CITIZENS FIRST CORP. BOWLING GREEN, Ky., Oct. 19, 2015 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending September 30, 2015, which include the following:
-- For the quarter ended September 30, 2015, the Company reported net
income of $775,000, or $0.31 per diluted common share. This represents
a decrease of $124,000, or $0.04 per diluted common share from the
linked quarter ended June 30, 2015 and a decrease of $155,000, or $0.07
per diluted common share, from the quarter ended September 30, 2014.
Included in the third quarter results was a $262,000 pre-tax loss on the
disposal of a former branch facility. "Quarterly pre-tax income before
the branch disposal was $1.33 million and represents the best quarter in
our company's history. Loan growth, improving non-interest income, and
credit quality were all positive factors in our operating performance,"
said Todd Kanipe, President and CEO. "Currently, we expect loan and
deposit growth in our market area to continue as general economic
conditions are stable to improving."
-- For the nine months ended September 30, 2015, net income totaled $2.46
million, or $0.95 per diluted common share. This represents an increase
of $102,000, or $0.01 per diluted common share, from the net income of
$2.35 million in the first nine months of the previous year.
-- Non-performing assets totaled $1.0 million, or 0.24% of total assets, at
September 30, 2015 compared to $2.2 million, or 0.52% of total assets at
September 30, 2014, a decrease of $1.2 million. Non-performing assets
decreased $236,000 from the linked quarter ended June 30, 2015.
-- The Company's net interest margin was 3.84% for the quarter ended
September 30, 2015 compared to 3.85% for the linked quarter ended June
30, 2015, and 3.91% for the quarter ended September 30, 2014, a decrease
of 1 basis point for the linked quarter and a decrease of 7 basis points
from the prior year. The Company's net interest margin decreased from
the linked quarters due to a reduction in the yield on loans, which was
5.04% for the quarter ended September 30, 2015 compared to 5.15% for the
quarter ended June 30, 2015 and 5.16% for the quarter ended September
30, 2014.
-- Total loans increased 2.7% to $327.1 million at September 30, 2015
compared to $318.5 million at December 31, 2014. Total deposits
increased 6.1% to $362.5 million at September 30, 2015 compared to
$341.8 million at December 31, 2014.
-- The Board of Directors declared a cash dividend of $.08 per common share
payable November 16, 2015 to shareholders of record as of October 30,
2015, which marks the first common dividend paid by the Corporation
since December, 2008.
Third Quarter 2015 Compared to Second Quarter 2015
-- Net interest income decreased $38,000, or 1.0%, due to a decline in
average loan balances for the quarter.
-- Non-interest income increased $14,000, or 1.7%, primarily due to an
increase in service charges on deposit accounts of $28,000.
-- Non-interest expense increased $284,000, or 8.7%, compared to the
previous quarter, primarily due to the $262,000 loss on disposal of a
former branch facility.
Third Quarter 2015 Compared to Third Quarter 2014
-- Net interest income increased $74,000, or 2.0%, as the volume of earning
assets increased from the prior year.
-- Non-interest income increased $76,000, or 9.9%, primarily due to an
increase in service charges on deposit accounts of $86,000 due to the
introduction of a new consumer deposit transaction account.
-- Non-interest expense increased $389,000, or 12.4%, primarily due to the
$262,000 loss on disposal of a former branch facility, and an increase
in personnel expenses of $131,000 as a result of normal salary
adjustments.
Balance Sheet at September 30, 2015
-- Total assets increased $11.5 million, or 2.8%, from December 31, 2014 to
September 30, 2015 due primarily to a growth in outstanding loans.
Average assets year-to-date increased 3.5%, or $14.7 million from
September 30, 2014. Average interest earning assets year-to-date
increased 4.2%, or $16.1 million, from September 30, 2014.
-- Stockholders' equity increased $287,000, or 0.7%, from December 31, 2014
to September 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. The tangible common
equity ratio declined slightly to 6.36% as of September 30, 2015
compared to 6.45% at December 31, 2014 due to the warrants redemption.
Citizens First Bank is 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
2015 2015 2015 2014 2014
---- ---- ---- ---- ----
Interest income $4,415 $4,469 $4,306 $4,370 $4,354
Interest expense 662 678 644 650 675
--- --- --- --- ---
Net interest
income 3,753 3,791 3,662 3,720 3,679
Provision for loan
losses - 120 80 - -
Non-interest income:
Service charges on
deposits 386 358 317 339 300
Other service
charges and fees 187 176 135 138 198
Gain on sale of
mortgage loans 60 79 31 39 76
Non-deposit
brokerage fees 103 87 92 90 67
Lease income 59 70 73 63 76
BOLI income 45 46 45 47 47
Securities gains - 10 - 21 -
Total 840 826 693 737 764
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,650 1,589 1,648 1,606 1,519
Net occupancy
expense 495 493 528 483 501
Advertising and
public relations 75 123 52 73 74
Professional fees 183 187 164 142 137
Data processing
services 262 238 239 242 250
Franchise shares
and deposit tax 146 145 146 157 146
FDIC insurance 61 63 59 63 73
Core deposit
intangible
amortization 18 17 18 82 82
Postage and office
supplies 55 52 40 43 54
Other real estate
owned expenses 6 29 7 25 10
Loss on branch
disposal 262 - - - -
Other 317 310 302 306 295
--- --- --- --- ---
Total 3,530 3,246 3,203 3,222 3,141
----- ----- ----- ----- -----
Income before
income taxes 1,063 1,251 1,072 1,235 1,302
Provision for
income taxes 288 352 290 348 372
--- --- --- --- ---
Net income 775 899 782 887 930
Dividends on
preferred stock 131 130 128 131 131
--- --- --- --- ---
Net income
available for
common
shareholders $644 $769 $654 $756 $799
==== ==== ==== ==== ====
Basic earnings per
common share $0.33 $0.39 $0.33 $0.38 $0.41
===== ===== ===== ===== =====
Diluted earnings
per common share $0.31 $0.35 $0.29 $0.35 $0.38
===== ===== ===== ===== =====
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
2015 2015 2015 2014 2014
---- ---- ---- ---- ----
Average assets $428,331 $434,003 $428,210 $414,852 $412,761
Average earning
assets 396,906 403,814 397,920 384,050 381,471
Average loans 319,053 319,758 321,028 313,888 308,087
Average
interest-
bearing
deposits 321,643 327,010 316,558 298,101 301,378
Average
deposits 366,627 370,820 360,240 341,128 343,287
Average
borrowed funds 20,696 23,022 26,967 33,366 30,096
Average equity 38,516 38,180 39,029 38,249 37,328
Average common
equity 30,857 30,521 31,370 30,590 29,669
Return on
average assets 0.72% 0.83% 0.74% 0.85% 0.89%
Return on
average equity 7.97% 9.44% 8.13% 9.20% 9.88%
Efficiency
ratio 75.43% 69.14% 72.06% 71.19% 69.41%
Non-interest
income to
average assets 0.78% 0.76% 0.66% 0.70% 0.73%
Non-interest
expenses to
average assets 3.27% 3.00% 3.03% 3.08% 3.02%
Net overhead to
average assets 2.49% 2.24% 2.38% 2.36% 2.28%
Yield on loans 5.04% 5.15% 4.99% 5.06% 5.16%
Yield on
investment
securities
(TE) 2.79% 2.85% 2.88% 2.75% 2.80%
Yield on
average
earning assets
(TE) 4.50% 4.53% 4.48% 4.61% 4.61%
Cost of average
interest
bearing
liabilities 0.77% 0.78% 0.76% 0.78% 0.81%
Net interest
margin (TE) 3.84% 3.85% 3.82% 3.94% 3.91%
Number of FTE
employees 98 99 95 97 98
Asset Quality Indicators:
Non-performing
loans to total
loans 0.25% 0.33% 0.38% 0.37% 0.50%
Non-performing
assets to
total assets 0.24% 0.29% 0.34% 0.33% 0.52%
Allowance for
loan losses to
total loans 1.53% 1.59% 1.55% 1.53% 1.58%
YTD net charge-
offs to
average loans,
annualized 0.03% 0.06% 0.02% 0.01% 0.01%
YTD net charge-
offs 64 102 18 43 25
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Nine Months Ended
September 30 September 30
2015 2014
---- ----
Interest
income $13,190 $12,765
Interest
expense 1,984 2,059
----- -----
Net
interest
income 11,206 10,706
Provision
for loan
losses 200 275
Non-
interest
income:
Service
charges
on
deposits 1,061 857
Other
service
charges
and fees 498 492
Gain on
sale of
mortgage
loans 170 151
Non-
deposit
brokerage
fees 282 211
Lease
income 202 225
BOLI
income 136 141
Securities
gains 10 74
--- ---
Total 2,359 2,151
Non-
interest
expenses:
Personnel
expense 4,887 4,532
Occupancy
expense 1,516 1,462
Advertising
and
public
relations 250 250
Professional
fees 534 439
Data
processing
services 739 731
Franchise
shares
and
deposit
tax 437 437
FDIC
insurance 183 224
Core
deposit
intangible
amortization 53 248
Postage
and
office
supplies 147 164
Other real
estate
owned
expenses 42 67
Loss on
branch
disposal 262 -
Other 929 782
--- ---
Total 9,979 9,336
----- -----
Income
before
income
taxes 3,386 3,246
Provision
for
income
taxes 930 892
--- ---
Net income 2,456 2,354
Dividends
on
preferred
stock 389 390
--- ---
Net income
available
for
common
shareholders $2,067 $1,964
====== ======
Basic
earnings
per
common
share $1.05 $1.00
===== =====
Diluted
earnings
per
common
share $0.95 $0.94
===== =====
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Nine Months Ended
September September
30 30
2015 2014
---- ----
Average assets $430,182 $415,487
Average earning
assets 399,544 383,470
Average loans 319,940 305,021
Average interest-
bearing deposits 321,756 305,465
Average deposits 365,919 346,763
Average borrowings 23,538 30,062
Average equity 38,573 36,685
Average common
equity 30,914 28,858
Return on average
assets 0.76% 0.76%
Return on average
equity 8.51% 8.58%
Efficiency ratio 72.20% 71.63%
Non-interest
income to average
assets 0.73% 0.69%
Non-interest
expenses to
average assets 3.10% 3.00%
Net overhead to
average assets 2.37% 2.31%
Yield on loans 5.06% 5.14%
Yield on investment
securities (TE) 2.85% 2.90%
Yield on average
earning assets
(TE) 4.50% 4.54%
Cost of average
interest bearing
liabilities 0.77% 0.82%
Net interest margin
(TE) 3.84% 3.82%
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,
2015 2014 2013
---- ---- ----
Cash and due from
financial institutions $11,981 $7,962 $8,572
Federal funds sold 1,705 3,360 28,490
Available for sale
securities 60,068 58,986 51,633
Loans held for sale 155 - -
Loans 327,150 318,477 295,068
Allowance for loan losses (5,021) (4,885) (4,653)
Premises and equipment,
net 9,971 10,758 11,054
Bank owned life insurance
(BOLI) 8,129 7,993 7,806
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,597 1,527 1,554
Deferred income taxes 1,517 1,479 2,279
Intangible assets 4,380 4,433 4,762
Other real estate owned 207 198 833
Other assets 417 501 752
--- --- ---
Total Assets $424,281 $412,814 $410,175
======== ======== ========
Deposits:
Noninterest bearing $46,081 $41,975 $39,967
Savings, NOW and money
market 154,761 148,935 143,602
Time 161,649 150,874 159,382
------- ------- -------
Total deposits $362,491 $341,784 $342,951
FHLB advances and other
borrowings 15,500 25,500 22,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 233 231 243
Other liabilities 2,322 1,851 1,634
----- ----- -----
Total Liabilities 385,546 374,366 371,828
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 5,440 3,373 653
Accumulated other
comprehensive income
(loss) 270 344 (303)
--- --- ----
Total Stockholders'
Equity 38,735 38,448 38,347
------ ------ ------
Total Liabilities and
Stockholders' Equity $424,281 $412,814 $410,175
======== ======== ========
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
September 30, 2015 December 31, 2014 December 31, 2013
------------------ ----------------- -----------------
Consolidated Capital Ratios:
Tangible equity ratio (1) 8.18% 8.33% 8.28%
Tangible common equity ratio (1) 6.36% 6.45% 5.59%
Book value per common share $15.78 $15.64 $13.93
Tangible book value per common share (1) $13.56 $13.39 $11.51
End of period common share closing price $12.66 $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: September 30, 2015 December 31, 2014 December 31, 2013
------------------ ----------------- -----------------
Total shareholders'
equity (a) $38,735 $38,448 $38,348
Less:
Preferred stock (7,659) (7,659) (10,925)
------ ------ -------
Common equity (b) 31,076 30,789 27,423
Goodwill (4,097) (4,097) (4,097)
Intangible assets (283) (336) (665)
---- ---- ----
Tangible common equity
(c) 26,696 26,356 22,661
Add:
Preferred stock 7,659 7,659 10,925
----- ----- ------
Tangible equity (d) $34,355 $34,015 $33,586
Total assets (e) $424,281 $412,814 $410,175
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (283) (336) (665)
---- ---- ----
Tangible assets (f) $419,901 $408,381 $405,413
Shares outstanding (in
thousands) (g) 1,969 1,969 1,969
Book value per common
share (b/g) $15.78 $15.64 $13.93
Tangible book value per
common share (c/g) $13.56 $13.39 $11.51
Total shareholders'
equity to total assets
ratio (a/e) 9.13% 9.31% 9.35%
Tangible equity ratio
(d/f) 8.18% 8.33% 8.28%
Tangible common equity
ratio (c/f) 6.36% 6.45% 5.59%
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/citizens-first-corporation-announces-third-quarter-2015-results-and-declares-common-dividend-300161934.html
SOURCE Citizens First Corporation
