CITIZENS FIRST CORP. BOWLING GREEN, Ky., Jan. 20, 2015 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending December 31, 2014, which include the following:
-- For the quarter ended December 31, 2014, the Company reported net income
of $887,000, or $0.35 per diluted common share. This represents a
decrease of $43,000, or $0.03 per diluted common share from the linked
quarter ended September 30, 2014 and an increase of $185,000, or $0.10
per diluted common share, from the quarter ended December 31, 2013.
-- For the year ended December 31, 2014, net income totaled $3.24 million,
or $1.29 per diluted common share. This represents an increase of $1.4
million, or $0.77 per diluted common share, from the net income of $1.84
million, or $0.52 per diluted common share, in the previous year. "Loan
growth and significantly lower credit costs combined to make 2014 a
record year for our company," said Todd Kanipe, President & CEO of
Citizens First. "Generating quality loan growth in our core markets and
controlling operating expenses will continue as the top priorities for
2015."
-- Non-performing assets totaled $1.4 million, or 0.33% of total assets, at
December 31, 2014 compared to $2.0 million, or 0.49% of total assets at
December 31, 2013, a decrease of $648,000. Non-performing assets
reached their lowest level since the second quarter of 2007. Due to
continuing improvement in non-performing assets, net charge-offs in 2014
were $43,000, their lowest level since 2005.
-- The Company's net interest margin was 3.94% for the quarter ended
December 31, 2014 compared to 3.91% for the linked quarter ended
September 30, 2014, an increase of 3 basis points. The Company's net
interest margin increased from the linked quarter due to a reduction in
the cost of funds. Net interest margin for the year was 3.85% compared
to 3.91% in the previous year, a decrease of 6 basis points primarily
due to a decrease in loan yields.
Fourth Quarter 2014 Compared to Third Quarter 2014
-- Net interest income increased $41,000, or 1.1%, as the cost of funds
decreased due to lower borrowed funds cost. Net interest income has
improved each quarter during 2014.
-- Non-interest income decreased $27,000, or 3.5%, primarily due to a
decrease in other service charges and fees of $60,000 and lower gain on
the sale of mortgage loans of $37,000, offset by an increase in security
gains of $21,000 and service charges on deposit accounts of $39,000.
-- Non-interest expense increased $81,000, or 2.6%, compared to the
previous quarter, primarily due to an increase in personnel expense.
Fourth Quarter 2014 Compared to Fourth Quarter 2013
-- Net interest income decreased $9,000, or 0.2%, as the yield on loans
decreased from the prior year.
-- Non-interest income increased $26,000, or 3.7%, primarily due to an
increase in service charges on deposit accounts.
-- Non-interest expense increased $161,000, or 5.3%, due to an increase in
personnel expenses.
Balance Sheet at December 31, 2014
-- Total assets increased $2.6 million, or 0.6%, from December 31, 2013 to
December 31, 2014 due to a growth in loans which was offset primarily by
a reduction in federal funds sold. Average assets year-to-date
increased 0.1%, or $574,000, from 2013. Average interest earning assets
year-to-date increased 0.4%, or $1.6 million, from 2013.
-- Loans outstanding increased $23.4 million, or 7.9%, from December 31,
2013 to December 31, 2014, while average loans year-to-date increased
$3.3 million, or 1.1%.
-- The allowance for loan losses at December 31, 2014 was $4.9 million, or
1.53% of total loans, compared to $4.7 million, or 1.58% of total loans
as of December 31, 2013. The allowance decreased as a percentage of
total loans due to an increase in outstanding loans for the year as well
as the improvement in non-performing loans.
-- Deposits decreased $1.2 million, or 0.3%, from December 31, 2013 to
December 31, 2014. Average deposits year-to-date increased $3.0
million, or 0.9%, compared to 2013.
-- Stockholders' equity increased $101,000, or 0.3%, from December 31, 2013
to December 31, 2014. During the first quarter of 2014, the Company
paid $3.3 million to repurchase the remaining 93 shares of the Series A
preferred stock that the Company had issued to the Treasury in 2008
under the TARP Capital Purchase Program.
-- The tangible equity ratio improved slightly to 8.33% as of December 31,
2014 compared to 8.28% at December 31, 2013 due to the repurchase of the
Company's Series A preferred stock noted above. The tangible book value
per common share improved from $11.51 at December 31, 2013, to $13.39 at
December 31, 2014. The Company and Citizens First Bank are categorized
as "well capitalized" under regulatory guidelines.
About Citizens First Corporation
Citizens First Corporation is a bank holding company headquartered in Bowling Green, Kentucky and established in 1999. The Company has branch offices located in Barren, Hart, Simpson and Warren Counties in Kentucky, and a loan production office in Williamson County, Tennessee. Additional information concerning our products and services is available at www.citizensfirstbank.com.
Forward-Looking Statements
Statements in this press release relating to Citizens First Corporation's plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon the Company's current expectations, but are subject to certain risks and uncertainties that may cause actual results to differ materially. Among the risks and uncertainties that could cause actual results to differ materially are economic conditions generally and in the market areas of the Company, a continuation or worsening of the current disruption in credit and other markets, goodwill impairment, overall loan demand, increased competition in the financial services industry which could negatively impact the Company's ability to increase total earning assets, and the retention of key personnel. Actions by the Department of the Treasury and federal and state bank regulators in response to changing economic conditions, changes in interest rates, loan prepayments by and the financial health of the Company's borrowers, and other factors described in the reports filed by the Company with the Securities and Exchange Commission could also impact current expectations.
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Consolidated Statement of Income:
Three Months Ended
Dec 31 Sept 30 June 30 March 31 Dec 31
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Interest income $4,370 $4,354 $4,230 $4,181 $4,411
Interest expense 650 675 701 683 682
--- --- --- --- ---
Net interest
income 3,720 3,679 3,529 3,498 3,729
Provision for loan
losses - - 150 125 450
Non-interest income:
Service charges on
deposits 339 300 296 261 319
Other service
charges and fees 138 198 141 153 133
Gain on sale of
mortgage loans 39 76 51 24 36
Non-deposit
brokerage fees 90 67 75 69 72
Lease income 63 76 74 75 75
BOLI income 47 47 47 47 49
Securities gains 21 - 74 - 27
Total 737 764 758 629 711
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,606 1,519 1,486 1,527 1,419
Net occupancy
expense 483 501 479 482 485
Advertising and
public relations 73 74 93 83 65
Professional fees 142 137 149 153 141
Data processing
services 242 250 248 233 266
Franchise shares
and deposit tax 157 146 145 146 145
FDIC insurance 63 73 74 77 119
Core deposit
intangible
amortization 82 82 82 84 79
Postage and office
supplies 43 54 59 51 38
Other real estate
owned expenses 25 10 47 10 46
Other 306 295 271 216 258
--- --- --- --- ---
Total 3,222 3,141 3,133 3,062 3,061
----- ----- ----- ----- -----
Income before
income taxes 1,235 1,302 1,004 940 929
Provision for
income taxes 348 372 271 249 227
--- --- --- --- ---
Net income 887 930 733 691 702
Dividends and
accretion on
preferred stock 131 131 127 132 184
--- --- --- --- ---
Net income
available for
common
shareholders $756 $799 $606 $559 $518
==== ==== ==== ==== ====
Basic earnings per
common share $0.38 $0.41 $0.31 $0.28 $0.26
===== ===== ===== ===== =====
Diluted earnings
per common share $0.35 $0.38 $0.29 $0.27 $0.25
===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating
Statistics:
Three Months Ended
December 31 September 30 June 30 March 31 December 31
2014 2014 2014 2014 2013
---- ---- ---- ---- ----
Average assets $414,852 $412,761 $419,630 $414,089 $408,792
Average earning
assets 384,050 381,471 387,457 381,485 375,658
Average loans 313,888 308,087 303,489 303,438 298,833
Average
interest-
bearing
deposits 298,101 301,378 309,820 305,239 298,646
Average deposits 341,128 343,287 350,943 346,089 340,938
Average equity 38,249 37,328 36,501 36,213 38,469
Average common
equity 30,590 29,669 28,842 28,046 27,548
Return on
average assets 0.85% 0.89% 0.70% 0.68% 0.68%
Return on
average equity 9.20% 9.88% 8.05% 7.74% 7.24%
Efficiency ratio 71.19% 69.41% 72.88% 72.73% 68.07%
Non-interest
income to
average assets 0.70% 0.73% 0.72% 0.62% 0.69%
Non-interest
expenses to
average assets 3.08% 3.02% 2.99% 3.00% 2.97%
Net overhead to
average assets 2.36% 2.28% 2.27% 2.38% 2.28%
Yield on loans 5.06% 5.16% 5.13% 5.14% 5.42%
Yield on
investment
securities (TE) 2.75% 2.80% 2.94% 3.02% 2.97%
Yield on average
earning assets
(TE) 4.61% 4.61% 4.47% 4.53% 4.75%
Cost of average
interest
bearing
liabilities 0.78% 0.81% 0.83% 0.83% 0.83%
Net interest
margin (TE) 3.94% 3.91% 3.74% 3.81% 4.03%
Number of FTE
employees 97 98 99 98 100
Asset Quality
Indicators:
Non-performing
loans to total
loans 0.37% 0.50% 0.60% 0.65% 0.40%
Non-performing
assets to total
assets 0.33% 0.52% 0.60% 0.62% 0.49%
Allowance for
loan losses to
total loans 1.53% 1.58% 1.59% 1.60% 1.58%
YTD net charge-
offs
(recoveries) to
average loans,
annualized 0.01% 0.01% (0.03)% (0.06)% 1.22%
YTD net charge-
offs
(recoveries) 43 25 (25) (49) 3,718
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Twelve Months Ended
December 31 December 31
2014 2013
---- ----
Interest income $17,135 $17,545
Interest expense 2,709 2,961
----- -----
Net interest income 14,426 14,584
Provision for loan
losses 275 2,650
Non-interest income:
Service charges on
deposits 1,196 1,272
Other service
charges and fees 630 585
Gain on sale of
mortgage loans 190 277
Non-deposit
brokerage fees 301 306
Lease income 288 298
BOLI income 188 219
Securities gains 95 64
--- ---
Total 2,888 3,021
Non-interest
expenses:
Personnel expense 6,138 5,659
Occupancy expense 1,945 1,910
Advertising and
public relations 323 323
Professional fees 581 680
Data processing
services 973 1,083
Franchise shares and
deposit tax 594 573
FDIC insurance 287 380
Core deposit
intangible
amortization 330 332
Postage and office
supplies 207 151
Other real estate
owned expenses 92 84
Other 1,088 1,426
----- -----
Total 12,558 12,601
------ ------
Income before income
taxes 4,481 2,354
Provision for income
taxes 1,240 516
----- ---
Net income 3,241 1,838
Dividends and
accretion on
preferred stock 521 755
--- ---
Net income available
for common
shareholders $2,720 $1,083
====== ======
Basic earnings per
common share $1.38 $0.55
===== =====
Diluted earnings per
common share $1.29 $0.52
===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating
Statistics:
Twelve Months Ended
December 31 December 31
2014 2013
---- ----
Average assets $415,327 $414,753
Average earning assets 383,617 381,992
Average loans 307,256 303,977
Average interest-
bearing deposits 303,609 300,135
Average deposits 345,342 342,294
Average equity 37,079 38,724
Average common equity 29,295 27,426
Return on average
assets 0.78% 0.44%
Return on average
equity 8.74% 4.75%
Efficiency ratio 71.51% 70.48%
Non-interest income
to average assets 0.70% 0.73%
Non-interest expenses
to average assets 3.02% 3.04%
Net overhead to
average assets 2.33% 2.31%
Yield on loans 5.12% 5.36%
Yield on investment
securities (TE) 2.87% 2.90%
Yield on average
earning assets (TE) 4.56% 4.68%
Cost of average
interest bearing
liabilities 0.81% 0.89%
Net interest margin
(TE) 3.85% 3.91%
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Consolidated Statement of
Condition: As of As of As of
December 31, December 31, December 31,
2014 2013 2012
---- ---- ----
Cash and due from
financial institutions $7,962 $8,572 $9,549
Federal funds sold 3,360 28,490 25,250
Available for sale
securities 58,986 51,633 46,639
Loans held for sale - - 61
Loans 318,477 295,068 298,754
Allowance for loan losses (4,885) (4,653) (5,721)
Premises and equipment,
net 10,758 11,054 11,568
Bank owned life insurance
(BOLI) 7,993 7,806 7,587
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,527 1,554 1,660
Deferred income taxes 1,479 2,279 2,180
Intangible assets 4,433 4,762 5,094
Other real estate owned 198 833 191
Other assets 501 752 1,719
--- --- -----
Total Assets $412,814 $410,175 $406,556
======== ======== ========
Deposits:
Noninterest bearing $41,975 $39,967 $41,725
Savings, NOW and money
market 148,935 143,602 111,194
Time 150,874 159,382 178,814
------- ------- -------
Total deposits $341,784 $342,951 $331,733
FHLB advances and other
borrowings 25,500 22,000 26,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 231 243 238
Other liabilities 1,851 1,634 2,019
----- ----- -----
Total Liabilities 374,366 371,828 364,990
6.5% Cumulative preferred
stock 7,659 7,659 7,659
Series A preferred stock - 3,266 6,519
Common stock 27,072 27,072 27,072
Retained earnings
(deficit) 3,373 653 (430)
Accumulated other
comprehensive income
(loss) 344 (303) 746
--- ---- ---
Total Stockholders'
Equity 38,448 38,347 41,566
------ ------ ------
Total Liabilities and
Stockholders' Equity $412,814 $410,175 $406,556
======== ======== ========
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
December 31, December 31, December 31,
2014 2013 2012
---- ---- ----
Capital Ratios:
Tier 1 leverage 9.42% 9.57% 10.20%
Tier 1 risk-based capital 11.49% 12.56% 13.16%
Total risk based capital 12.74% 13.81% 14.41%
Tangible equity ratio (1) 8.33% 8.28% 9.08%
Tangible common equity ratio (1) 6.45% 5.59% 5.55%
Book value per common share $15.64 $13.93 $13.91
Tangible book value per common
share (1) $13.39 $11.51 $11.32
End of period common share closing
price $11.90 $9.86 $8.78
_____________
(1) The tangible equity ratio, tangible common equity ratio and tangible book value per common share, while not required by accounting principles generally accepted in the United States of America (GAAP), are considered critical metrics with which to analyze banks. The ratio and per share amount have been included to facilitate a greater understanding of the Company's capital structure and financial condition. See the Regulation G Non-GAAP Reconciliation table for reconciliation of this ratio and per share amount to GAAP.
Regulation G Non-GAAP
Reconciliation: December 31, December 31, December 31,
2014 2013 2012
---- ---- ----
Total shareholders'
equity (a) $38,448 $38,348 $41,566
Less:
Preferred stock (7,659) (10,925) (14,178)
------ ------- -------
Common equity (b) 30,789 27,423 27,388
Goodwill (4,097) (4,097) (4,097)
Intangible assets (336) (665) (997)
---- ---- ----
Tangible common equity
(c) 26,356 22,661 22,294
Add:
Preferred stock 7,659 10,925 14,178
----- ------ ------
Tangible equity (d) $34,015 $33,586 $36,472
Total assets (e) $412,814 $410,175 $406,556
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (336) (665) (997)
---- ---- ----
Tangible assets (f) $408,381 $405,413 $401,462
Shares outstanding (in
thousands) (g) 1,969 1,969 1,969
Book value per common
share (b/g) $15.64 $13.93 $13.91
Tangible book value per
common share (c/g) $13.39 $11.51 $11.32
Total shareholders'
equity to total assets
ratio (a/e) 9.31% 9.35% 10.22%
Tangible equity ratio
(d/f) 8.33% 8.28% 9.08%
Tangible common equity
ratio (c/f) 6.45% 5.59% 5.55%
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SOURCE Citizens First Corporation
