Citizens Community Bank Reports Fourth Quarter and 2009 Year-End Results
- Stronger Net Interest Margin, Continued Earning Asset Growth and Higher Fee Revenue Helps Alleviate Pressure from Loan Loss Reserve Build and Higher FDIC Insurance Premiums -
SOUTH HILL, Va., Jan. 29 /PRNewswire-FirstCall/ -- Citizens Community Bank (OTC Bulletin Board: CZYB) today reported fourth quarter and year-end results for 2009. For the year ended December 31, 2009, net income before preferred dividend payments totaled $5,943, compared to $168,502 for 2008. When including preferred dividends of $172,608 for 2009, the Bank recorded a net loss to common shareholders of ($166,665) or ($0.12) diluted earnings per share. This compares to net income to common shareholders of $164,201 or $0.12 diluted earnings per share for 2008. For full year 2009, the results included $111,983 of losses on the write-down and sale of other real estate and other assets, $129,072 of one-time FDIC insurance premium related charges and a tax benefit of $117,283. In 2009, the Bank's pre-provision, pre-tax income was $1.3 million, up from $590,000 in 2008. For the fourth quarter of 2009, the Bank reported a net loss to common shareholders of ($293,229) or ($0.21) per diluted share compared to ($52,990) or ($0.04) per diluted share for the same period in 2008.
"The current economic slowdown and softening real estate values continue to hamper financial institutions. Not only have the decreased values weakened commercial and residential credits, but this is indirectly attributable to a special, one-time FDIC insurance premium. Unfortunately, the combination of these events caused us to experience a net loss for 2009. Management was aggressive in writing off problem credits and increasing our loan loss reserves so that, as we enter 2010, we feel the Bank is positioned to manage our problem credits and show an improvement in earnings. Our capital ratios continue to be among the strongest of our peers," says President and CEO, Tom Manson.
For the year ended December 31, 2009, provision for loan losses totaled $1,425,856, compared to $457,278 for 2008. The additional provisions increased the reserve for loan losses by 40 basis points to 1.60% of loans at year end 2009. For full year 2009, net charge-offs equaled $829,716 or 0.63% of average loans compared to 0.21% for 2008. Of the $829,716 in net charge-offs, $474,676 was concentrated in a partial charge-off for a single commercial relationship. The remaining balance of $1,092,330 for this commercial relationship is in nonaccrual status, whereby the Bank cautiously expects full collection.
At December 31, 2009, nonperforming loans totaled $3,355,522, with $3,308,215 in nonaccrual loans and $151,527 of restructured loans (which are accruing interest). Nonperforming loans represented 2.50% of outstanding loans at December 31, 2009, compared to 1.63% at year end 2008. With $812,527 of other real estate owned, nonperforming assets totaled $4,272,269 and represented 2.49% of total assets at December 31, 2009 compared to 1.34% one year ago.
Total assets at December 31, 2009 were $171.9 million, up $17.5 million or 11.3% from December 31, 2008. Gross loans equaled $132.4 million, an increase of $5.3 million or 4.2% from the same period in 2008. Deposits increased $9.4 million to $142.3 million, up 7.1% from the same period in 2008.
The Bank's capital position remained strong as shareholders' equity totaled $21.4 million at December 31, 2009, including $3.0 million of preferred stock issued as part of the Bank's participation in the Government's Troubled Asset Relief Program. At December 31, 2009, the Bank exceeded all regulatory capital requirements with total risk based capital of 15.83%, (10% qualifies banks as "well capitalized" by regulatory standards) tier one capital of 14.58% and tier one leverage of 11.70%
For the fourth quarter of 2009, net interest income totaled $1,601,615, an increase of $375,633 or 30.6% over the same quarter for 2008. For the three month period ended December 31, 2009, the net interest margin was 3.93%, up 39 basis points from fourth quarter 2008 and up 19 basis points from third quarter 2009. For the year ended December 31, 2009, net interest income increased $938,683 or 19.4% to $5,786,281 over 2008. The increase for both comparative periods reflected a larger earning asset base coupled with a stronger net interest margin. For full year 2009, the net interest margin was 3.64%, an increase of 8 basis points over the same period in 2008. Earning assets averaged $160.3 million for 2009, up $22.6 million or 16.5% over 2008 as growth was experienced in the loan and securities portfolio.
For the fourth quarter of 2009, noninterest income equaled $227,668, up $50,528 or 28.5% from fourth quarter 2008 as the Bank benefited primarily from additional revenue from deposit accounts. For the year ended December 31, 2009, noninterest income totaled $706,809, an increase of $29,644 or 4.4% as this included $104,747 of writedowns on other real estate and $7,236 of losses related to the sale of other real estate and other assets. Excluding these items, fee income equaled $818,792, up $141,627 or 20.9% as revenue from deposit accounts and ATMs pushed the category higher.
For the fourth quarter of 2009, noninterest expense totaled $1,270,985, a decrease of $82,150 or 6.1% from the fourth quarter of 2008. For full year 2009, noninterest expense equaled $5,178,574, an increase of $243,426 or 4.9%. When excluding a special one-time FDIC assessment of $76,257 during the third quarter of 2009 and a one-time $52,815 accrual adjustment related to the 13 quarter prepayment of FDIC insurance premiums made during the fourth quarter of 2009, overhead expense increased $114,354 or 2.3%
Citizens Community Bank is a Virginia state chartered bank headquartered in South Hill, Va. Opened in December 1999, it operates five branches, three in south central Virginia and two in northern North Carolina. For more information and additional financial data, please visit www.ccbsite.com.
This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement.
Citizens Community Bank
Financial Highlights
(Unaudited) Three Months Ended Year Ended
(Actual dollars, except per December 31, December 31,
share data) 2009 2008 2009 2008
---- ---- ---- ----
Selected Operating Data:
Net interest income $1,601,615 $1,225,982 $5,786,281 $4,847,598
Provision for loan losses 954,246 169,378 1,425,856 457,278
Noninterest income 227,668 177,140 706,809 677,165
Noninterest expense 1,270,985 1,353,135 5,178,574 4,935,148
Income (loss) before
income tax (395,948) (119,391) (111,340) 132,337
Income tax expense
(benefit) (151,094) (70,701) (117,283) (36,165)
Net income (loss) $(244,854) $(48,690) $5,943 $168,502
Less: Preferred dividends $48,375 $4,300 $172,608 $4,301
Net income (loss)
available to common
shareholders $(293,229) $(52,990) $(166,665) $164,201
Income (loss) per share
Basic ($0.21) ($0.04) ($0.12) $0.12
Diluted ($0.21) ($0.04) ($0.12) $0.12
Average shares outstanding,
basic 1,364,670 1,364,670 1,364,670 1,354,673
Average shares outstanding,
diluted 1,364,670 1,364,670 1,364,670 1,355,329
Citizens Community Bank
Financial Highlights
(Unaudited) Three Months Ended Year Ended
(Actual dollars, except per December 31, December 31,
share data) 2009 2008 2009 2008
---- ---- ---- ----
Balance Sheet Data:
Total assets $- $- $171,862,449 $154,393,488
Loans, net - - 130,301,003 125,570,393
Deposits - - 142,306,135 132,896,674
Borrowings - - 8,000,000 165,000
Stockholders' equity - - 21,396,677 21,280,698
Book value per share(1) $- $- $13.46 $13.32
Total shares outstanding - - 1,364,670 1,364,670
Asset Quality Ratios:
Allowance for loan loss $- $- $2,118,715 $1,522,575
Nonperfoming assets - - 4,272,269 2,074,968
Nonperfoming loans - - 3,459,742 2,074,968
Net charge-offs 653,386 105,557 829,716 252,440
Allowance for loan
loss to total loans - - 1.60% 1.20%
Nonperforming loans
to total loans - - 2.50% 1.63%
Nonperforming assets
to total assets - - 2.49% 1.34%
Net charge-offs to
average loans 1.97% 0.34% 0.63% 0.21%
Selected Performance
Ratios:
Return on average assets -0.67% -0.14% -0.10% 0.11%
Return on average equity -5.32% -1.15% -0.78% 0.90%
Net interest margin (TE) 3.93% 3.54% 3.64% 3.56%
Overhead efficiency 69.48% 96.44% 79.76% 89.33%
Note: (1) Book value excludes $3,030,667 and $3,000,667 of preferred
stock for 2009 and 2008, respectively.
SOURCE Citizens Community Bank
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