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 Record First Quarter 2009 Earnings
MANSFIELD, PENNSYLVANIA— April 28, 2009 – Citizens Financial Services, Incorporated (OTC BB: CZFS), parent company of First Citizens National Bank, has released its unaudited financial performance for the 1st quarter of 2009.
Net income for the quarter ended March 31, 2009 totaled $2,346,000 which compares to $2,021,000 for the first quarter of last year, representing an increase of $325,000, or 16.1%. Earnings per share for the three months ended March 31, 2009 and 2008 were $.82 and $.71 per share, respectively, which is an increase of 15.5%. Return on equity for the comparable periods was 17.59% and 16.32%, while return on assets was 1.41% and 1.36%, for the respective time periods. Net interest income has increased 13.6%, from $5,288,000 for the first quarter of 2008 to $6,009,000 for the first quarter of 2009. The net interest margin improved to 4.34% from 4.24% last year on a tax equivalent basis.
CEO and President Randall E. Black stated, “Our first quarter 2009 financial results remain outstanding even though the headlines continue to be filled with negative news regarding the economy and the ongoing recession both nationally and globally. Our financial performance is the result of our ongoing commitment to serve our communities and the use of disciplined underwriting standards.”
Total assets at March 31, 2009 totaled $674.7 million, which was an increase of $6.1 million from December 31, 2008 and an increase of $74.3 million, or 12.4%, from March 31, 2008. Since March 31, 2008, the investment portfolio has increased $47.7 million and net loans have increased $12.2 million. Total deposits of $554.6 million have increased $7.9 million from December 31, 2008, and $95.0 million from one year ago. Credit quality remains strong as total non-performing assets as a percent of loans is ..66%, which compares to .73% at December 31, 2008 and .67% as of the end of last March.
Stockholders’ equity totaled $54.4 million at March 31, 2009, representing an increase of $3.9 million, or 7.6%, from last year. Book value per share at March 31, 2009 was $19.06 compared with $17.78 last March. In April, a cash dividend of $.245 per share was declared and will be paid on April 30, 2009 to shareholders of record, as of April 17, 2009, an increase of 4.3% over the April 2008 dividend.
“As we communicated previously, we did not participate in the Governmental Troubled Assets Relief Program (TARP). At First Citizens, we remain well capitalized based upon regulatory guidelines. We utilize strong financial and capital management practices to carry out our strategic plan of achieving profitable growth,” stated Mr. Black.
Citizens Financial Services, Inc., has over 1,500 shareholders, the majority of whom reside in Potter, Tioga, and Bradford Counties, Pennsylvania and Allegany County, New York, where their 17 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.
| CITIZENS FINANCIAL SERVICES, INC. | | | |
| CONSOLIDATED BALANCE SHEET | | | |
| (UNAUDITED) | | | |
| | | | |
| | March 31 | December 31 | March 31 |
| (in thousands except share data) | 2009 | 2008 | 2008 |
| ASSETS: | | | |
| Cash and due from banks: | | | |
| Noninterest-bearing | $ 10,677 | $ 9,692 | $ 12,261 |
| Interest-bearing | 11,021 | 10,164 | - |
| Total cash and cash equivalents | 21,698 | 19,856 | 12,261 |
| | | | |
| Available-for-sale securities | 173,812 | 174,139 | 126,064 |
| | | | |
| Loans (net of allowance for loan losses: $4,498 at March 31, 2009; | | | |
| $4,378 at December 31, 2008 and $4,305 at March 31, 2008) | 433,080 | 428,436 | 420,918 |
| | | | |
| Premises and equipment | 11,631 | 12,762 | 12,408 |
| Accrued interest receivable | 3,345 | 2,912 | 2,755 |
| Goodwill | 10,256 | 10,256 | 8,605 |
| Bank owned life insurance | 12,296 | 12,176 | 8,463 |
| Other assets | 8,566 | 8,075 | 8,893 |
| | | | |
| TOTAL ASSETS | $ 674,684 | $ 668,612 | $ 600,367 |
| | | | |
| LIABILITIES: | | | |
| Deposits: | | | |
| Noninterest-bearing | $ 56,518 | $ 55,545 | $ 54,812 |
| Interest-bearing | 498,058 | 491,135 | 404,790 |
| Total deposits | 554,576 | 546,680 | 459,602 |
| Borrowed funds | 56,764 | 61,204 | 83,994 |
| Accrued interest payable | 2,027 | 2,233 | 1,939 |
| Other liabilities | 6,878 | 5,725 | 4,243 |
| TOTAL LIABILITIES | 620,245 | 615,842 | 549,778 |
| STOCKHOLDERS' EQUITY: | | | |
| Common stock | | | |
| $1.00 par value; authorized 10,000,000 shares; issued 3,048,289 shares at | | | |
| March 31, 2009 and December 31, 2008; 3,020,538 shares at March 31, 2008 | 3,048 | 3,048 | 3,020 |
| Additional paid-in capital | 12,833 | 12,981 | 12,439 |
| Retained earnings | 42,697 | 41,034 | 38,961 |
| Accumulated other comprehensive income | 203 | 26 | 355 |
| Treasury stock, at cost: 202,087 shares at March 31, 2009; 200,918 shares at | | | |
| December 31, 2008 and 195,500 shares at March 31, 2008 | (4,342) | (4,319) | (4,186) |
| TOTAL STOCKHOLDERS' EQUITY | 54,439 | 52,770 | 50,589 |
| TOTAL LIABILITIES AND | | | |
| STOCKHOLDERS' EQUITY | $ 674,684 | $ 668,612 | $ 600,367 |
| | | | |
| | |
| CITIZENS FINANCIAL SERVICES, INC. | | |
| CONSOLIDATED STATEMENT OF INCOME | | |
| (UNAUDITED) | | |
| | Three Months Ended |
| | March 31, |
| (in thousands, except per share data) | 2009 | 2008 |
| INTEREST INCOME: | | |
| Interest and fees on loans | $ 7,477 | $ 7,664 |
| Interest-bearing deposits with banks | 2 | - |
| Investment securities: | | |
| Taxable | 1,640 | 1,123 |
| Nontaxable | 471 | 336 |
| Dividends | 7 | 85 |
| TOTAL INTEREST INCOME | 9,597 | 9,208 |
| INTEREST EXPENSE: | | |
| Deposits | 2,915 | 2,943 |
| Borrowed funds | 523 | 857 |
| TOTAL INTEREST EXPENSE | 3,438 | 3,800 |
| NET INTEREST INCOME | 6,159 | 5,408 |
| Provision for loan losses | 150 | 120 |
| NET INTEREST INCOME AFTER | | |
| PROVISION FOR LOAN LOSSES | 6,009 | 5,288 |
| NON-INTEREST INCOME: | | |
| Service charges | 812 | 776 |
| Trust | 163 | 167 |
| Brokerage and insurance | 100 | 44 |
| Investment securities gains, net | 16 | - |
| Earnings on bank owned life insurance | 121 | 85 |
| Other | 142 | 137 |
| TOTAL NON-INTEREST INCOME | 1,354 | 1,209 |
| NON-INTEREST EXPENSES: | | |
| Salaries and employee benefits | 2,296 | 2,156 |
| Occupancy | 321 | 314 |
| Furniture and equipment | 110 | 133 |
| Professional fees | 131 | 181 |
| Other | 1,514 | 1,131 |
| TOTAL NON-INTEREST EXPENSES | 4,372 | 3,915 |
| Income before provision for income taxes | 2,991 | 2,582 |
| Provision for income taxes | 645 | 561 |
| NET INCOME | $ 2,346 | $ 2,021 |
| | | |
| Earnings Per Share | $ 0.82 | $ 0.71 |
| Cash Dividends Paid | $ 0.24 | $ 0.23 |
| | | |
| Weighted average number of shares outstanding | 2,844,512 | 2,853,280 |
| | | |
| |
| Financial Highlights | | |
| (Unaudited - dollars in thousands except per share and ratio data) | |
| | Three Months Ended |
| | March 31 |
| | 2009 | 2008 |
| Performance Ratios and Share Data: | | |
| Return on average assets (annualized) | 1.41% | 1.36% |
| Return on average equity (annualized) | 17.59% | 16.32% |
| Net interest margin (tax equivalent) | 4.34% | 4.24% |
| Cash dividends paid per share | $ 0.240 | $ 0.230 |
| Earnings per share | $ 0.82 | $ 0.71 |
| Weighted average shares outstanding | 2,844,512 | 2,853,280 |
| Balance Sheet Highlights (dollars in thousands): | March 31, 2009 | December 31, 2008 | March 31, 2008 |
| | | | |
| Assets | $ 674,684 | $ 668,612 | $ 600,367 |
| Investment securities: | | | |
| Available for sale | 173,812 | 174,139 | 126,064 |
| Loans (net of unearned income) | 437,578 | 432,814 | 425,223 |
| Allowance for loan losses | 4,498 | 4,378 | 4,305 |
| Deposits | 554,576 | 546,680 | 459,602 |
| Stockholders' Equity | 54,439 | 52,770 | 50,589 |
| Non-performing assets | 2,906 | 3,176 | 2,851 |
| Non-performing assets to total loans | 0.66% | 0.73% | 0.67% |
| Average Leverage Ratio | 7.93% | 7.91% | 8.31% |
| Common shares outstanding | 2,846,202 | 2,847,371 | 2,825,038 |
| Book value per share | $ 19.06 | $ 18.52 | $ 17.78 |
