CITIZENS FIRST CORP. BOWLING GREEN, Ky., July 16, 2015 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending June 30, 2015, which include the following:
-- For the quarter ended June 30, 2015, the Company reported net income of
$899,000, or $0.35 per diluted common share. This represents an
increase of $117,000, or $0.06 per diluted common share from the linked
quarter ended March 31, 2015 and an increase of $166,000, or $0.06 per
diluted common share, from the quarter ended June 30, 2014. "Margin
stability and improved non-interest income were significant contributors
to profitability in the quarter," said Todd Kanipe, President and CEO.
"Additionally, credit quality showed continued improvement. The primary
challenge for us remains generating consistent loan growth in
competitive markets."
-- For the six months ended June 30, 2015, net income totaled $1.68
million, or $0.64 per diluted common share. This represents an increase
of $257,000, or $0.08 per diluted common share, from the net income of
$1.42 million in the first six months of the previous year.
-- Non-performing assets totaled $1.2 million, or 0.29% of total assets, at
June 30, 2015 compared to $2.5 million, or 0.60% of total assets at June
30, 2014, a decrease of $1.3 million. Non-performing assets decreased
$230,000 from the linked quarter ended March 31, 2015.
-- The Company's net interest margin was 3.85% for the quarter ended June
30, 2015 compared to 3.82% for the linked quarter ended March 31, 2015,
and 3.74% for the quarter ended June 30, 2014, an increase of 3 basis
points for the linked quarter and an increase of 11 basis points from
the prior year. The Company's net interest margin increased from the
linked quarter due to an improvement in the yield on loans, which was
5.15% for the quarter ended June 30, 2015 compared to 4.99% for the
quarter ended March 31, 2015 and 5.13% for the quarter ended June 30,
2014.
-- Total loans decreased 1.4% to $314.1 million at June 30, 2015 compared
to $318.5 million at December 31, 2014. Total deposits increased 7.9%
to $368.8 million at June 30, 2015 compared to $341.8 million at
December 31, 2014.
Second Quarter 2015 Compared to First Quarter 2015
-- Net interest income increased $129,000, or 3.5%, due to an improvement
in the yield on loans, which included a prepayment fee collected of
approximately $48,000.
-- Non-interest income increased $133,000, or 19.2%, primarily due to an
increase in service charges on deposit accounts of $41,000 and gains on
sale of mortgage loans of $48,000.
-- Non-interest expense increased $43,000, or 1.3%, compared to the
previous quarter, primarily due to an increase in advertising and public
relations expense of $71,000.
Second Quarter 2015 Compared to Second Quarter 2014
-- Net interest income increased $262,000, or 7.4%, as the volume of
earning assets increased from the prior year.
-- Non-interest income increased $68,000, or 9.0%, primarily due to an
increase in service charges on deposit accounts of $62,000 due to the
introduction of a new consumer deposit transaction account.
-- Non-interest expense increased $113,000, or 3.6%, primarily due to an
increase in personnel expenses of $103,000 as a result of normal salary
adjustments.
Balance Sheet at June 30, 2015
-- Total assets increased $17.3 million, or 4.2%, from December 31, 2014 to
June 30, 2015 due to a growth in federal funds sold. Average assets
year-to-date increased 3.4%, or $14.2 million from June 30, 2014.
Average interest earning assets year-to-date increased 4.3%, or $16.4
million, from June 30, 2014.
-- Stockholders' equity decreased $411,000, or 1.1%, from December 31, 2014
to June 30, 2015. On April 15, 2015, the Company repurchased the
254,218 warrants issued in 2008 to the US Treasury as part of its
participation in the US Treasury's Capital Purchase Program. The
repurchase price of the warrants was $1.7 million, which offset the
increase in stockholders' equity due to net income less preferred
dividends of $1.4 million. The tangible common equity ratio declined to
6.10% as of June 30, 2015 compared to 6.45% at December 31, 2014 due to
the warrants redemption. 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
June 30 March 31 Dec 31 Sept 30 June 30
2015 2015 2014 2014 2014
---- ---- ---- ---- ----
Interest income $4,469 $4,306 $4,370 $4,354 $4,230
Interest expense 678 644 650 675 701
--- --- --- --- ---
Net interest
income 3,791 3,662 3,720 3,679 3,529
Provision for loan
losses 120 80 - - 150
Non-interest income:
Service charges on
deposits 358 317 339 300 296
Other service
charges and fees 176 135 138 198 141
Gain on sale of
mortgage loans 79 31 39 76 51
Non-deposit
brokerage fees 87 92 90 67 75
Lease income 70 73 63 76 74
BOLI income 46 45 47 47 47
Securities gains 10 - 21 - 74
Total 826 693 737 764 758
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,589 1,648 1,606 1,519 1,486
Net occupancy
expense 493 528 483 501 479
Advertising and
public relations 123 52 73 74 93
Professional fees 187 164 142 137 149
Data processing
services 238 239 242 250 248
Franchise shares
and deposit tax 145 146 157 146 145
FDIC insurance 63 59 63 73 74
Core deposit
intangible
amortization 17 18 82 82 82
Postage and office
supplies 52 40 43 54 59
Other real estate
owned expenses 29 7 25 10 47
Other 310 302 306 295 271
--- --- --- --- ---
Total 3,246 3,203 3,222 3,141 3,133
----- ----- ----- ----- -----
Income before
income taxes 1,251 1,072 1,235 1,302 1,004
Provision for
income taxes 352 290 348 372 271
--- --- --- --- ---
Net income 899 782 887 930 733
Dividends on
preferred stock 130 128 131 131 127
--- --- --- --- ---
Net income
available for
common
shareholders $769 $654 $756 $799 $606
==== ==== ==== ==== ====
Basic earnings per
common share $0.39 $0.33 $0.38 $0.41 $0.31
===== ===== ===== ===== =====
Diluted earnings
per common share $0.35 $0.29 $0.35 $0.38 $0.29
===== ===== ===== ===== =====
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
2015 2015 2014 2014 2014
---- ---- ---- ---- ----
Average assets $434,003 $428,210 $414,852 $412,761 $419,630
Average earning
assets 403,814 397,920 384,050 381,471 387,457
Average loans 319,758 321,028 313,888 308,087 303,489
Average
interest-
bearing
deposits 327,010 316,558 298,101 301,378 309,820
Average deposits 370,820 360,240 341,128 343,287 350,943
Average borrowed
funds 23,022 26,967 33,366 30,096 30,300
Average equity 38,180 39,029 38,249 37,328 36,501
Average common
equity 30,521 31,370 30,590 29,669 28,842
Return on
average assets 0.83% 0.74% 0.85% 0.89% 0.70%
Return on
average equity 9.44% 8.13% 9.20% 9.88% 8.05%
Efficiency ratio 69.14% 72.06% 71.19% 69.41% 72.88%
Non-interest
income to
average assets 0.76% 0.66% 0.70% 0.73% 0.72%
Non-interest
expenses to
average assets 3.00% 3.03% 3.08% 3.02% 2.99%
Net overhead to
average assets 2.24% 2.38% 2.36% 2.28% 2.27%
Yield on loans 5.15% 4.99% 5.06% 5.16% 5.13%
Yield on
investment
securities (TE) 2.85% 2.88% 2.75% 2.80% 2.94%
Yield on average
earning assets
(TE) 4.53% 4.48% 4.61% 4.61% 4.47%
Cost of average
interest
bearing
liabilities 0.78% 0.76% 0.78% 0.81% 0.83%
Net interest
margin (TE) 3.85% 3.82% 3.94% 3.91% 3.74%
Number of FTE
employees 99 95 97 98 99
Asset Quality Indicators:
Non-performing
loans to total
loans 0.33% 0.38% 0.37% 0.50% 0.60%
Non-performing
assets to total
assets 0.29% 0.34% 0.33% 0.52% 0.60%
Allowance for
loan losses to
total loans 1.59% 1.55% 1.53% 1.58% 1.59%
YTD net charge-
offs
(recoveries) to
average loans,
annualized 0.06% 0.02% 0.01% 0.01% (0.03)%
YTD net charge-
offs
(recoveries) 102 18 43 25 (25)
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Six Months Ended
June 30 June 30
2015 2014
---- ----
Interest income $8,775 $8,411
Interest expense 1,322 1,384
----- -----
Net interest income 7,453 7,027
Provision for loan losses 200 275
Non-interest income:
Service charges on deposits 675 557
Other service charges and fees 311 294
Gain on sale of mortgage loans 110 75
Non-deposit brokerage fees 179 144
Lease income 143 149
BOLI income 91 94
Securities gains 10 74
--- ---
Total 1,519 1,387
Non-interest expenses:
Personnel expense 3,237 3,013
Occupancy expense 1,021 961
Advertising and public relations 175 176
Professional fees 351 302
Data processing services 477 481
Franchise shares and deposit tax 291 291
FDIC insurance 122 151
Core deposit intangible
amortization 35 166
Postage and office supplies 92 110
Other real estate owned expenses 36 57
Other 612 487
--- ---
Total 6,449 6,195
----- -----
Income before income taxes 2,323 1,944
Provision for income taxes 642 520
--- ---
Net income 1,681 1,424
Dividends on preferred stock 258 259
--- ---
Net income available for common
shareholders $1,423 $1,165
====== ======
Basic earnings per common share $0.72 $0.59
===== =====
Diluted earnings per common share $0.64 $0.56
===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Six Months Ended
June June
30
30
2015 2014
---- ----
Average assets $431,122 $416,873
Average earning assets 400,883 384,487
Average loans 320,390 303,464
Average interest-
bearing deposits 321,813 307,542
Average deposits 365,559 348,529
Average borrowings 24,983 30,045
Average equity 38,602 36,358
Average common equity 30,943 28,446
Return on average
assets 0.79% 0.69%
Return on average
equity 8.78% 7.90%
Efficiency ratio 70.57% 72.81%
Non-interest income to
average assets 0.71% 0.67%
Non-interest expenses
to average assets 3.02% 3.00%
Net overhead to average
assets 2.31% 2.33%
Yield on loans 5.07% 5.13%
Yield on investment
securities (TE) 2.87% 2.97%
Yield on average
earning assets (TE) 4.50% 4.50%
Cost of average
interest bearing
liabilities 0.77% 0.83%
Net interest margin
(TE) 3.84% 3.77%
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,
2015 2014 2013
---- ---- ----
Cash and due from
financial institutions $9,438 $7,962 $8,572
Federal funds sold 24,100 3,360 28,490
Available for sale
securities 58,352 58,986 51,633
Loans held for sale 80 - -
Loans 314,115 318,477 295,068
Allowance for loan losses (4,983) (4,885) (4,653)
Premises and equipment,
net 10,649 10,758 11,054
Bank owned life insurance
(BOLI) 8,084 7,993 7,806
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,499 1,527 1,554
Deferred income taxes 1,545 1,479 2,279
Intangible assets 4,397 4,433 4,762
Other real estate owned 212 198 833
Other assets 588 501 752
--- --- ---
Total Assets $430,101 $412,814 $410,175
======== ======== ========
Deposits:
Noninterest bearing $44,330 $41,975 $39,967
Savings, NOW and money
market 158,583 148,935 143,602
Time 165,882 150,874 159,382
------- ------- -------
Total deposits $368,795 $341,784 $342,951
FHLB advances and other
borrowings 16,000 25,500 22,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 242 231 243
Other liabilities 2,027 1,851 1,634
----- ----- -----
Total Liabilities 392,064 374,366 371,828
6.5% Cumulative preferred
stock 7,659 7,659 7,659
Series A preferred stock - - 3,266
Common stock 25,366 27,072 27,072
Retained earnings 4,797 3,373 653
Accumulated other
comprehensive income
(loss) 215 344 (303)
--- --- ----
Total Stockholders'
Equity 38,037 38,448 38,347
------ ------ ------
Total Liabilities and
Stockholders' Equity $430,101 $412,814 $410,175
======== ======== ========
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
June 30, December December
2015 31, 2014 31, 2013
---- -------- --------
Consolidated Capital Ratios:
Tangible equity ratio (1) 7.90% 8.33% 8.28%
Tangible common equity ratio (1) 6.10% 6.45% 5.59%
Book value per common share $15.43 $15.64 $13.93
Tangible book value per common share (1) $13.20 $13.39 $11.51
End of period common share closing price $12.50 $11.90 $9.86
_____________
(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 December December
30, 2015 31, 2014 31, 2013
-------- -------- --------
Total shareholders' equity (a) $38,037 $38,448 $38,348
Less:
Preferred stock (7,659) (7,659) (10,925)
------ ------ -------
Common equity (b) 30,378 30,789 27,423
Goodwill (4,097) (4,097) (4,097)
Intangible assets (300) (336) (665)
---- ---- ----
Tangible common equity (c) 25,981 26,356 22,661
Add:
Preferred stock 7,659 7,659 10,925
----- ----- ------
Tangible equity (d) $33,640 $34,015 $33,586
Total assets (e) $430,101 $412,814 $410,175
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (300) (336) (665)
---- ---- ----
Tangible assets (f) $425,704 $408,381 $405,413
Shares outstanding (in thousands) (g) 1,969 1,969 1,969
Book value per common share (b/g) $15.43 $15.64 $13.93
Tangible book value per common share
(c/g) $13.20 $13.39 $11.51
Total shareholders' equity to total
assets ratio (a/e) 8.84% 9.31% 9.35%
Tangible equity ratio (d/f) 7.90% 8.33% 8.28%
Tangible common equity ratio (c/f) 6.10% 6.45% 5.59%
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/citizens-first-corporation-announces-second-quarter-2015-results-300114458.html
SOURCE Citizens First Corporation
