2014

Citizens First Corporation Announces Third Quarter 2012 Results

BOWLING GREEN, Ky., Oct. 18, 2012 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the third quarter ending September 30, 2012, which include the following:

  • For the quarter ended September 30, 2012, the Company reported net income of $941,000, or $.35 per diluted common share.  This represents an increase of $215,000, or $.11 per share, from the linked quarter ended June 30, 2012.  Compared to the quarter ended September 30, 2011, net income increased $171,000 or $.09 per share.  Provision for loan losses was $300,000 for the third quarter of 2012 compared to $450,000 for the linked quarter ended June 30, 2012 and $300,000 for the quarter ended September 30, 2011. Todd Kanipe, President & CEO of Citizens First commented, "Our earnings improved this quarter due to reduced provision expense and expanding our margin.  In addition, we did not renew some higher cost deposits. As a result, our year-to-date net interest margin increased to 4.18%."
  • For the nine months ended September 30, 2012, net income grew to $2.5 million, or $.88 per diluted common share.  This represents an increase of $262,000, or $0.16 per share, from the net income of $2.2 million in the previous year.
  • The Company's net interest margin was 4.31% for the quarter ended September 30, 2012 compared to 4.06% for the quarter ended June 30, 2012 and 4.11% for the quarter ended September 30, 2011, an increase of 25 basis points for the linked quarter and an increase of 20 basis points from the prior year.  The Company's net interest margin increased from the previous quarter primarily due to an increase in loan income for the quarter.  Net interest margin for the year was 4.18% compared to 4.07% in the previous year.

Third Quarter 2012 Compared to Second Quarter 2012

Net interest income for the quarter ended September 30, 2012 increased $179,000, or 4.9%, compared to the previous quarter.  Net interest income increased due to an increase in loan income of $165,000, which is primarily attributable to accretion income derived from a loan purchased at a discount during the quarter.

Non-interest income for the three months ended September 30, 2012 decreased $48,000, or 6.1%, compared to the previous quarter, primarily due to a decrease in security gains of $55,000.

Non-interest expense for the three months ended September 30, 2012 decreased $53,000, or 1.7%, compared to the previous quarter, primarily due to a decrease in other expenses of $55,000.  Other real estate expenses decreased $100,000 due to a reduction in the amount of other real estate owned.

A $300,000 provision for loan losses was recorded for the third quarter of 2012, compared to a $450,000 provision in the previous quarter.  The provision expense was lower in the third quarter of 2012 as a result of a decrease in net charge-offs in the current quarter.  Net charge-offs were $231,000 for the third quarter of 2012 compared to $479,000 in the second quarter of 2012.

Third Quarter 2012 Compared to Third Quarter 2011

Net interest income for the quarter ended September 30, 2012 increased $553,000, or 16.7%, compared to the previous year.  The increase in net interest income was impacted by a reduction in interest expense of $185,000 combined with an increase in interest income of $368,000. The increase in interest income was fueled by the growth in average loans for the third quarter of 2012 compared to the third quarter of 2011.

Non-interest income for the three months ended September 30, 2012 decreased $7,000, or 0.9%, compared to the three months ended September 30, 2011, primarily due to a decrease in security gains of $13,000 from the prior year.

Non-interest expense for the three months ended September 30, 2012 increased $272,000, or 10.0%, compared to the three months ended September 30, 2011, primarily due to an increase in personnel expenses totaling $167,000 and other expenses totaling $80,000.

A $300,000 provision for loan losses was recorded for the third quarter of 2012, unchanged from the third quarter of 2011.  Net charge-offs were $231,000 for the third quarter of 2012 compared to net charge-offs of $583,000 in the third quarter of 2011.

Balance Sheet

Total assets at September 30, 2012 were $394.3 million, a decrease of $9.5 million from $403.8 million at December 31, 2011.  Loans increased $11.4 million, or 3.9%, from $294.4 million at December 31, 2011 to $305.8 million at September 30, 2012.  Deposits at September 30, 2012 were $315.8 million, a decrease of $16.9 million, or 5.1%, compared to $332.7 million at December 31, 2011. 

Non-performing assets totaled $7.6 million at September 30, 2012 compared to $4.9 million at December 31, 2011, an increase of $2.7 million.  A commercial real estate loan with a current balance of $3.8 million was placed on nonaccrual status during the second quarter of 2012.

The allowance for loan losses at September 30, 2012 was $6.0 million, or 1.95% of total loans, compared to $5.9 million, or 1.99% of total loans as of December 31, 2011.  Net charge-offs for the year to date totaled $1.0 million compared to $894,000 in the previous year.

A summary of nonperforming assets is presented below:

(In thousands)

September 30,

 2012

June

 30,

 2012

March

31,

 2012

December

31,

 2011

September

 30,

 2011

Nonaccrual loans

$5,911

$6,168

$2,476


$3,322

$2,277

Loans 90+ days past due/accruing

60

-

-


-

-

Restructured loans

1,388

1,549

1,534


942

-

Total nonperforming loans

7,359

7,717

4,010


4,264

2,277








Other real estate owned

258

214

608


637

812

Other foreclosed assets

-

-

-


-

-

Total nonperforming assets

$7,617

$7,931

$4,618


$4,901

$3,089








Ratio of total nonperforming assets to total assets

1.93%

2.00%

1.14%


1.21%

0.79%

At September 30, 2012, total shareholders' equity was $41.1 million and total tangible shareholders' equity was $35.9 million.  The Company's tangible equity ratio was 9.23% as of September 30, 2012.  The Company and Citizens First Bank are categorized as "well capitalized" under regulatory guidelines.

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.

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




September 30

June 30

March 31

December 31

September 30


2012

2012

2012

2011

2011

Interest income          

$4,681

$4,565

$4,618

$4,533

$4,313

Interest expense

826

889

926

979

1,011

Net interest income

3,855

3,676

3,692

3,554

3,302







Provision for loan losses

300

450

370

1,200

300







Non-interest income:






   Service charges on deposits

355

340

318

381

354

   Other service charges and fees

138

143

120

121

118

   Gain on sale of mortgage loans

64

64

90

100

90

   Non-deposit brokerage fees

54

57

34

43

40

   Lease income

68

68

68

68

68

   BOLI income

66

66

66

69

69

   Securities gains

0

55

-

141

13

      Total

745

793

696

923

752







Non-interest expenses:






   Salaries and benefits

1,406

1,414

1,409

1,355

1,239

   Occupancy and equipment

489

479

459

455

464

   Other

1,098

1,153

1,058

1,005

1,018

      Total

2,993

3,046

2,926

2,815

2,721







Income before income taxes

1,307

973

1,092

462

1,033

Provision for income taxes

366

247

284

67

263

Net income

941

726

808

395

770







Preferred dividends and discount accretion

225

223

224

225

225

Net income available for common shareholders

$716

$503

$584

$170

$545

Basic earnings per common share

$0.36

$0.25

$0.30

$0.09

$0.27

Diluted earnings per common share

$0.35

$0.24

$0.29

$0.09

$0.26


 

 

 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios




Nine Months Ended





September

30

2012

September

30

2011

Interest income          

$13,864

$12,950

Interest expense

2,641

3,199

Net interest income

11,223

9,751




Provision for loan losses

1,120

825




Non-interest income:



   Service charges on deposits

1,014

1,009

   Other service charges and fees

400

351

   Gain on sale of mortgage loans

219

215

   Non-deposit brokerage fees

145

128

   Lease income

203

193

   BOLI income

198

204

   Securities gains

55

74

      Total

2,234

2,174




Non-interest expenses:



   Salaries and benefits

4,229

3,746

   Occupancy and equipment

1,427

1,402

   Other

3,308

2,998

      Total

8,964

8,146




Income before income taxes

3,373

2,954

Provision for income taxes

897

740

Net income

2,476

2,214




Preferred dividends and discount accretion

672

733

Net income available for common shareholders

$1,804

$1,481

Basic earnings per common share

$0.92

$0.75

Diluted earnings per common share

$0.88

$0.72







Return on average assets YTD

0.82%

0.82%

Return on average equity YTD

8.26%

7.83%

Net interest margin YTD

4.18%

4.07%

                                                                                   

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios







Key Operating Statistics:










Three Months Ended








September 30

2012

June 30

2012

March 31

2012

December 31

2011

September 30

2011







Average assets

$397,657

$407,298

$402,950

$398,264

$358,477

Average loans

297,863

304,003

299,061

295,421

269,002

Average deposits

321,828

331,820

331,400

333,540

297,646

Average equity

40,776

39,962

39,431

39,075

38,339

Average common equity

26,618

25,816

25,296

24,951

24,669







Return on average assets

0.94%

0.72%

0.81%

0.39%

0.85%

Return on average equity

9.18%

7.31%

8.24%

4.01%

7.97%







Efficiency ratio

63.88%

66.93%

65.44%

61.61%

65.61%

Non-interest income to average assets

0.75%

0.78%

0.69%

0.92%

0.83%

Non-interest expenses to average assets

2.99%

3.01%

2.91%

2.80%

3.01%

Yield on average earning assets (tax equivalent)

5.21%

5.03%

5.20%

5.09%

5.34%

Cost of average interest bearing liabilities

1.04%

1.10%

1.15%

1.22%

1.42%

Net interest margin (tax equivalent)

4.31%

4.06%

4.17%

4.01%

4.11%

Number of FTE employees

103

100

101

100

90







Asset Quality Ratios:






Non-performing loans to total loans

2.41%

2.57%

1.32%

1.45%

0.81%

Non-performing assets to total assets

1.93%

2.00%

1.14%

1.21%

0.79%

Allowance for loan losses to total loans

1.95%

1.97%

1.95%

1.99%

1.76%

Net charge-offs to average loans, annualized

0.45%

0.52%

0.41%

0.42%

0.44%








 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios









Consolidated Statement of Condition:

As of

As of

As of


September 30,

December 31,

December 31,

2012

2011

2010

Cash and cash equivalents

$14,222

$30,549

$14,811

Available for sale securities

47,826

50,718

39,531

Loans held for sale

0

180

151

Loans

305,764

294,352

268,303

Allowance for loan losses

(5,968)

(5,865)

(5,001)

Premises and equipment, net

11,595

11,849

10,352

Bank owned life insurance (BOLI)

7,522

7,324

7,051

Federal Home Loan Bank Stock, at cost

2,025

2,025

2,025

Accrued interest receivable

1,807

1,858

1,940

Deferred income taxes

2,874

3,382

3,677

Intangible assets

5,179

5,443

3,604

Other real estate owned

259

637

1,368

Other assets

1,199

1,342

1,919

  Total Assets

$394,304

$403,794

$349,731





Deposits:




    Noninterest bearing

$ 39,330

$ 38,352

$ 36,250

    Savings, NOW and money market

100,245

116,968

72,612

    Time

176,211

177,411

179,878

      Total deposits

$315,786

$332,731

$288,740

FHLB advances and other borrowings

30,000

25,000

15,712

Subordinated debentures

5,000

5,000

5,000

Other liabilities

2,408

2,191

1,970

Total Liabilities

353,194

364,922

311,422

6.5% Cumulative preferred stock

7,659

7,659

7,659

Series A preferred stock

6,507

6,471

8,586

Common stock

27,072

27,072

27,072

Retained (deficit)

(902)

(2,706)

(4,357)

Accumulated other comprehensive income (loss)

774

376

(651)

Total Stockholders' Equity

41,110

38,872

38,309

Total Liabilities and Stockholders' Equity

$394,304

$403,794

$349,731


 

 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios








September

 30, 2012

December

 31, 2011

December

 31, 2010

Capital Ratios:





Tier 1 leverage


10.23%

9.46%

10.98%

Tier 1 risk-based capital


12.93%

11.86%

13.31%

Total risk based capital


14.18%

13.11%

14.57%

Tangible equity ratio (1)


9.23%

8.39%

10.02%

Tangible common equity ratio (1)


5.59%

4.84%

5.33%

Book value per common share


$13.68

$12.57

$11.21

Tangible book value per common share (1)


$11.05

$9.80

$9.37

Shares outstanding (in thousands)


1,969

1,969

1,969

_____________





(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.

 

 

Regulation G Non-GAAP Reconciliation:


September

30, 2012

December

31, 2011

December

31, 2010






Total shareholders' equity (a)


$41,110

$38,872

$38,309

Less:





   Preferred stock


(14,166)

(14,130)

(16,245)

Common equity (b)


26,944

24,742

22,064

   Goodwill


(4,097)

(4,097)

(2,575)

   Intangible assets


(1,082)

(1,346)

(1,029)

Tangible common equity (c)


21,765

19,299

18,460

Add:





   Preferred stock


14,166

14,130

16,245

Tangible equity (d)


$35,931

$33,429

$34,705






Total assets (e)


$394,304

$403,794

$349,890

Less:





   Goodwill


(4,097)

(4,097)

(2,575)

   Intangible assets


(1,082)

(1,346)

(1,029)

Tangible assets (f)


$389,125

$398,351

$346,286

Shares outstanding (in thousands) (g)


1,969

1,969

1,969






Book value per common share (b/g)


$13.68

$12.57

$11.21

Tangible book value per common share (c/g)


$11.05

$9.80

$9.37






Total shareholders' equity to total assets ratio (a/e)


10.43%

9.63%

10.95%

Tangible equity ratio (d/f)


9.23%

8.39%

10.02%

Tangible common equity ratio (c/f)


5.59%

4.84%

5.33%

 

 

 

SOURCE Citizens First Corporation



RELATED LINKS
http://www.citizensfirstbank.com

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