CITIZENS FIRST CORP. BOWLING GREEN, Ky., April 20, 2017 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the first quarter ending March 31, 2017, which include the following:
For the quarter ended March 31, 2017, the Company reported net income of $907,000, or $0.36 per diluted common share. This represents an increase of $2,000 from $905,000, or $0.36 per diluted common share, for the quarter ended March 31, 2016.
"Increased non-performing loans in the quarter negatively impacted net interest margin, resulting in flat earnings compared to the first quarter of 2016," said Todd Kanipe, President and CEO. "While our credit quality still compares favorably to peer and the industry, we did experience some deterioration in the agricultural portfolio. We believe current reserves are adequate for these loans; however, we anticipate some increased collection expenses as the loans are resolved." Kanipe added, "Though net interest margin pressures persist, loan growth and operating efficiency improved over the first quarter of 2016. We anticipate steady loan demand and deposit growth in our core markets, reflective of the economic growth in the region."
Income Statement
Net interest income decreased $83,000, or 2.1%, as the yield on loans decreased from the prior year. During the first quarter, $95,000 of loan income was reversed as loans totaling $3.0 million were placed on non-accrual status. The Company's net interest margin was 3.68% for the quarter ended March 31, 2017, compared to 3.94% for the quarter ended March 31, 2016, a decrease of 26 basis points. The Company's net interest margin decreased primarily due to a decline in the yield on loans.
There was a $30,000 provision for loan losses in the first quarter of the current year compared to no provision for loan losses in the first quarter of the prior year due to the growth of the loan portfolio and an increase in non-performing assets.
Non-interest income decreased $47,000, or 5.5%, from the prior year primarily due to a decrease in service charges on deposit accounts of $47,000.
Non-interest expense decreased $163,000, or 4.7%, from the prior year primarily due to a reduction in professional fees of $50,000, and a decrease in personnel expense of $50,000.
Credit Quality
Non-performing assets totaled $3.0 million, or 0.65% of total assets, at March 31, 2017 compared to $23,000, or 0.01% of total assets at December 31, 2016, an increase of $3.0 million. Two agricultural-related credits were moved to non-accrual status during the first quarter.
The allowance for loan losses at March 31, 2017 was $4.9 million, or 1.34% of total loans, compared to $4.9 million, or 1.35% of total loans as of December 31, 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, 2017 were $464.4 million compared to $455.4 million at December 31, 2016. Total assets increased $9.0 million, or 2.0%, from December 31, 2016 to March 31, 2017 due to a growth in loans and interest-bearing deposits in other financial institutions, partially offset by a decline in federal funds sold and available-for-sale securities.
Loans increased $6.2 million, or 1.7%, from December 31, 2016 to March 31, 2017. Deposits increased $3.0 million, or 0.8%, from December 31, 2016 to March 31, 2017. Borrowings from the Federal Home Loan Bank increased $6.0 million, or 17.1%, from December 31, 2016 to March 31, 2017.
Stockholders' equity increased to $43.4 million at March 31, 2017 from $42.4 million at December 31, 2016. The common equity and tangible common equity ratios were 7.83% and 6.97%, respectively, as of March 31, 2017 compared to 7.71% and 6.83%, respectively, at December 31, 2016. The book value and tangible book value per common share ratios were $18.01 and $15.90, respectively, at March 31, 2017 compared to $17.54 and $15.40, respectively, at December 31, 2016.
Dividend to be paid May 17
On April 20, 2017, the Board of Directors declared a cash dividend of $.08 per common share payable May 17, 2017 to shareholders of record as of April 28, 2017.
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 current and future economic and business conditions; possible changes in trade, monetary, and fiscal policies, as well as legislative and regulatory changes; changes in the interest rate environment and our ability to effectively manage interest rate risk and other market risk, credit risk and operational risk; changes in the quality or composition of our loan or investment portfolios; increases in our nonperforming assets, or our inability to recover or absorb losses created by such nonperforming assets; 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)
Consolidated Statement of Condition
(In Thousands, Except Share Data and ratios)
March 31, December 31, December 31,
2017 2016 2015
---- ---- ----
Assets
Cash and due from financial institutions $6,715 $8,542 $8,865
Federal funds sold - - 6,390
Interest-bearing deposits in other financial institutions 22,537 11,018 2,728
Available-for-sale securities 47,125 53,547 60,200
Loans held for sale 221 264 -
Loans 365,562 359,391 330,782
Allowance for loan losses (4,906) (4,854) (4,916)
Premises and equipment, net 9,310 9,390 9,998
Bank owned life insurance (BOLI) 8,394 8,351 8,174
Federal Home Loan Bank (FHLB) stock, at cost 2,025 2,025 2,025
Accrued interest receivable 1,386 1,622 1,680
Deferred income taxes 1,353 1,464 1,328
Goodwill and other intangible assets 4,274 4,291 4,362
Other real estate owned - - 100
Other assets 458 371 465
--- --- ---
Total Assets $464,454 $455,422 $432,181
-------- -------- --------
Liabilities
Deposits
Noninterest bearing $48,598 $52,322 $48,522
Savings, NOW and money market 174,726 173,620 168,335
Time 150,072 144,497 153,531
------- ------- -------
Total deposits 373,396 370,439 370,388
FHLB advances and other borrowings 41,000 35,000 15,000
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 235 220 213
Other liabilities 1,436 2,399 2,056
----- ----- -----
Total Liabilities 421,067 413,058 392,657
------- ------- -------
Stockholders' Equity
6.5% Cumulative convertible preferred stock 7,016 7,261 7,659
Common stock 26,186 25,920 25,406
Retained earnings 10,493 9,706 6,304
Accumulated other comprehensive income (loss) (308) (523) 155
---- ---- ---
Total stockholders' equity 43,387 42,364 39,524
------ ------ ------
Total liabilities and stockholders' equity $464,454 $455,422 $432,181
======== ======== ========
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
Three months ended
(In Thousands, Except Per Share Data and ratios)
March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
---- ---- ---- ---- ----
Interest and
dividend income $4,457 $4,572 $4,557 $4,536 $4,476
Interest expense 677 652 639 624 613
--- --- --- --- ---
Net interest
income 3,780 3,920 3,918 3,912 3,863
Provision
(credit) for
loan losses 30 - - (85) -
Non-interest
income
Service charges
on deposit
accounts 278 371 361 339 325
Other service
charges and fees 264 245 262 272 248
Gain on sale of
mortgage loans 68 97 110 91 77
Non-deposit
brokerage fees 87 85 83 75 72
Lease income 52 52 61 49 45
BOLI income 43 44 45 44 44
Gain on sale of
securities 23 - 20 55 51
--- --- --- --- ---
Total non-
interest income 815 894 942 925 862
--- --- --- --- ---
Non-interest
expenses:
Personnel expense 1,734 1,741 1,674 1,676 1,784
Net occupancy
expense 461 471 481 492 483
Advertising and
public relations 71 75 86 98 61
Professional fees 130 50 98 137 180
Data processing
services 253 256 262 263 256
Franchise shares
and deposit tax 132 132 132 132 132
FDIC insurance 49 47 58 59 59
Other real estate
owned expenses - 1 (8) 23 1
Other 461 457 452 510 498
--- --- --- --- ---
Total non-
interest
expenses 3,291 3,230 3,235 3,390 3,454
Income before
income taxes 1,274 1,584 1,625 1,532 1,271
Income taxes 367 481 490 458 366
--- --- --- --- ---
Net income 907 1,103 1,135 1,074 905
Dividends on
preferred stock 119 124 124 123 124
--- --- --- --- ---
Net income
available for
common
stockholders $788 $979 $1,011 $951 $781
==== ==== ====== ==== ====
Basic earnings
per common share $0.39 $0.49 $0.50 $0.48 $0.39
===== ===== ===== ===== =====
Diluted earnings
per common share $0.36 $0.43 $0.45 $0.42 $0.36
===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
Three months ended
(In Thousands, Except Per Share Data and ratios)
March 31, December 31, September 30, June 30, March 31,
2017 2016 2016 2016 2016
---- ---- ---- ---- ----
Average:
Assets $452,265 $444,168 $442,042 $439,081 $433,143
Earning Assets 424,349 417,161 414,569 409,722 402,638
Loans 363,824 347,046 344,733 338,456 333,000
Interest-bearing deposits 314,939 310,336 304,473 311,084 320,363
Deposits 364,227 360,816 354,953 360,209 367,397
Borrowed funds 43,078 38,429 42,490 35,868 23,394
Equity 42,827 42,652 42,002 40,912 40,156
Common equity 35,718 35,391 34,741 33,651 32,831
Return on average assets 0.81% 0.99% 1.02% 0.98% 0.84%
Return on average equity 8.59% 10.29% 10.75% 10.56% 9.06%
Efficiency ratio 70.96% 66.20% 65.86% 69.74% 72.64%
Non-interest income to average assets 0.73% 0.80% 0.85% 0.85% 0.80%
Non-interest expenses to average assets 2.95% 2.89% 2.91% 3.11% 3.21%
Net overhead to average assets 2.22% 2.09% 2.06% 2.26% 2.41%
Yield on loans 4.60% 4.86% 4.86% 4.95% 4.96%
Yield on investment securities (TE) 2.87% 2.58% 2.66% 2.77% 2.77%
Yield on average earning assets (TE) 4.32% 4.42% 4.44% 4.53% 4.55%
Cost of average interest bearing liabilities 0.77% 0.74% 0.73% 0.72% 0.72%
Net interest margin (TE) 3.68% 3.80% 3.83% 3.92% 3.94%
Number of FTE employees 94 95 94 96 98
Asset Quality Indicators:
Non-performing loans to total loans 0.83% 0.01% 0.05% 0.06% 0.18%
Non-performing assets to total assets 0.65% 0.01% 0.04% 0.06% 0.16%
Allowance for loan losses to total loans 1.34% 1.35% 1.45% 1.43% 1.53%
YTD net charge-offs (recoveries) to average loans, annualized (0.02)% (0.01)% (0.05)% (0.07)% (0.15)%
YTD net charge-offs (recoveries) (22) (23) (130) (119) (128)
Consolidated Financial Highlights (Unaudited)
(In Thousands, Except Share Data and ratios)
March 31, December 31, December 31,
Consolidated Capital
Ratios 2017 2016 2015
---- ---- ----
Total shareholders'
equity to total
assets ratio 9.34% 9.30% 9.15%
Tangible equity ratio
(1) 8.50% 8.44% 8.22%
Tangible common equity
ratio (1) 6.97% 6.83% 6.43%
Book value per common
share $18.01 $17.54 $16.18
Tangible book value
per common share (1) $15.90 $15.40 $13.97
End of period common
share closing price $18.05 $18.00 $13.74
(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.
(In Thousands, Except Share Data and ratios)
March 31, December 31, December 31,
Regulation G Non-GAAP
Reconciliation: 2017 2016 2015
---- ---- ----
Total shareholders'
equity (a) $43,387 $42,364 $39,524
Less:
Preferred stock (7,016) (7,261) (7,659)
------ ------ ------
Common equity (b) 36,371 35,103 31,865
Goodwill (4,097) (4,097) (4,097)
Intangible assets (177) (194) (265)
---- ---- ----
Tangible common equity
(c) 32,097 30,812 27,503
Add:
Preferred stock 7,016 7,261 7,659
----- ----- -----
Tangible equity (d) 39,113 38,073 35,162
Total assets (e) 464,454 455,422 432,181
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (177) (194) (265)
---- ---- ----
Tangible assets (f) $460,180 $451,131 $427,819
Shares outstanding (in
thousands) (g) 2,019 2,001 1,969
Book value per common
share (b/g) $18.01 $17.54 $16.18
Tangible book value per
common share (c/g) $15.90 $15.40 $13.97
Equity to assets ratio
(a/e) 9.34% 9.30% 9.15%
Tangible equity ratio
(d/f) 8.50% 8.44% 8.22%
Common equity ratio (b/
e) 7.83% 7.71% 7.37%
Tangible common equity
ratio (c/f) 6.97% 6.83% 6.43%
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SOURCE Citizens First Corporation
