CITIZENS FIRST CORP. BOWLING GREEN, Ky., Oct. 16, 2014 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending September 30, 2014, which include the following:
-- For the quarter ended September 30, 2014, the Company reported net
income of $930,000, which represents an increase of $197,000 from the
linked quarter ended June 30, 2014 and an increase of $697,000 from the
quarter ended September 30, 2013. "Our continued earnings improvement in
2014 is directly attributable to improved credit quality, loan growth,
and a focus on margin," said Todd Kanipe, President & CEO of Citizens
First. "Lower non-performing assets in 2014 have significantly reduced
provision and collection expenses. In addition, loan growth in Kentucky
and Tennessee and a stable expense structure have combined to improve
core earnings."
-- Earnings per diluted common share for the current quarter were $0.38, an
increase of $0.09 from the linked quarter ended June 30, 2014 and an
increase of $0.36 for the quarter ended September 30, 2013.
-- For the nine months ended September 30, 2014, net income totaled $2.35
million, or $0.94 per diluted common share. This represents an increase
of $1.21 million, or $0.67 per diluted common share, from the net income
of $1.14 million in the first nine months of the previous year.
-- The Company's net interest margin was 3.91% for the quarter ended
September 30, 2014 compared to 3.74% for the linked quarter ended June
30, 2014 and 3.88% for the quarter ended September 30, 2013, an increase
of 17 basis points for the linked quarter and an increase of 3 basis
points from the prior year. The Company's net interest margin increased
from prior periods due to an improvement in the mix of earning assets.
Third Quarter 2014 Compared to Second Quarter 2014
-- Net interest income increased $150,000, or 4.3%, as the volume of
average loans increased $4.6 million.
-- Non-interest income increased $6,000, or 0.8%, primarily due to an
increase in other service charges and fees of $57,000 and gain on the
sale of mortgage loans of $25,000, offset by a decrease in security
gains of $74,000.
-- Non-interest expense increased $8,000, or 0.3%, compared to the previous
quarter, primarily due to an increase in personnel expense.
Third Quarter 2014 Compared to Third Quarter 2013
-- Net interest income increased $45,000, or 1.2%, as the volume of average
earning assets increased over the prior year.
-- Non-interest income decreased $32,000, or 4.0%, primarily due to a
decline in service charges on deposit accounts.
-- Non-interest expense decreased $138,000, or 4.2%, due to a decrease in
legal and collection expenses.
Balance Sheet at September 30, 2014
-- Total assets increased $842,000, or 0.2%, from December 31, 2013 to
September 30, 2014 due to a growth in loans which was offset primarily
by a reduction in federal funds sold. Average assets year-to-date
decreased 0.3%, or $1.3 million, from 2013. Average interest earning
assets year-to-date decreased 0.2%, or $657,000, from 2013.
-- Loans outstanding increased $15.8 million, or 5.4%, from December 31,
2013 to September 30, 2014, while average loans year-to-date decreased
$689,000, or 0.2%.
-- Non-performing assets totaled $2.2 million, or 0.52% of total assets, at
September 30, 2014 compared to $2.0 million, or 0.49% of total assets at
December 31, 2013, an increase of $145,000.
-- The allowance for loan losses at September 30, 2014 was $4.9 million, or
1.58% 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.
-- Deposits decreased $5.8 million, or 1.7%, from December 31, 2013 to
September 30, 2014. Average deposits year-to-date increased $4.0
million, or 1.2%, compared to 2013.
-- Stockholders' equity decreased $713,000, or 1.9%, from December 31, 2013
to September 30, 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 declined slightly to 8.15% as of September 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 $12.93 at
September 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. 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
Sept 30 June 30 March 31 Dec 31 Sept 30
2014 2014 2014 2013 2013
---- ---- ---- ---- ----
Interest income $4,354 $4,230 $4,181 $4,411 $4,381
Interest expense 675 701 683 682 747
--- --- --- --- ---
Net interest
income 3,679 3,529 3,498 3,729 3,634
Provision for
loan losses - 150 125 450 900
Non-interest income:
Service charges
on deposits 300 296 261 319 341
Other service
charges and fees 198 141 153 133 156
Gain on sale of
mortgage loans 76 51 24 36 81
Non-deposit
brokerage fees 67 75 69 72 91
Lease income 76 74 75 75 74
BOLI income 47 47 47 49 53
Securities gains - 74 - 27 -
Total 764 758 629 711 796
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,519 1,486 1,527 1,419 1,382
Net occupancy
expense 501 479 482 485 499
Advertising and
public relations 74 93 83 65 70
Professional fees 137 149 153 141 201
Data processing
services 250 248 233 266 280
Franchise shares
and deposit tax 146 145 146 145 146
FDIC insurance 73 74 77 119 150
Core deposit
intangible
amortization 82 82 84 79 84
Postage and
office supplies 54 59 51 38 35
Other real estate
owned expenses 10 47 10 46 7
Other 295 271 216 258 425
--- --- --- --- ---
Total 3,141 3,133 3,062 3,061 3,279
----- ----- ----- ----- -----
Income before
income taxes 1,302 1,004 940 929 251
Provision for
income taxes 372 271 249 227 18
--- --- --- --- ---
Net income 930 733 691 702 233
Dividends and
accretion on
preferred stock 131 127 132 184 178
--- --- --- --- ---
Net income
available for
common
shareholders $799 $606 $559 $518 $55
==== ==== ==== ==== ===
Basic earnings
per common share $0.41 $0.31 $0.28 $0.26 $0.03
===== ===== ===== ===== =====
Diluted earnings
per common share $0.38 $0.29 $0.27 $0.25 $0.02
===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Three Months Ended
September June March December September
30 30 31 31 30
2014 2014 2014 2013 2013
---- ---- ---- ---- ----
Average assets $412,761 $419,630 $414,089 $408,792 $413,293
Average earning assets 381,471 387,457 381,485 375,658 380,154
Average loans 308,087 303,489 303,438 298,833 307,618
Average interest-
bearing deposits 301,378 309,820 305,239 298,646 298,972
Average deposits 343,287 350,943 346,089 340,938 340,067
Average equity 37,328 36,501 36,213 38,469 37,937
Average common equity 29,669 28,842 28,046 27,548 27,023
Return on average
assets 0.89% 0.70% 0.68% 0.68% 0.22%
Return on average
equity 9.88% 8.05% 7.74% 7.24% 2.44%
Efficiency ratio 69.41% 72.88% 72.73% 68.07% 72.66%
Non-interest income
to average assets 0.73% 0.72% 0.62% 0.69% 0.77%
Non-interest expenses
to average assets 3.02% 2.99% 3.00% 2.97% 3.15%
Net overhead to
average assets 2.28% 2.27% 2.38% 2.28% 2.38%
Yield on loans 5.16% 5.13% 5.14% 5.42% 5.26%
Yield on investment
securities (TE) 2.80% 2.94% 3.02% 2.97% 2.87%
Yield on average
earning assets (TE) 4.61% 4.47% 4.53% 4.75% 4.66%
Cost of average
interest bearing
liabilities 0.81% 0.83% 0.83% 0.83% 0.89%
Net interest margin
(TE) 3.91% 3.74% 3.81% 4.03% 3.88%
Number of FTE
employees 98 99 98 100 100
Asset Quality Indicators:
Non-performing loans
to total loans 0.50% 0.60% 0.65% 0.40% 1.94%
Non-performing assets
to total assets 0.52% 0.60% 0.62% 0.49% 1.56%
Allowance for loan
losses to total loans 1.58% 1.59% 1.60% 1.58% 1.60%
YTD net charge-offs
(recoveries) to
average loans,
annualized 0.01% (0.03)% (0.06)% 1.22% 1.36%
YTD net charge-offs
(recoveries) 25 (25) (49) 3,718 3,101
Consolidated
Financial
Highlights
(Unaudited)
In thousands,
except per
share data and
ratios
Nine Months Ended
September 30 September 30
2014 2013
---- ----
Interest income $12,765 $13,134
Interest expense 2,059 2,279
----- -----
Net interest
income 10,706 10,855
Provision for
loan losses 275 2,200
Non-interest
income:
Service charges
on deposits 857 953
Other service
charges and
fees 492 452
Gain on sale of
mortgage loans 151 241
Non-deposit
brokerage fees 211 234
Lease income 225 223
BOLI income 141 170
Securities gains 74 37
--- ---
Total 2,151 2,310
Non-interest
expenses:
Personnel
expense 4,532 4,240
Occupancy
expense 1,462 1,425
Advertising and
public
relations 250 258
Professional
fees 439 539
Data processing
services 731 817
Franchise shares
and deposit tax 437 428
FDIC insurance 224 261
Core deposit
intangible
amortization 248 253
Postage and
office supplies 164 113
Other real
estate owned
expenses 67 38
Other 782 1,168
--- -----
Total 9,336 9,540
----- -----
Income before
income taxes 3,246 1,425
Provision for
income taxes 892 289
--- ---
Net income 2,354 1,136
Dividends and
accretion on
preferred stock 390 571
--- ---
Net income
available for
common
shareholders $1,964 $565
====== ====
Basic earnings
per common
share $1.00 $0.29
===== =====
Diluted earnings
per common
share $0.94 $0.27
===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Nine Months Ended
September September
30 30
2014 2013
---- ----
Average assets $415,487 $416,763
Average earning assets 383,470 384,127
Average loans 305,021 305,710
Average interest-bearing
deposits 305,465 300,637
Average deposits 346,763 342,751
Average equity 36,685 38,810
Average common equity 28,858 27,385
Return on average assets 0.76% 0.36%
Return on average equity 8.58% 3.91%
Efficiency ratio 71.63% 71.30%
Non-interest income to
average assets 0.69% 0.74%
Non-interest expenses to
average assets 3.00% 3.06%
Net overhead to average
assets 2.31% 2.32%
Yield on loans 5.14% 5.35%
Yield on investment
securities (TE) 2.90% 2.87%
Yield on average earning
assets (TE) 4.54% 4.66%
Cost of average interest
bearing liabilities 0.82% 0.91%
Net interest margin (TE) 3.82% 3.87%
Consolidated Financial
Highlights (Unaudited)
In thousands, except per
share data and ratios
Consolidated Statement of
Condition: As of As of As of
September 30, December 31, December 31,
2014 2013 2012
---- ---- ----
Cash and due from
financial institutions $9,010 $8,572 $9,549
Federal funds sold 4,230 28,490 25,250
Available for sale
securities 62,248 51,633 46,639
Loans held for sale - - 61
Loans 310,877 295,068 298,754
Allowance for loan losses (4,903) (4,653) (5,721)
Premises and equipment,
net 10,801 11,054 11,568
Bank owned life insurance
(BOLI) 7,947 7,806 7,587
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,638 1,554 1,660
Deferred income taxes 1,596 2,279 2,180
Intangible assets 4,514 4,762 5,094
Other real estate owned 588 833 191
Other assets 446 752 1,719
--- --- -----
Total Assets $411,017 $410,175 $406,556
======== ======== ========
Deposits:
Noninterest bearing $42,579 $39,967 $41,725
Savings, NOW and money
market 138,214 143,602 111,194
Time 156,392 159,382 178,814
------- ------- -------
Total deposits $337,185 $342,951 $331,733
FHLB advances and other
borrowings 29,000 22,000 26,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 231 243 238
Other liabilities 1,967 1,634 2,019
----- ----- -----
Total Liabilities 373,383 371,828 364,990
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) 2,617 653 (430)
Accumulated other
comprehensive income
(loss) 286 (303) 746
--- ---- ---
Total Stockholders'
Equity 37,634 38,347 41,566
------ ------ ------
Total Liabilities and
Stockholders' Equity $411,017 $410,175 $406,556
======== ======== ========
Consolidated Financial Highlights
(Unaudited)
In thousands, except per share data
and ratios
September December December
30, 2014 31, 2013 31, 2012
-------- -------- --------
Capital Ratios:
Tier 1 leverage 9.23% 9.57% 10.20%
Tier 1 risk-based capital 11.30% 12.56% 13.16%
Total risk based capital 12.55% 13.81% 14.41%
Tangible equity ratio (1) 8.15% 8.28% 9.08%
Tangible common equity ratio (1) 6.26% 5.59% 5.55%
Book value per common share $15.22 $13.93 $13.91
Tangible book value per common share
(1) $12.93 $11.51 $11.32
End of period common share closing
price $11.79 $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: September December December
30, 2014 31, 2013 31, 2012
-------- -------- --------
Total shareholders' equity (a) $37,634 $38,348 $41,566
Less:
Preferred stock (7,659) (10,925) (14,178)
------ ------- -------
Common equity (b) 29,975 27,423 27,388
Goodwill (4,097) (4,097) (4,097)
Intangible assets (417) (665) (997)
---- ---- ----
Tangible common equity (c) 25,461 22,661 22,294
Add:
Preferred stock 7,659 10,925 14,178
----- ------ ------
Tangible equity (d) $33,120 $33,586 $36,472
Total assets (e) $411,017 $410,175 $406,556
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (417) (665) (997)
---- ---- ----
Tangible assets (f) $406,503 $405,413 $401,462
Shares outstanding (in thousands) (g) 1,969 1,969 1,969
Book value per common share (b/g) $15.22 $13.93 $13.91
Tangible book value per common share
(c/g) $12.93 $11.51 $11.32
Total shareholders' equity to total
assets ratio (a/e) 9.16% 9.35% 10.22%
Tangible equity ratio (d/f) 8.15% 8.28% 9.08%
Tangible common equity ratio (c/f) 6.26% 5.59% 5.55%
SOURCE Citizens First Corporation
