FIRST CITIZENS FINANCIAL CORPORATION
Main Office: 22 Firstfield Road, Gaithersburg, Maryland 20878
(301) 527-2400
NEWS RELEASE
For Immediate Release
July 17, 1997
Mr. Enos K. Fry Mr. Charles R. Duda Mr. William C. Scott
President Executive Vice President Chief Financial Officer
(301) 527-2404 (301) 527-2414 (301) 527-2454
FIRST CITIZENS FINANCIAL CORPORATION ANNOUNCES A 3% INCREASE IN NET
INCOME FOR THE SECOND QUARTER
Gaithersburg, Maryland (July 17, 1997) . . . First Citizens Financial
Corporation (Nasdaq: FCIT), the holding company of Citizens Savings
Bank F.S.B., today reported that its consolidated net income for the
three months ended June 30, 1997 increased 3% to $1.2 million, or $.36
per share, from $1.1 million, or $.36 per share, for the same quarter
of 1996. Net income for the six months ended June 30, 1997 increased
17% to $2.6 million, or $.80 per share, from $2.2 million, or $.70 per
share, for the six months ended June 30, 1996.
Average earning assets increased $64.6 million to $668.1 million at
June 30, 1997 from $603.5 million for the quarter ended June 30, 1996.
The increase in interest rates received on earning assets and the
positive effect of the larger earning asset base caused the net
interest margin to increase to 3.21% for the quarter ended June 30,
1997, compared to 2.98% in the same quarter of 1996. Deposits contin-
ued to increase, from $538.9 million at December 31, 1996 to $543.9
million at June 30, 1997.
During the second quarter of 1997, First Citizens Corporation incurred
a $433,000 loss from sale of real estate when it sold real estate
owned with a book value of $6.0 million. Due to the proposed merger
with Provident Bankshares, First Citizens management felt that it
would benefit the combined entity strategically to dispose of this
asset at a reduced price so that future efforts could be concentrated
on enhancing the combined franchise value rather than managing trou-
bled assets. This loss was partially offset by sales of $12.6 million
of investment securities which resulted in a net gain of $160,000.
First Citizens Financial Corporation, headquartered in Gaithersburg,
Maryland, is the parent of Citizens Savings Bank F.S.B., which has 15
banking offices serving customers in Montgomery and Frederick coun-
ties, Maryland. Subsidiaries of the Bank include First Citizens
Mortgage Corporation and First Citizens Corporation. On June 30, 1997
there were 2,950,561 shares of First Citizens Financial Corporation
Common Stock outstanding.
# # #
Press Release
First Citizens Financial Corporation
FIRST CITIZENS FINANCIAL CORPORATION
SECOND QUARTER RESULTS
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
------------------ -----------------
Selected Results of Operations:
Net interest income $5,390 $4,573 $10,645 $8,983
Loan loss provisions -- -- -- 148
------ ------ ------- ------
Net interest income after
loan loss provisions 5,390 4,573 10,645 8,835
Gains on sales of loans and
investment securities 213 127 306 907
Other income 584 733 1,143 1,304
(Gain) loss from real
estate, net 495 (129) 382 75
Other expense 3,656 3,702 7,349 7,482
------- ------ ------ ------
Income before taxes 2,036 1,860 4,363 3,489
Income taxes 847 711 1,759 1,262
------- ------ ------ ------
Net income $1,189 $1,149 $2,604 $2,227
====== ====== ====== ======
Earnings per share $.36 $.36 $.80 $.70
Average earning assets 668,063 603,486 664,548 592,598
Return on average assets .68% .73% .75% .71%
Return on average equity 11.02 11.60 12.20 11.32
Net interest margin 3.21 2.98 3.18 2.98
June 30, December 31,
1997 1996
-------- ------------
Selected Financial Condition Data
(end of period):
Total assets $691,754 $687,196
Loans 514,866 506,092
Securities 140,757 141,284
Real estate owned, net of reserves 5,079 9,772
Nonperforming assets, net
(including real estate owned) 6,379 10,742
Classified assets, net of reserves 8,307 14,264
Deposits 543,856 538,897
Borrowings 91,605 99,038
Stockholders' equity 44,126 41,617
Book value per share 14.96 14.17
Bank tangible capital (a) 6.3% 5.9%
Bank core capital 6.3 5.9
Bank core capital to risk-weighted
assets (a) 9.7 9.2
Bank total capital to risk-weighted
assets (a) 10.9 10.4
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(a) Core (i.e., leverage capital to adjusted total assets) ratio of 5.0%,
core capital to risk-weighted assets ratio of 6.0% and total capital to
risk-weighted assets ratio of 10.0% required to be considered "well-
capitalized" for regulatory purposes.