EXHIBIT 99.1 PRESS RELEASE ISSUED MAY 13, 2005
FOR IMMEDIATE RELEASE
MAY 13, 2005
PRESS RELEASE
Citizens Financial Announces First Quarter 2005 Results
LOUISVILLE, KY-- May, 13 2005 -- Citizens Financial Corporation (NASDAQ-CNFL) today reported net income in the quarter ended March 31, 2005 of $111,000 or $0.07 per share, compared to a net loss of $110,000 or $0.07 per share in the first quarter of 2004. Net premium income decreased 9% to $6,454,000 from the first quarter of 2004 while total revenues decreased 7%. Investment income for the quarter was up 8% from the first quarter of 2004. For 2005, the Company realized net pre-tax investment portfolio gains of $55,000 and pre-tax income from operations of $4,000, compared to net realized investment gains of $228,000 and a pre-tax loss from operations of $374,000 for the first quarter of 2004. Shareholders’ equity decreased 8% during the quarter to $18,149,000, with unrealized after-tax investment losses of approximately $1,716,000.
The increase of $378,000 from a pre-tax loss from operations of $374,000 for the first quarter of 2004 to a pre-tax gain from operations of $4,000 for the first quarter of 2005 is principally due to an increase of $127,000 in net investment income, a decrease of $170,000 in commission expenses, a decrease of $708,000 in policy benefits and benefit reserves, offset by a decrease of $603,000 in operating revenues and an increase of $24,000 in other operating expenses. Premiums for the Company’s Preneed products declined $384,000 or 22% while Preneed death claims decreased $94,000.
Detailed financial information is available in the Company’s Quarterly Report on Form 10-Q for the quarter filed with the Securities and Exchange Commission.
Certain statements made herein are forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements involve uncertainties and are based on management’s current expectations. For a discussion of factors that could cause actual results to differ from those described in the forward-looking statements, and a detailed discussion of the Company’s insurance operations, asset quality, capital adequacy, debt, liquidity and factors affecting future performance, see the Company’s Form 10-Q for the quarter and Form 10-K for 2004 which have been filed with the Securities and Exchange Commission and can be accessed at
www.citizensfinancialcorp.com |
Citizens Financial is the Louisville-based parent of Citizens Security Life Insurance Company.
For further information contact: |
| Len E. Schweitzer | |
| Vice President & Treasurer | |
| (502) 244-2420 | |
| | | | | | |
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Citizens Financial Corporation
Results in tabular form:
| | Quarter ended March 31 |
| | 2005 | | 2004 |
Segment Revenues | | $ 8,267,000 | | $ 8,743,000 |
Net realized investment gains | | $ 55,000 | | $ 228,000 |
Total Revenues | | $ 8,322,000 | | $ 8,971,000 |
Net Income (Loss) | | $ 111,000 | | $ (110,000) |
Net Income (Loss) Per share | | $ 0.07 | | $ (0.07) |
| | Selected Financial Position Data at |
| | March 31, 2005 | | December 31, 2004 |
| | | | |
Total Assets | | $ 153,761,000 | | $ 157,271,000 |
Notes Payable | | $ 5,438,000 | | $ 5,792,000 |
Shareholders’ Equity | | $ 18,149,000 | | $ 19,754,000 |
Shareholders’ Equity per share | | $ 10.86 | | $ 11.82 |
