CITIZENS FIRST CORP. BOWLING GREEN, Ky., July 21, 2014 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending June 30, 2014, which include the following:
-- For the quarter ended June 30, 2014, the Company reported net income of
$733,000, which represents an increase of $42,000 from the linked
quarter ended March 31, 2014 and a decrease of $55,000 from the quarter
ended June 30, 2013. Earnings per diluted common share for the current
quarter were $0.29, an increase of $0.02 from the linked quarter ended
March 31, 2014 and a decrease of $0.01 for the quarter ended June 30,
2013.
-- For the six months ended June 30, 2014, net income totaled $1.42
million, or $0.56 per diluted common share. This represents an increase
of $521,000, or $0.31 per diluted common share, from the net income of
$903,000 in the first six months of the previous year.
-- The Company's net interest margin was 3.74% for the quarter ended June
30, 2014 compared to 3.81% for the linked quarter ended March 31, 2014
and 3.77% for the quarter ended June 30, 2013, a decrease of 7 basis
points for the linked quarter and a decrease of 3 basis points from the
prior year. The Company's net interest margin decreased from prior
periods due to a decline in the yield on loans.
-- Total loans increased $16.4 million, or 5.6%, to $311.5 million at June
30, 2014 compared to $295.1 million at December 31, 2013. Total deposits
increased $2.8 million, or 0.8%, to $345.8 million at June 30, 2014
compared to $343.0 million at December 31, 2013. Todd Kanipe, President
& CEO of Citizens First, commented, "commercial loan growth during the
first half of the year along with a much lower provision for loan losses
and improved asset quality were significant contributors to improved
profitability. We remain encouraged by overall loan demand in our
markets."
Second Quarter 2014 Compared to First Quarter 2014
Net interest income for the quarter ended June 30, 2014 improved $31,000 from the previous quarter, or 0.9%, as the volume of average earning assets increased $6.0 million for the second quarter of 2014.
Non-interest income for the three months ended June 30, 2014 increased $129,000, or 20.5%, compared to the previous quarter, primarily due to an increase in service charges on deposits of $35,000 and an increase in security gains of $74,000. Non-interest expense for the three months ended June 30, 2014 increased $71,000, or 2.3%, compared to the previous quarter, primarily due to an increase in other real estate expense.
A $150,000 provision for loan losses was recorded for the second quarter of 2014, compared to a $125,000 provision in the previous quarter, an increase of $25,000. The allowance for loan losses to total loans remained relatively constant at 1.59% compared to 1.60% in the first quarter. Net charge-offs (recoveries) were $24,000 for the second quarter of 2014 compared to $(49,000) in the first quarter of 2014.
Second Quarter 2014 Compared to Second Quarter 2013
Net interest income for the quarter ended June 30, 2014 decreased $26,000, or 0.7%, compared to the previous year. The decrease in net interest income was impacted by a reduction in interest expense of $69,000 combined with a decrease in interest income of $95,000. The decrease in interest income was created by a decline in the yield on loans from 5.28% in the second quarter of 2013 to 5.13% in the second quarter of 2014. Loan yields have declined as maturing loans were repriced at a lower rate.
Non-interest income for the three months ended June 30, 2014 decreased $37,000, or 4.7%, compared to the three months ended June 30, 2013, primarily due to a decline in gains on sale of mortgage loans.
Non-interest expense for the three months ended June 30, 2014 decreased $46,000, or 1.4%, compared to the three months ended June 30 2013, due to a decrease in legal and collection expenses.
A $150,000 provision for loan losses was recorded for the second quarter of 2014, an increase of $100,000, from $50,000 in the second quarter of 2013. The allowance for loan losses to total loans decreased from 1.98% of total loans at June 30, 2013 to 1.59% at June 30, 2014, primarily due to charge-offs of specific allocations which were included in the allowance at June 30, 2013. Net charge-offs were $24,000 for the second quarter of 2014 compared to net charge-offs of $635,000 in the second quarter of 2013.
Balance Sheet
Total assets at June 30, 2014 were $414.8 million, an increase of $4.6 million from $410.2 million at December 31, 2013. Average assets year-to-date were $416.9 million, a decrease of 0.4%, or $1.6 million, from $418.5 million in 2013. Average interest earning assets decreased 0.4%, or $1.6 million, from $386.1 million year-to-date 2013 to $384.5 million year-to-date 2014.
Loans increased $16.4 million, or 5.6%, from $295.1 million at December 31, 2013 to $311.5 million at June 30, 2014. Total loans averaged $303.5 million for the six months ended June 30, 2014, compared to $304.7 million for the six months ended June 30, 2013, a decrease of $1.2 million, or 0.4%.
Non-performing assets totaled $2.5 million at June 30, 2014 compared to $2.0 million at December 31, 2013, an increase of $468,000. A summary of nonperforming assets is presented below:
(In thousands) June March December September June
30, 31, 31, 30, 30,
2014 2014 2013 2013 2013
--- ---- ---- ---- ---- ----
Nonaccrual loans $1,035 $1,104 $1,026 $3,784 $6,141
Loans 90+ days past
due/accruing 42 56 - 19 -
Restructured loans 806 815 154 2,041 3,340
------------------ --- --- --- ----- -----
Total non-performing
loans 1,883 1,975 1,180 5,844 9,481
Other real estate
owned 598 631 833 547 517
Total non-performing
assets $2,481 $2,606 $2,013 $6,391 $9,998
-------------------- ------ ------ ------ ------ ------
Non-performing
assets to total
assets 0.60% 0.62% 0.49% 1.56% 2.43%
---------------- ---- ---- ---- ---- ----
The allowance for loan losses at June 30, 2014 was $5.0 million, or 1.59% of total loans, compared to $4.7 million, or 1.58% of total loans as of December 31, 2013. The allowance increased due to an increase in outstanding loans for the year. A summary of the allowance for loan losses is presented below:
(In thousands) June March December September June
30, 31, 31, 30, 30,
2014 2014 2013 2013 2013
--- ---- ---- ---- ---- ----
Balance at beginning
of period $4,827 $4,653 $4,820 $6,064 $6,650
Provision for loan
losses 150 125 450 900 50
Charged-off loans 81 22 788 2,198 678
Recoveries of
previously charged-
off loans 57 71 171 54 42
-------------------- --- --- --- --- ---
Balance at end of
period $4,953 $4,827 $4,653 $4,820 $6,064
Allowance for loan
losses to total loans 1.59% 1.60% 1.58% 1.60% 1.98%
---------------------- ---- ---- ---- ---- ----
Deposits at June 30, 2014 were $345.8 million, an increase of $2.8 million, or 0.8%, compared to $343.0 million at December 31, 2013. Total deposits averaged $348.5 million for the six months ended June 30, 2014, an increase of $4.4 million, or 1.3%, compared to $344.1 million during the six months ended June 30, 2013. Average deposits increased during the year, but the cost of funds declined as higher cost deposits matured and were renewed at lower rates.
At June 30, 2014, total shareholders' equity was $36.8 million compared to $38.3 million at December 31, 2013, a decrease of $1.5 million. 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 Company's tangible equity ratio declined to 7.85% as of June 30, 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 $12.47 at June 30, 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.
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
June 30 March 31 Dec 31 Sept 30 June 30
2014 2014 2013 2013 2013
---- ---- ---- ---- ----
Interest income $4,230 $4,181 $4,411 $4,381 $4,325
Interest expense 701 683 682 747 770
--- --- --- --- ---
Net interest
income 3,529 3,498 3,729 3,634 3,555
Provision for loan
losses 150 125 450 900 50
Non-interest income:
Service charges on
deposits 296 261 319 341 321
Other service
charges and fees 141 153 133 156 158
Gain on sale of
mortgage loans 51 24 36 81 78
Non-deposit
brokerage fees 75 69 72 91 78
Lease income 74 75 75 74 75
BOLI income 47 47 49 53 56
Securities gains 74 - 27 - 29
Total 758 629 711 796 795
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,486 1,527 1,419 1,382 1,417
Net occupancy
expense 479 482 485 499 465
Advertising and
public relations 93 83 65 70 110
Professional fees 149 153 141 201 174
Data processing
services 248 233 266 280 272
Franchise shares
and deposit tax 145 146 145 146 141
FDIC insurance 74 77 119 150 26
Core deposit
intangible
amortization 82 84 79 84 85
Postage and office
supplies 59 51 38 35 35
Other real estate
owned expenses 47 10 46 7 20
Other 271 216 258 425 434
--- --- --- --- ---
Total 3,133 3,062 3,061 3,279 3,179
----- ----- ----- ----- -----
Income before
income taxes 1,004 940 929 251 1,121
Provision for
income taxes 271 249 227 18 333
--- --- --- --- ---
Net income 733 691 702 233 788
Preferred
dividends and
discount
accretion 127 132 184 178 176
--- --- --- --- ---
Net income
available for
common
shareholders $606 $559 $518 $55 $612
==== ==== ==== === ====
Basic earnings per
common share $0.31 $0.28 $0.26 $0.03 $0.31
===== ===== ===== ===== =====
Diluted earnings
per common share $0.29 $0.27 $0.25 $0.02 $0.30
===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Three Months Ended
June March December September June
30 31 31 30 30
2014 2014 2013 2013 2013
---- ---- ---- ---- ----
Average assets $419,630 $414,089 $408,792 $413,293 $419,240
Average earning
assets 387,457 381,485 375,658 380,154 387,663
Average loans 303,489 303,438 298,833 307,618 305,532
Average deposits 350,943 346,089 340,938 340,067 345,738
Average equity 36,501 36,213 38,469 37,937 38,353
Average common
equity 28,842 28,046 27,548 27,023 27,445
Return on
average assets 0.70% 0.68% 0.68% 0.22% 0.75%
Return on
average equity 8.05% 7.74% 7.24% 2.44% 8.24%
Efficiency ratio 72.88% 72.73% 68.07% 72.66% 72.17%
Non-interest
income to
average assets 0.72% 0.62% 0.69% 0.77% 0.76%
Non-interest
expenses to
average assets 2.99% 3.00% 2.97% 3.15% 3.04%
Net overhead to
average assets 2.27% 2.38% 2.28% 2.38% 2.28%
Yield on loans 5.13% 5.14% 5.42% 5.26% 5.28%
Yield on
investment
securities (TE) 2.94% 3.02% 2.97% 2.87% 2.78%
Yield on average
earning assets
(TE) 4.47% 4.53% 4.75% 4.66% 4.56%
Cost of average
interest
bearing
liabilities 0.83% 0.83% 0.83% 0.89% 0.92%
Net interest
margin (TE) 3.74% 3.81% 4.03% 3.88% 3.77%
Number of FTE
employees 99 98 100 100 98
Asset Quality Ratios:
Non-performing
loans to total
loans 0.60% 0.65% 0.40% 1.94% 3.09%
Non-performing
assets to total
assets 0.60% 0.62% 0.49% 1.56% 2.43%
Allowance for
loan losses to
total loans 1.59% 1.60% 1.58% 1.60% 1.98%
YTD net charge-
offs
(recoveries) to
average loans,
annualized (0.03)% (0.06)% 1.22% 1.36% 0.63%
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Six Months Ended
June 30 June 30
2014 2013
---- ----
Interest income $8,411 $8,753
Interest expense 1,384 1,532
----- -----
Net interest income 7,027 7,221
Provision for loan losses 275 1,300
Non-interest income:
Service charges on deposits 557 612
Other service charges and fees 294 296
Gain on sale of mortgage loans 75 160
Non-deposit brokerage fees 144 143
Lease income 149 149
BOLI income 94 117
Securities gains 74 37
--- ---
Total 1,387 1,514
Non-interest expenses:
Personnel expense 3,013 2,858
Occupancy expense 961 926
Advertising and public relations 176 188
Professional fees 302 338
Data processing services 481 537
Franchise shares and deposit tax 291 282
FDIC insurance 151 111
Core deposit intangible
amortization 166 169
Postage and office supplies 110 78
Other real estate owned expenses 57 31
Other 487 743
--- ---
Total 6,195 6,261
----- -----
Income before income taxes 1,944 1,174
Provision for income taxes 520 271
--- ---
Net income 1,424 903
Preferred dividends and discount
accretion 259 393
--- ---
Net income available for common
shareholders $1,165 $510
====== ====
Basic earnings per common share $0.59 $0.26
===== =====
Diluted earnings per common share $0.56 $0.25
===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Six Months Ended
June June
30 30
2014 2013
---- ----
Average assets $416,873 $418,526
Average earning assets 384,487 386,147
Average loans 303,464 304,741
Average deposits 348,529 344,115
Average equity 36,358 39,254
Average common equity 28,446 27,570
Return on average assets 0.69% 0.44%
Return on average equity 7.90% 4.64%
Efficiency ratio 72.81% 70.60%
Non-interest income to
average assets 0.67% 0.73%
Non-interest expenses to
average assets 3.00% 3.02%
Net overhead to average
assets 2.33% 2.29%
Yield on loans 5.13% 5.39%
Yield on investment
securities (TE) 2.97% 2.87%
Yield on average earning
assets (TE) 4.50% 4.66%
Cost of average interest
bearing liabilities 0.83% 0.92%
Net interest margin (TE) 3.77% 3.86%
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Consolidated Statement of
Condition: As of As of As of
June 30, December 31, December 31,
2014 2013 2012
---- ---- ----
Cash and due from
financial institutions $11,055 $8,572 $9,549
Federal funds sold 11,775 28,490 25,250
Available for sale
securities 55,405 51,633 46,639
Loans held for sale 286 - 61
Loans 311,455 295,068 298,754
Allowance for loan losses (4,953) (4,653) (5,721)
Premises and equipment,
net 10,880 11,054 11,568
Bank owned life insurance
(BOLI) 7,900 7,806 7,587
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,536 1,554 1,660
Deferred income taxes 1,614 2,279 2,180
Intangible assets 4,596 4,762 5,094
Other real estate owned 598 833 191
Other assets 639 752 1,719
--- --- -----
Total Assets $414,811 $410,175 $406,556
======== ======== ========
Deposits:
Noninterest bearing $44,972 $39,967 $41,725
Savings, NOW and money
market 139,293 143,602 111,194
Time 161,545 159,382 178,814
------- ------- -------
Total deposits $345,810 $342,951 $331,733
FHLB advances and other
borrowings 25,300 22,000 26,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 239 243 238
Other liabilities 1,661 1,634 2,019
----- ----- -----
Total Liabilities 378,010 371,828 364,990
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) 1,818 653 (430)
Accumulated other
comprehensive income
(loss) 252 (303) 746
--- ---- ---
Total Stockholders'
Equity 36,801 38,347 41,566
------ ------ ------
Total Liabilities and
Stockholders' Equity $414,811 $410,175 $406,556
======== ======== ========
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
June 30 December 31, December 31,
2014 2013 2012
---- ---- ----
Capital Ratios:
Tier 1 leverage 8.90% 9.57% 10.20%
Tier 1 risk-based
capital 11.44% 12.56% 13.16%
Total risk based capital 12.69% 13.81% 14.41%
Tangible equity ratio
(1) 7.85% 8.28% 9.08%
Tangible common equity
ratio (1) 5.98% 5.59% 5.55%
Book value per common
share $14.80 $13.93 $13.91
Tangible book value per
common share (1) $12.47 $11.51 $11.32
End of period common
share closing price $11.00 $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: June 30, December 31, December 31,
2014 2013 2012
---- ---- ----
Total shareholders' equity (a) $36,801 $38,348 $41,566
Less:
Preferred stock (7,659) (10,925) (14,178)
------ ------- -------
Common equity (b) 29,142 27,423 27,388
Goodwill (4,097) (4,097) (4,097)
Intangible assets (499) (665) (997)
---- ---- ----
Tangible common equity (c) 24,546 22,661 22,294
Add:
Preferred stock 7,659 10,925 14,178
----- ------ ------
Tangible equity (d) $32,205 $33,586 $36,472
Total assets (e) $414,811 $410,175 $406,556
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (499) (665) (997)
---- ---- ----
Tangible assets (f) $410,215 $405,413 $401,462
Shares outstanding (in thousands)
(g) 1,969 1,969 1,969
Book value per common share (b/g) $14.80 $13.93 $13.91
Tangible book value per common
share (c/g) $12.47 $11.51 $11.32
Total shareholders' equity to
total assets ratio (a/e) 8.87% 9.35% 10.22%
Tangible equity ratio (d/f) 7.85% 8.28% 9.08%
Tangible common equity ratio (c/
f) 5.98% 5.59% 5.55%
SOURCE Citizens First Corporation
