      |   |   |   |   |   |
| Trust department income                                |   |                              | 66        |   |   |   | 84 |   |
| Brokerage fees                                         |   |                              | 20        |   |   |   | 48 |   |
| Service fees                                           |   |                              | 264       |   |   |   | 241 |   |
| Insurance commissions                                  |   |                              | 11        |   |   |   | 2 |   |
| Secondary market loan fees                             |   |                              | 39        |   |   |   | 13 |   |
| Other                                                  |   |                              | 58        |   |   |   | 66 |   |
| Total noninterest income                               |   |                              | 458       |   |   |   | 454 |   |
|                                                   |   |                              |      |   |   |   |   |   |
| NONINTEREST EXPENSE                                    |   |                              |      |   |   |   |   |   |
|                                                   |   |                              |      |   |   |   |   |   |
| Salaries and employee benefits                         |   |                              | 968       |   |   |   | 902 |   |
| Net occupancy expense                                  |   |                              | 116       |   |   |   | 116 |   |
| Equipment expense                                      |   |                              | 91        |   |   |   | 99 |   |
| Data processing                                        |   |                              | 160       |   |   |   | 147 |   |
| Director fees                                          |   |                              | 70        |   |   |   | 60 |   |
| Postage                                                |   |                              | 37        |   |   |   | 53 |   |
| Professional service fees                              |   |                              | 63        |   |   |   | 76 |   |
| Stationery                                             |   |                              | 37        |   |   |   | 29 |   |
| Software expense                                       |   |                              | 69        |   |   |   | 65 |   |
| Other                                                  |   |                              | 359       |   |   |   | 253 |   |
| Total noninterest expenses                             |   |                              | 1,970     |   |   |   | 1,800 |   |
|                                                   |   |                              |      |   |   |   |   |   |
| Income before income taxes                             |   |                              | 653       |   |   |   | 610 |   |
| Income tax expense                                     |   |                              | 135       |   |   |   | 148 |   |
| Net income                                             |   | $                                 | 518       |   |   | $ | 462 |   |
| Basic and fully diluted earnings per common share      |   | $                                 | 0.28      |   |   | $ | 0.25 |   |
| Weighted average shares outstanding                    |   |                              | 1,829,504 |   |   |   | 1,829,504 |   |
|                                                   |   |                              |      |   |   |   |   |   |
| Dividends per common share                             |   | $                                 | -         |   |   | $ | 0.12 |   |

----

Index

CIT

|                                             |   | Three Months Ended March 31 |   |
|--------------------------------------------------|--------|----------------------------------|--------|
|                                             |   | 2009                             |   |   | 2008 |   |
|                                             |   | (Unaudited)                      |   |
|                                             |   |                             |   |   |   |   |
| Net income                                       |   | $                                | 518    |   |   | $ | 462 |   |
|                                             |   |                             |   |   |   |   |   |   |
| Other comprehensive income:                      |   |                             |   |   |   |   |   |   |
| Gross unrealized gains arising during the period |   |                             | 262    |   |   |   | 653 |   |
| Adjustment for income tax expense                |   |                             | (99    | ) |   |   | (248 | ) |
|                                             |   |                             | 163    |   |   |   | 405 |   |
|                                             |   |                             |   |   |   |   |   |   |
| Other comprehensive income, net of tax           |   |                             | 163    |   |   |   | 405 |   |
|                                             |   |                             |   |   |   |   |   |   |
| Comprehensive income                             |   | $                                | 681    |   |   | $ | 867 |   |

----

Index

CITI

|                                                                                |   |         |      |   | Three Months Ended March 31, 2009 and 2008 |   |
|-------------------------------------------------------------------------------------|--------|--------------|-----------|--------|-------------------------------------------------|--------|
|                                                                                |   |         |      |   | (unaudited)                                     |   |
|                                                                                |   |         |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   | Common Stock |      |   | Retained                                        |   |   | Accumulated Other Comprehensive |   |   | Treasury |   |   | Total Share- holders' |   |
|                                                                                |   | Shares       |      |   | Amount                                          |   |   | Earnings |   |   | Income/(Loss) |   |   | Stock |   |   | Equity |   |
|                                                                                |   |         |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2009                                                            |   |         | 2,250,000 |   |                                            | $      | 4,500 |   |   | $ | 21,110 |   |   | $ | (937 | ) |   | $ | (3,832 | ) |   | $ | 20,841 |   |
| Net income                                                                          |   |         | -         |   |                                            |   | - |   |   |   | 518 |   |   |   | - |   |   |   | - |   |   |   | 518 |   |
| Net change in unrealized gain/loss on securities                                    |   |         | -         |   |                                            |   | - |   |   |   | - |   |   |   | 163 |   |   |   | - |   |   |   | 163 |   |
|                                                                                |   |         |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance March 31, 2009                                                              |   |         | 2,250,000 |   |                                            | $      | 4,500 |   |   | $ | 21,628 |   |   | $ | (774 | ) |   | $ | (3,832 | ) |   | $ | 21,522 |   |
|                                                                                |   |         |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |         |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |         |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, January 1, 2008                                                            |   |         | 2,250,000 |   |                                            | $      | 4,500 |   |   | $ | 20,999 |   |   | $ | (586 | ) |   | $ | (3,832 | ) |   | $ | 21,081 |   |
| Net income                                                                          |   |         | -         |   |                                            |   | - |   |   |   | 462 |   |   |   | - |   |   |   | - |   |   |   | 462 |   |
| Net change in unrealized gain/loss on securities                                    |   |         | -         |   |                                            |   | - |   |   |   | - |   |   |   | 405 |   |   |   | - |   |   |   | 405 |   |
| Cash dividends declared ($0.12 per share)                                           |   |         | -         |   |                                            |   | - |   |   |   | (219 | ) |   |   | - |   |   |   | - |   |   |   | (219 | ) |
| Adjustment to initially apply emerging issues task force issue No. 06-4, net of tax |   |         | -         |   |                                            |   | - |   |   |   | (86 | ) |   |   | - |   |   |   | - |   |   |   | (86 | ) |
|                                                                                |   |         |      |   |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance March 31, 2008                                                              |   |         | 2,250,000 |   |                                            | $      | 4,500 |   |   | $ | 21,156 |   |   | $ | (181 | ) |   | $ | (3,832 | ) |   | $ | 21,643 |   |

----

Index

CITIZEN

|                                                                          |   | Three Months Ended March 31, |    |
|-------------------------------------------------------------------------------|--------|-----------------------------------|---------|
|                                                                          |   | 2009                              |    |   | 2008 |   |
|                                                                          |   | (Unaudited)                       |    |
| Cash flows from operating activities:                                         |   |                              |    |   |   |   |
| Net Income                                                                    |   | $                                 | 518     |   |   | $ | 462 |   |
| Adjustments to reconcile net income to cash provided by operating activities: |   |                              |    |   |   |   |   |   |
| Provision for loan losses                                                     |   |                              | 109     |   |   |   | 126 |   |
| Depreciation and amortization                                                 |   |                              | 77      |   |   |   | 80 |   |
| Amortization/(accretion) on securities                                        |   |                              | (2      | ) |   |   | (1 | ) |
| Loss on disposal of equipment                                                 |   |                              | -       |   |   |   | 1 |   |
| Loss on sale of other real estate                                             |   |                              | 4       |   |   |   | - |   |
| Decrease in accrued interest receivable                                       |   |                              | 189     |   |   |   | 802 |   |
| (Increase)/decrease in other assets                                           |   |                              | 351     |   |   |   | (1,030 | ) |
| Increase in other liabilities                                                 |   |                              | 188     |   |   |   | 827 |   |
| Cash provided by operating activities                                         |   |                              | 1,434   |   |   |   | 1,267 |   |
|                                                                          |   |                              |    |   |   |   |   |   |
| Cash flows from investing activities:                                         |   |                              |    |   |   |   |   |   |
| Principal payments on available for sale securities                           |   |                              | 1,572   |   |   |   | 584 |   |
| Proceeds from sales of available for sale securities                          |   |                              | -       |   |   |   | 326 |   |
| Proceeds from maturities and calls, available for sale securities             |   |                              | 9,210   |   |   |   | 5,740 |   |
| Purchases of available for sale securities                                    |   |                              | (733    | ) |   |   | (12,079 | ) |
| Proceeds from sale of other real estate                                       |   |                              | 125     |   |   |   | - |   |
| Purchases of premises and equipment                                           |   |                              | (43     | ) |   |   | (51 | ) |
| (Increase)/decrease in loans                                                  |   |                              | 1,628   |   |   |   | (1,577 | ) |
| Cash provided/(used) by investing activities                                  |   |                              | 11,759  |   |   |   | (7,057 | ) |
|                                                                          |   |                              |    |   |   |   |   |   |
| Cash flows from financing activities:                                         |   |                              |    |   |   |   |   |   |
| Cash dividends paid                                                           |   |                              | -       |   |   |   | (219 | ) |
| Decrease in short-term borrowing                                              |   |                              | (7,074  | ) |   |   | (1,412 | ) |
| Repayment of long-term borrowing                                              |   |                              | (100    | ) |   |   | (93 | ) |
| Increase/(decrease) in time deposits                                          |   |                              | (13,624 | ) |   |   | 3,250 |   |
| Increase/(decrease) in other deposits                                         |   |                              | (792    | ) |   |   | 3,126 |   |
| Cash provided/(used) by financing activities                                  |   |                              | (21,590 | ) |   |   | 4,651 |   |
|                                                                          |   |                              |    |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                     |   |                              | (8,397  | ) |   |   | (1,139 | ) |
| Cash and cash equivalents at beginning of period                              |   |                              | 13,381  |   |   |   | 7,062 |   |
|                                                                          |   |                              |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                    |   | $                                 | 4,984   |   |   | $ | 5,923 |   |
|                                                                          |   |                              |    |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                             |   |                              |    |   |   |   |   |   |
| Cash paid during the period for:                                              |   |                              |    |   |   |   |   |   |
| Interest                                                                      |   | $                                 | 1,178   |   |   | $ | 1,643 |   |
| Income taxes                                                                  |   | $                                 | 26      |   |   | $ | - |   |
|                                                                          |   |                              |    |   |   |   |   |   |
| Supplemental disclosure of noncash investing and Financing activities:        |   |                              |    |   |   |   |   |   |
| Other real estate and other assets acquired in settlement of loans            |   | $                                 | 13      |   |   | $ | 44 |   |
| Unrealized gain on securities available for sale                              |   | $                                 | 262     |   |   | $ | 653 |   |

----

Index

CITIZ

|                                                                  |   | March 31, 2009 |   |
|-----------------------------------------------------------------------|--------|---------------------|--------|
|                                                                  |   | Amortized Cost      |   |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Carrying Value (Estimated Fair Value) |   |
|                                                                  |   | (Unaudited)         |   |
| Available for sale:                                                   |   |                |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations                             |   | $                   | 23,452 |   |   | $ | 681 |   |   | $ | - |   |   | $ | 24,133 |   |
| Mortgage backed securities- U.S. Government agencies and corporations |   |                | 19,707 |   |   |   | 632 |   |   |   | 7 |   |   |   | 20,332 |   |
| Corporate debt securities                                             |   |                | 2,996  |   |   |   | 9 |   |   |   | 143 |   |   |   | 2,862 |   |
|                                                                  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tax exempt state and political subdivisions                           |   |                | 22,371 |   |   |   | 646 |   |   |   | 2 |   |   |   | 23,015 |   |
|                                                                  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities available for sale                                   |   | $                   | 68,526 |   |   | $ | 1,968 |   |   | $ | 152 |   |   | $ | 70,342 |   |

----

Index

|                                                                  |   | December, 31, 2008* |   |
|-----------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                  |   | Amortized Cost           |   |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Carrying Value (Estimated Fair Value) |   |
|                                                                  |   | (Unaudited)              |   |
|                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Available for sale:                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations                             |   | $                        | 30,192 |   |   | $ | 726 |   |   | $ | - |   |   | $ | 30,918 |   |
| Mortgage backed securities- U.S. Government agencies and corporations |   |                     | 21,032 |   |   |   | 554 |   |   |   | 11 |   |   |   | 21,575 |   |
| Corporate debt securities                                             |   |                     | 5,133  |   |   |   | 1 |   |   |   | 59 |   |   |   | 5,075 |   |
| Tax exempt state and political subdivisions                           |   |                     | 22,948 |   |   |   | 391 |   |   |   | 49 |   |   |   | 23,291 |   |
| Total securities available for sale                                   |   | $                        | 79,305 |   |   | $ | 1,672 |   |   | $ | 119 |   |   | $ | 80,859 |   |

|                                        |   | March 31, 2009           |   |
|---------------------------------------------|--------|-------------------------------|--------|
|                                        |   | Securities Available for Sale |   |
|                                        |   | Less Than 12 Months           |   |   | 12 Months or More |   |   | Total |   |
|                                        |   | Fair Value                    |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations   |   | $                             | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Mortgage backed securities-                 |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies and corporations   |   |                          | 263    |   |   |   | 1 |   |   |   | 388 |   |   |   | 6 |   |   |   | 651 |   |   |   | 7 |   |
| Corporate debt securities                   |   |                          | 2,352  |   |   |   | 143 |   |   |   | - |   |   |   | - |   |   |   | 2,352 |   |   |   | 143 |   |
| Tax exempt state and political subdivisions |   |                          | -      |   |   |   | - |   |   |   | 1,169 |   |   |   | 2 |   |   |   | 1,169 |   |   |   | 2 |   |
| Total securities available for sale         |   | $                             | 2,615  |   |   | $ | 144 |   |   | $ | 1,557 |   |   | $ | 8 |   |   | $ | 4,172 |   |   | $ | 152 |   |

----

Index

|                                                                  |   | December 31, 2008*       |   |
|-----------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                                  |   | Securities Available for Sale |   |
|                                                                  |   | Less Than 12 Months           |   |   | 12 Months or More |   |   | Total |   |
|                                                                  |   | Fair Value                    |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
| U.S. Government agencies and corporations                             |   | $                             | -      |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Mortgage backed securities- U.S. Government agencies and corporations |   |                          | -      |   |   |   | - |   |   |   | 660 |   |   |   | 11 |   |   |   | 660 |   |   |   | 11 |   |
| Corporate debt securities                                             |   |                          | 3,436  |   |   |   | 59 |   |   |   | - |   |   |   | - |   |   |   | 3,436 |   |   |   | 59 |   |
| Tax exempt state and political subdivisions                           |   |                          | 639    |   |   |   | 9 |   |   |   | 1,449 |   |   |   | 41 |   |   |   | 2,088 |   |   |   | 49 |   |
| Total securities available for sale                                   |   | $                             | 4,075  |   |   | $ | 68 |   |   | $ | 2,109 |   |   | $ | 52 |   |   | $ | 6,184 |   |   | $ | 119 |   |

|                            |   | Available for sale |   |
|---------------------------------|--------|--------------------|--------|
|                            |   | Amortized Cost     |   |   | Estimated Fair Value |   |
|                            |   |               |   |   |   |   |
| Due within 1 year               |   | $                  | 13,038 |   |   | $ | 13,191 |   |
| Due after 1 but within 5 years  |   |               | 35,858 |   |   |   | 36,787 |   |
| Due after 5 but within 10 years |   |               | 19,630 |   |   |   | 20,364 |   |
|                            |   | $                  | 68,526 |   |   | $ | 70,342 |   |

|                          |   | Proceeds From |   |   | Gross Realized |   |
|-------------------------------|--------|---------------|--------|--------|----------------|--------|
|                          |   |          |   |   | Calls and      |   |   | Principal |   |   |   |   |   |   |   |
|                          |   | Sales         |   |   | Maturities     |   |   | Payments |   |   | Gains |   |   | Losses |   |
|                          |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |
| March 31, 2009:               |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale |   | $             | -      |   |           | $      | 9,210 |   |   | $ | 1,572 |   |   | $ | - |   |   | $ | - |   |
|                          |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2008:               |   |          |   |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale |   | $             | 326    |   |           | $      | 5,740 |   |   | $ | 584 |   |   | $ | - |   |   | $ | - |   |

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Index

|                                         |   | March 31, 2009 |    |   | December 31, 2008 |   |
|----------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                         |   | (Unaudited)         |    |   |                   | *      |   |
|                                         |   |                |    |   |                   |   |   |
| Commercial, financial and agricultural       |   | $                   | 21,408  |   |                   | $      | 20,262 |   |
| Real estate - construction                   |   |                | 13,129  |   |                   |   | 13,832 |   |
| Real estate – home equity              |   |                | 6,225   |   |                   |   | 6,411 |   |
| Real estate – residential mortgage     |   |                | 62,643  |   |                   |   | 62,695 |   |
| Real estate – commercial mortgage      |   |                | 58,236  |   |                   |   | 59,806 |   |
| Installment loans                            |   |                | 10,909  |   |                   |   | 11,424 |   |
| Other                                        |   |                | 3,736   |   |                   |   | 3,624 |   |
| Total loans                                  |   |                | 176,286 |   |                   |   | 178,054 |   |
|                                         |   |                |    |   |                   |   |   |   |
| Less:                                        |   |                |    |   |                   |   |   |   |
| Allowance for loan losses                    |   |                | 2,225   |   |                   |   | 2,232 |   |
| Net deferred loan origination fees and costs |   |                | 90      |   |                   |   | 101 |   |
|                                         |   |                |    |   |                   |   |   |   |
| Loans, net                                   |   | $                   | 173,971 |   |                   | $      | 175,721 |   |

|                                     |   | Three Months Ended March 31, |   |
|------------------------------------------|--------|-----------------------------------|--------|
|                                     |   | 2009                              |   |   | 2008 |   |
|                                     |   |                              |   |   |   |   |
| Balance at beginning of period           |   | $                                 | 2,232  |   |   | $ | 1,763 |   |
|                                     |   |                              |   |   |   |   |   |   |
| Loans charged off:                       |   |                              |   |   |   |   |   |   |
| Commercial and industrial                |   |                              | 3      |   |   |   | - |   |
| Real estate – residential mortgage |   |                              | -      |   |   |   | 11 |   |
| Real estate – commercial mortgage  |   |                              | 115    |   |   |   | - |   |
| Consumer and other                       |   |                              | 7      |   |   |   | - |   |
| Total                                    |   |                              | 125    |   |   |   | 11 |   |
|                                     |   |                              |   |   |   |   |   |   |
| Recoveries:                              |   |                              |   |   |   |   |   |   |
| Commercial and industrial                |   |                              | -      |   |   |   | 42 |   |
| Real estate – residential mortgage |   |                              | -      |   |   |   | 1 |   |
| Real estate – commercial mortgage  |   |                              | 2      |   |   |   | - |   |
| Consumer and other                       |   |                              | 7      |   |   |   | - |   |
| Total recoveries                         |   |                              | 9      |   |   |   | 43 |   |
|                                     |   |                              |   |   |   |   |   |   |
| Net losses/(recoveries)                  |   |                              | 116    |   |   |   | (32 | ) |
|                                     |   |                              |   |   |   |   |   |   |
| Provision for loan losses                |   |                              | 109    |   |   |   | 126 |   |
| Balance at end of period                 |   | $                                 | 2,225  |   |   | $ | 1,921 |   |

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Index

|                                        |   | March 31, 2009 |    |   | December 31, 2008 |   |
|---------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|                                        |   | (Unaudited)         |    |   |                   | *      |   |
|                                        |   |                |    |   |                   |   |   |
| Interest bearing checking                   |   | $                   | 34,856  |   |                   | $      | 35,106 |   |
| Money market accounts                       |   |                | 5,684   |   |                   |   | 5,719 |   |
| Savings accounts                            |   |                | 22,221  |   |                   |   | 22,097 |   |
| Certificates of deposit under $100,000      |   |                | 68,874  |   |                   |   | 73,692 |   |
| Certificates of deposit of $100,000 or more |   |                | 42,456  |   |                   |   | 51,262 |   |
| Total                                       |   | $                   | 174,091 |   |                   | $      | 187,876 |   |

|                                                                               |   | March 31, 2009 |   |   | December 31, 2008 |   |
|------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|                                                                               |   | (Unaudited)         |   |   |                   | *      |   |
|                                                                               |   |                |   |   |                   |   |   |
| Short-term borrowings:                                                             |   |                |   |   |                   |   |   |
| Securities sold under agreements to repurchase                                     |   | $                   | 22,552 |   |                   | $      | 28,786 |   |
| Federal funds purchased                                                            |   |                | -      |   |                   |   | 1,500 |   |
| Overnight advances from Federal Home Loan Bank of Pittsburgh (FHLB) line of credit |   |                | 1,900  |   |                   |   | 1,240 |   |
| Total                                                                              |   | $                   | 24,452 |   |                   | $      | 31,526 |   |
|                                                                               |   |                |   |   |                   |   |   |   |
| Long-term borrowings:                                                              |   |                |   |   |                   |   |   |   |
| Advances from FHLB                                                                 |   | $                   | 7,765  |   |                   | $      | 7,865 |   |

|                           |   | Three Months Ended March 31, |   |
|--------------------------------|--------|-----------------------------------|--------|
|                           |   | Pension Benefits                  |   |   | Other Benefits |   |
|                           |   | 2009                              |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
|                           |   |                              |   |   |   |   |   |   |   |   |   |   |
| Service cost                   |   | $                                 | 34     |   |   | $ | 29 |   |   | $ | 4 |   |   | $ | 4 |   |
| Interest cost                  |   |                              | 85     |   |   |   | 74 |   |   |   | 8 |   |   |   | 8 |   |
| Expected return on plan assets |   |                              | (89    | ) |   |   | (88 | ) |   |   | - |   |   |   | - |   |
| Net amortization and deferral  |   |                              | 28     |   |   |   | 14 |   |   |   | 3 |   |   |   | 3 |   |
| Net periodic cost              |   | $                                 | 58     |   |   | $ | 29 |   |   | $ | 15 |   |   | $ | 15 |   |

----

Index

| Financial instruments whose contract |   | March 31, 2009 |   |   | December 31, 2008 |   |
|--------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| amounts represent credit risk        |   | (unaudited)         |   |   |                   | *      |   |
| (in thousands)                       |   |                |   |   |                   |   |   |
| Commitments to extend credit         |   | $                   | 23,086 |   |                   | $      | 25,319 |   |
| Standby letters of credit            |   |                | 802    |   |                   |   | 751 |   |
| Total                                |   | $                   | 23,888 |   |                   | $      | 26,070 |   |

| Level 1 | Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|---------|---------------------------------------------------------------------------------------------------------------------------|

| Level 2 | Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

| Level 3 | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|---------|-----------------------------------------------------------------------------------------------------|

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Item 4

PAR

| Item 1. | Legal Proceedings:  As of March 31, 2009 Citizens Financial Corp. is involved in various legal proceedings which occur in the normal course of business.  We believe all such litigation will be resolved without materially affecting our financial position or results of operations.  There are no other material proceedings knownto be threatened or contemplated against either Citizens Financial Corp. or Citizens National Bank. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds:    None. |
|---------|-------------------------------------------------------------------------------------------|

| Item 3. | Defaults upon Senior Securities:    None. |
|---------|---------------------------------------------------------------|

| Item 4. | Submission of Matters to a Vote of Security Holders:    None. |
|---------|-----------------------------------------------------------------------------------|

| Item 5. | Other Information:     None. |
|---------|-------------------------------------------------------|

| Item 6. | Exhibits and Reports on Form 8-K: |
|---------|-----------------------------------|

|   | (a) | Exhibits: | The following exhibits are filed with this report: |
|--------|-----|-----------|----------------------------------------------------|

|   | Exhibit No. | Description of Exhibit |
|--------|-------------|------------------------|

|   | 31.1 | Certification Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002, 18 U.S.C. Section 1350 |
|--------|------|--------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002, 18 U.S.C. Section 1350 |
|--------|------|--------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification Pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, 18 U.S.C. Section 1350 |
|--------|------|--------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification Pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, 18 U.S.C. Section 1350 |
|--------|------|--------------------------------------------------------------------------------------------------|

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Index

SIGN

|                                        | CITIZENS FINANCIAL CORP.      |   |
|---------------------------------------------|-------------------------------|--------|
|                                        |                          |   |
|                                        |                          |   |
|                                        |                          |   |
| Date:    5/12/09   | /s/Robert J. Schoonover       |   |
|                                        | Robert J. Schoonover          |   |
|                                        | President and                 |   |
|                                        | Chief Executive Officer       |   |
|                                        |                          |   |
|                                        |                          |   |
|                                        |                          |   |
| Date:    5/12/09   | /s/Thomas K. Derbyshire       |   |
|                                        | Thomas K. Derbyshire          |   |
|                                        | Vice President, Treasurer and |   |
|                                        | Principal Financial Officer   |   |

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