CFSB CFSB Bancorp Inc

Citizens First Financial Corp. Announces Preliminary Unaudited Results and Dividend to Be Paid BLOOMINGTON, Ill., Feb. 7 /PRNewswire-FirstCall/ -- Citizens First Financial Corp. (the "Company")(NASDAQ:CFSB), the parent company of Citizens Savings Bank (the "Bank"), announced that the Board of Directors has declared a dividend of $0.10 per share to be paid on February 23, 2005, to stockholders of record on February 9, 2005. In addition, the Company announced net income for the year ended December 31, 2004 of $2,987,000, compared to net income of $1,636,000 for the year ended December 31, 2003, an increase of $1,351,000 or 82.6%. The Company had basic and diluted earnings per share of $1.98 and $1.87, respectively for the year ended December 31, 2004 compared to basic and diluted earnings per share of $1.11 and $1.01, respectively, for the year ended December 31, 2003. The Company had net income for the three months ended December 31, 2004 of $970,000, compared to a net loss of $324,000 for the three months ended December 31, 2003. The Company had basic and diluted earnings per share of $0.64 and $0.61, respectively for the three months ended December 31, 2004, compared to basic and diluted loss per share of $0.22, for the three months ended December 31, 2003. "By any measuring device, the year 2004 has proven to be an outstanding year for our company and our shareholders", said C. William Landefeld, President and Chief Executive Officer. "The Company's net income of $2,987,000 and basic earnings per share of $1.98 were record results", Landefeld said. "The Bank's regulators lifted the Memorandum of Understanding from the Bank in December 2004 and in November 2004 the Company signed a definitive agreement to sell to Main Street Trust, Inc.," continued Landefeld. "This resulted in a stock price of $32.50 at year-end, compared to a stock price of $25.50 per share at year-end 2003," he said. Net interest income increased slightly from $10,672,000 for the year ended December 31, 2003 to $10,697,000 for the year ended December 31, 2004, an increase of $25,000. Interest income decreased to $17,373,000 for the year ended December 31, 2004 from $19,533,000 for the year ended December 31, 2003. The decrease was attributable to a 47 basis point decrease in the average yield on interest-earning assets and an $11.4 million decrease in the average balance of interest earning assets. Interest expense decreased to $6,676,000 for the year ended December 31, 2004 from $8,861,000 for the year ended December 31, 2003. The decrease was due to a 63 basis point decrease in the average rate paid on interest-bearing liabilities and a $13.8 million decrease in the average balance of interest-bearing liabilities. The provision for loan losses changed from $2,462,000 for the year ended December 31, 2003 to a credit of ($472,000) for the year ended December 31, 2004, a change of $2,934,000. The improvement was primarily due to recoveries on previously charged-off loans, a decrease in the overall loan portfolio and improvements in the balance and value of collateral for non-performing and potential problem loans. Total non-performing and potential problem loans decreased from $24,066,000 at December 31, 2003 to $13,681,000 at December 31, 2004, a decrease of $10,385,000 or 43.2%. Noninterest income decreased from $3,259,000 for the year ended December 31, 2003 to $2,608,000 for the year ended December 31, 2004, a decrease of $651,000. The decrease was primarily due to a decrease of $1,181,000 in net gains on loan sales and $238,000 in net gains on sale of land in a real estate joint venture, offset by an increase of $659,000 in net gain from sale of premises and equipment resulting from the sale of a branch office building. Noninterest expense increased from $8,890,000 for the year ended December 31, 2003 to $9,063,000 for the year ended December 31, 2004, an increase of $173,000. Not included in net income or the earnings per share data is a tax benefit related to stock options exercised in 2004 in the amount of $451,000. This benefit was recorded as an increase to equity capital during the fourth quarter of 2004. The Company has previously announced a Special Meeting of Stockholders at 10:00 a.m. on March 8, 2005 at the Chateau, 1601 Jumer Drive, Bloomington, Illinois to vote on the Agreement and Plan of Merger between the Company and Main Street Trust, Inc. The Record Date for shareholders eligible to vote at the Annual Meeting was January 17, 2005. The Bank currently has five offices in central Illinois. CITIZENS FIRST FINANCIAL CORP. SELECTED FINANCIAL INFORMATION (In thousands except for per share data) 12/31/04 12/31/03 (Unaudited) Balance Sheet Data Total assets $328,266 $349,515 Cash and cash equivalents $38,103 $16,831 Investment securities $26,055 $20,746 FHLB stock $16,153 $15,206 Loans held for sale $587 $376 Loans $237,243 $282,477 Allowance for loan losses $2,736 $3,072 Deposits $231,009 $250,013 Borrowings $58,675 $63,975 Equity capital $36,047 $32,992 Book value per common share $23.25 $22.00 Quarter ended Twelve months ended 12/31/04 12/31/03 12/31/04 12/31/03 (Unaudited) (Unaudited) (Unaudited) Summary of Operations Interest income $4,186 $4,829 $17,373 $19,533 Interest expense 1,562 2,137 6,676 8,861 Net interest income 2,624 2,692 10,697 10,672 Provision (credit) for loan losses (363) 1,595 (472) 2,462 Noninterest income 1,203 663 2,608 3,259 Noninterest expense 2,686 2,342 9,063 8,890 Income (loss) before income tax 1,504 (582) 4,714 2,579 Income tax expense (benefit) 534 (258) 1,727 943 Net income (loss) $970 $ (324) $ 2,987 $ 1,636 Earnings (loss) per share: Basic $ 0.64 $(0.22) $1.98 $1.11 Diluted $ 0.61 $(0.22) $1.87 $1.01 Ratios Based on Net Income Return on average stockholders' equity 11.14% (3.89)% 8.77% 6.11% Return on average assets 1.18% (0.37)% 0.88% 0.55% Net interest yield on average earning assets 3.41% 3.28% 3.38% 3.27% DATASOURCE: Citizens First Financial Corp. CONTACT: C. William Landefeld, President & Chief Executive Officer, of Citizens First Financial Corp., +1-309-661-8700

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