Exhibit 99.1
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
MANSFIELD, PENNSYLVANIA— July 26, 2005 - Citizens Financial Services, Incorporated (OTC BB: CZFS), parent company of First Citizens National Bank, has released its unaudited financial performance for the second quarter of 2005. Net income for the three months and six months ended June 30, 2005 was $1,313,000 and $2,580,000, respectively. This compares to the three months and six months ended June 30, 2004 of $1,468,000 and $2,961,000, respectively. Earnings per share were $.91 through June 2005 compared with $1.04 in 2004, a decrease of 12.5%.
Return on equity (ROE) was 12.52% while return on assets (ROA) was 1.02% for the first six months of 2005. Likewise, ROE and ROA was 15.41% and 1.26% for the first six months of 2004, respectively.
Since June of last year, total loans have increased $20.6 million, which represents a 5.87% increase. Total deposits have increased $7.5 million, an increase of 1.81%. CEO and President Randall E. Black stated, “Despite the ongoing effects of the flattening yield curve and the issues it presents to our interest margins, we have been able to increase our loan portfolio and continue to report solid core earnings from operations. Year-to-date net interest income increased $294,000 or 3.5% over the same period a year ago. The lack of security gains has had a significant impact to our overall net income, particularly compared to realized gains of $491,000 recorded for the first six months of 2004.”
During this same period, asset quality has continued to improve such that through June, there has been no provision for loan losses. The ratio of classified assets to regulatory capital has improved from 27.90% as of June 30, 2004 to 20.82% as of June 30, 2005.
Stockholders’ equity, excluding accumulated other comprehensive income, has increased $2,148,000 or 5.45% since last June. In June, 21,453 shares of treasury stock were purchased at a total cost of $462,312. The book value per share of $14.76 represents an increase of 5.3% over last year.
The cash dividend to be paid on July 29, 2005 to record holders of July 15, 2005 will be $.205 per share. This compares to $.195 per share for the comparable period in 2004, an increase of 5.1%. “The increase in dividends of 5.1% over last year reflects the continued profitability of the Company and the Board of Directors’ desire to provide shareholders with overall total return,” stated Mr. Black. The annualized dividend yield through June is 3.86%. Additionally, a 1% stock dividend will be distributed to shareholders, which is a continuation of past practice since 1991.
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.
