Citizens First Corporation Announces Second Quarter 2015 Results
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 |
March |
December |
September |
June |
||
| 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 |
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, |
December |
December |
||
| 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 |
December |
December |
|
| 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
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