CITIZENS FIRST CORP. BOWLING GREEN, Ky., Oct. 20, 2016 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter and nine months ending September 30, 2016, which include the following:
For the quarter ended September 30, 2016, the Company reported net income of $1.14 million, or $0.45 per diluted common share. This represents an increase of $360,000, or $0.14 per diluted common share, from $775,000, or $0.31 per diluted common share, for the quarter ended September 30, 2015. "Continued loan growth, improved operating efficiency, and credit quality were the drivers of third quarter profitability," said Todd Kanipe, President & CEO of Citizens First. "General economic conditions in our markets remain favorable for loan growth. Continued pressure on the net interest margin remains our primary challenge as portfolio loans reprice."
For the nine months ended September 30, 2016, net income totaled $3.11 million, or $1.23 per diluted common share. This represents an increase of $658,000, or $0.28 per diluted common share, from the net income of $2.46 million in the first nine months of the previous year.
The Board of Directors declared a cash dividend of $0.08 per common share payable November 17, 2016 to shareholders of record as of October 31, 2016. Dividends were most recently paid in May, 2016 and November, 2015 of $0.08 per common share.
Income Statement Third Quarter 2016 Compared to Third Quarter 2015
Net interest income increased $165,000, or 4.4%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.83% for the quarter ended September 30, 2016, and 3.84% for the quarter ended September 30, 2015, a decrease of 1 basis point. The Company's net interest margin decreased primarily due to a decline in the yield on loans.
There was no provision for loan losses in the third quarter of the current year and the third quarter in the prior year due to the continued reduction in non-performing assets.
Non-interest income increased $12,000, or 1.4%, primarily due to gains on the sale of mortgage loans.
Non-interest expense decreased $385,000, or 10.9%, primarily due to a branch disposal loss of $262,000 that occurred in 2015, and a reduction in professional fees of $85,000.
Income Statement Current Year Compared to Prior Year
Net interest income increased $487,000, or 4.3%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.89% for the nine months ended September 30, 2016, and 3.84% for the nine months ended September 30, 2015, an increase of 5 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 $103,000, or 4.4%, primarily due to gains on the sale of securities and gains on sale of mortgage loans, offset by a decline in lease income and non-deposit brokerage fees.
Non-interest expense decreased $167,000, or 1.7%, primarily due to a decrease in branch disposal losses of $235,000 and professional fees of $119,000, partially offset by an increase in personnel expenses, which were a result of normal salary adjustments.
Credit Quality
Non-performing assets totaled $156,000, or 0.04% of total assets, at September 30, 2016 compared to $1.0 million, or 0.24% of total assets at September 30, 2015, a decrease of $857,000.
The allowance for loan losses at September 30, 2016 was $5.0 million, or 1.45% 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 September 30, 2016 were $441.7 million compared to $432.2 million at December 31, 2015. Total assets increased $9.5 million, or 2.2%, from December 31, 2015 to September 30, 2016 due to a growth in loans, partially offset by a decline in available-for-sale securities.
Loans increased $12.4 million, or 3.7%, from December 31, 2015 to September 30, 2016. Deposits decreased $16.6 million, or 4.5%, from December 31, 2015 to September 30, 2016. The decrease in deposits was offset by an increase in borrowings of $23 million.
Stockholders' equity increased to $42.4 million at September 30, 2016 from $39.5 million at December 31, 2015. The common equity and tangible common equity ratios were 7.95% and 7.05%, respectively, as of September 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 $17.56 and $15.40, respectively, at September 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)
September 30, December 31, December 31,
2016 2015 2014
---- ---- ----
Assets
Cash and due from financial institutions $5,353 $8,865 $7,962
Federal funds sold - 6,390 3,360
Interest-bearing deposits in other financial institutions 15,611 2,728 -
Available-for-sale securities 55,424 60,200 58,986
Loans 343,176 330,782 318,477
Allowance for loan losses (4,961) (4,916) (4,885)
Premises and equipment, net 9,461 9,998 10,758
Bank owned life insurance (BOLI) 8,307 8,174 7,993
Federal Home Loan Bank (FHLB) stock, at cost 2,025 2,025 2,025
Accrued interest receivable 1,547 1,680 1,527
Deferred income taxes 1,017 1,328 1,479
Goodwill and other intangible assets 4,309 4,362 4,433
Other real estate owned - 100 198
Other assets 409 465 501
--- --- ---
Total Assets $441,678 $432,181 $412,814
-------- -------- --------
Liabilities
Deposits
Noninterest bearing $49,439 $48,522 $41,975
Savings, NOW and money market 155,912 168,335 148,935
Time 148,478 153,531 150,874
------- ------- -------
Total deposits 353,829 370,388 341,784
FHLB advances and other borrowings 38,000 15,000 25,500
Subordinated debentures 5,000 5,000 5,000
Accrued interest payable 219 213 231
Other liabilities 2,240 2,056 1,851
----- ----- -----
Total Liabilities 399,288 392,657 374,366
------- ------- -------
Stockholders' Equity
6.5% Cumulative convertible preferred stock 7,261 7,659 7,659
Common stock 25,899 25,406 27,072
Retained earnings 8,887 6,304 3,373
Accumulated other comprehensive income 343 155 344
--- --- ---
Total stockholders' equity 42,390 39,524 38,448
------ ------ ------
Total liabilities and stockholders' equity $441,678 $432,181 $412,814
======== ======== ========
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
Three months ended
(In Thousands, Except Per Share Data and ratios)
Sept 30, June 30, March 31, Dec 31, Sept 30,
2016 2016 2016 2015 2015
---- ---- ---- ---- ----
Interest and dividend income $4,557 $4,536 $4,476 $4,494 $4,415
Interest expense 639 624 613 623 662
Net interest income 3,918 3,912 3,863 3,871 3,753
Provision (credit) for loan losses - (85) - (65) -
Non-interest income
Service charges on deposit accounts 361 339 325 360 386
Other service charges and fees 172 179 164 260 187
Gain on sale of mortgage loans 110 91 77 63 60
Non-deposit brokerage fees 83 75 72 82 103
Lease income 61 49 45 43 59
BOLI income 45 44 44 45 45
Gain on sale of securities 20 55 51 68 -
--- --- --- --- ---
Total non-interest income 852 832 778 921 840
--- --- --- --- ---
Non-interest expenses:
Personnel expense 1,674 1,676 1,784 1,648 1,650
Net occupancy expense 481 492 483 464 495
Advertising and public relations 86 98 61 80 75
Professional fees 98 137 180 176 183
Data processing services 262 263 256 262 262
Franchise shares and deposit tax 132 132 132 96 146
FDIC insurance 58 59 59 61 61
Other real estate owned expenses (8) 23 1 52 6
Loss on branch disposal - 27 - - 262
Other 362 390 414 380 390
--- --- --- --- ---
Total non-interest expenses 3,145 3,297 3,370 3,219 3,530
Income before income taxes 1,625 1,532 1,271 1,638 1,063
Income taxes 490 458 366 487 288
--- --- --- --- ---
Net income 1,135 1,074 905 1,151 775
Dividends on preferred stock 124 123 124 131 131
--- --- --- --- ---
Net income available for common stockholders $1,011 $951 $781 $1,020 $644
====== ==== ==== ====== ====
Basic earnings per common share $0.50 $0.48 $0.39 $0.52 $0.33
===== ===== ===== ===== =====
Diluted earnings per common share $0.45 $0.42 $0.36 $0.45 $0.31
===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
Three months ended
(In Thousands, Except Per Share Data and ratios)
Sept 30, June 30, March 31, Dec 31, Sept 30,
2016 2016 2016 2015 2015
---- ---- ---- ---- ----
Average:
Assets $442,042 $439,081 $433,143 $430,174 $428,331
Earning Assets 414,569 409,722 402,638 399,055 396,906
Loans 344,733 338,456 333,000 329,131 319,053
Interest-bearing deposits 304,473 311,084 320,363 316,979 321,643
Deposits 354,953 360,209 367,397 365,401 366,627
Borrowed funds 42,490 35,868 23,394 23,179 20,696
Equity 42,002 40,912 40,156 39,181 38,516
Common equity 34,741 33,651 32,831 31,522 30,857
Return on average assets 1.02% 0.98% 0.84% 1.06% 0.72%
Return on average equity 10.75% 10.56% 9.06% 11.66% 7.97%
Efficiency ratio 65.21% 69.15% 72.15% 66.91% 75.43%
Non-interest income to average assets 0.77% 0.76% 0.72% 0.85% 0.78%
Non-interest expenses to average assets 2.83% 3.02% 3.13% 2.97% 3.27%
Net overhead to average assets 2.06% 2.26% 2.41% 2.12% 2.49%
Yield on loans 4.86% 4.95% 4.96% 4.97% 5.04%
Yield on investment securities (TE) 2.66% 2.77% 2.77% 2.84% 2.79%
Yield on average earning assets (TE) 4.44% 4.53% 4.55% 4.55% 4.50%
Cost of average interest bearing liabilities 0.73% 0.72% 0.72% 0.73% 0.77%
Net interest margin (TE) 3.83% 3.92% 3.94% 3.94% 3.84%
Number of FTE employees 94 96 98 98 98
Asset Quality Indicators:
Non-performing loans to total loans 0.05% 0.06% 0.18% 0.16% 0.25%
Non-performing assets to total assets 0.04% 0.06% 0.16% 0.15% 0.24%
Allowance for loan losses to total loans 1.45% 1.43% 1.53% 1.49% 1.53%
YTD net charge-offs (recoveries) to average loans, annualized (0.05)% (0.07)% (0.15)% 0.03% 0.03%
YTD net charge-offs (recoveries) (130) (119) (128) 104 64
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
Nine months ended
(In Thousands, Except Per
Share Data and ratios)
September 30, September 30,
2016 2015
---- ----
Interest and dividend income $13,569 $13,190
Interest expense 1,876 1,984
Net interest income 11,693 11,206
Provision (credit) for loan losses (85) 200
Non-interest income
Service charges on deposit accounts 1,025 1,061
Other service charges and fees 515 498
Gain on sale of mortgage loans 278 170
Non-deposit brokerage fees 230 282
Lease income 155 202
BOLI income 133 136
Gain on sale of securities 126 10
--- ---
Total non-interest income 2,462 2,359
----- -----
Non-interest expenses:
Personnel expense 5,134 4,887
Net occupancy expense 1,456 1,516
Advertising and public relations 245 250
Professional fees 415 534
Data processing services 781 739
Franchise shares and deposit tax 396 437
FDIC insurance 176 183
Other real estate owned expenses 16 42
Loss on branch disposal 27 262
Other 1,166 1,129
----- -----
Total non-interest expenses 9,812 9,979
Income before income taxes 4,428 3,386
Income taxes 1,314 930
----- ---
Net income 3,114 2,456
Dividends on preferred stock 371 389
--- ---
Net income available for common stockholders $2,743 $2,067
====== ======
Basic earnings per common share $1.37 $1.05
===== =====
Diluted earnings per common share $1.23 $0.95
===== =====
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
Nine months ended
(In Thousands, Except Per
Share Data and ratios)
September 30, September 30,
2016 2015
---- ----
Average:
Assets $438,103 $430,182
Earning Assets 408,998 399,544
Loans 338,752 319,940
Interest-
bearing
deposits 311,945 321,756
Deposits 360,831 365,919
Borrowed funds 33,948 23,538
Equity 41,027 38,573
Common equity 33,745 30,914
Return on
average assets 0.95% 0.76%
Return on
average equity 10.14% 8.51%
Efficiency ratio 68.79% 72.20%
Non-interest
income to
average assets 0.75% 0.73%
Non-interest
expenses to
average assets 2.99% 3.10%
Net overhead to
average assets 2.24% 2.37%
Yield on loans 4.92% 5.06%
Yield on
investment
securities (TE) 2.73% 2.85%
Yield on average
earning assets
(TE) 4.51% 4.50%
Cost of average
interest
bearing
liabilities 0.72% 0.77%
Net interest
margin (TE) 3.89% 3.84%
Consolidated Financial Highlights (Unaudited)
(In Thousands, Except Share Data and ratios)
September 30, December 31, December 31,
Consolidated Capital Ratios 2016 2015 2014
---- ---- ----
Total shareholders' equity to total assets ratio 9.60% 9.15% 9.31%
Tangible equity ratio (1) 8.71% 8.22% 8.33%
Common equity ratio 7.95% 7.37% 7.46%
Tangible common equity ratio (1) 7.05% 6.43% 6.45%
Book value per common share $17.56 $16.18 $15.64
Tangible book value per common share (1) $15.40 $13.97 $13.39
End of period common share closing price $16.00 $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)
September 30, December 31, December 31,
Regulation G Non-GAAP Reconciliation: 2016 2015 2014
---- ---- ----
Total shareholders' equity (a) $42,390 $39,524 $38,448
Less:
Preferred stock (7,261) (7,659) (7,659)
------ ------ ------
Common equity (b) 35,129 31,865 30,789
Goodwill (4,097) (4,097) (4,097)
Intangible assets (212) (265) (336)
---- ---- ----
Tangible common equity (c) 30,820 27,503 26,356
Add:
Preferred stock 7,261 7,659 7,659
----- ----- -----
Tangible equity (d) 38,081 35,162 34,015
Total assets (e) 441,678 432,181 412,814
Less:
Goodwill (4,097) (4,097) (4,097)
Intangible assets (212) (265) (336)
---- ---- ----
Tangible assets (f) $437,369 $427,819 $408,381
Shares outstanding (in thousands) (g) 2,001 1,969 1,969
Book value per common share (b/g) $17.56 $16.18 $15.64
Tangible book value per common share (c/g) $15.40 $13.97 $13.39
Equity to assets ratio (a/e) 9.60% 9.15% 9.31%
Tangible equity ratio (d/f) 8.71% 8.22% 8.33%
Common equity ratio (b/e) 7.95% 7.37% 7.46%
Tangible common equity ratio (c/f) 7.05% 6.43% 6.45%
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SOURCE Citizens First Corporation
