Citizens First Corporation Announces First Quarter 2015 Results and Repurchase of Warrants Issued to US Treasury

News provided by

Citizens First Corporation

Apr 16, 2015, 12:45 ET

BOWLING GREEN, Ky., April 16, 2015 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending March 31, 2015, which include the following:

  • For the quarter ended March 31, 2015, the Company reported net income of $782,000, or $0.31 per diluted common share. This represents a decrease of $105,000, or $0.04 per diluted common share from the linked quarter ended December 31, 2014 and an increase of $91,000, or $0.04 per diluted common share, from the quarter ended March 31, 2014.
  • 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. On a proforma basis, assuming the repurchase of the warrants as of March 31, 2015, the tangible book value per common share at March 31, 2015 would have been $12.99 rather than the $13.85 reported. Also on a proforma basis, a resulting improvement in diluted earnings per common share of $0.02 would have occurred for the quarter ended March 31, 2015.
  • Non-performing assets totaled $1.5 million, or 0.34% of total assets, at March 31, 2015 compared to $2.6 million, or 0.62% of total assets at March 31, 2014, a decrease of $1.1 million. Non-performing assets increased $115,000 from the linked quarter ended December 31, 2014.
  • The Company's net interest margin was 3.82% for the quarter ended March 31, 2015 compared to 3.94% for the linked quarter ended December 31, 2014, and 3.81% for the quarter ended March 31, 2014, a decrease of 12 basis points for the linked quarter and an increase of 1 basis point from the prior year. The Company's net interest margin decreased from the linked quarter due to a decline in the yield on loans, which fell to 4.99% for the quarter ended March 31, 2015 compared to 5.06% for the quarter ended December 31, 2014 and 5.14% for the quarter ended March 31, 2014.
  • Total loans increased 0.4% to $319.6 million at March 31, 2015 compared to $318.5 million at December 31, 2014. Total deposits increased 6.9% to $365.4 million at March 31, 2015 compared to $341.8 million at December 31, 2014. Todd Kanipe, President & CEO of Citizens First commented, "We are encouraged by the growth on our balance sheet. Overall growth is vital to improve our net interest income while interest rates continue to remain at historically low levels."

First Quarter 2015 Compared to Fourth Quarter 2014

  • Net interest income decreased $58,000, or 1.6%, due to a decline in the yield on loans.
  • Non-interest income decreased $44,000, or 6.0%, primarily due to a decrease in service charges on deposit accounts of $22,000 and security gains of $21,000.
  • Non-interest expense decreased $19,000, or 0.6%, compared to the previous quarter, primarily due to a reduction in core deposit intangible expense of $64,000 partially offset by an increase in personnel expense of $42,000.

First Quarter 2015 Compared to First Quarter 2014

  • Net interest income increased $164,000, or 4.7%, as the volume of earning assets increased from the prior year.
  • Non-interest income increased $64,000, or 10.2%, primarily due to an increase in service charges on deposit accounts due to the introduction of a new consumer deposit transaction account.
  • Non-interest expense increased $141,000, or 4.6%, primarily due to an increase in personnel expenses, primarily as a result of normal salary adjustments.

Balance Sheet at March 31, 2015

  • Total assets increased $18.3 million, or 4.4%, from December 31, 2014 to March 31, 2015 due to a growth in loans and federal funds sold. Average assets year-to-date increased 3.4%, or $14.1 million from March 31, 2014. Average interest earning assets year-to-date increased 4.3%, or $16.4 million, from March 31, 2014.
  • The allowance for loan losses at March 31, 2015 was $4.9 million, or 1.55% of total loans, compared to $4.9 million, or 1.53% of total loans as of December 31, 2014. The allowance increased slightly as a percentage of total loans due to an increase in outstanding loans for the year as well as continuing low levels of non-performing loans.
  • Stockholders' equity increased $903,000, or 2.3%, from December 31, 2014 to March 31, 2015. The tangible common equity ratio declined slightly to 6.39% as of March 31, 2015 compared to 6.45% at December 31, 2014 due to the increase in assets. The tangible book value per common share improved from $13.39 at December 31, 2014, to $13.85 at March 31, 2015. The Company and Citizens First Bank are categorized as "well capitalized" under regulatory guidelines. As a component of new BASEL III capital regulations, Citizens First Bank will "opt-out" of including accumulated other comprehensive income (AOCI) in regulatory capital with the filing of the March 31, 2015 Call Report.

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



March  31

Dec 31

Sept 30

June 30

March 31

2015

2014

2014

2014

2014

Interest income          

$4,306

$4,370

$4,354

$4,230

$4,181

Interest expense

644

650

675

701

683

Net interest income

3,662

3,720

3,679

3,529

3,498






Provision for loan losses

80

-

-

150

125






Non-interest income:




   Service charges on deposits

317

339

300

296

261

   Other service charges and fees

135

138

198

141

153

   Gain on sale of mortgage loans

31

39

76

51

24

   Non-deposit brokerage fees

92

90

67

75

69

   Lease income

73

63

76

74

75

   BOLI income

45

47

47

47

47

   Securities gains

-

21

-

74

-

      Total

693

737

764

758

629






Non-interest expenses:




   Personnel expense

1,648

1,606

1,519

1,486

1,527

   Net occupancy expense

528

483

501

479

482

   Advertising and public relations

52

73

74

93

83

   Professional fees

164

142

137

149

153

   Data processing services

239

242

250

248

233

   Franchise shares and deposit tax

146

157

146

145

146

   FDIC insurance

59

63

73

74

77

   Core deposit intangible amortization

18

82

82

82

84

   Postage and office supplies

40

43

54

59

51

   Other real estate owned expenses

7

25

10

47

10

   Other

302

306

295

271

216

      Total

3,203

3,222

3,141

3,133

3,062






Income before income taxes

1,072

1,235

1,302

1,004

940

Provision for income taxes

290

348

372

271

249

Net income

782

887

930

733

691






Dividends and accretion on preferred stock

128

131

131

127

132

Net income available for common shareholders

$654

$756

$799

$606

$559

Basic earnings per common share

$0.33

$0.38

$0.41

$0.31

$0.28

Diluted earnings per common share

$0.31

$0.35

$0.38

$0.29

$0.27

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios

Key Operating Statistics:





Three Months Ended




March

 31

2015

December

 31

2014

September

 30

2014

June

 30

2014

March

 31

2014







Average assets

$428,210

$414,852

$412,761

$419,630

$414,089

Average earning assets

397,920

384,050

381,471

387,457

381,485

Average loans

321,028

313,888

308,087

303,489

303,438

Average interest-bearing deposits

316,558

298,101

301,378

309,820

305,239

Average deposits

360,240

341,128

343,287

350,943

346,089

Average equity

39,029

38,249

37,328

36,501

36,213

Average common equity

31,370

30,590

29,669

28,842

28,046






Return on average assets

0.74%

0.85%

0.89%

0.70%

0.68%

Return on average equity

8.13%

9.20%

9.88%

8.05%

7.74%






Efficiency ratio

72.06%

71.19%

69.41%

72.88%

72.73%

Non-interest income to average assets

0.66%

0.70%

0.73%

0.72%

0.62%

Non-interest expenses to average assets

3.03%

3.08%

3.02%

2.99%

3.00%

Net overhead to average assets

2.38%

2.36%

2.28%

2.27%

2.38%

Yield on loans

4.99%

5.06%

5.16%

5.13%

5.14%

Yield on investment securities (TE)

2.88%

2.75%

2.80%

2.94%

3.02%

Yield on average earning assets (TE)

4.48%

4.61%

4.61%

4.47%

4.53%

Cost of average interest bearing liabilities

0.76%

0.78%

0.81%

0.83%

0.83%

Net interest margin (TE)

3.82%

3.94%

3.91%

3.74%

3.81%

Number of FTE employees

95

97

98

99

98






Asset Quality Indicators:




Non-performing loans to total loans

0.38%

0.37%

0.50%

0.60%

0.65%

Non-performing assets to total assets

0.34%

0.33%

0.52%

0.60%

0.62%

Allowance for loan losses to total loans

1.55%

1.53%

1.58%

1.59%

1.60%

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

0.02%

0.01%

0.01%

(0.03)%

(0.06)%

YTD net charge-offs (recoveries)

18

43

25

(25)

(49)







Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios

Consolidated Statement of Condition:

As of

As of

As of

March 31,

December 31,

December 31,

2015

2014

2013

Cash and due from financial institutions

$ 8,513

$ 7,962

$ 8,572

Federal funds sold

19,905

3,360

28,490

Available for sale securities

58,913

58,986

51,633

Loans held for sale

310

-

-

Loans

319,632

318,477

295,068

Allowance for loan losses

(4,947)

(4,885)

(4,653)

Premises and equipment, net

10,776

10,758

11,054

Bank owned life insurance (BOLI)

8,039

7,993

7,806

Federal Home Loan Bank Stock, at cost

2,025

2,025

2,025

Accrued interest receivable

1,443

1,527

1,554

Deferred income taxes

1,350

1,479

2,279

Intangible assets

4,415

4,433

4,762

Other real estate owned

267

198

833

Other assets

491

501

752

  Total Assets

$431,132

$412,814

$410,175




Deposits:


    Noninterest bearing

$ 44,664

$ 41,975

$ 39,967

    Savings, NOW and money market

153,781

148,935

143,602

    Time

166,920

150,874

159,382

      Total deposits

$365,365

$341,784

$342,951

FHLB advances and other borrowings

19,500

25,500

22,000

Subordinated debentures

5,000

5,000

5,000

Accrued interest payable

242

231

243

Other liabilities

1,674

1,851

1,634

Total Liabilities

391,781

374,366

371,828

6.5% Cumulative preferred stock

7,659

7,659

7,659

Series A preferred stock

-

-

3,266

Common stock

27,072

27,072

27,072

Retained earnings (deficit)

4,027

3,373

653

Accumulated other comprehensive income (loss)

593

344

(303)

Total Stockholders' Equity

39,351

38,448

38,347

  Total Liabilities and Stockholders' Equity

$431,132

$412,814

$410,175

Consolidated Financial Highlights (Unaudited)

In thousands, except per share data and ratios



March 31,
2015

December 31,
2014

December 31,
2013

Consolidated Capital Ratios:



Tangible equity ratio (1)

8.19%

8.33%

8.28%

Tangible common equity ratio (1)

6.39%

6.45%

5.59%

Book value per common share

$16.10

$15.64

$13.93

Tangible book value per common share (1)

$13.85

$13.39

$11.51

End of period common share closing price

$12.27

$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:

March 31, 2015

December 31, 2014

December 31, 2013





Total shareholders' equity (a)

$39,351

$38,448

$38,348

Less:



   Preferred stock

(7,659)

(7,659)

(10,925)

Common equity (b)

31,692

30,789

27,423

   Goodwill

(4,097)

(4,097)

(4,097)

   Intangible assets

(318)

(336)

(665)

Tangible common equity (c)

27,277

26,356

22,661

Add:



   Preferred stock

7,659

7,659

10,925

Tangible equity (d)

$34,936

$34,015

$33,586





Total assets (e)

$431,132

$412,814

$410,175

Less:



   Goodwill

(4,097)

(4,097)

(4,097)

   Intangible assets

(318)

(336)

(665)

Tangible assets (f)

$426,717

$408,381

$405,413

Shares outstanding (in thousands) (g)

1,969

1,969

1,969





Book value per common share (b/g)

$16.10

$15.64

$13.93

Tangible book value per common share (c/g)

$13.85

$13.39

$11.51





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

9.13%

9.31%

9.35%

Tangible equity ratio (d/f)

8.19%

8.33%

8.28%

Tangible common equity ratio (c/f)

6.39%

6.45%

5.59%

 

SOURCE Citizens First Corporation

Related Links

http://www.citizensfirstbank.com

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