CITIZENS FIRST CORP. BOWLING GREEN, Ky., April 16, 2015 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending March 31, 2015, which include the following:
-- For the quarter ended March 31, 2015, the Company reported net income of
$782,000, or $0.31 per diluted common share. This represents a decrease
of $105,000, or $0.04 per diluted common share from the linked quarter
ended December 31, 2014 and an increase of $91,000, or $0.04 per diluted
common share, from the quarter ended March 31, 2014.
-- 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. On a proforma basis, assuming the repurchase
of the warrants as of March 31, 2015, the tangible book value per common
share at March 31, 2015 would have been $12.99 rather than the $13.85
reported. Also on a proforma basis, a resulting improvement in diluted
earnings per common share of $0.02 would have occurred for the quarter
ended March 31, 2015.
-- Non-performing assets totaled $1.5 million, or 0.34% of total assets, at
March 31, 2015 compared to $2.6 million, or 0.62% of total assets at
March 31, 2014, a decrease of $1.1 million. Non-performing assets
increased $115,000 from the linked quarter ended December 31, 2014.
-- The Company's net interest margin was 3.82% for the quarter ended March
31, 2015 compared to 3.94% for the linked quarter ended December 31,
2014, and 3.81% for the quarter ended March 31, 2014, a decrease of 12
basis points for the linked quarter and an increase of 1 basis point
from the prior year. The Company's net interest margin decreased from
the linked quarter due to a decline in the yield on loans, which fell to
4.99% for the quarter ended March 31, 2015 compared to 5.06% for the
quarter ended December 31, 2014 and 5.14% for the quarter ended March
31, 2014.
-- Total loans increased 0.4% to $319.6 million at March 31, 2015 compared
to $318.5 million at December 31, 2014. Total deposits increased 6.9% to
$365.4 million at March 31, 2015 compared to $341.8 million at December
31, 2014. Todd Kanipe, President & CEO of Citizens First commented, "We
are encouraged by the growth on our balance sheet. Overall growth is
vital to improve our net interest income while interest rates continue
to remain at historically low levels."
First Quarter 2015 Compared to Fourth Quarter 2014
-- Net interest income decreased $58,000, or 1.6%, due to a decline in the
yield on loans.
-- Non-interest income decreased $44,000, or 6.0%, primarily due to a
decrease in service charges on deposit accounts of $22,000 and security
gains of $21,000.
-- Non-interest expense decreased $19,000, or 0.6%, compared to the
previous quarter, primarily due to a reduction in core deposit
intangible expense of $64,000 partially offset by an increase in
personnel expense of $42,000.
First Quarter 2015 Compared to First Quarter 2014
-- Net interest income increased $164,000, or 4.7%, as the volume of
earning assets increased from the prior year.
-- Non-interest income increased $64,000, or 10.2%, primarily due to an
increase in service charges on deposit accounts due to the introduction
of a new consumer deposit transaction account.
-- Non-interest expense increased $141,000, or 4.6%, primarily due to an
increase in personnel expenses, primarily as a result of normal salary
adjustments.
Balance Sheet at March 31, 2015
-- Total assets increased $18.3 million, or 4.4%, from December 31, 2014 to
March 31, 2015 due to a growth in loans and federal funds sold. Average
assets year-to-date increased 3.4%, or $14.1 million from March 31,
2014. Average interest earning assets year-to-date increased 4.3%, or
$16.4 million, from March 31, 2014.
-- The allowance for loan losses at March 31, 2015 was $4.9 million, or
1.55% of total loans, compared to $4.9 million, or 1.53% of total loans
as of December 31, 2014. The allowance increased slightly as a
percentage of total loans due to an increase in outstanding loans for
the year as well as continuing low levels of non-performing loans.
-- Stockholders' equity increased $903,000, or 2.3%, from December 31, 2014
to March 31, 2015. The tangible common equity ratio declined slightly to
6.39% as of March 31, 2015 compared to 6.45% at December 31, 2014 due to
the increase in assets. The tangible book value per common share
improved from $13.39 at December 31, 2014, to $13.85 at March 31, 2015.
The Company and Citizens First Bank are categorized as "well
capitalized" under regulatory guidelines. As a component of new BASEL
III capital regulations, Citizens First Bank will "opt-out" of including
accumulated other comprehensive income (AOCI) in regulatory capital with
the filing of the March 31, 2015 Call Report.
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
March 31 Dec 31 Sept 30 June 30 March 31
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Interest
income $4,306 $4,370 $4,354 $4,230 $4,181
Interest
expense 644 650 675 701 683
--- --- --- --- ---
Net
interest
income 3,662 3,720 3,679 3,529 3,498
Provision
for
loan
losses 80 - - 150 125
Non-interest income:
Service
charges
on
deposits 317 339 300 296 261
Other
service
charges
and
fees 135 138 198 141 153
Gain
on
sale
of
mortgage
loans 31 39 76 51 24
Non-
deposit
brokerage
fees 92 90 67 75 69
Lease
income 73 63 76 74 75
BOLI
income 45 47 47 47 47
Securities
gains - 21 - 74 -
Total 693 737 764 758 629
--- --- --- --- ---
Non-interest
expenses:
Personnel
expense 1,648 1,606 1,519 1,486 1,527
Net
occupancy
expense 528 483 501 479 482
Advertising
and
public
relations 52 73 74 93 83
Professional
fees 164 142 137 149 153
Data
processing
services 239 242 250 248 233
Franchise
shares
and
deposit
tax 146 157 146 145 146
FDIC
insurance 59 63 73 74 77
Core
deposit
intangible
amortization 18 82 82 82 84
Postage
and
office
supplies 40 43 54 59 51
Other
real
estate
owned
expenses 7 25 10 47 10
Other 302 306 295 271 216
--- --- --- --- ---
Total 3,203 3,222 3,141 3,133 3,062
----- ----- ----- ----- -----
Income
before
income
taxes 1,072 1,235 1,302 1,004 940
Provision
for
income
taxes 290 348 372 271 249
--- --- --- --- ---
Net
income 782 887 930 733 691
Dividends
and
accretion
on
preferred
stock 128 131 131 127 132
--- --- --- --- ---
Net
income
available
for
common
shareholders $654 $756 $799 $606 $559
==== ==== ==== ==== ====
Basic
earnings
per
common
share $0.33 $0.38 $0.41 $0.31 $0.28
===== ===== ===== ===== =====
Diluted
earnings
per
common
share $0.31 $0.35 $0.38 $0.29 $0.27
===== ===== ===== ===== =====
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
2015 2014 2014 2014 2014
---- ---- ---- ---- ----
Average assets $428,210 $414,852 $412,761 $419,630 $414,089
Average earning
assets 397,920 384,050 381,471 387,457 381,485
Average loans 321,028 313,888 308,087 303,489 303,438
Average
interest-
bearing
deposits 316,558 298,101 301,378 309,820 305,239
Average deposits 360,240 341,128 343,287 350,943 346,089
Average equity 39,029 38,249 37,328 36,501 36,213
Average common
equity 31,370 30,590 29,669 28,842 28,046
Return on
average assets 0.74% 0.85% 0.89% 0.70% 0.68%
Return on
average equity 8.13% 9.20% 9.88% 8.05% 7.74%
Efficiency ratio 72.06% 71.19% 69.41% 72.88% 72.73%
Non-interest
income to
average assets 0.66% 0.70% 0.73% 0.72% 0.62%
Non-interest
expenses to
average assets 3.03% 3.08% 3.02% 2.99% 3.00%
Net overhead to
average assets 2.38% 2.36% 2.28% 2.27% 2.38%
Yield on loans 4.99% 5.06% 5.16% 5.13% 5.14%
Yield on
investment
securities (TE) 2.88% 2.75% 2.80% 2.94% 3.02%
Yield on average
earning assets
(TE) 4.48% 4.61% 4.61% 4.47% 4.53%
Cost of average
interest
bearing
liabilities 0.76% 0.78% 0.81% 0.83% 0.83%
Net interest
margin (TE) 3.82% 3.94% 3.91% 3.74% 3.81%
Number of FTE
employees 95 97 98 99 98
Asset Quality Indicators:
Non-performing
loans to total
loans 0.38% 0.37% 0.50% 0.60% 0.65%
Non-performing
assets to total
assets 0.34% 0.33% 0.52% 0.60% 0.62%
Allowance for
loan losses to
total loans 1.55% 1.53% 1.58% 1.59% 1.60%
YTD net charge-
offs
(recoveries) to
average loans,
annualized 0.02% 0.01% 0.01% (0.03)% (0.06)%
YTD net charge-
offs
(recoveries) 18 43 25 (25) (49)
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,
2015 2014 2013
---- ---- ----
Cash and due from
financial institutions $8,513 $7,962 $8,572
Federal funds sold 19,905 3,360 28,490
Available for sale
securities 58,913 58,986 51,633
Loans held for sale 310 - -
Loans 319,632 318,477 295,068
Allowance for loan losses (4,947) (4,885) (4,653)
Premises and equipment,
net 10,776 10,758 11,054
Bank owned life insurance
(BOLI) 8,039 7,993 7,806
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,443 1,527 1,554
Deferred income taxes 1,350 1,479 2,279
Intangible assets 4,415 4,433 4,762
Other real estate owned 267 198 833
Other assets 491 501 752
--- --- ---
Total Assets $431,132 $412,814 $410,175
======== ======== ========
Deposits:
Noninterest bearing $44,664 $41,975 $39,967
Savings, NOW and money
market 153,781 148,935 143,602
Time 166,920 150,874 159,382
------- ------- -------
Total deposits $365,365 $341,784 $342,951
FHLB advances and other
borrowings 19,500 25,500 22,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 242 231 243
Other liabilities 1,674 1,851 1,634
----- ----- -----
Total Liabilities 391,781 374,366 371,828
6.5% Cumulative preferred
stock 7,659 7,659 7,659
Series A preferred stock - - 3,266
Common stock 27,072 27,072 27,072
Retained earnings
(deficit) 4,027 3,373 653
Accumulated other
comprehensive income
(loss) 593 344 (303)
--- --- ----
Total Stockholders'
Equity 39,351 38,448 38,347
------ ------ ------
Total Liabilities and
Stockholders' Equity $431,132 $412,814 $410,175
======== ======== ========
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
March 31, December 31, December 31,
2015 2014 2013
---- ---- ----
Consolidated Capital Ratios:
Tangible equity ratio (1) 8.19% 8.33% 8.28%
Tangible common equity ratio (1) 6.39% 6.45% 5.59%
Book value per common share $16.10 $15.64 $13.93
Tangible book value per common
share (1) $13.85 $13.39 $11.51
End of period common share
closing price $12.27 $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: March 31, 2015 December 31, 2014 December 31, 2013
-------------- ----------------- -----------------
Total
shareholders'
equity (a) $39,351 $38,448 $38,348
Less:
Preferred stock (7,659) (7,659) (10,925)
------ ------ -------
Common equity (b) 31,692 30,789 27,423
Goodwill (4,097) (4,097) (4,097)
Intangible assets (318) (336) (665)
---- ---- ----
Tangible common
equity (c) 27,277 26,356 22,661
Add:
Preferred stock 7,659 7,659 10,925
----- ----- ------
Tangible equity
(d) $34,936 $34,015 $33,586
Total assets (e) $431,132 $412,814 $410,175
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (318) (336) (665)
---- ---- ----
Tangible assets
(f) $426,717 $408,381 $405,413
Shares
outstanding (in
thousands) (g) 1,969 1,969 1,969
Book value per
common share (b/
g) $16.10 $15.64 $13.93
Tangible book
value per common
share (c/g) $13.85 $13.39 $11.51
Total
shareholders'
equity to total
assets ratio (a/
e) 9.13% 9.31% 9.35%
Tangible equity
ratio (d/f) 8.19% 8.33% 8.28%
Tangible common
equity ratio (c/
f) 6.39% 6.45% 5.59%
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SOURCE Citizens First Corporation
