Exhibit 99.1
Press Release Issued May 22, 2003
FOR IMMEDIATE RELEASE
MAY 22, 2003
PRESS RELEASE
Citizens Financial Announces First Quarter 2003 Results
LOUISVILLE, KY-- May 22, 2003 -- Citizens Financial Corporation (NASDAQ-CNFL)
today reported premium income increased 9% to $8,978,000 for the first quarter
of 2003 compared to the same period last year while total revenues rose 7%. The
Company had a net loss of $333,000 or $0.20 per share for the first quarter. The
net loss was down about 16% from the loss of $397,000 or $0.23 per share during
the same period in 2002. For the quarter, the Company realized pre-tax
investment portfolio losses of $276,000 and a pre-tax loss from operations of
$130,000. Shareholders' equity increased 0.5% to $17,835,000 for the quarter.
The pre-tax loss from operations in 2003 compared to a pre-tax loss of $139,000
in 2002. Declining earned interest rates, which negatively impact all the
Company's life products, and increased general expenses and individual health
claims, were the reason for the deterioration in operating income.
General expenses increased $311,000 or 21% during the quarter compared to the
same period in the prior year. The most significant portion of the increase
related to the cost of outside consultants who were employed to review the
profitability of the Company's life products in the current interest rate
environment. This review resulted in significant modifications in the Company's
Home Service product pricing and Preneed segment commissions.
Detailed discussion of the Company's insurance operations, asset quality,
capital adequacy, debt, liquidity and factors affecting future performance is
provided in the Company's Form 10-Q for the quarter which has been filed with
the Securities and Exchange Commission.
Citizens Financial is the Louisville-based parent of Citizens Security Life
Insurance Company.
For further information contact:
Lane A. Hersman
Executive Vice President
502/244-2420
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Citizens Financial Corporation
Results in tabular form:
Quarter ended March 31
------------------------------ ---- -----------------------------
2003 2002
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Revenues $ 10,132,000 $ 9,448,000
Net loss $ 333,000 $ 397,000
Per Share: $ .20 $ .23
Selected Financial Position Data:
Quarter ended March 31
------------------------------ ---- -----------------------------
2003 2002
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Total Assets $ 149,365,000 $ 148,442,000
Notes Payable $ 7,121,000 $ 7,779,000
Shareholders' Equity $ 17,835,000 $ 17,758,000
Shareholders' Equity per share $ 10.58 $ 10.53