PRESS RELEASE
First Citizens National Bank - 15 South Main Street - Mansfield, PA 16933 - 570-662-0422 - Fax: 570-662-8512
For Immediate Release
October 22, 2004
Contact: Kathleen Campbell, Senior Vice President, Marketing Director
570-662-0422
Fax: 570-662-8512
CITIZENS FINANCIAL SERVICES, INC. REPORTS THIRD QUARTER EARNINGS
Mansfield, PA - Citizens Financial Services, Incorporated (OTC BB: CZFS), parent company of First Citizens National Bank, has released its unaudited financial performance through September 30, 2004. Total assets increased $51.7 million to $497.5 million since September 30, 2003. Total liabilities increased $49.3 million to $457.1 million during the same period, an increase of 12.1%. Total loans increased $39.4 million, or 12.54% to $353.5 million, while total deposits increased $22.7 million, or 5.87%, to $409.0 million during the same period. Earnings for the three-month and nine-month periods ending September 30, 2004 were $1.4 million and $4.4 million, respectively, as compared to $.8 million and $3.6 million for the same periods ending September 30, 2003. Earnings per share for the quarter ending September 30, 2004 are $.50 per share as compared to $.28 per share for the same quarter of 2003. Likewise, year-to-date earnings per share through September 30, 2004 are $1.54 as compared to $1.23 for the same period last year.
Stockholders’ equity (excluding accumulated other comprehensive income) has increased $2.7 million, or 7.28% during the first nine months of 2004. The cash dividend to be paid on October 29th to record holders of October 15th will be $.20 per share, as compared to $.19 per share for the same period in 2003.
The significant improvement for both the three months and nine months ended September 30, 2004 over last year’s comparable periods is primarily due to the supplemental retirement package granted to the former President upon his retirement in September 2003. This had the effect of an after-tax charge of approximately $554,000 during the third quarter. The 2004 results are reflective of our successful purchase of two branches from The Legacy Bank in Bradford County during the second quarter.
Inquiries regarding the purchase of the company’s stock may be made through the following brokers: Ferris Baker Watts, Inc. 410-659-4600; Ryan, Beck & Co., 973-549-4200; Schwab Capital Markets LP, 201-963-9100; Monroe Securities, Inc.; 800-766-5560; Boenning & Scattergood Inc., 610-828-0400; Keefe, Beuyette & Woods, Inc., 212-554-2600; Knight Equity Markets, LP, 212-336-8790; Crown Financial Group Inc., 201-459-9500; GVR Co, 800-638-8602; Hill Thompson Magid & Co, 800-631-3083; BrokerageAmerica, Inc., 212-880-7408; and Pershing Trading Company, 201-413-3531.
Citizens Financial Services, Inc., has over 1,500 shareholders, the majority of whom reside in Potter, Tioga, and Bradford Counties. First Citizens National Bank has offices in Genesee, Ulysses, Wellsboro, Weis Market (Wellsboro), Mansfield, Wal-Mart (Mansfield), Blossburg, Canton, Troy, Towanda, LeRaysville, Sayre, Gillett and Millerton.
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 | |||||||
2004 | 2003 | ||||||
Nine Months Ended September 30 | |||||||
Net Income | $ | 4,383 | $ | 3,552 | |||
Comprehensive Income | 3,550 | 2,262 | |||||
Per common share data: | |||||||
Earnings per share | 1.54 | 1.23 | |||||
Cash Dividends declared | 0.58 | 0.55 | |||||
Performance Ratios: | |||||||
Return on average assets | 1.22 | % | 1.09 | % | |||
Return on average equity | 15.04 | % | 12.86 | % | |||
Three Months Ended September 30 | |||||||
Net Income | $ | 1,423 | $ | 806 | |||
Per common share data: | |||||||
Earnings per share | 0.50 | 0.28 | |||||
Cash Dividends declared | 0.195 | 0.185 | |||||
Performance Ratios: | |||||||
Return on average assets | 1.15 | % | 0.73 | % | |||
Return on average equity | 14.31 | % | 8.60 | % | |||
At September 30 | |||||||
Assets | $ | 497,489 | $ | 445,783 | |||
Investment securities: | |||||||
Available for sale | 100,996 | 91,822 | |||||
Loans (net of unearned income) | 353,490 | 314,098 | |||||
Allowance for loan losses | 4,109 | 3,587 | |||||
Deposits | 409,012 | 386,325 | |||||
Stockholders' Equity | 40,432 | 38,044 | |||||
Non-performing assets | 2,588 | 2,302 | |||||
Average Leverage Ratio | 7.74 | % | 6.59 | % | |||
Per common share data: | |||||||
Book value | $ | 14.19 | $ | 13.53 | |||
Market value (average of bid/ask price) | 21.83 | 25.13 | |||||
Market price to book value ratio | 153.84 | % | 185.70 | % |
Consolidated Balance Sheet | ||||||||||
(Unaudited - In thousands, except share data) | ||||||||||
September 30 | December 31 | September 30 | ||||||||
(in thousands) | 2004 | 2003 | 2003 | |||||||
ASSETS: | ||||||||||
Cash and due from banks: | ||||||||||
Noninterest-bearing | $ | 8,145 | $ | 9,624 | $ | 10,242 | ||||
Interest-bearing | 123 | 327 | 317 | |||||||
Total cash and cash equivalents | 8,268 | 9,951 | 10,559 | |||||||
Available-for-sale securities | 100,996 | 106,587 | 91,822 | |||||||
Loans (net of allowance for loan losses 2004, $4,109,000; | ||||||||||
December 31, 2003, $3,620,000 and, September 30, 2003, $3,587,000) | 349,381 | 314,037 | 310,511 | |||||||
Premises and equipment | 11,863 | 10,645 | 10,775 | |||||||
Accrued interest receivable | 1,875 | 1,703 | 1,741 | |||||||
Goodwill | 8,605 | 6,905 | 6,905 | |||||||
Core deposit intangible | 1,406 | 978 | 1,087 | |||||||
Bank owned life insurance | 7,374 | 7,142 | 7,064 | |||||||
Other assets | 7,721 | 5,930 | 5,319 | |||||||
TOTAL ASSETS | $ | 497,489 | $ | 463,878 | $ | 445,783 | ||||
LIABILITIES: | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing | $ | 42,420 | $ | 46,820 | $ | 44,401 | ||||
Interest-bearing | 366,592 | 338,871 | 341,924 | |||||||
Total deposits | 409,012 | 385,691 | 386,325 | |||||||
Borrowed funds | 36,253 | 27,796 | 17,351 | |||||||
Notes payable | 7,500 | 7,500 | - | |||||||
Accrued interest payable | 1,685 | 1,888 | 1,683 | |||||||
Other liabilities | 2,607 | 2,474 | 2,380 | |||||||
TOTAL LIABILITIES | 457,057 | 425,349 | 407,739 | |||||||
STOCKHOLDERS' EQUITY: | ||||||||||
Common Stock | ||||||||||
$1.00 par value; authorized 10,000,000 shares; | ||||||||||
issued 2,937,519 shares in 2004 and 2,909,849 shares in 2003, | ||||||||||
respectively | 2,938 | 2,910 | 2,910 | |||||||
Additional paid-in capital | 10,804 | 10,213 | 10,213 | |||||||
Retained earnings | 28,578 | 26,455 | 25,663 | |||||||
TOTAL | 42,320 | 39,578 | 38,786 | |||||||
Accumulated other comprehensive income | 123 | 956 | 1,263 | |||||||
Less: Treasury Stock, at cost | ||||||||||
97,262 shares for 2004 and 96,962 shares for 2003, respectively | (2,011 | ) | (2,005 | ) | (2,005 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY | 40,432 | 38,529 | 38,044 | |||||||
TOTAL LIABILITIES AND | ||||||||||
STOCKHOLDERS' EQUITY | $ | 497,489 | $ | 463,878 | $ | 445,783 |
Consolidated Statement of Income | |||||||||||||
(Unaudited - In thousands, except per share data) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30 | September 30 | ||||||||||||
2004 | 2003 | 2004 | 2003 | ||||||||||
INTEREST INCOME: | |||||||||||||
Interest and fees on loans | $ | 5,851 | $ | 5,439 | $ | 16,647 | $ | 16,158 | |||||
Interest-bearing deposits with banks | 1 | 6 | 9 | 27 | |||||||||
Investment securities: | |||||||||||||
Taxable | 846 | 703 | 2,590 | 2,468 | |||||||||
Nontaxable | 76 | 105 | 223 | 363 | |||||||||
Dividends | 81 | 76 | 210 | 235 | |||||||||
TOTAL INTEREST INCOME | 6,855 | 6,329 | 19,679 | 19,251 | |||||||||
INTEREST EXPENSE: | |||||||||||||
Deposits | 2,126 | 2,075 | 6,081 | 6,504 | |||||||||
Borrowed funds | 253 | 74 | 684 | 223 | |||||||||
TOTAL INTEREST EXPENSE | 2,379 | 2,149 | 6,765 | 6,727 | |||||||||
NET INTEREST INCOME | 4,476 | 4,180 | 12,914 | 12,524 | |||||||||
Provision for loan losses | - | 120 | - | 375 | |||||||||
NET INTEREST INCOME AFTER | |||||||||||||
PROVISION FOR LOAN LOSSES | 4,476 | 4,060 | 12,914 | 12,149 | |||||||||
NON-INTEREST INCOME: | |||||||||||||
Service charges | 783 | 779 | 2,265 | 2,261 | |||||||||
Trust | 126 | 142 | 484 | 437 | |||||||||
Gains on loans sold | 17 | 100 | 37 | 326 | |||||||||
Realized securities gains, net | - | 114 | 491 | 514 | |||||||||
Earnings on bank owned life insurance | 75 | 61 | 233 | 64 | |||||||||
Other | 152 | 130 | 412 | 488 | |||||||||
TOTAL NON-INTEREST INCOME | 1,153 | 1,326 | 3,922 | 4,090 | |||||||||
NON-INTEREST EXPENSES: | |||||||||||||
Salaries and employee benefits | 1,905 | 2,680 | 5,677 | 6,516 | |||||||||
Occupancy | 259 | 252 | 812 | 770 | |||||||||
Furniture and equipment | 181 | 179 | 517 | 533 | |||||||||
Professional fees | 131 | 183 | 443 | 487 | |||||||||
Amortization | 145 | 109 | 362 | 326 | |||||||||
Other | 1,159 | 1,088 | 3,314 | 3,120 | |||||||||
TOTAL NON-INTEREST EXPENSES | 3,780 | 4,491 | 11,125 | 11,752 | |||||||||
Income before provision for income taxes | 1,849 | 895 | 5,711 | 4,487 | |||||||||
Provision for income taxes | 426 | 89 | 1,328 | 935 | |||||||||
NET INCOME | $ | 1,423 | $ | 806 | $ | 4,383 | $ | 3,552 | |||||
EARNINGS PER SHARE | $ | 0.50 | $ | 0.28 | $ | 1.54 | $ | 1.23 | |||||
CASH DIVIDENDS DECLARED | $ | 0.195 | $ | 0.185 | $ | 0.580 | $ | 0.550 |