First Citizens Reports First Quarter Earnings

Apr 24, 2001, 01:00 ET from Citizens Financial Services, Inc.

    MANSFIELD, Pa., April 24 /PRNewswire Interactive News Release/ -- Richard
 E. Wilber, president of Citizens Financial Services, Inc.,
 (OTC Bulletin Board:   CZFS) holding company for First Citizens National Bank,
 has reported 2001 first quarter earnings.  First Citizens National Bank
 reported net income of $791 thousand as of March 31, 2001, compared to
 $938 thousand of one year ago, a decline of 15.7%.
     Total assets for First Citizens surpassed $408.9 million on March 31,
 2001.  This figure increased 20.3% over the $339.8 million at March 31, 2000.
 Deposits grew 27% to a record $361.6 million while total loans increased 17%
 to $261.1 million.
     President Richard E. Wilber stated, "Comparison of these quarters is
 difficult because of the amortization expense for goodwill and core deposit
 intangible assets related to the acquiring of the Sovereign offices.  It is
 very important to recognize the impact of this non-cash expense on net income.
 If we look at performance based on cash earnings (which excludes the goodwill
 and core deposit intangible amortization) for the first quarter 2001, we
 achieved $959 thousand versus $955 thousand one year ago.  This modest
 increase was achieved even though we incurred added expenses from closing and
 consolidating the Desmond Street office in Sayre and the "extra" office in
 Troy into other banking offices in each community.  In addition, we incurred
 additional expenses in moving into our newly expanded or constructed
 facilities (both operations center and main office) in Mansfield."
     Wilber further stated, "We are now offering mutual funds and insurance
 products and are very excited about the opportunity to meet the broader
 financial needs of customers.  We will be actively promoting these services
 during the second quarter."
     Citizens Financial Services, Inc., has over 1,500 shareholders, the
 majority of whom reside in Potter, Tioga, and Bradford Counties.
 
     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.
 
     Three Months Ended March 31                        2001           2000
 
     Net income                                     $     791     $     938
     Comprehensive income                               1,583           816
     Per common share data:
      Earnings per share                                 0.29          0.34
      Cash dividends declared                            0.16          0.141/2
     Performance ratios:
      Return on average assets                            .78%         1.10%
      Return on average equity                          10.44%        13.00%
 
     At March 31
     Assets                                         $ 408,894     $ 339,820
     Investment securities:
      Available-for-sale                              100,780        89,618
     Loans (net of unearned income)                   261,085       234,336
     Allowance for loan losses                          2,944         2,374
     Deposits                                         361,548       284,716
     Stockholders' Equity                              31,702        27,009
     Non-performing assets                              1,686         1,819
     Average Leverage Ratio                              5.31%         8.27%
     Per common share data:
      Book value                                    $   11.42     $    9.64
      Market value (average of bid/ask price)           12.44         16.69
 
     Market price to book value ratio                 108.93%        173.13%
 
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SOURCE Citizens Financial Services, Inc.
    MANSFIELD, Pa., April 24 /PRNewswire Interactive News Release/ -- Richard
 E. Wilber, president of Citizens Financial Services, Inc.,
 (OTC Bulletin Board:   CZFS) holding company for First Citizens National Bank,
 has reported 2001 first quarter earnings.  First Citizens National Bank
 reported net income of $791 thousand as of March 31, 2001, compared to
 $938 thousand of one year ago, a decline of 15.7%.
     Total assets for First Citizens surpassed $408.9 million on March 31,
 2001.  This figure increased 20.3% over the $339.8 million at March 31, 2000.
 Deposits grew 27% to a record $361.6 million while total loans increased 17%
 to $261.1 million.
     President Richard E. Wilber stated, "Comparison of these quarters is
 difficult because of the amortization expense for goodwill and core deposit
 intangible assets related to the acquiring of the Sovereign offices.  It is
 very important to recognize the impact of this non-cash expense on net income.
 If we look at performance based on cash earnings (which excludes the goodwill
 and core deposit intangible amortization) for the first quarter 2001, we
 achieved $959 thousand versus $955 thousand one year ago.  This modest
 increase was achieved even though we incurred added expenses from closing and
 consolidating the Desmond Street office in Sayre and the "extra" office in
 Troy into other banking offices in each community.  In addition, we incurred
 additional expenses in moving into our newly expanded or constructed
 facilities (both operations center and main office) in Mansfield."
     Wilber further stated, "We are now offering mutual funds and insurance
 products and are very excited about the opportunity to meet the broader
 financial needs of customers.  We will be actively promoting these services
 during the second quarter."
     Citizens Financial Services, Inc., has over 1,500 shareholders, the
 majority of whom reside in Potter, Tioga, and Bradford Counties.
 
     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.
 
     Three Months Ended March 31                        2001           2000
 
     Net income                                     $     791     $     938
     Comprehensive income                               1,583           816
     Per common share data:
      Earnings per share                                 0.29          0.34
      Cash dividends declared                            0.16          0.141/2
     Performance ratios:
      Return on average assets                            .78%         1.10%
      Return on average equity                          10.44%        13.00%
 
     At March 31
     Assets                                         $ 408,894     $ 339,820
     Investment securities:
      Available-for-sale                              100,780        89,618
     Loans (net of unearned income)                   261,085       234,336
     Allowance for loan losses                          2,944         2,374
     Deposits                                         361,548       284,716
     Stockholders' Equity                              31,702        27,009
     Non-performing assets                              1,686         1,819
     Average Leverage Ratio                              5.31%         8.27%
     Per common share data:
      Book value                                    $   11.42     $    9.64
      Market value (average of bid/ask price)           12.44         16.69
 
     Market price to book value ratio                 108.93%        173.13%
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X62411511
 
 SOURCE  Citizens Financial Services, Inc.