CITIZENS FIRST CORP. BOWLING GREEN, Ky., Jan. 21, 2016 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the fourth quarter and year ending December 31, 2015, which include the following:
-- For the quarter ended December 31, 2015, the Company reported net income
of $1.15 million, or $0.45 per diluted common share. This represents an
increase of $376,000, or $0.14 per diluted common share from the linked
quarter ended September 30, 2015 and an increase of $264,000, or $0.10
per diluted common share, from the quarter ended December 31, 2014.
"Growth in average loan balances, steady margins, and expense control
drove fourth quarter profitability," said Todd Kanipe, President and
CEO. "Asset quality also contributed as non-performing assets continued
their positive trend, helping keep credit costs low."
-- For the year ended December 31, 2015, net income totaled $3.61 million,
or $1.40 per diluted common share. This represents an increase of
$366,000, or $0.11 per diluted common share, from the net income of
$3.24 million in the previous year. "Our strategy of targeted loan and
deposit growth produced a second consecutive year of record
profitability and our fourth in five years," Kanipe added. "These
earnings enabled continued execution of our capital plan. During 2015 we
retired all warrants associated with TARP, resumed a common dividend,
and continued to improve the tangible book value of our company."
-- Non-performing assets totaled $637,000, or 0.15% of total assets, at
December 31, 2015 compared to $1.36 million, or 0.33% of total assets at
December 31, 2014, a decrease of $728,000. Non-performing assets
decreased $376,000 from the linked quarter ended September 30, 2015.
-- The Company's net interest margin was 3.94% for the quarter ended
December 31, 2015 compared to 3.84% for the linked quarter ended
September 30, 2015, and 3.94% for the quarter ended December 31, 2014,
an increase of 10 basis points for the linked quarter and unchanged from
the prior year. The Company's net interest margin improved from the
linked quarter due primarily to a reduction in the cost of
interest-bearing liabilities.
-- Total loans increased 3.9% to $330.8 million at December 31, 2015
compared to $318.5 million at December 31, 2014. Total deposits
increased 8.4% to $370.4 million at December 31, 2015 compared to $341.8
million at December 31, 2014.
-- Shares of CZFC closed at $13.74 as of December 31, 2015, an increase of
15.5% from the closing price of $11.90 at December 31, 2014, and an
increase of 39.4% from the closing price of $9.86 at December 31, 2013.
Fourth Quarter 2015 Compared to Third Quarter 2015
-- Net interest income increased $118,000, or 3.1%, due to an increase in
average loan balances for the quarter.
-- Non-interest income increased $81,000, or 9.6%, primarily due to a gain
on the sale of loans included in other non-interest income of $95,000
and to a gain on the sale of investment securities of $68,000, partially
offset by declines in non-deposit brokerage fees and service charges on
deposits.
-- Non-interest expense decreased $311,000, or 8.8%, compared to the
previous quarter, primarily due to the $262,000 loss on disposal of a
former branch facility which occurred in the third quarter.
Fourth Quarter 2015 Compared to Fourth Quarter 2014
-- Net interest income increased $151,000, or 4.1%, as the volume of
earning assets increased from the prior year.
-- Non-interest income increased $184,000, or 25.0%, primarily due to a
gain on the sale of loans included in other non-interest income of
$95,000 and an increase in the gain on the sale of investment securities
of $47,000.
-- Non-interest expense decreased $3,000, or 0.1%, primarily due to a
decrease in core deposit intangible expense and franchise tax expense of
$64,000 and $61,000, respectively, partially offset by an increase in
personnel expenses of $42,000.
Balance Sheet at December 31, 2015
-- Total assets increased $19.4 million, or 4.7%, from December 31, 2014 to
December 31, 2015 due primarily to a growth in outstanding loans.
Average assets year-to-date increased 3.6%, or $14.9 million from
December 31, 2014. Average interest earning assets year-to-date
increased 4.1%, or $15.8 million, from December 31, 2014.
-- Stockholders' equity increased $1.1 million, or 2.8%, from December 31,
2014 to December 31, 2015. During 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 for $1.7
million. The tangible common equity ratio declined slightly to 6.43% as
of December 31, 2015 compared to 6.45% at December 31, 2014 due to the
warrants redemption. The Company paid a cash dividend of $.08 per common
share in the fourth quarter of 2015, which marks the first common
dividend paid since December, 2008.
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
Dec 31 Sept 30 June 30 March 31 Dec 31
2015 2015 2015 2015 2014
Interest income $4,494 $4,415 $4,469 $4,306 $4,370
Interest expense 623 662 678 644 650
Net interest
income 3,871 3,753 3,791 3,662 3,720
Provision
(credit) for
loan losses (65) - 120 80 -
Non-interest income:
Service charges
on deposits 360 386 358 317 339
Other service
charges and
fees 260 187 176 135 138
Gain on sale of
mortgage loans 63 60 79 31 39
Non-deposit
brokerage fees 82 103 87 92 90
Lease income 43 59 70 73 63
BOLI income 45 45 46 45 47
Securities gains 68 - 10 - 21
Total 921 840 826 693 737
Non-interest expenses:
Personnel
expense 1,648 1,650 1,589 1,648 1,606
Net occupancy
expense 464 495 493 528 483
Advertising and
public
relations 80 75 123 52 73
Professional
fees 176 183 187 164 142
Data processing
services 262 262 238 239 242
Franchise shares
and deposit tax 96 146 145 146 157
FDIC insurance 61 61 63 59 63
Core deposit
intangible
amortization 18 18 17 18 82
Postage and
office supplies 43 55 52 40 43
Other real
estate owned
expenses 52 6 29 7 25
Loss on branch
disposal - 262 - - -
Other 319 317 310 302 306
Total 3,219 3,530 3,246 3,203 3,222
Income before
income taxes 1,638 1,063 1,251 1,072 1,235
Provision for
income taxes 487 288 352 290 348
Net income 1,151 775 899 782 887
Dividends on
preferred stock 131 131 130 128 131
Net income
available for
common
shareholders $1,020 $644 $769 $654 $756
Basic earnings
per common
share $0.52 $0.33 $0.39 $0.33 $0.38
Diluted earnings
per common
share $0.45 $0.31 $0.35 $0.29 $0.35
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Three Months Ended
December September June March December
31 30 30
31 31
2015 2015 2015 2015 2014
Average assets $430,174 $428,331 $434,003 $428,210 $414,852
Average
earning
assets 399,055 396,906 403,814 397,920 384,050
Average loans 329,131 319,053 319,758 321,028 313,888
Average
interest-
bearing
deposits 316,979 321,643 327,010 316,558 298,101
Average
deposits 365,401 366,627 370,820 360,240 341,128
Average
borrowed
funds 23,179 20,696 23,022 26,967 33,366
Average equity 39,181 38,516 38,180 39,029 38,249
Average common
equity 31,522 30,857 30,521 31,370 30,590
Return on
average
assets 1.06% 0.72% 0.83% 0.74% 0.85%
Return on
average
equity 11.66% 7.97% 9.44% 8.13% 9.20%
Efficiency
ratio 66.91% 75.43% 69.14% 72.06% 71.19%
Non-interest
income to
average
assets 0.85% 0.78% 0.76% 0.66% 0.70%
Non-interest
expenses to
average
assets 2.97% 3.27% 3.00% 3.03% 3.08%
Net overhead
to average
assets 2.12% 2.49% 2.24% 2.38% 2.36%
Yield on loans 4.97% 5.04% 5.15% 4.99% 5.06%
Yield on
investment
securities
(TE) 2.84% 2.79% 2.85% 2.88% 2.75%
Yield on
average
earning
assets (TE) 4.55% 4.50% 4.53% 4.48% 4.61%
Cost of
average
interest
bearing
liabilities 0.73% 0.77% 0.78% 0.76% 0.78%
Net interest
margin (TE) 3.94% 3.84% 3.85% 3.82% 3.94%
Number of FTE
employees 98 98 99 95 97
Asset Quality Indicators:
Non-
performing
loans to
total loans 0.16% 0.25% 0.33% 0.38% 0.37%
Non-
performing
assets to
total assets 0.15% 0.24% 0.29% 0.34% 0.33%
Allowance for
loan losses
to total
loans 1.49% 1.53% 1.59% 1.55% 1.53%
YTD net
charge-offs
to average
loans,
annualized 0.03% 0.03% 0.06% 0.02% 0.01%
YTD net
charge-offs 104 64 102 18 43
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Twelve Months Ended
December December
31 31
2015 2014
Interest income $17,684 $17,135
Interest expense 2,607 2,709
Net interest income 15,077 14,426
Provision for loan
losses 135 275
Non-interest income:
Service charges on
deposits 1,421 1,196
Other service charges
and fees 758 630
Gain on sale of mortgage
loans 233 190
Non-deposit brokerage
fees 364 301
Lease income 245 288
BOLI income 181 188
Securities gains 78 95
Total 3,280 2,888
Non-interest expenses:
Personnel expense 6,535 6,138
Occupancy expense 1,980 1,945
Advertising and public
relations 330 323
Professional fees 710 581
Data processing services 1,001 973
Franchise shares and
deposit tax 533 594
FDIC insurance 244 287
Core deposit intangible
amortization 71 330
Postage and office
supplies 190 207
Other real estate owned
expenses 94 92
Loss on branch disposal 262 -
Other 1,248 1,088
Total 13,198 12,558
Income before income
taxes 5,024 4,481
Provision for income
taxes 1,417 1,240
Net income 3,607 3,241
Dividends on preferred
stock 520 521
Net income available for
common shareholders $3,087 $2,720
Basic earnings per
common share $1.57 $1.38
Diluted earnings per
common share $1.40 $1.29
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Key Operating Statistics:
Twelve Months Ended
December December
31 31
2015 2014
Average assets $430,180 $415,327
Average earning assets 399,420 383,617
Average loans 322,256 307,256
Average interest-bearing
deposits 320,551 303,609
Average deposits 365,788 345,342
Average borrowings 23,488 30,895
Average equity 38,726 37,079
Average common equity 31,067 29,295
Return on average assets 0.84% 0.78%
Return on average equity 9.32% 8.74%
Efficiency ratio 70.84% 71.51%
Non-interest income to
average assets 0.76% 0.70%
Non-interest expenses to
average assets 3.07% 3.02%
Net overhead to average
assets 2.31% 2.33%
Yield on loans 5.04% 5.12%
Yield on investment
securities (TE) 2.84% 2.87%
Yield on average earning
assets (TE) 4.52% 4.56%
Cost of average interest
bearing liabilities 0.76% 0.81%
Net interest margin (TE) 3.86% 3.85%
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Consolidated Statement
of Condition: As of As of As of
December 31, December 31, December 31,
2015 2014 2013
---- ---- ----
Cash and due from
financial institutions $8,865 $7,962 $8,572
Federal funds sold 6,390 3,360 28,490
Interest-bearing
deposits in other
financial institutions 2,728 - -
Available for sale
securities 60,200 58,986 51,633
Loans held for sale - - -
Loans 330,782 318,477 295,068
Allowance for loan
losses (4,916) (4,885) (4,653)
Premises and equipment,
net 9,998 10,758 11,054
Bank owned life
insurance (BOLI) 8,174 7,993 7,806
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,680 1,527 1,554
Deferred income taxes 1,328 1,479 2,279
Intangible assets 4,362 4,433 4,762
Other real estate owned 100 198 833
Other assets 465 501 752
--- --- ---
Total Assets $432,181 $412,814 $410,175
======== ======== ========
Deposits:
Noninterest bearing $48,522 $41,975 $39,967
Savings, NOW and money
market 168,335 148,935 143,602
Time 153,531 150,874 159,382
------- ------- -------
Total deposits $370,388 $341,784 $342,951
FHLB advances and other
borrowings 15,000 25,500 22,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 213 231 243
Other liabilities 2,056 1,851 1,634
----- ----- -----
Total Liabilities 392,657 374,366 371,828
6.5% Cumulative
preferred stock 7,659 7,659 7,659
Series A preferred stock - - 3,266
Common stock 25,406 27,072 27,072
Retained earnings 6,304 3,373 653
Accumulated other
comprehensive income
(loss) 155 344 (303)
--- --- ----
Total Stockholders'
Equity 39,524 38,448 38,347
------ ------ ------
Total Liabilities and
Stockholders' Equity $432,181 $412,814 $410,175
======== ======== ========
Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
December December December December
31, 2015 31, 2014 31, 2013 31, 2012
Consolidated Capital Ratios:
Tangible equity ratio (1) 8.22% 8.33% 8.28% 9.08%
Tangible common equity ratio (1) 6.43% 6.45% 5.59% 5.55%
Book value per common share $16.18 $15.64 $13.93 $13.91
Tangible book value per common
share (1) $13.97 $13.39 $11.51 $11.32
End of period common share
closing price $13.74 $11.90 $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.
December December December December
31, 2015 31, 2014 31, 2013 31, 2012
Regulation G Non-GAAP
Reconciliation:
Total shareholders' equity (a) $39,524 $38,448 $38,348 $41,566
Less:
Preferred stock (7,659) (7,659) (10,925) (14,178)
------ ------ ------- -------
Common equity (b) 31,865 30,789 27,423 27,388
Goodwill (4,097) (4,097) (4,097) (4,097)
Intangible assets (265) (336) (665) (997)
---- ---- ---- ----
Tangible common equity (c) 27,503 26,356 22,661 22,294
Add:
Preferred stock 7,659 7,659 10,925 14,178
----- ----- ------ ------
Tangible equity (d) $35,162 $34,015 $33,586 $36,472
Total assets (e) $432,181 $412,814 $410,175 $406,556
Less:
Goodwill (4,097) (4,097) (4,097) (4,097)
Intangible assets (265) (336) (665) (997)
---- ---- ---- ----
Tangible assets (f) $427,819 $408,381 $405,413 $401,462
Shares outstanding (in thousands)
(g) 1,969 1,969 1,969 1,969
Book value per common share (b/g) $16.18 $15.64 $13.93 $13.91
Tangible book value per common
share (c/g) $13.97 $13.39 $11.51 $11.32
Total shareholders' equity to
total assets ratio (a/e) 9.15% 9.31% 9.35% 10.22%
Tangible equity ratio (d/f) 8.22% 8.33% 8.28% 9.08%
Tangible common equity ratio (c/
f) 6.43% 6.45% 5.59% 5.55%
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/citizens-first-corporation-announces-fourth-quarter-and-year-end-2015-results-300208016.html
SOURCE Citizens First Corporation
