Citizens First Corporation Announces First Quarter 2012 Results

BOWLING GREEN, Ky., April 19, 2012 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the first quarter ending March 31, 2012, which include the following:

• For the quarter ended March 31, 2012, the Company reported net income of $808,000, or $.29 per diluted common share.  This represents an increase of $413,000, or $.20 per share, from the linked quarter ended December 31, 2011.  Compared to the quarter ended March 31 a year ago, net income increased $92,000 or $.08 per share.  Provision for loan losses was $370,000 for the first quarter of 2012 compared to $1.2 million for the linked quarter ended December 31, 2011 and $225,000 for the quarter ended March 31, 2011. Todd Kanipe, President & CEO of Citizens First commented, "We are encouraged about the growth of loans on our balance sheet, and the improvement in net interest income as a result of the loan growth.  Strong core earnings will allow us to improve our capital position as we plan to seek approval to redeem additional securities issued under the TARP Capital Purchase Program."
• The Company's net interest margin was 4.17% for the quarter ended March 31, 2012 compared to 4.01% for the quarter ended December 31, 2011 and 4.11% for the quarter ended March 31, 2011, an increase of 16 basis points for the linked quarter and an increase of 6 basis points from the prior year.  The Company's net interest margin improved due to an increase in loans for the quarter and year.
• Total loans increased 3.2% to $303.8 million at March 31, 2012 compared to $294.4 million at December 31, 2011. Total deposits decreased slightly to $331.1 million at March 31, 2012 compared to $332.7 million at December 31, 2011, a decrease of 0.5%.
• Nonperforming assets decreased to $4.6 million at March 31, 2012 compared to $4.9 million at December 31, 2011, but increased from $2.5 million at March 31, 2011. 

First Quarter 2012 Compared to Fourth Quarter 2011

Net interest income for the quarter ended March 31, 2012 increased $138,000, or 3.9%, compared to the previous quarter.  Net interest income increased due to an increase in interest income of $85,000, which was primarily loan income, combined with a reduction in interest expense of $53,000.  Loan income increased due to the growth in average loans outstanding.

Non-interest income for the three months ended March 31, 2012 decreased $227,000, or 24.6%, compared to the previous quarter, primarily due to a decrease in security gains of $141,000 and services charges on deposit accounts of $63,000.

Non-interest expense for the three months ended March 31, 2012 increased $111,000, or 3.9%, compared to the previous quarter, primarily due to an increase in salaries and benefits of $54,000.

A $370,000 provision for loan losses was recorded for the first quarter of 2012, compared to a $1.2 million provision in the previous quarter.  The provision expense was higher in the fourth quarter of 2011 as a result of an increase in nonperforming loans, which required a specific allocation in the allowance for loan losses.  Net charge-offs were $307,000 for the first quarter of 2012 compared to $267,000 in the fourth quarter of 2011.

First Quarter 2012 Compared to First Quarter 2011

Net interest income for the quarter ended March 31, 2012 increased $473,000, or 14.7%, compared to the previous year.  The increase in net interest income was impacted by a reduction in interest expense of $174,000 combined with an increase in interest income of $299,000. The increase in interest income was fueled by the growth in average loans for the first quarter of 2012 compared to the first quarter of 2011.

Non-interest income for the three months ended March 31, 2012 increased $34,000, or 5.1%, compared to the three months ended March 31, 2011, primarily due to an increase in gains from the sale of mortgage loans of $21,000 from the prior year.

Non-interest expense for the three months ended March 31, 2012 increased $222,000, or 8.2%, compared to the three months ended March 31, 2011, primarily due to an increase in personnel expenses totaling $103,000 and data processing expenses totaling $53,000.

A $370,000 provision for loan losses was recorded for the first quarter of 2012, compared to a $225,000 provision in the first quarter of 2011, an increase of $145,000, or 64.4%.  Net charge-offs were $307,000 for the first quarter of 2012 compared to net charge-offs of $223,000 in the first quarter of 2011.  The provision expense increased due to the increase in net charge-offs and the growth of the loan portfolio.

Balance Sheet

Total assets at March 31, 2012 were $403.8 million, unchanged from $403.8 million at December 31, 2011.  Loans increased $9.4 million, or 3.2%, from $294.4 million at December 31, 2011 to $303.8 million at March 31, 2012.  Deposits at March 31, 2012 were $331.1 million, a decrease of $1.6 million, or 0.5%, compared to $332.7 million at December 31, 2011. 

Non-performing assets totaled $4.6 million at March 31, 2012 compared to $4.9 million at December 31, 2011, a decrease of $283,000.  The allowance for loan losses at March 31, 2012 was $5.9 million, or 1.95% of total loans, compared to $5.9 million, or 1.99% of total loans as of December 31, 2011.

A summary of nonperforming assets is presented for the periods indicated:

At March 31, 2012, total shareholders' equity was $39.4 million and total tangible shareholders' equity was $34.1 million.  The Company's tangible equity ratio was 8.58% as of March 31, 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.

SOURCE Citizens First Corporation

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