UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________________
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR
15 (D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarterly Period Ended March 31, 1998
Commission File Number 33-29696-A
__________________________________________________
CITRUS FINANCIAL SERVICES, INC.
(Exact Name of registrant as specified in its charter)
Florida 65-0136594
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1717 Indian River Boulevard
Suite 100
Vero Beach, Florida 32960
(Address of Principal Executive Offices) (Zip Code)
__________________________________________________
(561) 778-4100
(Registrant's telephone number including area code)
__________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No .
Indicate the number of shares of outstanding of each of the issuer's classes
of Common Stock:
Class Outstanding as of May 8, 1998
Common Stock 952,557
Par Value $3.15 per share
<PAGE>
CITRUS FINANCIAL SERVICES, INC.
INDEX
PAGE
PART I: FINANCIAL INFORMATION NUMBER
Item 1: Financial Statements:
Consolidated Balance Sheets as of March 31, 1998
(unaudited) and December 31, 1997 1
Consolidated Statements of Operations for the three
months ended March 31, 1998 and 1997 (unaudited) 2
Consolidated Statements of Cash Flows for the three
months ended March 31, 1998 and 1997 (unaudited) 3
Notes to Consolidated Financial Statements (unaudited) 4 - 7
Item 2: Management's Discussion and Analysis of Financial
Condition and Results of Operations 8 - 10
PART II: OTHER INFORMATION 11
Signatures 12
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
The notes to these consolidated financial statements are an integral part of
the financial statements.
<TABLE>
March 31, December 31,
(dollars in thousands) 1998 (unaudited) 1997
ASSETS
<S> <C> <C>
Cash and Due From Banks $ 3,530 $ 3,742
Federal Funds Sold 1,850 2,500
Interest Bearing Deposits in Other Banks 5 61
Investment Securities 3,099 3,487
(Market Value March 31, 1998 was $3,052)
(Market Value December 31, 1997 was $3,426)
Securities Available-for-Sale 5,642 5,796
Loans:
Loans, net of deferred fee income 55,533 50,538
Less Allowance for Loan Losses 360 431
Net Loans 55,173 50,107
Premises & Equipment 2,492 2,471
Other Assets 1,053 934
Total Assets $ 72,844 $ 69,098
LIABILITIES
Deposits:
Noninterest Bearing Demand Deposits $ 11,468 $ 10,723
Interest Bearing Accounts:
NOW 3,633 3,701
Money Market Deposit Accounts 3,638 4,095
Savings 6,854 5,993
Certificates of Deposits 40,409 38,089
Total Deposits 66,002 62,601
FHLB Advances and Federal Funds Sold 403 433
Other Liabilities 381 242
Total Liabilities 66,786 63,276
STOCKHOLDERS' EQUITY
Common Stock 3,007 3,007
Additional Paid-In Capital 3,149 3,149
Accumulated Deficit ( 25) ( 239)
Unrealized loss on securities available for sale ( 73) ( 95)
Total shareholders' equity 6,058 5,822
Total Liabilities and Stockholders' Equity $ 72,844 $ 69,098
</TABLE>
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
The notes to these consolidated financial statements are an integral part of
the financial statements.
<TABLE>
Three months ended March 31,
(dollars in thousands except per share amounts) 1998 1997
<S> <C> <C>
Interest Income
Interest and Fees on Loans $ 1,319 $ 1,174
Interest on Investment Securities and Interest
Bearing Deposits in Other Banks 125 136
Income on Federal Funds Sold 39 34
Total Interest Income 1,483 1,344
Interest Expense
Interest on Deposits 625 603
Other Interest 6 17
Total Interest Expense 631 620
Net Interest Income 852 724
Provision for Loan Losses (96) 198
Net Interest Income After Provision for Loan Losses 948 526
Noninterest Income 100 111
Noninterest Expense 705 688
INCOME BEFORE INCOME TAXES 343 (51)
INCOME TAXES (CREDIT) 129 (5)
NET INCOME $ 214 $ (46)
NET INCOME PER COMMON SHARE $ 0.22 $ (0.05)
AVERAGE NUMBER OF SHARES OUTSTANDING 952,557 854,120
</TABLE>
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
The notes to these consolidated financial statements are an integral part of
the financial statements.
<TABLE>
Three Months Ended March 31,
(dollars in thousands) 1998 1997
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $ 214 $ (46)
Adjustment To Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization 62 55
(Increase) in Other Assets (119) (78)
Provision for Loan Losses (71) 198
Origination of Loans Held for Sale (25,694) (13,802)
Proceeds on Sale of Loans Held for Sale 20,594 16,933
Increase in Other Liabilities 139 32
Net Cash Provided by Operating Activities (4,875) 3,292
Cash Flows from Investing Activities:
Loan Originations, Net of Principal Payments 105 (321)
Purchase of Investment Securities and Interest
Bearing Deposits 56 ---
Proceeds on Maturing Securities 388 219
Purchase of Securities Available for Sale 0 (28)
Proceeds on Sale of Securities Available for Sale 176 ---
Capitalization of Premises and Equipment (83) (5)
Net Cash Provided By Investing Activities 642 (135)
Cash Flows from Financing Activities:
Increase (Decrease) in Certificates of Deposit - Net 2,320 1,618
Increase (Decrease) in Other Deposits - Net 1,081 2,471
Repayment of FHLB Advances (30) (1,531)
Net Cash Provided by Financing Activities 3,371 2,558
Net Increase (Decrease) in Cash and Cash Equivalents (862) 5,715
Cash and cash equivalents at Beginning of Period 6,242 2,514
Cash and cash equivalents at End of Period $ 5,380 $ 8,229
Supplemental disclosure of cash flow information
Amount paid during the period for:
Interest Expense $ 628 $ 604
</TABLE>
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note (1) Accounting Policies
The consolidated financial statements include the accounts of Citrus Financial
Services, Inc. (Company) and its wholly owned subsidiary Citrus Bank, National
Association, (Bank). The information contained in the financial statements is
unaudited. In the opinion of management, all adjustments have been made
(consisting only of normal recurring accruals) necessary to present a fair
statement of the results for interim periods. The results for interim periods
are not necessarily indicative of trends or results to be expected for a full
year. It is suggested that these financial statements and notes be read in
conjunction with the Company's financial statements for the year ended December
31, 1997 included in the Company's annual report on Form 10-KSB filed with the
Securities and Exchange Commission.
Note (2) Loans
Loans receivable are stated at unpaid principal balances, less unearned
discounts, and net of deferred loan origination fees and costs. Interest
receivable is accrued only if deemed collectible. Generally, Company policy
is not to accrue interest on loans delinquent over ninety days. Such interest
ultimately collected is credited to income in the period received.
Loans, as categorized by the underlying collateral, consist of:
<TABLE>
March 31, 1998 December 31, 1997
(dollars in thousands)
<S> <C> <C> <C> <C>
Real Estate $ 38,372 69.0% $ 35,922 71.0%
Commercial, Financial, and Agriculture 11,923 21.5% 10,316 20.4%
Consumer and other 5,253 9.5% 4,326 8.6%
Total loans, gross $ 55,548 100.0% $ 50,564 100.0%
</TABLE>
Note (3) Allowance for Loan Losses
The Company's Board of Directors monitors the loan portfolio monthly in order
to enable it to evaluate the adequacy of the allowance for loan losses. In
addition to reviews by regulatory agencies and the Company's certified public
accountants, the services of outside lending professionals have been engaged
to assist in the valuation of credit quality and loan administration. These
professionals compliment the system implemented by the Company which
identifies potential problem credits as early as possible, categorizes the
credits as to risk and puts a reporting process in place to monitor the progress
of the credits.
The Company maintains the allowance for loan losses at a level sufficient to
absorb all estimated losses inherent in the loan portfolio. The allowance for
loan losses is made up of two primary components: amounts allocated to loans
based on collateral type and amounts allocated for loans reviewed on an
individual basis in accordance with a credit risk grading system.
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Activity in the allowance for loan losses from January 1 through March 31
follows: (dollars in thousands)
<TABLE>
1998 1997
<S> <C> <C>
Balance, January 1, $ 431 $ 354
Recoveries 46 0
Chargeoffs 21 173
Provision charged to expense (96) 198
Balance, March 31, $ 360 $ 379
</TABLE>
Note (4) Investment Securities
Investment securities are carried at cost, adjusted for amortization of
premiums or accretion of discounts. The amortized cost and estimated fair
value of investments in securities are as follows:
<TABLE>
March 31, 1998 December 31, 1997
Amortized Estimated Amortized Estimated
Cost Fair Value Cost Fair Value
Debt Securities: (dollars in thousands)
<S> <C> <C> <C> <C>
U.S. Government Agencies $ 1,476 $ 1,439 $ 1,474 $ 1,429
Mortgaged-Backed Securities 1,372 1,363 1,762 1,747
Other 251 250 251 250
Total Securities $ 3,099 $ 3,052 $ 3,487 $ 3,426
</TABLE>
The amortized cost and estimated fair value of debt securities by contractual
maturity, are shown below. Debt securities with maturities greater than ten
years include $1,000,000 in amortized cost adjustable rate issues with the
balance in fixed rate mortgage backed obligations which have significantly
shorter expected maturities as a result of prepayments.
<TABLE>
March 31, 1998 December 31, 1997
Amortized Estimated Amortized Estimated
Cost Fair Value Cost Fair Value
(dollars in thousands)
<S> <C> <C> <C> <C>
Due in One Year or Less $ 1,521 $ 1,515 $ 1,848 $ 1,837
From One to Five Years 803 797 858 849
From Five to Ten Years 775 740 477 441
Due After Ten Years 0 0 304 299
$ 3,099 $ 3,052 $ 3,487 $ 3,426
</TABLE>
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Note (5) Securities Available-for-Sale
The amortized cost and estimated fair value of securities available-for-sale
as of March 31, 1998 and December 31, 1997 are as follows:
<TABLE>
March 31, 1998 December 31, 1997
Amortized Estimated Amortized Estimated
Cost Fair Value Cost Fair Value
(dollars in thousands)
<S> <C> <C> <C> <C>
U.S. Government Agencies $ 1,101 $ 1,105 $ 1,101 $ 1,104
Mortgage Backed Securities 4,248 4,150 4,396 4,265
Other 387 387 427 427
Total Securities $ 5,736 $ 5,642 $ 5,924 $ 5,796
</TABLE>
The amortized cost and estimated fair value of debt securities by contractual
maturity, are shown below. Debt securities with maturities greater than ten
years are all adjustable rate issues or fixed rate mortgage-backed obligations
that have significantly shorter expected maturities as a result of prepayments.
<TABLE>
March 31, 1998 December 31, 1997
Amortized Estimated Amortized Estimated
Cost Fair Value Cost Fair Value
(dollars in thousands)
<S> <C> <C> <C> <C>
Due in One Year or Less $ 1,101 $ 1,105 $ 500 $ 498
Due in One to Five Years 0 0 601 606
Due from Five to Ten Years 1,944 1,884 206 197
Due After Ten Years 2,304 2,266 4,190 4,068
Other 387 387 427 427
Total Securities $ 5,736 $ 5,642 $ 5,924 $ 5,796
</TABLE>
From January 1, 1998 through March 31, 1998 securities that matured or were
prepaid aggregated $ 531,780. No securities were purchased. Securities
available-for-sale had an unrealized market value loss of $141,000 as of
March 31, 1998.
Note (6) Financial Instruments With Off-Balance Sheet Risk
The Company is a party to financial instruments with off-balance sheet risk
in the normal course of business to meet the financing needs of its customers.
These financial instruments included commitments to extend credit. Those
instruments involve, to varying degrees, elements of credit and interest rate
risk in excess of the amounts recognized in the balance sheet. The contract or
notional amounts of those instruments reflect the extent of involvement the
Company has in particular classes of financial instruments.
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Financial instruments at March 31, 1998 consisted of commitments to extend
credit approximating $7,790,000, and letters of credit of $75,000.
Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination clauses
and may require payment of a fee. Since many of the commitments are expected
to expire without being drawn upon, the total commitment amounts do not
necessarily represent future cash requirements.
Note (7) Year 2000
The Company is aware of the issues associated with the programming code in
existing computer systems as the millennium (year 2000) approaches. The
"year 2000" problem is pervasive and complex as virtually every computer
operation will be affected in some way by the rollover of the two digit year
value to 00. The issue is whether computer systems will properly recognize
date sensitive information when the year changes to 2000. Systems that do
not properly recognize such information could generate erroneous data or cause
a system to fail. The Company is utilizing both internal and external
resources to identify, correct, and test the systems for the year 2000
compliance. It is anticipated that all necessary modifications and testing
will be completed by December 31, 1998. To date, confirmations have been
received from the Bank's primary processing vendors that their software is
now year 2000 compliant or that year 2000 compliant upgrades will be delivered
by October, 1998. Management has not yet completed their assessment of the
compliance expense for the year 2000 and related potential effect on the
Bank's earnings.
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
Citrus Financial Services, Inc. is a one bank holding company with consolidated
assets of $72,844,000 at the end of the first quarter of 1998. The
consolidated company has grown from $69,098,000 since December 31, 1997 and
has increased net income from a $46,000 first quarter loss in 1997 to a record
first quarter net earnings of $214,000 through March 31, 1998. Loan
recoveries and problem loan resolutions account for credit provisions for loan
losses and increases in net interest income for the first quarter's results.
STATEMENT OF CONDITION ANALYSIS
The Company's consolidated assets have continued to expand and aggregated
$72,844,000 at the first quarter=s end. Deposits grew 5% during this quarter
for an increase in deposits of $3,401,000 and totaled $66 million at
March 31, 1998. Management expects continued deposit growth throughout 1998
and anticipates deposit growth to exceed $650,000 per month for the year. The
Company's prospects for deposit growth are heightened with the continued
growth of the banking centers in Sebastian, Florida and in Barefoot Bay,
Florida. In addition, the additional deposit gathering activities of the
Bank's armored car service is expected to enhance commercial deposit growth.
The deposit mix continues to reflect management's focus on noninterest bearing
deposits. The deposit portfolio now has 18% of total deposits so represented.
NOW and money market accounts are now 6% each in the mix of total deposits.
Certificates of deposits, while reduced by 3% of total deposits, still
represents 61% of aggregate deposit balances. Management will continue its
focus on less costly deposits for the remainder of 1998.
The following schedule illustrates this deposit mix change using monthly
average consolidated deposit aggregates:
<TABLE>
Average Monthly Deposit Mix Comparison
Deposit Types 3/98 Change 12/97
<S> <C> <C> <C>
Demand Deposits 17.7% 4.1% 13.6%
NOW Accounts 5.7% -0.4% 6.1%
Money Market Accounts 5.5% -1.2% 6.7%
Savings Deposits 10.6% 0.5% 10.1%
Certificates of Deposit 60.5% -3.0% 63.5%
</TABLE>
Total loans aggregate $55,533,000 at the end of March, 1998, an increase of
$4,995,000 from December 31, 1997. The first quarter's growth was 10%.
Management continues to target the loan portfolio for growth during 1998 with
increased outside sales efforts as the primary driving force.
Aggregate real estate loans at the end of March represented 69% of gross loans
as compared to 71% at the end of 1997. Commercial non-real estate loans
increased to 21.5% of gross loans from 20.4% on March 31, 1998. These movements
are reflective of management's focus and development of commercial loan
activities. Loans secured by real estate had the largest dollar change, up
$2,450,000 from December 31, 1997; this increase is primarily residential real
estate loans that are held for sale. Consumer loans have increased to 9.5%
from 8.6% and dollar totals are up $927,000. Management has increased targets
for growth in consumer loans during 1998 while maintaining their primary
targeting of commercial loan growth.
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This change in the loan portfolio's mix together with management's recovery of
previous loan losses and the resolution of other problem credits is reflected
in the change in the reserve for loan losses. The reserve was decreased by
$71,000, net of chargeoffs through March 31, 1998. While gross loans increased
during the period, no commensurate increase in the reserve was needed as
recoveries and reductions in identified problem credits more than offset any
needed provision for the period. The reserve was .65% of total loans at
March 31, 1998.
Future anticipations are for continued loan growth for the remainder of 1998.
The continued development of the commercial and the real estate loan market is
expected to be most productive.
In particular, the bank's loan operation has enhanced its full service mortgage
loan activities that originates and sells mortgages in the secondary market
as well as retaining mortgages for the bank's own loan portfolio. This
activity generated $15,000 in real estate loan brokerage fees and $88,000 in
interest income through the first quarter of 1998. With the continued
decrease in interest rates, the need for these services has increased
dramatically.
During 1998, the market value of securities available-for-sale has continued
to decrease from $5,796,000 at December 31, 1997 to $5,642,000. As of
March 31, 1998, the aggregate investment portfolio had decreased to $8,741,000.
U.S. Government and Agency securities represent 97% of total securities. For
March 1998, aggregate securities yielded 5.48% compared to 5.70% for 1997.
The decreased yield reflects decreased coupons on remaining securities. Bank
management continues to curtail investment activities opting to invest growth
into loans.
Reductions in the investment portfolio, largely from prepayments and maturities
on mortgage-backed securities, were also invested in loan growth. Unrealized
losses on securities available-for-sale totaled $117,000 as of March 31, 1998.
Securities available-for-sale are recorded at market, in the aggregate, with
any unrealized market value gains or losses taken through the Company's equity
capital.
Management will continue to position the investment portfolio to best serve
all the needs of the Company. Consideration will be given to current economic
conditions and forecasts. The Company's adopted investment strategy coincides
with the Company's overall strategies and market anticipations. At the end of
March 1998, 45% of the aggregate investment portfolio had adjustable interest
rates that would change with the market within a one-year time frame.
The Bank exhibits sufficient liquidity at the current time with $3,530,000 in
cash and due from banks, $1,850,000 in unsecured Federal funds purchased line
of credit with correspondent banks, and $5,642,000 in the market value of
securities available for sale. In addition, the Bank has established
$10,000,000 in lines of credit with the Federal Home Loan Bank (FHLB) to
provide additional funding should the need arise. This relationship provides
the bank an opportunity to fund loan growth with a borrowing that can match
interest rate volatility. Such balanced funding limits the bank's exposure
to interest rate risk. One FHLB borrowing is secured by the Bank's
residential mortgage loan portfolio. Another FHLB line of credit has also
been established to fund residential mortgage loans that will be sold into
the secondary market and transferred to the permanent holder. These loans
are normally held less than one month and are appropriately matched against
this funding line of credit. This line is secured by investment securities.
Management anticipates that these funding sources are adequate to meet
anticipated needs.
As of March 31, 1998, capital represents 8.3% of assets while overnight cash
and cash equivalents aggregate 7.4% of assets.
The Company's capitalization is measured by guidelines adopted by federal
regulatory bodies. This capital adequacy measurement is known as risk-based
capital and applies risk-weighted capital needs according to predetermined
risk factors per category of asset. Assets or commitments with less potential
risk require less supportive capital while those items considered to have
greater risk potential require greater capital support. Under current
regulatory guidelines the capital to
<PAGE>
CITRUS FINANCIAL SERVICES, INC. and SUBSIDIARY
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
risk-weighted assets requirement is 8%. At March 31, 1998 the Company had a
risk-based capital to asset ratio of 12.11%. Management expects to maintain
capital above the required level through earnings retention and management of
the Company's mix of risk-weighted assets.
RESULTS OF OPERATIONS
The consolidated statement of operations for the three months ended March 31,
1998, reflects net income of $214,000. Net interest income for the three
months ending March 31, 1998 compared favorably to the same period in 1997
showing an 18% or $128,000 improvement and growing to $852,000; adequate to
cover heightened noninterest expenses of $705,000. As earning assets,
particularly loans, and deposits have continued to grow increased net interest
income has exceeded noninterest expenses adding to the Company's increased
profitability. The Company's net interest income improvement reflects
management's aggressive loan program, which has increased the yield on the
Company's earning assets.
The Bank's net interest income to average earning assets (net interest margin)
improved from 4.42% for 1997 to 4.75% for year to date March 31, 1998. The
improving net interest margin reflects an increasing loan portfolio and a
lower funding cost from the deposit portfolio mix changes. The Bank's
continued investment in loans is reflected in its higher loan to deposit ratio
which was increased from 80.4% on December 31, 1997 to 83.8% at the end of
March 31, 1998. Management continues to actively solicit loans and price
loan products competitively to attract prudent loans with the goal of
maintaining the current loan-to-deposit ratio while increasing the banks total
assets.
<TABLE>
Net Interest Non Interest
Income Expense
<S> <C> <C>
Three months ended 3/31/98 $ 852,000 $ 705,000
Three months ended 3/31/97 724,000 688,000
</TABLE>
Noninterest expenses included in the three months ended March 31,1998 included
normal operating overhead with the largest portion of the cost being salaries
and benefits which aggregated $341,000 for the period ended March 31, 1998 and
$317,000 for the period ended March 31, 1997. The small increase in salaries
and benefits reflects the Company's efforts to control operating costs. Bank
premises and equipment expenses together with other operating expenses make up
the balance at $371,000 for the 1997 period and $364,000 for the 1998 period.
Using the current balance sheet, the current maturity schedule, and the
forecasted balance sheet, management projects the worst-case scenario to be
falling rates. Should the prime rate decrease to 6.5% from 8.50% during the
next twelve months, net interest income could be reduced about $159,000.
Conversely, if prime rates increased to 10.5% during the next twelve months,
net interest income could be enhanced by approximately $200,000.
The Bank continues to engage an outside firm to provide management with monthly
asset/liability position reports. These reports measure the Bank's
vulnerability to interest rates should rates change in an adverse direction.
In addition, the future impact of these rate changes is measured over a
twelve-month period using management's expectations as to future growth and
mix. Meetings are held with the Bank's Asset/Liability Investment Committee
to work with these reports and management's expectations to continue to
control and monitor balance sheet mix and interest rate exposures.
<PAGE>
CITRUS FINANCIAL SERVICES, INC.
PART II: OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes In Securities.
None.
Item 3. Defaults upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
A Form 8-K was filed April 28, 1998 regarding "Other
Events", A 10% stock split.
<PAGE>
CITRUS FINANCIAL SERVICES, INC.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Citrus Financial Services, Inc.
Date: May 8, 1998 /s/ Josh C. Cox, Jr.
Josh C. Cox, Jr.
President and CEO
Date: May 8, 1998 /s/ Henry O. Speight
Henry O. Speight
Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 3,530
<INT-BEARING-DEPOSITS> 5
<FED-FUNDS-SOLD> 1,850
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 5,642
<INVESTMENTS-CARRYING> 3,099
<INVESTMENTS-MARKET> 3,052
<LOANS> 55,533
<ALLOWANCE> 360
<TOTAL-ASSETS> 72,844
<DEPOSITS> 66,002
<SHORT-TERM> 0
<LIABILITIES-OTHER> 381
<LONG-TERM> 403
0
0
<COMMON> 3,007
<OTHER-SE> 3,149
<TOTAL-LIABILITIES-AND-EQUITY> 72,844
<INTEREST-LOAN> 1,319
<INTEREST-INVEST> 125
<INTEREST-OTHER> 39
<INTEREST-TOTAL> 1,483
<INTEREST-DEPOSIT> 625
<INTEREST-EXPENSE> 631
<INTEREST-INCOME-NET> 852
<LOAN-LOSSES> (98)
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 705
<INCOME-PRETAX> 343
<INCOME-PRE-EXTRAORDINARY> 343
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 214
<EPS-PRIMARY> .22
<EPS-DILUTED> .35
<YIELD-ACTUAL> 8.98
<LOANS-NON> 156
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 431
<CHARGE-OFFS> 21
<RECOVERIES> 46
<ALLOWANCE-CLOSE> 360
<ALLOWANCE-DOMESTIC> 360
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
