-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ia1mGGgmILOqVOw+ijoYGqkMituv8tu9x0pnWEDXoqr/ctUDCR5iqvVhYS33bd5j 2i/OaNqf4V7FQYsfy1j7mg== 0000739421-03-000073.txt : 20031015 0000739421-03-000073.hdr.sgml : 20031013 20031015103832 ACCESSION NUMBER: 0000739421-03-000073 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031015 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031015 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIZENS FINANCIAL SERVICES INC CENTRAL INDEX KEY: 0000739421 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 232265045 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13222 FILM NUMBER: 03940899 BUSINESS ADDRESS: STREET 1: 15 S MAIN ST CITY: MANSFIELD STATE: PA ZIP: 16933 BUSINESS PHONE: 5706622121 MAIL ADDRESS: STREET 1: 15 S MAIN ST CITY: MANSFIELD STATE: PA ZIP: 16933 8-K 1 eightk.htm OUR FORM 8-K SECURITIES AND EXCHANGE COMMISSION  
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) September 30, 2003
-----------------------------
CITIZENS FINANCIAL SERVICES, INC.
-----------------------------





                                        Pennsylvania                                                    0-13222                                   23-2265045

                             - -------------------------                                   - -------------------------                     - --------------------
                            (State or other jurisdiction                                  (Commission File                                (I.R.S. Employer
                            of incorporation)                                                 Number)                                            Identification Number)
                            15 South Main Street, Mansfield PA                                                                                           16901
                            - --------------------------------------                                                                                        - -----------
                            (Address of Principal Executive Office)                                                                                    (Zip Code)
Registrant's telephone number, including area code (570) 662-2121
----------------------

N/A
----
(Former name or former address, if changed since last report)
 

ITEM 5.    OTHER EVENTS AND REGULATION FD DISCLOSURE.

Richard E. Wilber, President and Chief Executive Officer, recently announced the consolidated financial results from Citizens Financial Services, Inc. and Subsidiaries for the third quarter of 2003.

On October 15, 2003, Citizens Financial Services, Inc. issued a press release title "Citizens Financial Services, Inc. Reports Third Quarter Earnings", a copy of which is filed as an exhibit to this Current Report on Form 8-K and is incorporated herein by reference.

ITEM 7.    FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

(a)    Not applicable.

(b)    Not applicable.

(c)    Exhibits.

            Exhibit 99:    Press Release issued by Citizens Financial Services, Inc. October 15, 2003, titled "Citizens Financial Services, Inc. Reports Third Quarter Earnings".

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8 - K to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 

CITIZENS FINANCIAL SERVICES, INC.




Date:  October 15, 2003                                                       /s/ Randall E. Black

                                                                                        - ------------------------------------------------
                                                                                        By:    Randall E. Black
                                                                                                Chief Financial Officer
 EX-99 3 tenqsep.htm OUR PRESS RELEASE PRESS RELEASE
PRESS RELEASE

First Citizens National Bank - 15 South Main Street - Mansfield, PA 16933 - 570-662-0422 - Fax: 570-662-8512

For Immediate Release

October 15, 2003

Contact: Kathleen Campbell, Senior Vice President, Marketing Director

570-662-0422

Fax: 570-662-8512

CITIZENS FINANCIAL SERVICES, INC. REPORTS THIRD QUARTER EARNINGS

Mansfield, PA - Citizens Financial Services, Incorporated (OTC BB: CZFS), parent company of First Citizens National Bank, has released its financial performance through September 30, 2003. Total assets increased $13.1 million to $445.8 million since December 31, 2002. Total liabilities increased $13.4 million to $407.7 million from $394.3 million during the same period. Total loans increased $15.6 million, or 5.2% to $314.1 million, while total deposits increased $13.3 million, or 3.6%, to $386.3 million during the same period. Earnings for the three-month and nine-month periods ending September 30, 2003 were $806 thousand and $3.6 million, respectively, as compared to $1.4 million and $4.2 million for the same periods ending September 30, 2002. Earnings per share for the quarter ending September 30, 2003 are $.28 per share as compared to $.50 per share for the same quarter of 2002. Likewise, year-to-date earnings per share through September 30, 2003 are $1.25 as compared to $1.47 for the same period last year. The consulting and non-compete agreement provided to the organization's retiring president has had a considerable impact on third quarter earnings. More details are provided below.

Core earnings remained stable which allowed our total stockholders' equity to moderately grow from $37.6 million one year ago to $38 million this year. At its regularly scheduled meeting on October 7, 2003, the Board of Directors of Citizens Financial Services, Inc., declared a cash dividend of $.19 per share payable on October 31, 2003, to its shareholders of record of October 17, 2003. This dividend represents an 8.5% increase over the dividends paid one year ago.

The Board of Directors recently entered into a consulting and non-compete agreement with Richard E. Wilber, President and CEO of Citizens Financial Services, Inc. and First Citizens National Bank which goes into effect upon Mr. Wilber's retirement on September 30, 2003. As part of the consulting and non-compete agreement, Mr. Wilber will provide consulting services at the request of the Board of Directors and will adhere to certain non-compete provisions. The financial impact of this agreement is an after-tax charge to earnings of approximately $554,500 in the third quarter of 2003. As a result, the third quarter earnings per share are $.28 per share. Without the effect of this charge to the third quarter earnings, earnings per share for the third quarter would have been approximately $.48.

Inquiries regarding the purchase of the company's stock may be made through the following brokers: Ferris Baker Watts, Inc. 410-659-4600: Ryan, Beck & Co., 800-223-6807; Herzog, Heine, Geduld, Inc., 212-908-4000; Baird Patrick & Co., 212-493-6600; F.J. Morrissey & Co., Inc., 215-563-8500; Monroe Securities, Inc., 800-766-5560; Knight Secs LP, 212-336-8790; GVR Co., 800-638-8602; Hill Thompson Magin & Co., 800-631-3083; and Powell (EE) & Co., Inc., 412-391-4594.

Citizens Financial Services, Inc., has over 1,500 shareholders, the majority of whom reside in Potter, Tioga, and Bradford Counties. First Citizens National Bank has offices in Genesee, Ulysses, Wellsboro, Weis Market (Wellsboro), Mansfield, Wal-Mart (Mansfield), Blossburg, Canton, Troy, Towanda, LeRaysville, Sayre, Gillett and Millerton.

Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. These factors include operating, legal and regulatory risks; changing economic and competitive conditions and other risks and uncertainties.
 
 
 
 
 
CITIZENS FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
       
September 30
December 31
September 30
(in thousands, except per share data)
2003
2002
2002
ASSETS:
Cash and due from banks:
Noninterest-bearing
$ 10,242 
$ 11,173 
$ 11,859 
Interest-bearing
317 
421 
4,381 
Total cash and cash equivalents
10,559 
11,594 
16,240 
Available-for-sale securities
91,822 
100,725 
106,312 
Loans (net of allowance for loan losses of $3,587, $3,621 and $3,486)
310,511 
294,836 
288,325 
Premises and equipment
10,775 
11,134 
11,440 
Accrued interest receivable
1,741 
1,976 
2,038 
Goodwill
6,905 
6,905 
6,905 
Core deposit intangible
1,087 
1,413 
1,521 
Bank owned life insurance
7,064 
- 
- 
Other assets
5,319 
4,075 
4,741 
TOTAL ASSETS
$ 445,783 
$ 432,658 
$ 437,522 
LIABILITIES:
Deposits:
Noninterest-bearing
$ 44,401 
$ 40,143 
$ 39,590 
Interest-bearing
341,924 
332,908 
340,000 
Total deposits
386,325 
373,051 
379,590 
Borrowed funds
17,351 
17,027 
15,987 
Accrued interest payable
1,683 
2,077 
1,900 
Other liabilities
2,380 
2,097 
2,451 
TOTAL LIABILITIES
407,739 
394,252 
399,928 
STOCKHOLDERS' EQUITY:
Common Stock
$1.00 par value; authorized 10,000,000 shares; issued
2,909,849 and 2,882,070 shares in 2003 and 2002, respectively
2,910 
2,882 
2,882 
Additional paid-in capital
10,213 
9,473 
9,474 
Retained earnings
25,663 
24,447 
23,553 
TOTAL
38,786 
36,802 
35,909 
Accumulated other comprehensive income
1,263 
2,553 
2,634 
Less: Treasury Stock, at cost
96,962 and 55,162 shares in 2003 and 2002, respectively
(2,005)
(949)
(949)
TOTAL STOCKHOLDERS' EQUITY
38,044 
38,406 
37,594 
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
$ 445,783 
$ 432,658 
$ 437,522 

 
 
 
 
 
 
 
 
 
 
CITIZENS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in thousands, except per share data)
2003
2002
2003
2002
INTEREST INCOME:
Interest and fees on loans
$ 5,439 
$ 5,461 
$ 16,158 
$ 16,071 
Interest-bearing deposits with banks
6 
27 
27 
58 
Investment securities:
Taxable
703 
1,178 
2,468 
3,684 
Nontaxable
105 
143 
363 
495 
Dividends
76 
85 
235 
278 
TOTAL INTEREST INCOME
6,329 
6,894 
19,251 
20,586 
INTEREST EXPENSE:
Deposits
2,075 
2,459 
6,504 
7,623 
Borrowed funds
74 
98 
223 
290 
TOTAL INTEREST EXPENSE
2,149 
2,557 
6,727 
7,913 
NET INTEREST INCOME
4,180 
4,337 
12,524 
12,673 
Provision for loan losses
120 
90 
375 
300 
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES
4,060 
4,247 
12,149 
12,373 
NON-INTEREST INCOME:
Service charges
779 
822 
2,261 
2,334 
Trust
142 
148 
437 
430 
Other
191 
165 
552 
682 
Gains on loans sold
100 
42 
326 
86 
Realized securities gains, net
114 
38 
514 
254 
TOTAL NON-INTEREST INCOME
1,326 
1,215 
4,090 
3,786 
NON-INTEREST EXPENSES:
Salaries and employee benefits
2,680 
1,905 
6,516 
5,426 
Occupancy 
252 
240 
770 
745 
Furniture and equipment
179 
211 
533 
683 
Professional fees
183 
139 
487 
429 
Amortization
109 
109 
326 
349 
Other
1,088 
967 
3,120 
2,995 
TOTAL NON-INTEREST EXPENSES
4,491 
3,571 
11,752 
10,627 
Income before provision for income taxes
895 
1,891 
4,487 
5,532 
Provision for income taxes
89 
460 
935 
1,326 
NET INCOME
$ 806 
$ 1,431 
$ 3,552 
$ 4,206 
OPERATING CASH EARNINGS**
$ 878 
$ 1,503 
$ 3,768 
$ 4,437 
Earnings Per Share
$ 0.28 
$ 0.50 
$ 1.25 
$ 1.47 
Cash Dividend Declared
$ 0.185 
$ 0.170 
$ 0.550 
$ 0.505 

 
 
 
 
 
 
 
Financial Highlights (In thousands, except per share and ratio data.)
(Unaudited)
Nine Months Ended September 30 
2003 
2002
` Net income
Comprehensive income $ 3,552  $ 4,206 
Per common share data: 2,262  5,628 
Earnings per share
Cash dividends declared
1.25
1.47
Performance ratios:
0.55
0.505
Return on average assets
Return on average equity
1.09%
1.32%
12.86%
16.71%
Three Months Ended September 30
Net income
Per common share data: $ 806  $ 1,431 
Earnings per share
Cash dividends declared
0.28
0.50
Performance ratios:
0.185
0.17
Return on average assets
Return on average equity
0.73%
1.32%
8.60%
16.61%
At September 30
Assets
Investment securities: $445,783  $ 437,522 
Available-for-sale
Loans (net of unearned income) 91,822  106,312 
Allowance for loan losses 314,098  291,811 
Deposits 3,587  3,486 
Stockholders' Equity 386,325  379,590 
Non-performing assets 38,044  37,594 
Average leverage ratio 2,302  2,845 
Per common share data:
6.59%
6.25%
Book value
Market value (average of bid/ask price) $ 13.53  $ 13.30 
Market price to book value ratio 25.13  19.68 
185.70%
147.97%
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