EXHIBIT 99.1 PRESS RELEASE ISSUED MAY 11, 2007
FOR IMMEDIATE RELEASE
MAY 11, 2007
PRESS RELEASE
Citizens Financial Announces First Quarter 2007 Results
LOUISVILLE, KY—May 11, 2007--Citizens Financial Corporation (NASDAQ-CNFL) today reported a net loss in the first quarter ended March 31, 2007 of $181,000, or $0.11 per share, compared to a net income of $228,000, or $0.14 per share, in the first quarter of 2006.
Net premiums earned decreased 2% to $5,652,000 from the first quarter of 2006 while total revenues decreased 6% to $7,487,000. The pre-tax loss from operations, which excludes net realized investment gains and losses, amounted to $229,000 in the first quarter of 2007 compared to a pre-tax loss of $125,000 in the first quarter of 2006. Net realized investment gains were $49,000 for the quarter ended March 31, 2007, compared to $446,000 for the respective 2006 period. Shareholders’ equity increased 3% to $14,570,000 for the quarter ended March 31, 2007, with unrealized pre-tax investment gains of approximately $635,000.
The 2007 decrease of $502,000 in pretax income (loss) results from the negative impact of: (a) a decrease in premiums and other considerations of $124,000 (Pre-need decreased $210,000, Dental increased $31,000, Home Service decreased $84,000, Other Health decreased $19,000, and Broker Life increased $158,000 (including an increase in final expense premiums of $161,000)); (b) an increase in amortization of deferred policy acquisition costs and value of insurance acquired of $38,000; (c) a decrease in net realized investment gains of $397,000; (d) an increase in commissions of $19,000; an increase in general expenses and depreciation of $141,000; and (e) an increase in interest expense of $19,000, offset by the positive impact of: (f) a decrease in policyholder benefits of $124,000; (g) an increase in investment and other income of $23,000; and (h) an increase in policy acquisition costs deferred of $89,000.
Detailed financial information is available in the Company’s Quarterly Report on Form 10-Q for the quarter filed today with the Securities and Exchange Commission, which can be accessed at www.citizensfinancialcorp.com.
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 2006.
Citizens Financial is the Louisville-based parent of Citizens Security Life Insurance Company.
For further information contact:
Len E. Schweitzer
Chief Financial Officer
(502) 244-2420
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Citizens Financial Corporation
Results in tabular form:
| | Quarter ended March 31 |
| | 2007 | | 2006 |
Segment Revenues | | $ 7,438,000 | | $ 7,539,000 |
Net realized investment gains | | $ 49,000 | | $ 446,000 |
Total Revenues | | $ 7,487,000 | | $ 7,985,000 |
Net Income (Loss) | | $ (181,000) | | $ 228,000 |
Net Income (Loss) Per share | | $ (0.11) | | $ 0.14 |
| | Selected Financial Position Data at | |
| | March 31, 2007 | | December 31, 2006 |
| | | | | |
Total Assets | | $ 146,674,000 | | $ 147,280,000 | |
Notes Payable | | $ 5,330,000 | | $ 5,538,000 | |
Shareholders’ Equity | | $ 14,570,000 | | $ 14,116,000 | |
Shareholders’ Equity per share | | $ 9.17 | | $ 8.89 | |
