EXHIBIT 99.1 PRESS RELEASE ISSUED MAY 17, 2004
FOR IMMEDIATE RELEASE
MAY 17, 2004
PRESS RELEASE
1. Citizens Financial Announces First Quarter 2004 Results
LOUISVILLE, KY-- May, 17 2004 -- Citizens Financial Corporation (NASDAQ-CNFL)
Friday reported a net loss in the quarter ended March 31, 2004 of $110,000 or
$0.07 per share, compared to a net loss of $333,000 or $0.20 per share in the
first quarter of 2003. Premium income decreased 21% to $7,073,000 from the first
quarter of 2003 while total revenues decreased 11%. Investment income for the
quarter was up 18% from the first quarter of 2003. For 2004, the Company
realized pre-tax investment portfolio gains of $228,000 and a pre-tax loss from
operations of $374,000, compared to realized investment losses of $276,000 and a
pre-tax loss from operations of $130,000 for the first quarter of 2003.
Shareholders' equity increased 6% during the quarter to $22,100,000, with
unrealized after-tax investment gains of approximately $1,372,000.
The increase in the pre-tax loss from operations is principally due to declining
premiums and increased mortality rates, partially offset by increased net
investment income and a decrease in general expenses. Premiums for the Company's
Preneed products declined $1,978,000 or 53% while Preneed death claims decreased
only $11,000. General expenses were down 3% during 2004 compared to 2003, while
net investment income was up 18%.
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 2003 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
------------------------------ ---- -----------------------------
2004 2003
------------------------------ -----------------------------
Revenues $ 8,971,000 $ 10,131,000
Net Income (Loss) applicable
to Common Stock $ (110,000) $ (333,000)
Net Income (Loss) Per Share: $ (0.07) $ (0.20)
Selected Financial Position Data
------------------------------ ---- -----------------------------
2004 2003
------------------------------ -----------------------------
Total Assets $ 160,493,000 $ 149,365,000
Notes Payable $ 6,804,000 $ 7,121,000
Shareholders' Equity $ 22,100,000 $ 17,835,000
Shareholders' Equity per share $ 13.11 $ 10.58