CITIZENS FIRST CORP. BOWLING GREEN, Ky., April 21, 2016 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending March 31, 2016, which include the following:
For the quarter ended March 31, 2016, the Company reported net income of $905,000, or $0.36 per diluted common share. This represents an increase of $123,000, or $0.07 per diluted common share, from $782,000, or $0.29 per diluted common share, for the quarter ended March 31, 2015.
"Our first quarter performance continued the trend of improved year-over-year profitability. EPS, margin, and key credit metrics all showed marked improvement from 2015," said Todd Kanipe, President and CEO of Citizens First. "Successful execution of our targeted growth strategy has increased the tangible book value of this company and will enable us to continue building capital."
Income Statement
Net interest income increased $201,000, or 5.5%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.94% for the quarter ended March 31, 2016, and 3.82% for the quarter ended March 31, 2015, an increase of 12 basis points from the prior year. The Company's net interest margin increased due to an increase in the tax-adjusted yield on average earning assets of 7 basis points coupled with a decline in the cost of average interest-bearing liabilities of 4 basis points.
Non-interest income increased $85,000, or 12.3%, primarily due to gain on the sale of securities and an increase in gain on sale of mortgage loans, offset by a decline in lease income.
Non-interest expense increased $167,000, or 5.2%, primarily due to an increase in personnel expenses, which were a combination of normal salary adjustments and an increase of three full time equivalent employees in the credit division from the prior year.
Credit Quality
Non-performing assets totaled $690,000, or 0.16% of total assets, at March 31, 2016 compared to $1.5 million, or 0.34% of total assets at March 31, 2015, a decrease of $790,000, or 53%.
The allowance for loan losses at March 31, 2016 was $5.0 million, or 1.53% of total loans, compared to $4.9 million, or 1.49% of total loans as of December 31, 2015. No provision for loan losses was recorded for the first quarter of 2016, and there were net charge-offs (recoveries) of $(128,000) for the first quarter of 2016. We consider the size, volume, and credit quality of the loan portfolio as well as recent economic and other external influences to record the allowance for loan losses and provision for loan losses that is directionally consistent with our loan portfolio.
Balance Sheet
Total assets at March 31, 2016 were $434.7 million compared to $432.2 million at December 31, 2015. Total assets increased $2.5 million, or 0.6%, from December 31, 2015 to March 31, 2016 due to growth in cash and due from accounts and available for sale securities. Loans decreased $507,000 during the first quarter of 2016 due to an unplanned payoff and normal reductions in customer lines of credit. Deposits decreased $7.2 million during the first quarter of 2016 due to a decline in time deposit balances, which were replaced with lower cost FHLB borrowings.
Average assets year-to-date increased 0.7%, or $3.0 million to $433.1 million at March 31, 2016 compared to $430.2 million as of December 31, 2015. Average loans increased 1.2% to $333.0 million at March 31, 2016 compared to $329.1 million at December 31, 2015. Average deposits increased 0.5% to $367.4 million at March 31, 2016 compared to $365.4 million at December 31, 2015.
Stockholders' equity increased to $40.4 million at March 31, 2016 from $39.5 million at December 31, 2015, an increase of $914,000. Almost $400,000 in new common equity was created as approximately 5% of the 6.5% cumulative preferred stock converted to common shares. The tangible common equity ratio increased to 6.70% as of March 31, 2016 compared to 6.43% at December 31, 2015. The tangible book value per common share improved from $13.97 at December 31, 2015, to $14.43 at March 31, 2016.
Dividend to be paid May 18
On April 21, 2016, the Board of Directors declared a cash dividend of $.08 per common share payable May 18, 2016 to shareholders of record as of April 29, 2016. A previous dividend of $.08 per common share was paid in November, 2015.
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, 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
March 31 Dec 31 Sept 30 June 30 March 31
2016 2015 2015 2015 2015
Interest income $4,476 $4,494 $4,415 $4,469 $4,306
Interest expense 613 623 662 678 644
Net interest
income 3,863 3,871 3,753 3,791 3,662
Provision
(credit) for
loan losses - (65) - 120 80
Non-interest
income:
Service charges
on deposits 325 360 386 358 317
Other service
charges and
fees 164 260 187 176 135
Gain on sale of
mortgage loans 77 63 60 79 31
Non-deposit
brokerage fees 72 82 103 87 92
Lease income 45 43 59 70 73
BOLI income 44 45 45 46 45
Securities gains 51 68 - 10 -
Total 778 921 840 826 693
Non-interest
expenses:
Personnel
expense 1,784 1,648 1,650 1,589 1,648
Net occupancy
expense 483 464 495 493 528
Advertising and
public
relations 61 80 75 123 52
Professional
fees 180 176 183 187 164
Data processing
services 256 262 262 238 239
Franchise shares
and deposit tax 132 96 146 145 146
FDIC insurance 59 61 61 63 59
Other real
estate owned
expenses 1 52 6 29 7
Loss on branch
disposal - - 262 - -
Other 414 380 390 379 360
Total 3,370 3,219 3,530 3,246 3,203
Income before
income taxes 1,271 1,638 1,063 1,251 1,072
Provision for
income taxes 366 487 288 352 290
Net income 905 1,151 775 899 782
Dividends on
preferred stock 124 131 131 130 128
Net income
available for
common
shareholders $781 $1,020 $644 $769 $654
Basic earnings
per common
share $0.39 $0.52 $0.33 $0.39 $0.33
Diluted earnings
per common
share $0.36 $0.45 $0.31 $0.35 $0.29
Consolidated
Financial
Highlights
(Unaudited)
In
thousands,
except
per
share
data
and
ratios
Consolidated
Statement
of
Condition: As of As of As of
March 31, December 31, December 31,
2016 2015 2014
---- ---- ----
Cash
and
due
from
financial
institutions $11,430 $8,865 $7,962
Federal
funds
sold 5,305 6,390 3,360
Interest-
bearing
deposits
in
other
financial
institutions 2,728 2,728 -
Available
for
sale
securities 61,671 60,200 58,986
Loans
held
for
sale 373 - -
Loans 330,275 330,782 318,477
Allowance
for
loan
losses (5,044) (4,916) (4,885)
Premises
and
equipment,
net 9,892 9,998 10,758
Bank
owned
life
insurance
(BOLI) 8,218 8,174 7,993
Federal
Home
Loan
Bank
Stock,
at
cost 2,025 2,025 2,025
Accrued
interest
receivable 1,463 1,680 1,527
Deferred
income
taxes 1,265 1,328 1,479
Intangible
assets 4,344 4,362 4,433
Other
real
estate
owned 100 100 198
Other
assets 677 465 501
--- --- ---
Total
Assets $434,722 $432,181 $412,814
======== ======== ========
Deposits:
Noninterest
bearing $50,365 $48,522 $41,975
Savings,
NOW
and
money
market 172,340 168,335 148,935
Time 140,475 153,531 150,874
------- ------- -------
Total
deposits $363,180 $370,388 $341,784
FHLB
advances
and
other
borrowings 24,000 15,000 25,500
Subordinated
debentures 5,000 5,000 5,000
Accrued
interest
payable 220 213 231
Other
liabilities 1,884 2,056 1,851
----- ----- -----
Total
Liabilities 394,284 392,657 374,366
6.5%
Cumulative
preferred
stock 7,261 7,659 7,659
Common
stock 25,815 25,406 27,072
Retained
earnings 7,085 6,304 3,373
Accumulated
other
comprehensive
income 277 155 344
--- --- ---
Total
Stockholders'
Equity 40,438 39,524 38,448
------ ------ ------
Total
Liabilities
and
Stockholders'
Equity $434,722 $432,181 $412,814
======== ======== ========
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Three Months Ended
March December September June March
31 31 30 30 31
2016 2015 2015 2015 2015
Average:
Assets $433,143 $430,174 $428,331 $434,003 $428,210
Earning assets 402,638 399,055 396,906 403,814 397,920
Loans 333,000 329,131 319,053 319,758 321,028
Interest-
bearing
deposits 320,363 316,979 321,643 327,010 316,558
Deposits 367,397 365,401 366,627 370,820 360,240
Borrowed funds 23,394 23,179 20,696 23,022 26,967
Equity 40,156 39,181 38,516 38,180 39,029
Common equity 32,831 31,522 30,857 30,521 31,370
Return on
average assets 0.84% 1.06% 0.72% 0.83% 0.74%
Return on
average equity 9.06% 11.66% 7.97% 9.44% 8.13%
Efficiency
ratio 72.15% 66.91% 75.43% 69.14% 72.06%
Non-interest
income to
average assets 0.72% 0.85% 0.78% 0.76% 0.66%
Non-interest
expenses to
average assets 3.13% 2.97% 3.27% 3.00% 3.03%
Net overhead to
average assets 2.41% 2.12% 2.49% 2.24% 2.38%
Yield on loans 4.96% 4.97% 5.04% 5.15% 4.99%
Yield on
investment
securities
(TE) 2.77% 2.84% 2.79% 2.85% 2.88%
Yield on
average
earning assets
(TE) 4.55% 4.55% 4.50% 4.53% 4.48%
Cost of average
interest
bearing
liabilities 0.72% 0.73% 0.77% 0.78% 0.76%
Net interest
margin (TE) 3.94% 3.94% 3.84% 3.85% 3.82%
Number of FTE
employees 98 98 98 99 95
Asset Quality Indicators:
Non-performing
loans to total
loans 0.18% 0.16% 0.25% 0.33% 0.38%
Non-performing
assets to
total assets 0.16% 0.15% 0.24% 0.29% 0.34%
Allowance for
loan losses to
total loans 1.53% 1.49% 1.53% 1.59% 1.55%
YTD net charge-
offs
(recoveries)
to average
loans,
annualized (0.15%) 0.03% 0.03% 0.06% 0.02%
YTD net charge-
offs
(recoveries) (128) 104 64 102 18
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
March 31, December 31, December 31,
2016 2015 2014
---- ---- ----
Consolidated Capital
Ratios:
Tangible equity ratio
(1) 8.39% 8.22% 8.33%
Tangible common
equity ratio (1) 6.70% 6.43% 6.45%
Book value per common
share $16.61 $16.18 $15.64
Tangible book value
per common share (1) $14.43 $13.97 $13.39
End of period common
share closing price $13.80 $13.74 $11.90
_____________
(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: March 31, December 31, December 31,
2016 2015 2014
---- ---- ----
Total shareholders' equity (a) $40,438 $39,524 $38,448
Less:
Preferred stock (7,261) (7,659) (7,659)
------ ------ ------
Common equity (b) 33,177 31,865 30,789
Goodwill (4,097) (4,097) (4,097)
Intangible assets (247) (265) (336)
---- ---- ----
Tangible common equity (c) 28,833 27,503 26,356
Add:
Preferred stock 7,261 7,659 7,659
----- ----- -----
Tangible equity (d) $36,094 $35,162 $34,015
Total assets (e) $434,722 $432,181 $412,814
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (247) (265) (336)
---- ---- ----
Tangible assets (f) $430,378 $427,819 $408,381
Shares outstanding (in
thousands) (g) 1,998 1,969 1,969
Book value per common share
(b/g) $16.61 $16.18 $15.64
Tangible book value per common
share (c/g) $14.43 $13.97 $13.39
Total shareholders' equity to
total assets ratio (a/e) 9.30% 9.15% 9.31%
Tangible equity ratio (d/f) 8.39% 8.22% 8.33%
Tangible common equity ratio
(c/f) 6.70% 6.43% 6.45%
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SOURCE Citizens First Corporation
