Contact: | Kathleen Campbell, Marketing Director | First Citizens National Bank |
570-662-0422 | 15 S. Main Street | |
570-662-8512 (fax) | Mansfield, PA 16933 |
Citizens Financial Services, Inc. Reports Second Quarter Earnings Increased by 6.2% over one year ago.
MANSFIELD, PENNSYLVANIA—Citizens Financial Services, Incorporated (OTC BB: CZFS) Chief Executive Officer and President Randall E. Black has released its financial performance through June 30, 2004. Earnings for the quarter ending June 30, 2004 were $1,468,000 as compared to $1,382,000 for the same quarter last year, representing a 6.2% increase.
Total assets for Citizens Financial Services, Inc. were $494.8 million, an increase of 10.8% over June 30, 2003. Total deposits are $414.9 million while total loans are $350.8 million – an increase of 5.9% and 15.8%, respectively.
Net earnings for the first half of 2004 were $3.0 million, a 7.8% increase over the comparable period in 2003.
Earnings per share in the current quarter were 52 cents versus 48 cents in the comparable quarter 2003. Total stockholders’ equity (excluding accumulated other comprehensive income) has grown 5% during the first six months of 2004. The recently declared cash dividend of 19.5 cents represents a 3.5% yield on the per share market price.
Chief Executive Officer and President Randall E. Black stated, "Of prime importance this past quarter has been the efforts put into the successful acquisition of two branches of The Legacy Bank in Bradford County, which became effective June 4, 2004. This acquisition increased deposits by $20,663,000 and our loan portfolio by $27,340,000. I would like to welcome The Legacy Bank customers to First Citizens National Bank. We are glad to have them as part of our family and look forward to a rewarding relationship for many years to come.”
Citizens Financial Services, Inc., has over 1,500 shareholders, the majority of whom reside in Potter, Tioga, and Bradford Counties where their 15 offices are located.
Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. These factors include operating, legal and regulatory risks; changing economic and competitive conditions and other risks and uncertainties.
Financial Highlights(In thousands, except per share and ratio data.) | |||||||
(Unaudited) | |||||||
2004 | 2003 | ||||||
Six Months Ended June 30 | |||||||
Net income | $ | 2,961 | $ | 2,746 | |||
Comprehensive income | 1,069 | 2,072 | |||||
Per common share data: | |||||||
Earnings per share | 1.05 | 0.96 | |||||
Cash dividends declared | 0.385 | 0.365 | |||||
Performance ratios: | |||||||
Return on average assets | 1.26 | % | 1.27 | % | |||
Return on average equity | 15.41 | % | 15.04 | % | |||
Three Months Ended June 30 | |||||||
Net Income | $ | 1,468 | $ | 1,382 | |||
Per common share data: | |||||||
Earnings per share | 0.52 | 0.49 | |||||
Cash dividends declared | 0.195 | 0.185 | |||||
Performance ratios: | |||||||
Return on average assets | 1.23 | % | 1.26 | % | |||
Return on average equity | 15.12 | % | 14.96 | % | |||
At June 30 | |||||||
Assets | $ | 494,796 | $ | 446,449 | |||
Investment securities: | |||||||
Available-for-sale | 98,507 | 96,289 | |||||
Loans (net of unearned income) | 350,797 | 302,957 | |||||
Allowance for loan losses | 4,129 | 3,769 | |||||
Deposits | 414,911 | 391,878 | |||||
Stockholders' Equity | 38,508 | 39,446 | |||||
Non-performing assets | 3,299 | 2,724 | |||||
Average leverage ratio | 7.81 | % | 6.84 | % | |||
Per common share data: | |||||||
Book value | $ | 14.02 | $ | 13.95 | |||
Market value (average of bid/ask price) | 22.48 | 27.75 | |||||
Market price to book value ratio | 160.34 | % | 198.93 | % |
CITIZENS FINANCIAL SERVICES, INC. | ||||||||||
CONSOLIDATED BALANCE SHEET | ||||||||||
(UNAUDITED) | ||||||||||
June 30 | December 31 | June 30 | ||||||||
(in thousands, except share data) | 2004 | 2003 | 2003 | |||||||
ASSETS: | ||||||||||
Cash and due from banks: | ||||||||||
Noninterest-bearing | $ | 8,782 | $ | 9,624 | $ | 13,255 | ||||
Interest-bearing | 3,650 | 327 | 9,955 | |||||||
Total cash and cash equivalents | 12,432 | 9,951 | 23,210 | |||||||
Available-for-sale securities | 98,507 | 106,587 | 96,289 | |||||||
Loans (net of allowance for loan losses June 30, 2004, $4,129; December 31, | ||||||||||
2003, $3,620 and June 30, 2003 $3,769) | 346,668 | 314,037 | 299,188 | |||||||
Premises and equipment | 10,395 | 10,645 | 10,966 | |||||||
Accrued interest receivable | 1,689 | 1,703 | 1,720 | |||||||
Goodwill | 8,605 | 6,905 | 6,905 | |||||||
Core deposit intangible | 1,551 | 978 | 1,195 | |||||||
Bank owned life insurance | 7,299 | 7,142 | 2,333 | |||||||
Other assets | 7,650 | 5,930 | 4,643 | |||||||
TOTAL ASSETS | $ | 494,796 | $ | 463,878 | $ | 446,449 | ||||
LIABILITIES: | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing | $ | 47,157 | $ | 46,820 | $ | 44,475 | ||||
Interest-bearing | 367,754 | 338,871 | 347,403 | |||||||
Total deposits | 414,911 | 385,691 | 391,878 | |||||||
Borrowed funds | 29,813 | 27,796 | 11,857 | |||||||
Notes Payable | 7,500 | 7,500 | - | |||||||
Accrued interest payable | 1,543 | 1,888 | 1,626 | |||||||
Other liabilities | 2,521 | 2,474 | 1,642 | |||||||
TOTAL LIABILITIES | 456,288 | 425,349 | 407,003 | |||||||
STOCKHOLDERS' EQUITY: | ||||||||||
Common Stock | ||||||||||
$1.00 par value; authorized 10,000,000 shares; | ||||||||||
issued 2,909,849 shares at June 30, 2004 and December 31, 2003 | ||||||||||
and 2,882,070 shares at June 30, 2003, respectatively | 2,910 | 2,910 | 2,882 | |||||||
Additional paid-in capital | 10,213 | 10,213 | 9,474 | |||||||
Retained earnings | 28,332 | 26,455 | 26,161 | |||||||
TOTAL | 41,455 | 39,578 | 38,517 | |||||||
Accumulated other comprehensive income | (936 | ) | 956 | 1,878 | ||||||
Less: Treasury Stock, at cost | ||||||||||
97,262 at June 30, 2004, 96,962 at December 31, 2003, | ||||||||||
and 55,162 shares at June 30, 2003, respectively | (2,011 | ) | (2,005 | ) | (949 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 38,508 | 38,529 | 39,446 | |||||||
TOTAL LIABILITIES AND | ||||||||||
STOCKHOLDERS' EQUITY | $ | 494,796 | $ | 463,878 | $ | 446,449 |
CITIZENS FINANCIAL SERVICES, INC. | |||||||||||||
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
(in thousands, except per share data) | June 30 | June 30 | |||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
INTEREST INCOME: | |||||||||||||
Interest and fees on loans | $ | 5,447 | $ | 5,315 | $ | 10,795 | $ | 10,719 | |||||
Interest-bearing deposits with banks | 3 | 17 | 8 | 21 | |||||||||
Investment securities: | |||||||||||||
Taxable | 852 | 871 | 1,744 | 1,765 | |||||||||
Nontaxable | 62 | 121 | 147 | 258 | |||||||||
Dividends | 67 | 77 | 129 | 159 | |||||||||
TOTAL INTEREST INCOME | 6,431 | 6,401 | 12,823 | 12,922 | |||||||||
INTEREST EXPENSE: | |||||||||||||
Deposits | 1,992 | 2,190 | 3,956 | 4,429 | |||||||||
Borrowed funds | 217 | 74 | 430 | 149 | |||||||||
TOTAL INTEREST EXPENSE | 2,209 | 2,264 | 4,386 | 4,578 | |||||||||
NET INTEREST INCOME | 4,222 | 4,137 | 8,437 | 8,344 | |||||||||
Provision for loan losses | - | 120 | - | 255 | |||||||||
NET INTEREST INCOME AFTER | |||||||||||||
PROVISION FOR LOAN LOSSES | 4,222 | 4,017 | 8,437 | 8,089 | |||||||||
NON-INTEREST INCOME: | |||||||||||||
Service charges | 751 | 772 | 1,482 | 1,482 | |||||||||
Trust | 177 | 171 | 358 | 295 | |||||||||
Gains on Loans Sold | 12 | 130 | 21 | 226 | |||||||||
Realized securities gains, net | 204 | 140 | 491 | 400 | |||||||||
Bank Owned Life Insurance | 79 | 2 | 158 | 2 | |||||||||
Other | 153 | 196 | 260 | 359 | |||||||||
TOTAL NON-INTEREST INCOME | 1,376 | 1,411 | 2,770 | 2,764 | |||||||||
NON-INTEREST EXPENSES: | |||||||||||||
Salaries and employee benefits | 1,847 | 1,942 | 3,772 | 3,836 | |||||||||
Occupancy | 267 | 240 | 553 | 518 | |||||||||
Furniture and equipment | 165 | 176 | 335 | 354 | |||||||||
Professional fees | 158 | 142 | 312 | 304 | |||||||||
Amortization | 109 | 109 | 217 | 217 | |||||||||
Other | 1,129 | 1,022 | 2,155 | 2,032 | |||||||||
TOTAL NON-INTEREST EXPENSES | 3,675 | 3,631 | 7,344 | 7,261 | |||||||||
Income before provision for income taxes | 1,923 | 1,797 | 3,863 | 3,592 | |||||||||
Provision for income taxes | 455 | 415 | 902 | 846 | |||||||||
NET INCOME | $ | 1,468 | $ | 1,382 | $ | 2,961 | $ | 2,746 | |||||
Earnings Per Share | $ | 0.52 | $ | 0.48 | $ | 1.05 | $ | 0.96 | |||||
Cash Dividend Declared | $ | 0.195 | $ | 0.185 | $ | 0.385 | $ | 0.365 | |||||
Weighted average number shares outstanding | 2,812,834 | 2,854,688 | 2,812,861 | 2,854,688 |