Citizens First Corporation Announces First Quarter 2018 Results and Increase in Quarterly Common Dividend
-- Increase in earnings per share of 19.5% compared to first quarter 2017
-- Increase in assets of 4.6% compared to year end 2017
-- Loan growth of 3.9% compared to year end 2017
-- Increase of 16.7% in quarterly common dividend
BOWLING GREEN, Ky., April 19, 2018 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the three months ended March 31, 2018 which include the following:
For the quarter ended March 31, 2018 the Company reported net income of $1,084,000, or $0.43 per diluted common share (EPS). This represents a 19.5% increase or $177,000 from the $907,000, or $0.36 per diluted common share, for the quarter ended March 31, 2017. "Loan growth and lower income tax expense combined to drive profitability in the first quarter," said Todd Kanipe, President and CEO. "The challenge continues to be our margin as the competition for deposits in our region stiffens," Kanipe added.
Income Statement
Net interest income increased $120,000, or 3.2%, from the prior year. The Company's net interest margin was 3.55% for the three months ended March 31, 2018, compared to 3.68% for the three months ended March 31, 2017, a decrease of 13 basis points. The Company's net interest margin was impacted by an increase in the cost of average interest-bearing liabilities of 27 basis points.
There was a $30,000 provision for loan losses in both the current and previous year.
Non-interest income increased $8,000, or 1.0%, primarily due to an increase in service charges on deposit accounts of $20,000 and an increase in other service charges and fees of $17,000, offset by a reduction in gains on the sale of securities of $23,000 and a decrease in gains on the sales of mortgage loans of $18,000.
Non-interest expense increased $68,000, or 2.1%, primarily due to an increase in personnel expenses of $112,000 offset by a reduction in data processing expenses of $59,000.
Income tax expense decreased $117,000, or 31.9% due to a marginal rate of 21% in 2018 compared to a rate of 34% in 2017.
Credit Quality
Non-performing assets totaled $2.1 million, or 0.43% of total assets, at March 31, 2018 compared to $1.3 million, or 0.29% of total assets at December 31, 2017, an increase of approximately $740,000. The balance is primarily one restructured agricultural-related credit which was moved to non-accrual status during the first quarter of 2017.
The allowance for loan losses at March 31, 2018 was $4.7 million, or 1.21% of total loans, compared to $4.9 million, or 1.34% of total loans as of March 31, 2017. We consider the size, volume and credit quality of the loan portfolio as well as recent economic and other external influences to record the allowance for loan losses and provision for loan losses that is directionally consistent with our loan portfolio.
Balance Sheet
Total assets at March 31, 2018 were $487.0 million, compared to $465.4 million at December 31, 2017, an increase of $21.6 million or 4.6%. Loans increased $14.7 million, or 3.9%, from December 31, 2017 to March 31, 2018. Deposits increased $14.2 million, or 3.8%, from December 31, 2017 to March 31, 2018. Borrowings from the Federal Home Loan Bank increased $7.0 million, or 17.5%, from December 31, 2017 to March 31, 2018.
Stockholders' equity increased to $46.4 million at March 31, 2018 from $45.8 million at December 31, 2017. The book value per common share and tangible book value per common share ratios were $18.29 and $16.64, respectively, at March 31, 2018 compared to $18.14 and $16.47, respectively, at December 31, 2017.
Quarterly Common Dividend Payable May 16
On April 19, 2018, the Board of Directors declared a quarterly cash dividend of $0.07 per common share payable May 16, 2018 to shareholders of record on May 4, 2018. This represents an increase of 16.7% from the quarterly cash dividend of $0.06 per common share declared in January, 2018.
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 current and future economic and business conditions; possible changes in trade, monetary, and fiscal policies, as well as legislative and regulatory changes; changes in the interest rate environment and our ability to effectively manage interest rate risk and other market risk, credit risk and operational risk; changes in the quality or composition of our loan or investment portfolios; increases in our nonperforming assets, or our inability to recover or absorb losses created by such nonperforming assets; 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) Consolidated Statement of Condition |
||||||||
| (In Thousands, Except Share Data and ratios) |
||||||||
| March 31, |
December 31, |
December 31, |
||||||
| 2018 |
2017 |
2016 |
||||||
| Assets |
||||||||
| Cash and due from financial institutions |
$ |
6,303 |
$ |
6,444 |
$ |
8,542 |
||
| Interest-bearing deposits in other financial institutions |
22,962 |
13,532 |
11,018 |
|||||
| Available-for-sale securities |
46,044 |
48,616 |
53,547 |
|||||
| Loans held for sale |
570 |
427 |
264 |
|||||
| Loans |
388,935 |
374,239 |
359,391 |
|||||
| Allowance for loan losses |
(4,693) |
(4,724) |
(4,854) |
|||||
| Premises and equipment, net |
9,060 |
9,140 |
9,390 |
|||||
| Bank owned life insurance (BOLI) |
8,571 |
8,528 |
8,351 |
|||||
| Federal Home Loan Bank (FHLB) stock, at cost |
2,065 |
2,053 |
2,025 |
|||||
| Accrued interest receivable |
1,518 |
1,681 |
1,622 |
|||||
| Deferred income taxes |
768 |
670 |
1,464 |
|||||
| Goodwill and other intangible assets |
4,203 |
4,221 |
4,291 |
|||||
| Other assets |
699 |
555 |
371 |
|||||
| Total Assets |
$ |
487,005 |
$ |
465,382 |
$ |
455,422 |
||
| Liabilities |
||||||||
| Deposits |
||||||||
| Noninterest bearing |
$ |
53,834 |
$ |
53,259 |
$ |
52,322 |
||
| Savings, NOW and money market |
183,779 |
175,087 |
173,620 |
|||||
| Time |
148,895 |
143,968 |
144,497 |
|||||
| Total deposits |
386,508 |
372,314 |
370,439 |
|||||
| FHLB advances and other borrowings |
47,000 |
40,000 |
35,000 |
|||||
| Subordinated debentures |
5,000 |
5,000 |
5,000 |
|||||
| Accrued interest payable |
328 |
285 |
220 |
|||||
| Other liabilities |
1,741 |
1,949 |
2,399 |
|||||
| Total Liabilities |
440,577 |
419,548 |
413,058 |
|||||
| Stockholders' Equity |
||||||||
| 6.5% Cumulative convertible preferred stock |
— |
— |
7,261 |
|||||
| Common stock |
33,169 |
33,138 |
25,920 |
|||||
| Retained earnings |
14,162 |
13,142 |
9,706 |
|||||
| Accumulated other comprehensive (loss) |
(903) |
(446) |
(523) |
|||||
| Total stockholders' equity |
46,428 |
45,834 |
42,364 |
|||||
| Total liabilities and stockholders' equity |
$ |
487,005 |
$ |
465,382 |
$ |
455,422 |
||
| Consolidated Financial Highlights (Unaudited) Consolidated Statement of Income |
||||||||||||||
| Three months ended |
||||||||||||||
| (In Thousands, Except Per Share Data and ratios) |
||||||||||||||
| March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||
| 2018 |
2017 |
2017 |
2017 |
2017 |
||||||||||
| Interest and dividend income |
$ |
4,860 |
$ |
4,905 |
$ |
4,640 |
$ |
4,593 |
$ |
4,457 |
||||
| Interest expense |
960 |
858 |
777 |
726 |
677 |
|||||||||
| Net interest income |
3,900 |
4,047 |
3,863 |
3,867 |
3,780 |
|||||||||
| Provision (credit) for loan losses |
30 |
(150) |
(30) |
— |
30 |
|||||||||
| Non-interest income |
||||||||||||||
| Service charges on deposit accounts |
298 |
315 |
317 |
327 |
278 |
|||||||||
| Other service charges and fees |
281 |
288 |
317 |
301 |
264 |
|||||||||
| Gain on sale of mortgage loans |
50 |
82 |
79 |
88 |
68 |
|||||||||
| Non-deposit brokerage fees |
99 |
97 |
90 |
91 |
87 |
|||||||||
| Lease income |
52 |
52 |
53 |
80 |
52 |
|||||||||
| BOLI income |
43 |
45 |
44 |
45 |
43 |
|||||||||
| Gain on sale of securities |
— |
- |
25 |
— |
23 |
|||||||||
| Total non-interest income |
823 |
879 |
925 |
932 |
815 |
|||||||||
| Non-interest expenses: |
||||||||||||||
| Personnel expense |
1,846 |
1,740 |
1,673 |
1,655 |
1,734 |
|||||||||
| Net occupancy expense |
453 |
448 |
449 |
446 |
461 |
|||||||||
| Advertising and public relations |
81 |
78 |
111 |
77 |
71 |
|||||||||
| Professional fees |
164 |
86 |
160 |
171 |
130 |
|||||||||
| Data processing services |
194 |
192 |
214 |
251 |
253 |
|||||||||
| Franchise shares and deposit tax |
120 |
88 |
132 |
132 |
132 |
|||||||||
| FDIC insurance |
42 |
47 |
52 |
49 |
49 |
|||||||||
| Other |
459 |
433 |
415 |
432 |
461 |
|||||||||
| Total non-interest expenses |
3,359 |
3,112 |
3,206 |
3,213 |
3,291 |
|||||||||
| Income before income taxes |
1,334 |
1,964 |
1,612 |
1,586 |
1,274 |
|||||||||
| Income taxes |
250 |
1,012 |
490 |
478 |
367 |
|||||||||
| Net income |
1,084 |
952 |
1,122 |
1,108 |
907 |
|||||||||
| Dividends on preferred stock |
— |
— |
— |
119 |
119 |
|||||||||
| Net income available for common stockholders |
$ |
1,084 |
$ |
952 |
$ |
1,122 |
$ |
989 |
$ |
788 |
||||
| Basic earnings per common share |
$ |
0.43 |
$ |
0.38 |
$ |
0.44 |
$ |
0.49 |
$ |
0.39 |
||||
| Diluted earnings per common share |
$ |
0.43 |
$ |
0.37 |
$ |
0.44 |
$ |
0.43 |
$ |
0.36 |
||||
| Consolidated Financial Highlights (Unaudited) Key Operating Statistics |
|||||||||||||||
| Three months ended |
|||||||||||||||
| (In Thousands, Except Per Share Data and ratios) |
|||||||||||||||
| March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||||||||
| 2018 |
2017 |
2017 |
2017 |
2017 |
|||||||||||
| Average: |
|||||||||||||||
| Assets |
$ |
476,063 |
$ |
462,966 |
$ |
449,770 |
$ |
454,524 |
$ |
452,265 |
|||||
| Earning Assets |
448,853 |
435,458 |
422,258 |
427,674 |
424,349 |
||||||||||
| Loans |
384,184 |
370,173 |
362,343 |
363,733 |
363,824 |
||||||||||
| Interest-bearing deposits |
322,627 |
317,196 |
312,668 |
319,883 |
314,939 |
||||||||||
| Deposits |
375,617 |
369,643 |
364,798 |
368,743 |
364,227 |
||||||||||
| Borrowed funds |
52,167 |
45,000 |
37,696 |
39,769 |
43,078 |
||||||||||
| Equity |
46,023 |
45,907 |
44,916 |
44,047 |
42,827 |
||||||||||
| Common equity |
46,023 |
45,907 |
44,916 |
38,240 |
35,718 |
||||||||||
| Return on average assets |
0.92 |
% |
0.82 |
% |
0.99 |
% |
0.98 |
% |
0.81 |
% |
|||||
| Return on average equity |
9.55 |
% |
8.23 |
% |
9.91 |
% |
10.09 |
% |
8.59 |
% |
|||||
| Efficiency ratio |
70.72 |
% |
62.46 |
% |
66.51 |
% |
66.10 |
% |
70.96 |
% |
|||||
| Non-interest income to average assets |
0.70 |
% |
0.75 |
% |
0.82 |
% |
0.82 |
% |
0.73 |
% |
|||||
| Non-interest expenses to average assets |
2.86 |
% |
2.67 |
% |
2.83 |
% |
2.84 |
% |
2.95 |
% |
|||||
| Net overhead to average assets |
2.16 |
% |
1.91 |
% |
2.01 |
% |
2.01 |
% |
2.22 |
% |
|||||
| Yield on loans |
4.75 |
% |
4.88 |
% |
4.73 |
% |
4.69 |
% |
4.60 |
% |
|||||
| Yield on investment securities (TE) |
2.56 |
% |
2.77 |
% |
2.68 |
% |
2.85 |
% |
2.87 |
% |
|||||
| Yield on average earning assets (TE) |
4.42 |
% |
4.52 |
% |
4.41 |
% |
4.37 |
% |
4.32 |
% |
|||||
| Cost of average interest bearing liabilities |
1.04 |
% |
0.94 |
% |
0.88 |
% |
0.81 |
% |
0.77 |
% |
|||||
| Net interest margin (TE) |
3.55 |
% |
3.74 |
% |
3.68 |
% |
3.69 |
% |
3.68 |
% |
|||||
| Number of FTE employees |
96 |
98 |
97 |
95 |
94 |
||||||||||
| Asset Quality Indicators: |
|||||||||||||||
| Non-performing loans to total loans |
0.54 |
% |
0.36 |
% |
0.73 |
% |
0.8 |
% |
0.83 |
% |
|||||
| Non-performing assets to total assets |
0.43 |
% |
0.29 |
% |
0.58 |
% |
0.63 |
% |
0.65 |
% |
|||||
| Allowance for loan losses to total loans |
1.21 |
% |
1.26 |
% |
1.34 |
% |
1.36 |
% |
1.34 |
% |
|||||
| YTD net charge-offs (recoveries) to average |
0.06 |
% |
(0.01) |
% |
— |
% |
(0.01) |
% |
(0.02) |
% |
|||||
| YTD net charge-offs (recoveries) |
61 |
(22) |
2 |
(13) |
(22) |
||||||||||
| Consolidated Financial Highlights (Unaudited) |
||||||||||
| (In Thousands, Except Share Data and ratios) |
||||||||||
| March 31, |
December 31, |
December 31, |
||||||||
| Consolidated Capital Ratios |
2018 |
2017 |
2016 |
|||||||
| Total shareholders' equity to total assets ratio |
9.53 |
% |
9.85 |
% |
9.30 |
% |
||||
| Tangible equity ratio (1) |
8.75 |
% |
9.02 |
% |
8.44 |
% |
||||
| Tangible common equity ratio (1) |
8.75 |
% |
9.02 |
% |
6.83 |
% |
||||
| Book value per common share |
$ |
18.29 |
$ |
18.14 |
$ |
17.54 |
||||
| Tangible book value per common share (1) |
$ |
16.64 |
$ |
16.47 |
$ |
15.40 |
||||
| End of period common share closing price |
$ |
25.41 |
$ |
24.00 |
$ |
18.00 |
||||
| (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. |
| (In Thousands, Except Share Data and ratios) |
||||||||||
| March 31, |
December 31, |
December 31, |
||||||||
| Regulation G Non-GAAP Reconciliation: |
2018 |
2017 |
2016 |
|||||||
| Total shareholders' equity (a) |
$ |
46,428 |
$ |
45,834 |
$ |
42,364 |
||||
| Less: |
||||||||||
| Preferred stock |
— |
— |
(7,261) |
|||||||
| Common equity (b) |
46,428 |
45,834 |
35,103 |
|||||||
| Goodwill |
(4,097) |
(4,097) |
(4,097) |
|||||||
| Intangible assets |
(106) |
(124) |
(194) |
|||||||
| Tangible common equity (c) |
42,225 |
41,613 |
30,812 |
|||||||
| Add: |
||||||||||
| Preferred stock |
— |
— |
7,261 |
|||||||
| Tangible equity (d) |
42,225 |
41,613 |
38,073 |
|||||||
| Total assets (e) |
487,005 |
465,382 |
455,422 |
|||||||
| Less: |
||||||||||
| Goodwill |
(4,097) |
(4,097) |
(4,097) |
|||||||
| Intangible assets |
(106) |
(124) |
(194) |
|||||||
| Tangible assets (f) |
$ |
482,802 |
$ |
461,161 |
$ |
451,131 |
||||
| Shares outstanding (in thousands) (g) |
2,538 |
2,526 |
2,001 |
|||||||
| Book value per common share (b/g) |
$ |
18.29 |
$ |
18.14 |
$ |
17.54 |
||||
| Tangible book value per common share (c/g) |
$ |
16.64 |
$ |
16.47 |
$ |
15.40 |
||||
| Equity to assets ratio (a/e) |
9.53 |
% |
9.85 |
% |
9.30 |
% |
||||
| Tangible equity ratio (d/f) |
8.75 |
% |
9.02 |
% |
8.44 |
% |
||||
| Common equity ratio (b/e) |
9.53 |
% |
9.85 |
% |
7.71 |
% |
||||
| Tangible common equity ratio (c/f) |
8.75 |
% |
9.02 |
% |
6.83 |
% |
||||
SOURCE Citizens First Corporation
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