CITIZENS FIRST CORP. BOWLING GREEN, Ky., July 21, 2016 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter and six months ending June 30, 2016, which include the following:
For the quarter ended June 30, 2016, the Company reported net income of $1,074,000, or $0.42 per diluted common share. This represents an increase of $175,000, or $0.07 per diluted common share, from $899,000, or $0.35 per diluted common share, for the quarter ended June 30, 2015. Todd Kanipe, President & CEO of Citizens First commented, "Improved loan growth and margin in the second quarter combined with low credit costs increased EPS 20% from the same quarter a year ago."
For the six months ended June 30, 2016, net income totaled $1.98 million, or $0.78 per diluted common share. This represents an increase of $298,000, or $0.14 per diluted common share, from the net income of $1.68 million in the first six months of the previous year.
Income Statement Second Quarter 2016 Compared to Second Quarter 2015
Net interest income increased $121,000, or 3.2%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.92% for the quarter ended June 30, 2016, and 3.85% for the quarter ended June 30, 2015, an increase of 7 basis points. The Company's net interest margin increased due to a decline in the cost of average interest-bearing liabilities.
The provision for loan losses decreased $205,000 from the second quarter in the prior year due to the continued reduction in non-performing assets.
Non-interest income increased $6,000, or 0.7%, primarily due to gains on the sale of securities, offset by a decline in lease income.
Non-interest expense increased $51,000, or 1.6%, primarily due to an increase in personnel expenses as a result of normal salary adjustments, partially offset by a reduction in professional fees.
Income Statement Current Year Compared to Prior Year
Net interest income increased $322,000, or 4.3%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.93% for the six months ended June 30, 2016, and 3.84% for the six months ended June 30, 2015, an increase of 9 basis points. The Company's net interest margin increased due to an increase in the yield on average earning assets coupled with a decline in the cost of average interest-bearing liabilities.
Non-interest income increased $91,000, or 6.0%, primarily due to gains on the sale of securities and gains on sale of mortgage loans, offset by a decline in lease income.
Non-interest expense increased $218,000, or 3.4%, primarily due to an increase in personnel expenses, which were a result of normal salary adjustments.
Credit Quality
Non-performing assets totaled $265,000, or 0.06% of total assets, at June 30, 2016 compared to $1.2 million, or 0.29% of total assets at June 30, 2015, a decrease of $985,000.
The allowance for loan losses at June 30, 2016 was $4.9 million, or 1.43% of total loans, compared to $4.9 million, or 1.49% of total loans as of December 31, 2015. 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 June 30, 2016 were $438.3 million compared to $432.2 million at December 31, 2015. Total assets increased $6.1 million, or 1.4%, from December 31, 2015 to June 30, 2016 due to a growth in loans, partially offset by a decline in fed funds and securities.
Loans increased $16.2 million, or 4.9%, from December 31, 2015 to June 30, 2016. Deposits decreased $17.0 million, or 4.6%, from December 31, 2015 to June 30, 2016. The decrease in deposits was offset by an increase in borrowings of $21 million. The reduction in deposits was primarily due to maturing time deposits that were not renewed in favor of lower cost borrowings.
Stockholders' equity increased to $41.4 million at June 30, 2016 from $39.5 million at December 31, 2015. The common equity and tangible common equity ratios were 7.80% and 6.88%, respectively, as of June 30, 2016 compared to 7.37% and 6.43%, respectively, at December 31, 2015. The book value and tangible book value per common share ratios were $17.09 and $14.93, respectively, at June 30, 2016 compared to $16.18 and $13.97, respectively, at December 31, 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 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)
June 30, December 31, December 31,
2016 2015 2014
---- ---- ----
Assets
Cash and due from financial institutions $6,259 $8,865 $7,962
Federal funds sold 1,095 6,390 3,360
Interest-bearing deposits in other financial institutions 2,728 2,728 -
Available-for-sale securities 58,541 60,200 58,986
Loans held for sale 118 - -
Loans 347,013 330,782 318,477
Allowance for loan losses (4,949) (4,916) (4,885)
Premises and equipment, net 9,543 9,998 10,758
Bank owned life insurance (BOLI) 8,262 8,174 7,993
Federal Home Loan Bank (FHLB) stock, at cost 2,025 2,025 2,025
Accrued interest receivable 1,536 1,680 1,527
Deferred income taxes 1,177 1,328 1,479
Goodwill and other intangible assets 4,327 4,362 4,433
Other real estate owned 66 100 198
Other assets 514 465 501
Total Assets $438,255 $432,181 $412,814
-------- -------- --------
Liabilities
Deposits
Noninterest bearing $49,623 $48,522 $41,975
Savings, NOW and money market 163,951 168,335 148,935
Time 139,859 153,531 150,874
------- ------- -------
Total deposits 353,433 370,388 341,784
FHLB advances and other borrowings 36,000 15,000 25,500
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 223 213 231
Other liabilities 2,152 2,056 1,851
Total Liabilities 396,808 392,657 374,366
------- ------- -------
Stockholders' Equity
6.5% Cumulative convertible preferred stock 7,261 7,659 7,659
Common stock 25,862 25,406 27,072
Retained earnings 7,876 6,304 3,373
Accumulated other comprehensive income 448 155 344
Total stockholders' equity 41,447 39,524 38,448
------ ------ ------
Total liabilities and stockholders' equity $438,255 $432,181 $412,814
======== ======== ========
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
Three months ended
(In Thousands, Except Per Share Data and ratios)
June 30, March 31, Dec 31, Sept 30, June 30,
2016 2016 2015 2015 2015
---- ---- ---- ---- ----
Interest and dividend income $4,536 $4,476 $4,494 $4,415 $4,469
Interest expense 624 613 623 662 678
Net interest income 3,912 3,863 3,871 3,753 3,791
Provision (credit) for loan losses (85) - (65) - 120
Non-interest income
Service charges on deposit accounts 339 325 360 386 358
Other service charges and fees 179 164 260 187 176
Gain on sale of mortgage loans 91 77 63 60 79
Non-deposit brokerage fees 75 72 82 103 87
Lease income 49 45 43 59 70
BOLI income 44 44 45 45 46
Gain on sale of securities 55 51 68 - 10
Total non-interest income 832 778 921 840 826
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,676 1,784 1,648 1,650 1,589
Net occupancy expense 492 483 464 495 493
Advertising and public relations 98 61 80 75 123
Professional fees 137 180 176 183 187
Data processing services 263 256 262 262 238
Franchise shares and deposit tax 132 132 96 146 145
FDIC insurance 59 59 61 61 63
Other real estate owned expenses 23 1 52 6 29
Loss on branch disposal 27 - - 262 -
Other 390 414 380 390 379
Total non-interest expenses 3,297 3,370 3,219 3,530 3,246
Income before income taxes 1,532 1,271 1,638 1,063 1,251
Income taxes 458 366 487 288 352
Net income 1,074 905 1,151 775 899
Dividends on preferred stock 123 124 131 131 130
--- --- --- --- ---
Net income available for common stockholders $951 $781 $1,020 $644 $769
==== ==== ====== ==== ====
Basic earnings per common share $0.48 $0.39 $0.52 $0.33 $0.39
===== ===== ===== ===== =====
Diluted earnings per common share $0.42 $0.36 $0.45 $0.31 $0.35
===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
Three months ended
(In Thousands, Except Per Share Data and ratios)
June 30, March 31, Dec 31, Sept 30, June 30,
2016 2016 2015 2015 2015
---- ---- ---- ---- ----
Average:
Assets $439,081 $433,143 $430,174 $428,331 $434,003
Earning Assets 409,722 402,638 399,055 396,906 403,814
Loans 338,456 333,000 329,131 319,053 319,758
Interest-bearing deposits 311,084 320,363 316,979 321,643 327,010
Deposits 360,209 367,397 365,401 366,627 370,820
Borrowed funds 35,868 23,394 23,179 20,696 23,022
Equity 40,912 40,156 39,181 38,516 38,180
Common equity 33,651 32,831 31,522 30,857 30,521
Return on average assets 0.98% 0.84% 1.06% 0.72% 0.83%
Return on average equity 10.56% 9.06% 11.66% 7.97% 9.44%
Efficiency ratio 69.15% 72.15% 66.91% 75.43% 69.14%
Non-interest income to average assets 0.76% 0.72% 0.85% 0.78% 0.76%
Non-interest expenses to average assets 3.02% 3.13% 2.97% 3.27% 3.00%
Net overhead to average assets 2.26% 2.41% 2.12% 2.49% 2.24%
Yield on loans 4.95% 4.96% 4.97% 5.04% 5.15%
Yield on investment securities (TE) 2.77% 2.77% 2.84% 2.79% 2.85%
Yield on average earning assets (TE) 4.53% 4.55% 4.55% 4.50% 4.53%
Cost of average interest bearing liabilities 0.72% 0.72% 0.73% 0.77% 0.78%
Net interest margin (TE) 3.92% 3.94% 3.94% 3.84% 3.85%
Number of FTE employees 96 98 98 98 99
Asset Quality Indicators:
Non-performing loans to total loans 0.06% 0.18% 0.16% 0.25% 0.33%
Non-performing assets to total assets 0.06% 0.16% 0.15% 0.24% 0.29%
Allowance for loan losses to total loans 1.43% 1.53% 1.49% 1.53% 1.59%
YTD net charge-offs (recoveries) to average loans, annualized (0.07%) (0.15%) 0.03% 0.03% 0.06%
YTD net charge-offs (recoveries) (119) (128) 104 64 102
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
Six months ended
(In Thousands,
Except Per
Share Data and
ratios)
June 30, June 30,
2016 2015
---- ----
Interest and dividend income $9,012 $8,775
Interest expense 1,237 1,322
Net interest income 7,775 7,453
Provision (credit) for loan losses (85) 200
Non-interest income
Service charges on deposit accounts 664 675
Other service charges and fees 343 311
Gain on sale of mortgage loans 168 110
Non-deposit brokerage fees 147 179
Lease income 94 143
BOLI income 88 91
Gain on sale of securities 106 10
Total non-interest income 1,610 1,519
----- -----
Non-interest expenses:
Personnel expense 3,460 3,237
Net occupancy expense 975 1,021
Advertising and public relations 159 175
Professional fees 317 351
Data processing services 519 477
Franchise shares and deposit tax 264 291
FDIC insurance 118 122
Other real estate owned expenses 24 36
Loss on branch disposal 27 -
Other 804 739
Total non-interest expenses 6,667 6,449
Income before income taxes 2,803 2,323
Income taxes 824 642
Net income 1,979 1,681
Dividends on preferred stock 247 258
---
Net income available for common stockholders $1,732 $1,423
====== ======
Basic earnings per common share $0.87 $0.72
===== =====
Diluted earnings per common share $0.78 $0.64
===== =====
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
Six months ended
(In Thousands, Except Per
Share Data and ratios)
June 30, June 30,
2016 2015
---- ----
Average:
Assets $436,112 $431,122
Earning Assets 406,181 400,883
Loans 335,728 320,390
Interest-bearing
deposits 315,724 321,813
Deposits 363,803 365,559
Borrowed funds 29,631 24,983
Equity 40,534 38,602
Common equity 33,241 30,943
Return on average
assets 0.91% 0.79%
Return on average
equity 9.82% 8.78%
Efficiency ratio 70.63% 70.59%
Non-interest income to average
assets 0.74% 0.71%
Non-interest expenses to
average assets 3.07% 3.02%
Net overhead to
average assets 2.33% 2.31%
Yield on loans 4.95% 5.07%
Yield on investment
securities (TE) 2.77% 2.87%
Yield on average earning assets
(TE) 4.54% 4.50%
Cost of average interest bearing
liabilities 0.72% 0.77%
Net interest margin
(TE) 3.93% 3.84%
Consolidated Financial Highlights (Unaudited)
(In Thousands, Except Share Data and ratios)
Consolidated Capital Ratios June 30, December 31, December 31,
2016 2015 2014
---- ---- ----
Total shareholders' equity to total assets ratio 9.46% 9.15% 9.31%
Tangible equity ratio (1) 8.55% 8.22% 8.33%
Common equity ratio 7.80% 7.37% 7.46%
Tangible common equity ratio (1) 6.88% 6.43% 6.45%
Book value per common share $17.09 $16.18 $15.64
Tangible book value per common share (1) $14.93 $13.97 $13.39
End of period common share closing price $14.24 $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.
(In Thousands, Except Share Data and ratios)
Regulation G Non-GAAP Reconciliation: June 30, December 31, December 31,
2016 2015 2014
---- ---- ----
Total shareholders' equity (a) $41,447 $39,524 $38,448
Less:
Preferred stock (7,261) (7,659) (7,659)
------ ------ ------
Common equity (b) 34,186 31,865 30,789
Goodwill (4,097) (4,097) (4,097)
Intangible assets (230) (265) (336)
Tangible common equity (c) 29,859 27,503 26,356
Add:
Preferred stock 7,261 7,659 7,659
----- ----- -----
Tangible equity (d) 37,120 35,162 34,015
Total assets (e) 438,255 432,181 412,814
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (230) (265) (336)
---- ---- ----
Tangible assets (f) $433,928 $427,819 $408,381
Shares outstanding (in thousands) (g) 2,000 1,969 1,969
Book value per common share (b/g) $17.09 $16.18 $15.64
Tangible book value per common share (c/g) $14.93 $13.97 $13.39
Equity to assets ratio (a/e) 9.46% 9.15% 9.31%
Tangible equity ratio (d/f) 8.55% 8.22% 8.33%
Common equity ratio (b/e) 7.80% 7.37% 7.46%
Tangible common equity ratio (c/f) 6.88% 6.43% 6.45%
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SOURCE Citizens First Corporation
