Citizens First Corporation Announces Fourth Quarter and Year-End 2015 Results

Jan 21, 2016, 14:16 ET from Citizens First Corporation

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 31

September 30

June 30

March

 31

December

 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 31

December 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

 31

December

 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  31, 2015

December 31, 2014

December 31, 2013

December 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 31, 2015

December 31, 2014

December 31, 2013

December 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%

 

SOURCE Citizens First Corporation



RELATED LINKS

http://www.citizensfirstbank.com