Citizens First Bancorp, Inc. (the ?Company?)(NASDAQ:CTZN), the holding company for Citizens First Savings Bank , today announced that net income for the quarter ended March 31, 2007 was $2.365 million, or $.29 per basic share as compared to net income of $2.045 million, or $0.26 per basic share, for the quarter ended March 31, 2006, an increase of 15.7%. The Company's book value per share at March 31, 2007 and December 31, 2006 was $21.12 and $20.87, respectively, an increase of 1.2%.

Financial Condition

Total assets increased $17.3 million, or 1.0% to $1.792 billion at March 31, 2007 from $1.775 billion at December 31, 2006, primarily due to an increase of $30.3 million, or 4.3% in the commercial loan portfolio. A significant amount of the commercial loan growth was due to an increase in the volume generated from our experienced commercial loan officers located in the Macomb and Oakland county markets. The increase in total assets was partially offset by a decrease of cash and due from depository institutions of $6.0 million and a decrease in consumer loans of $5.8 million. The consumer loan decrease is related to management's decision to reduce indirect lending due to the recent economic conditions of the State of Michigan and the performance of these types of credits.

Total liabilities increased $15.0 million, or 0.94%, to $1.613 billion at March 31, 2007 from $1.598 billion at December 31, 2006. The primary reason for the increase was due to an increase of $34.2 million in FHLB advances, partially offset by a decrease in Fed Funds purchased of $17.2 million. At March 31, 2007, brokered deposits totaled $78.1 million or 6.6% of total deposits. Total deposits decreased $4.1 million, or 0.3%, from December 31, 2006, primarily due to a decrease of $10.6 million in money market accounts, offset by an increase in certificate of deposits of $7.9 million mostly attributed to municipalities and other public entities.

Nonperforming loans were 1.68% of total loans at March 31, 2007, compared to 1.61% at December 31, 2006. Nonperforming loans increased $1.4 million, or 5.6%, to $27.1 million at March 31, 2007 from $25.7 million at December 31, 2006. This increase was primarily attributed to the real estate and consumer loan portfolios and is primarily due to an overall weakening of economic conditions in the State of Michigan. The Company believes that it has adequate collateral to mitigate the risk of a declining market and does not hold any sub-prime loans in our loan portfolio. Based on management's analysis of its nonperforming loan portfolio, there are no large loan relationships with any one borrower that would lead management to assess nonperforming loans differently.

Results of Operations

Net income for the three months ended March 31, 2007 increased $320,000, or 15.7% to $2.4 million from $2.045 million compared the same period in 2006. The increase was primarily due to an increase of net interest income after provision for loan losses of $134,000 over the same period last year. Additionally, noninterest income increased $269,000, primarily due to an increase in service charges and other fees. During the three months ended March 31, 2007, noninterest expense decreased by $114,000 as compared to the same period last year.

Net interest income, before provision for loan losses, for the three months ended March 31, 2007 totaled $13.9 million, an increase of 3.9% as compared to $13.3 million for the same period in the prior year. Due to the competitive nature in attracting new deposits, offering rates increased at a faster rate than market lending rates during the three months ended March 31, 2007 as compared to the previous period. The increased costs of attracting new deposits and an increase in the cost of borrowings to fund loan growth has continued to compress net interest margin, which fell 3 basis points to 3.31% at March 31, 2007 as compared to 3.34% for December 31, 2006.

Noninterest income for the three months ended March 31, 2007 increased $239,000, or 18.2%, to $1.8 million compared to $1.5 million, respectively, for the same period in the prior year. The increase was mainly attributable to an increase of service charges and other fees of $237,000, or 39.4%, over the same period in the prior year.

Noninterest expense for the three months ended March 31, 2007 decreased 1.3% to $10.8 million compared to $10.9 million, respectively, for the same time periods in the prior year. The decrease was primarily from a $407,000 reduction in the cost of data processing, offset by an increase of $263,000 in professional fees. As discussed in previous Filings, we have invested a significant amount of resources, in employees and capital expenditures, over the last 2 years. As evidenced by the decrease in noninterest expense over the previous same quarter, these investments are paying off, not only in financial measurements, but in the way we service our customers and employees. We expect noninterest expense to remain flat or increase slightly over the next several months.

Citizens First Bancorp, Inc., through its subsidiary Citizens First Savings Bank, currently serves its customers from 24 full service-banking centers in St. Clair, Sanilac, Huron, Lapeer, Macomb and Oakland counties and a loan production office located in Southwestern Florida.

Statements contained in this news release may be forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of such words as ?intend,? ?believe,? ?expect,? ?anticipate,? ?should,? ?planned,? ?estimated,? and ?potential.? Such forward-looking statements are based on current expectations, but may differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time, which are incorporated into this press release by reference. Other factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, legislative and regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality and composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Bank's market area, changes in relevant accounting principles and guidelines and other factors over which management has no control. The forward-looking statements are made as of the date of this release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

CITIZENS FIRST BANCORP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
 
March 31, December 31,
2007  2006 
(unaudited)
Total cash and cash equivalents $ 18,806  $ 24,823 
Certificates of Deposit 221  221 
Securities available for sale 61,807  62,248 
Federal Home Loan Bank Stock 19,360  19,360 
Loans held for sale 5,044  2,097 
Loans, net 1,602,596  1,582,411 
Premises and equipment, net 43,346  43,265 
Other assets 41,218  40,717 
Total Assets $ 1,792,398  $ 1,775,142 
 
Deposits $ 1,182,580  $ 1,186,658 
FHLB advances and federal funds purchased 417,015  400,009 
Other Liabilities 13,225  11,161 
 
Total Liabilities 1,612,820  1,597,828 
 
Stockholders' Equity 179,578  177,314 
 
Total Liabilities and Stockholders' Equity $ 1,792,398  $ 1,775,142 
CITIZENS FIRST BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
 
Three Months Ended
March 31,
2007  2006 
(unaudited) (unaudited)
Net Interest Income $13,854  $13,331 
 
Provision for Loan Losses 1,259  870 
 
Net Interest Income after provision 12,595  12,461 
 
Total Noninterest Income 1,745  1,506 
Total Noninterest Expense 10,780  10,894 
 
Income before Income Taxes 3,560  3,073 
Income Tax Expense 1,195  1,028 
Net Income $ 2,365  $ 2,045 
 
Net Interest Margin 3.31% 3.41%
Return on Average Assets 0.53% 0.49%
Return on Average Equity 5.30% 4.84%
 
Basic Earnings Per Share $ 0.29  $ 0.26 
Diluted Earnings Per Share $ 0.29  $ 0.26