LOUISVILLE, Ky., May 12 - Citizens Financial Corporation (Nasdaq: CNFL) today reported net income in the quarter ended March 31, 2006 of $319,000 or $0.19 per share, compared to a net income of $111,000 or $0.07 per share in the first quarter of 2005. Net premium income decreased 10% to $5,832,000 from the first quarter of 2005 while total revenues decreased 3%. Investment income for the quarter was down 4% from the first quarter of 2005. For 2006, the Company realized net pre-tax investment portfolio gains of $446,000 and pre-tax loss from operations of $33,000, compared to net realized investment gains of $55,000 and a pre-tax gain from operations of $4,000 for the first quarter of 2005. Shareholders' equity decreased 13% during the quarter to $15,154,000, with unrealized after-tax investment losses of approximately $2,555,000.
The change of $37,000 from a pre-tax gain from operations of $4,000 for the first quarter of 2005 to a pre-tax loss from operations of $33,000 for the first quarter of 2006 is principally due to a decrease of $602,000 in operating revenues, a decrease of $70,000 in net investment income, an increase of $42,000 in commission expenses, an increase of $18,000 in other operating expenses and a decrease of $695,000 in policy benefits and benefit reserves. Premiums for the Company's Preneed products declined $608,000 or 45% while Preneed death claims and benefit reserves decreased $592,000.
Detailed financial information is available in the Company's Quarterly Report on Form 10-Q for the quarter filed with the Securities and Exchange Commission.
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 2005 which have been filed with the Securities and Exchange Commission and can be accessed at
http://www.citizensfinancialcorp.com
Citizens Financial is the Louisville-based parent of Citizens Security Life Insurance Company and United Liberty Life Insurance Company.
Citizens Financial Corporation
Results in tabular form:
Quarter ended March 31
2006 2005
Segment Revenues $ 7,595,000 $ 8,267,000
Net realized investment gains $446,000 $ 55,000
Total Revenues $8,041,000 $8,322,000
Net Income (Loss) $319,000 $111,000
Net Income (Loss) Per share $0.19 $0.07
Selected Financial Position Data at
March 31, December 31,
2006 2005
Total Assets $149,433,000 $153,281,000
Notes Payable $5,381,000 $5,375,000
Shareholders' Equity $ 15,154,000 $ 17,437,000
Shareholders' Equity per share $9.06 $10.43
