Citizens First Corporation Announces Second Quarter 2015 Results

Jul 16, 2015, 12:11 ET from Citizens First Corporation

BOWLING GREEN, Ky., July 16, 2015 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending June 30, 2015, which include the following:

  • For the quarter ended June 30, 2015, the Company reported net income of $899,000, or $0.35 per diluted common share.  This represents an increase of $117,000, or $0.06 per diluted common share from the linked quarter ended March 31, 2015 and an increase of $166,000, or $0.06 per diluted common share, from the quarter ended June 30, 2014. "Margin stability and improved non-interest income were significant contributors to profitability in the quarter," said Todd Kanipe, President and CEO.  "Additionally, credit quality showed continued improvement.  The primary challenge for us remains generating consistent loan growth in competitive markets."
  • For the six months ended June 30, 2015, net income totaled $1.68 million, or $0.64 per diluted common share.  This represents an increase of $257,000, or $0.08 per diluted common share, from the net income of $1.42 million in the first six months of the previous year.
  • Non-performing assets totaled $1.2 million, or 0.29% of total assets, at June 30, 2015 compared to $2.5 million, or 0.60% of total assets at June 30, 2014, a decrease of $1.3 million. Non-performing assets decreased $230,000 from the linked quarter ended March 31, 2015.
  • The Company's net interest margin was 3.85% for the quarter ended June 30, 2015 compared to 3.82% for the linked quarter ended March 31, 2015, and 3.74% for the quarter ended June 30, 2014, an increase of 3 basis points for the linked quarter and an increase of 11 basis points from the prior year.  The Company's net interest margin increased from the linked quarter due to an improvement in the yield on loans, which was 5.15% for the quarter ended June 30, 2015 compared to 4.99% for the quarter ended March 31, 2015 and 5.13% for the quarter ended June 30, 2014.
  • Total loans decreased 1.4% to $314.1 million at June 30, 2015 compared to $318.5 million at December 31, 2014.  Total deposits increased 7.9% to $368.8 million at June 30, 2015 compared to $341.8 million at December 31, 2014.

Second Quarter 2015 Compared to First Quarter 2015

  • Net interest income increased $129,000, or 3.5%, due to an improvement in the yield on loans, which included a prepayment fee collected of approximately $48,000.
  • Non-interest income increased $133,000, or 19.2%, primarily due to an increase in service charges on deposit accounts of $41,000 and gains on sale of mortgage loans of $48,000.
  • Non-interest expense increased $43,000, or 1.3%, compared to the previous quarter, primarily due to an increase in advertising and public relations expense of $71,000.

Second Quarter 2015 Compared to Second Quarter 2014

  • Net interest income increased $262,000, or 7.4%, as the volume of earning assets increased from the prior year. 
  • Non-interest income increased $68,000, or 9.0%, primarily due to an increase in service charges on deposit accounts of $62,000 due to the introduction of a new consumer deposit transaction account.
  • Non-interest expense increased $113,000, or 3.6%, primarily due to an increase in personnel expenses of $103,000 as a result of normal salary adjustments.

Balance Sheet at June 30, 2015

  • Total assets increased $17.3 million, or 4.2%, from December 31, 2014 to June 30, 2015 due to a growth in federal funds sold.  Average assets year-to-date increased 3.4%, or $14.2 million from June 30, 2014.  Average interest earning assets year-to-date increased 4.3%, or $16.4 million, from June 30, 2014.
  • Stockholders' equity decreased $411,000, or 1.1%, from December 31, 2014 to June 30, 2015.  On April 15, 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.  The repurchase price of the warrants was $1.7 million, which offset the increase in stockholders' equity due to net income less preferred dividends of $1.4 million.  The tangible common equity ratio declined to 6.10% as of June 30, 2015 compared to 6.45% at December 31, 2014 due to the warrants redemption.  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, 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

June  30

March  31

Dec 31

Sept 30

June 30

2015

2015

2014

2014

2014

Interest income          

$4,469

$4,306

$4,370

$4,354

$4,230

Interest expense

678

644

650

675

701

Net interest income

3,791

3,662

3,720

3,679

3,529

Provision for loan losses

120

80

-

-

150

Non-interest income:

   Service charges on deposits

358

317

339

300

296

   Other service charges and fees

176

135

138

198

141

   Gain on sale of mortgage loans

79

31

39

76

51

   Non-deposit brokerage fees

87

92

90

67

75

   Lease income

70

73

63

76

74

   BOLI income

46

45

47

47

47

   Securities gains

10

-

21

-

74

      Total

826

693

737

764

758

Non-interest expenses:

   Personnel expense

1,589

1,648

1,606

1,519

1,486

   Net occupancy expense

493

528

483

501

479

   Advertising and public relations

123

52

73

74

93

   Professional fees

187

164

142

137

149

   Data processing services

238

239

242

250

248

   Franchise shares and deposit tax

145

146

157

146

145

   FDIC insurance

63

59

63

73

74

   Core deposit intangible amortization

17

18

82

82

82

   Postage and office supplies

52

40

43

54

59

   Other real estate owned expenses

29

7

25

10

47

   Other

310

302

306

295

271

      Total

3,246

3,203

3,222

3,141

3,133

Income before income taxes

1,251

1,072

1,235

1,302

1,004

Provision for income taxes

352

290

348

372

271

Net income

899

782

887

930

733

Dividends on preferred stock

130

128

131

131

127

Net income available for common shareholders

$769

$654

$756

$799

$606

Basic earnings per common share

$0.39

$0.33

$0.38

$0.41

$0.31

Diluted earnings per common share

$0.35

$0.29

$0.35

$0.38

$0.29

           

 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios

Key Operating Statistics:

Three Months Ended

June 30 2015

March 31 2015

December 31 2014

September 30 2014

June 30 2014

Average assets

$434,003

$428,210

$414,852

$412,761

$419,630

Average earning assets

403,814

397,920

384,050

381,471

387,457

Average loans

319,758

321,028

313,888

308,087

303,489

Average interest-bearing deposits

327,010

316,558

298,101

301,378

309,820

Average deposits

370,820

360,240

341,128

343,287

350,943

Average borrowed funds

23,022

26,967

33,366

30,096

30,300

Average equity

38,180

39,029

38,249

37,328

36,501

Average common equity

30,521

31,370

30,590

29,669

28,842

Return on average assets

0.83%

0.74%

0.85%

0.89%

0.70%

Return on average equity

9.44%

8.13%

9.20%

9.88%

8.05%

Efficiency ratio

69.14%

72.06%

71.19%

69.41%

72.88%

Non-interest income to average assets

0.76%

0.66%

0.70%

0.73%

0.72%

Non-interest expenses to average assets

3.00%

3.03%

3.08%

3.02%

2.99%

Net overhead to average assets

2.24%

2.38%

2.36%

2.28%

2.27%

Yield on loans

5.15%

4.99%

5.06%

5.16%

5.13%

Yield on investment securities (TE)

2.85%

2.88%

2.75%

2.80%

2.94%

Yield on average earning assets (TE)

4.53%

4.48%

4.61%

4.61%

4.47%

Cost of average interest bearing liabilities

0.78%

0.76%

0.78%

0.81%

0.83%

Net interest margin (TE)

3.85%

3.82%

3.94%

3.91%

3.74%

Number of FTE employees

99

95

97

98

99

Asset Quality Indicators:

Non-performing loans to total loans

0.33%

0.38%

0.37%

0.50%

0.60%

Non-performing assets to total assets

0.29%

0.34%

0.33%

0.52%

0.60%

Allowance for loan losses to total loans

1.59%

1.55%

1.53%

1.58%

1.59%

YTD net charge-offs (recoveries) to average loans, annualized

0.06%

0.02%

0.01%

0.01%

(0.03)%

YTD net charge-offs (recoveries)

102

18

43

25

(25)

 

 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios

Six Months Ended

June 30

June 30

2015

2014

Interest income          

$8,775

$8,411

Interest expense

1,322

1,384

Net interest income

7,453

7,027

Provision for loan losses

200

275

Non-interest income:

   Service charges on deposits

675

557

   Other service charges and fees

311

294

   Gain on sale of mortgage loans

110

75

   Non-deposit brokerage fees

179

144

   Lease income

143

149

   BOLI income

91

94

   Securities gains

10

74

      Total

1,519

1,387

Non-interest expenses:

   Personnel expense

3,237

3,013

   Occupancy expense

1,021

961

   Advertising and public relations

175

176

   Professional fees

351

302

   Data processing services

477

481

   Franchise shares and deposit tax

291

291

   FDIC insurance

122

151

   Core deposit intangible amortization

35

166

   Postage and office supplies

92

110

   Other real estate owned expenses

36

57

   Other

612

487

      Total

6,449

6,195

Income before income taxes

2,323

1,944

Provision for income taxes

642

520

Net income

1,681

1,424

Dividends on preferred stock

258

259

Net income available for common shareholders

$1,423

$1,165

Basic earnings per common share

$0.72

$0.59

Diluted earnings per common share

$0.64

$0.56

 

 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios

Key Operating Statistics:

Six Months Ended

     June         30

     June

         30

2015

2014

Average assets

$431,122

$416,873

Average earning assets

400,883

384,487

Average loans

320,390

303,464

Average interest-bearing deposits

321,813

307,542

Average deposits

365,559

348,529

Average borrowings

24,983

30,045

Average equity

38,602

36,358

Average common equity

30,943

28,446

Return on average assets

0.79%

0.69%

Return on average equity

8.78%

7.90%

Efficiency ratio

70.57%

72.81%

Non-interest income to average assets

0.71%

0.67%

Non-interest expenses to average assets

3.02%

3.00%

Net overhead to average assets

2.31%

2.33%

Yield on loans

5.07%

5.13%

Yield on investment securities (TE)

2.87%

2.97%

Yield on average earning assets (TE)

4.50%

4.50%

Cost of average interest bearing liabilities

0.77%

0.83%

Net interest margin (TE)

3.84%

3.77%

 

 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios

Consolidated Statement of Condition:

As of

As of

As of

June 30,

December 31,

December 31,

2015

2014

2013

Cash and due from financial institutions

$ 9,438

$ 7,962

$ 8,572

Federal funds sold

24,100

3,360

28,490

Available for sale securities

58,352

58,986

51,633

Loans held for sale

80

-

-

Loans

314,115

318,477

295,068

Allowance for loan losses

(4,983)

(4,885)

(4,653)

Premises and equipment, net

10,649

10,758

11,054

Bank owned life insurance (BOLI)

8,084

7,993

7,806

Federal Home Loan Bank Stock, at cost

2,025

2,025

2,025

Accrued interest receivable

1,499

1,527

1,554

Deferred income taxes

1,545

1,479

2,279

Intangible assets

4,397

4,433

4,762

Other real estate owned

212

198

833

Other assets

588

501

752

  Total Assets

$430,101

$412,814

$410,175

Deposits:

    Noninterest bearing

$ 44,330

$ 41,975

$ 39,967

    Savings, NOW and money market

158,583

148,935

143,602

    Time

165,882

150,874

159,382

      Total deposits

$368,795

$341,784

$342,951

FHLB advances and other borrowings

16,000

25,500

22,000

Subordinated debentures

5,000

5,000

5,000

Accrued interest payable

242

231

243

Other liabilities

2,027

1,851

1,634

Total Liabilities

392,064

374,366

371,828

6.5% Cumulative preferred stock

7,659

7,659

7,659

Series A preferred stock

-

-

3,266

Common stock

25,366

27,072

27,072

Retained earnings

4,797

3,373

653

Accumulated other comprehensive income (loss)

215

344

(303)

Total Stockholders' Equity

38,037

38,448

38,347

Total Liabilities and Stockholders' Equity

$430,101

$412,814

$410,175

 

 

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios

    June 30,            2015

   December         31, 2014

   December         31, 2013

Consolidated Capital Ratios:

Tangible equity ratio (1)

7.90%

8.33%

8.28%

Tangible common equity ratio (1)

6.10%

6.45%

5.59%

Book value per common share

$15.43

$15.64

$13.93

Tangible book value per common share (1)

$13.20

$13.39

$11.51

End of period common share closing price

$12.50

$11.90

$9.86

_____________

(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:

June  30, 2015

December 31, 2014

December 31, 2013

Total shareholders' equity (a)

$38,037

$38,448

$38,348

Less:

   Preferred stock

(7,659)

(7,659)

(10,925)

Common equity (b)

30,378

30,789

27,423

   Goodwill

(4,097)

(4,097)

(4,097)

   Intangible assets

(300)

(336)

(665)

Tangible common equity (c)

25,981

26,356

22,661

Add:

   Preferred stock

7,659

7,659

10,925

Tangible equity (d)

$33,640

$34,015

$33,586

Total assets (e)

$430,101

$412,814

$410,175

Less:

   Goodwill

(4,097)

(4,097)

(4,097)

   Intangible assets

(300)

(336)

(665)

Tangible assets (f)

$425,704

$408,381

$405,413

Shares outstanding (in thousands) (g)

1,969

1,969

1,969

Book value per common share (b/g)

$15.43

$15.64

$13.93

Tangible book value per common share (c/g)

$13.20

$13.39

$11.51

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

8.84%

9.31%

9.35%

Tangible equity ratio (d/f)

7.90%

8.33%

8.28%

Tangible common equity ratio (c/f)

6.10%

6.45%

5.59%

 

 

SOURCE Citizens First Corporation



RELATED LINKS

http://www.citizensfirstbank.com