EXHIBIT 99.1 PRESS RELEASE ISSUED AUGUST 11, 2004
FOR IMMEDIATE RELEASE
AUGUST 11, 2004
PRESS RELEASE
Citizens Financial Announces Second Quarter 2004 Results
LOUISVILLE, KY-August 11, 2004--Citizens Financial Corporation (NASDAQ-CNFL)
reported a net loss of $873,000 or $0.52 per share for the second quarter ended
June 30 according to results released today. The net loss increased about
$553,000 from the loss of $320,000 or $0.19 per share during the same period in
2003. The loss for the first two quarters of 2004 was $982,000 or $0.58 per
share, which was up about 50% from the loss of $653,000, or $0.39 per share
during the same period in 2003. During the first six months of 2004 net equity
decreased 18% to $10.11 per share due primarily to this net loss and unrealized
losses in the Company's investment portfolio.
For the second quarter, the Company experienced a pre-tax loss of $911,000 from
operations offset by pre-tax portfolio investment gains of $62,000.
Historically, low earned interest rates were the main reason for the Company's
continued operating losses. The recent increase in interest rates, if continued,
should positively impact the Company's operating earnings over the long term.
However, the negative impact of continued rising interest rates on bond values
would decrease the Company's capital. The operating results for the first six
months of 2004 were adversely impacted by a significant increase in mortality
rates for all life insurance lines of business and in the morbidity rate for the
group dental line.
Total revenues were down 13% for the second quarter compared to the prior year,
while premium income decreased 18% for the period. The decrease in premium
income was attributable to lower Preneed sales. This resulted primarily from
decreases made by the Company in the second quarter of 2003 to commissions paid
on these products. General expenses were up 10% during the first six months of
the year compared to the same period in the prior year, due primarily to several
extraordinary, non-recurring expenses incurred.
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
Continued next page...
1. Citizens Financial Corporation
Results in tabular form:
Quarter ended June 30
----------------------- ---- --------------------------
2004 2003
----------------------- --------------------------
Segment Revenues $ 8,960,000 $ 10,247,000
Net realized investment gains (losses) $
$ 62,000 $ 111,000
- ------------------------------------------------- ----------------------- --------------------------
Total Revenues $ 9,022,000 $ 10,358,000
================================================= ======================= ==========================
Net Loss $ (873,000) $ (320,000)
Net Loss Per share $
$ (0.52) $ (0.19)
Six Months ended June 30
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2004 2003
----------------------- --------------------------
Segment Revenues $ 17,703,000 $ 20,655,000
Net realized investment losses $ 290,000 $ (165,000)
- ------------------------------------------------- ----------------------- --------------------------
Total Revenues $ 17,993,000 $ 20,490,000
================================================= ======================= ==========================
Net Loss $ (982,000) $ (653,000)
Net Loss Per share $ (0.58) $ (0.39)
Selected Financial Position Data
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June 30, 2004 December 31, 2003
----------------------- --------------------------
Total Assets $ 153,026,000 $ 158,880,000
Notes Payable $ 6,475,000 $ 7,133,000
Shareholders' Equity $ 17,032,000 $ 20,833,000
Shareholders' Equity per share $ 10.11 $ 12.36