EX-99.1 2 firstquarter09pressrelease.htm PRESS RELEASE FIRST QUARTER 2009 firstquarter09pressrelease.htm
 
EXHIBIT 99.1
 
Contact:  Kathleen Campbell, Marketing Director                                                                                                                                       First Citizens National Bank
570-662-0422                                                                                                                           15 S. Main Street
570-662-8512 (fax)                                                                                                                         Mansfield, PA 16933
 

Citizens Financial Services, Inc. Reports Record First Quarter 2009 Earnings

MANSFIELD, PENNSYLVANIA— April 28, 2009 – Citizens Financial Services, Incorporated (OTC BB: CZFS), parent company of First Citizens National Bank, has released its unaudited financial performance for the 1st quarter of 2009.

Net income for the quarter ended March 31, 2009 totaled $2,346,000 which compares to $2,021,000 for the first quarter of last year, representing an increase of $325,000, or 16.1%.  Earnings per share for the three months ended March 31, 2009 and 2008 were $.82 and $.71 per share, respectively, which is an increase of 15.5%.  Return on equity for the comparable periods was 17.59% and 16.32%, while return on assets was 1.41% and 1.36%, for the respective time periods.  Net interest income has increased 13.6%, from $5,288,000 for the first quarter of 2008 to $6,009,000 for the first quarter of 2009.  The net interest margin improved to 4.34% from 4.24% last year on a tax equivalent basis.

CEO and President Randall E. Black stated, “Our first quarter 2009 financial results remain outstanding even though the headlines continue to be filled with negative news regarding the economy and the ongoing recession both nationally and globally.  Our financial performance is the result of our ongoing commitment to serve our communities and the use of disciplined underwriting standards.”

Total assets at March 31, 2009 totaled $674.7 million, which was an increase of $6.1 million from December 31, 2008 and an increase of $74.3 million, or 12.4%, from March 31, 2008.  Since March 31, 2008, the investment portfolio has increased $47.7 million and net loans have increased $12.2 million.  Total deposits of $554.6 million have increased $7.9 million from December 31, 2008, and $95.0 million from one year ago.  Credit quality remains strong as total non-performing assets as a percent of loans is .66%, which compares to .73% at December 31, 2008 and .67% as of the end of last March.

Stockholders’ equity totaled $54.4 million at March 31, 2009, representing an increase of $3.9 million, or 7.6%, from last year.  Book value per share at March 31, 2009 was $19.06 compared with $17.78 last March.  In April, a cash dividend of $.245 per share was declared and will be paid on April 30, 2009 to shareholders of record, as of April 17, 2009, an increase of 4.3% over the April 2008 dividend.

“As we communicated previously, we did not participate in the Governmental Troubled Assets Relief Program (TARP).  At First Citizens, we remain well capitalized based upon regulatory guidelines.  We utilize strong financial and capital management practices to carry out our strategic plan of achieving profitable growth,” stated Mr. Black.

Citizens Financial Services, Inc., has over 1,500 shareholders, the majority of whom reside in Potter, Tioga, and Bradford Counties, Pennsylvania and Allegany County, New York, where their 17 offices are located.

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)
      
       
 
March 31
December 31
March 31
(in thousands except share data)
2009
2008
2008
ASSETS:
      
Cash and due from banks:
      
  Noninterest-bearing
 $           10,677
 $           9,692
 $          12,261
  Interest-bearing
               11,021
            10,164
                       -
Total cash and cash equivalents
               21,698
            19,856
             12,261
       
Available-for-sale securities
            173,812
          174,139
           126,064
       
Loans (net of allowance for loan losses: $4,498 at March 31, 2009;
      
    $4,378 at December 31, 2008 and $4,305 at March 31, 2008)
            433,080
          428,436
           420,918
       
Premises and equipment
               11,631
            12,762
             12,408
Accrued interest receivable
                 3,345
              2,912
               2,755
Goodwill
               10,256
            10,256
               8,605
Bank owned life insurance
               12,296
            12,176
               8,463
Other assets
                 8,566
              8,075
               8,893
       
TOTAL ASSETS
 $         674,684
 $       668,612
 $        600,367
       
LIABILITIES:
      
Deposits:
      
  Noninterest-bearing
 $           56,518
 $         55,545
 $          54,812
  Interest-bearing
            498,058
          491,135
           404,790
Total deposits
            554,576
          546,680
           459,602
Borrowed funds
               56,764
            61,204
             83,994
Accrued interest payable
                 2,027
              2,233
               1,939
Other liabilities
                 6,878
              5,725
               4,243
TOTAL LIABILITIES
            620,245
          615,842
           549,778
STOCKHOLDERS' EQUITY:
      
Common stock
      
  $1.00 par value; authorized 10,000,000 shares; issued 3,048,289 shares at
      
  March 31, 2009 and December 31, 2008; 3,020,538 shares at March 31, 2008
                 3,048
              3,048
               3,020
Additional paid-in capital
               12,833
            12,981
             12,439
Retained earnings
               42,697
            41,034
             38,961
Accumulated other comprehensive income
                    203
                    26
                   355
Treasury stock, at cost:  202,087 shares at March 31, 2009; 200,918 shares at
      
  December 31, 2008 and 195,500 shares at March 31, 2008
               (4,342)
             (4,319)
              (4,186)
TOTAL STOCKHOLDERS' EQUITY
               54,439
            52,770
             50,589
TOTAL LIABILITIES AND
      
   STOCKHOLDERS' EQUITY
 $         674,684
 $       668,612
 $        600,367
       
 
  

 
 
 


CITIZENS FINANCIAL SERVICES, INC.
    
CONSOLIDATED STATEMENT OF INCOME
    
(UNAUDITED)
    
 
Three Months Ended
 
March 31,
(in thousands, except per share data)
2009
2008
INTEREST INCOME:
    
Interest and fees on loans
 $               7,477
 $                   7,664
Interest-bearing deposits with banks
                           2
                              -
Investment securities:
    
    Taxable
                   1,640
                      1,123
    Nontaxable
                      471
                          336
    Dividends
                           7
                            85
TOTAL INTEREST INCOME
                   9,597
                      9,208
INTEREST EXPENSE:
    
Deposits
                   2,915
                      2,943
Borrowed funds
                      523
                          857
TOTAL INTEREST EXPENSE
                   3,438
                      3,800
NET INTEREST INCOME
                   6,159
                      5,408
Provision for loan losses
                      150
                          120
NET INTEREST INCOME AFTER
    
    PROVISION FOR LOAN LOSSES
                   6,009
                      5,288
NON-INTEREST INCOME:
    
Service charges
                      812
                          776
Trust
                      163
                          167
Brokerage and insurance
                      100
                            44
Investment securities gains, net
                        16
                              -
Earnings on bank owned life insurance
                      121
                            85
Other
                      142
                          137
TOTAL NON-INTEREST INCOME
                   1,354
                      1,209
NON-INTEREST EXPENSES:
    
Salaries and employee benefits
                   2,296
                      2,156
Occupancy
                      321
                          314
Furniture and equipment
                      110
                          133
Professional fees
                      131
                          181
Other
                   1,514
                      1,131
TOTAL NON-INTEREST EXPENSES
                   4,372
                      3,915
Income before provision for income taxes
                   2,991
                      2,582
Provision for income taxes
                      645
                          561
NET INCOME
 $               2,346
 $                   2,021
     
Earnings Per Share
 $                  0.82
 $                     0.71
Cash Dividends Paid
 $                  0.24
 $                     0.23
     
Weighted average number of shares outstanding
            2,844,512
               2,853,280
     
 

 
 
 

Financial Highlights
    
(Unaudited - dollars in thousands except per share and ratio data)
  
 
Three Months Ended
 
March 31
 
2009
2008
Performance Ratios and Share Data:
    
    Return on average assets (annualized)
1.41%
1.36%
    Return on average equity (annualized)
17.59%
16.32%
    Net interest margin (tax equivalent)
4.34%
4.24%
    Cash dividends paid per share
 $                       0.240
 $                       0.230
    Earnings per share
 $                         0.82
 $                         0.71
    Weighted average shares outstanding
                    2,844,512
                   2,853,280
 

Balance Sheet Highlights (dollars in thousands):
March 31, 2009
December 31, 2008
March 31, 2008
       
Assets
 $                   674,684
 $                   668,612
 $                 600,367
Investment securities:
      
    Available for sale
173,812
174,139
126,064
Loans (net of unearned income)
437,578
432,814
425,223
Allowance for loan losses
4,498
                          4,378
                        4,305
Deposits
554,576
546,680
459,602
Stockholders' Equity
54,439
52,770
50,589
Non-performing assets
2,906
                          3,176
                        2,851
Non-performing assets to total loans
0.66%
0.73%
0.67%
Average Leverage Ratio
7.93%
7.91%
8.31%
Common shares outstanding
2,846,202
2,847,371
2,825,038
Book value per share
 $                        19.06
 $                       18.52
 $                     17.78