CNFL Citizens Financial (MM)

LOUISVILLE, Ky., May 11 /PRNewswire-FirstCall/ -- Citizens Financial Corporation (NASDAQ:CNFL) today reported a net loss in the first quarter ended March 31, 2007 of $181,000, or $0.11 per share, compared to a net income of $228,000, or $0.14 per share, in the first quarter of 2006. Net premiums earned decreased 2% to $5,652,000 from the first quarter of 2006 while total revenues decreased 6% to $7,487,000. The pre-tax loss from operations, which excludes net realized investment gains and losses, amounted to $229,000 in the first quarter of 2007 compared to a pre-tax loss of $125,000 in the first quarter of 2006. Net realized investment gains were $49,000 for the quarter ended March 31, 2007, compared to $446,000 for the respective 2006 period. Shareholders' equity increased 3% to $14,570,000 for the quarter ended March 31, 2007, with unrealized pre-tax investment gains of approximately $635,000. The 2007 decrease of $502,000 in pretax income (loss) results from the negative impact of: (a) a decrease in premiums and other considerations of $124,000 (Pre-need decreased $210,000, Dental increased $31,000, Home Service decreased $84,000, Other Health decreased $19,000, and Broker Life increased $158,000 (including an increase in final expense premiums of $161,000)); (b) an increase in amortization of deferred policy acquisition costs and value of insurance acquired of $38,000; (c) a decrease in net realized investment gains of $397,000; (d) an increase in commissions of $19,000; an increase in general expenses and depreciation of $141,000; and (e) an increase in interest expense of $19,000, offset by the positive impact of: (f) a decrease in policyholder benefits of $124,000; (g) an increase in investment and other income of $23,000; and (h) an increase in policy acquisition costs deferred of $89,000. Detailed financial information is available in the Company's Quarterly Report on Form 10-Q for the quarter filed today with the Securities and Exchange Commission, which can be accessed at http://www.citizensfinancialcorp.com/. 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 2006. Citizens Financial is the Louisville-based parent of Citizens Security Life Insurance Company. Results in tabular form: Quarter ended March 31 2007 2006 Segment Revenues $7,438,000 $7,539,000 Net realized investment gains $ 49,000 $446,000 Total Revenues $7,487,000 $7,985,000 Net Income (Loss) $(181,000) $228,000 Net Income (Loss) Per share $(0.11) $0.14 Selected Financial Position Data at March 31, 2007 December 31, 2006 Total Assets $146,674,000 $147,280,000 Notes Payable $5,330,000 $5,538,000 Shareholders' Equity $ 14,570,000 $ 14,116,000 Shareholders' Equity per share $ 9.17 $ 8.89 DATASOURCE: Citizens Financial Corporation CONTACT: Len E. Schweitzer, Chief Financial Officer of Citizens Financial Corporation, +1-502-244-2420 Web site: http://www.citizensfinancialcorp.com/

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