Citizens First Corporation Announces First Quarter 2019 Results, Declares Quarterly Common Dividend

News provided by

Citizens First Corporation

Apr 18, 2019, 13:24 ET

BOWLING GREEN, Ky., April 18, 2019 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the three months ended March 31, 2019 which include the following:

For the quarter ended March 31, 2019 the Company reported net income of $1.12 million, or $0.44 per diluted common share (EPS).  This represents a 3.2% increase, or $35,000, from the $1.08 million or $0.43 per diluted common share, for the quarter ended March 31, 2018.  "We were pleased with a $6.4 million increase in outstanding loans during the first quarter of 2019," said Todd Kanipe, President and CEO. "Operating results were mixed with a flat net interest margin compared to a year ago," Kanipe added.

Income Statement First Quarter 2019 Compared to First Quarter 2018

Net interest income decreased $57,000, or 1.5%, from the prior year. The Company's net interest margin was 3.55% for both quarters ended March 31, 2019 and March 31, 2018.

There was no provision for loan losses in the first quarter of the current year compared to a $30,000 provision for loan losses in the first quarter of the prior year.

Non-interest income increased $22,000, or 2.7%, from the prior year primarily due to an increase in gains on sale of mortgage loans of $30,000, and an increase in lease income of $31,000, partially offset by a decrease in service charges on deposit accounts of $38,000.

Non-interest expenses increased $23,000, or 0.7%, from the prior year primarily due to an increase in professional fees of $90,000 and an increase in data processing expense of $15,000, offset by a decrease in personnel expense of $37,000 and decrease in other operating expenses of $25,000. The increase in professional fees is related to the Company's agreement and plan of merger with and into German American Bancorp, Inc. ("German American") announced during the first quarter of 2019.

Income tax expenses decreased $63,000, or 25.2%. The effective rate was 14% in 2019 compared to 19% in 2018.  The lower rate is 2019 is partially attributed to a deduction for equity based compensation.

Credit Quality

Non-performing assets totaled $1.3 million, or 0.27% of total assets for both March 31, 2019 and December 31, 2018.   The allowance for loan losses at March 31, 2019 was $4.4 million, or 1.16% of total loans, compared to $4.4 million, or 1.18% of total loans as of December 31, 2018.  The Company considers 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 the Company's loan portfolio.

Balance Sheet

Total assets at March 31, 2019 were $472.0 million, compared to $476.0 million at December 31, 2018, a decrease of 0.8%.   Loans increased $6.4 million, or 1.7%, from December 31, 2018 to March 31, 2019. Deposits decreased $6.8 million, or 1.7%, from December 31, 2018 to March 31, 2019.  Borrowings from the Federal Home Loan Bank had no change from December 31, 2018 to March 31, 2019.

Stockholders' equity increased to $51.4 million at March 31, 2019 from $50.0 million at December 31, 2018, an increase of $1.4 million or 2.7%.  The book value per common share and tangible book value per common share ratios were $20.18 and $18.55, respectively, at March 31, 2019 compared to $19.71 and $18.07, respectively, at December 31, 2018.

Postponement of 2019 Annual Meeting of Shareholders

The Company's Board of Directors has postponed its 2019 Annual Meeting of Shareholders given Citizens First's proposed merger transaction with German American announced during the first quarter of 2019.  A postponed Annual Meeting would be held (and the meeting date, record date and related dates for stockholder proposals announced) later in 2019 only if the merger transaction with German American is not consummated.

Quarterly Common Dividend Payable May 16

On April 18, 2019, the Board of Directors declared a quarterly cash dividend of $0.07 per common share payable May 16, 2019 to shareholders of record on May 2, 2019. 

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
Per Share Data and ratios)


March 31, 

December 31, 

December 31, 


2019

2018

2017

Assets









Cash and due from financial institutions


$

6,998

$

8,875

$

6,444

Federal funds sold

—

10,000

—

Interest-bearing deposits in other financial institutions

17,337

16,010

13,532

Available-for-sale securities



45,627

47,098

48,616

Loans held for sale



117

269

427

Loans

377,922

371,544

374,239

Allowance for loan losses

(4,399)

(4,373)

(4,724)

Premises and equipment, net



8,790

8,861

9,140

Bank owned life insurance (BOLI)



8,751

8,705

8,528

Federal Home Loan Bank (FHLB) stock, at cost



2,065

2,065

2,053

Accrued interest receivable



1,651

1,683

1,681

Deferred income taxes



430

545

670

Goodwill and other intangible assets

4,132

4,150

4,221

Other assets



2,660

550

555

Total Assets

$

472,081

$

475,982

$

465,382

Liabilities









Deposits









Noninterest bearing


$

52,542

$

55,006

$

53,259

Savings, NOW and money market



191,997

192,762

175,087

Time



137,262

140,841

143,968

Total deposits

381,801

388,609

372,314

FHLB advances and other borrowings

30,000

30,000

40,000

Subordinated debentures



5,000

5,000

5,000

Accrued interest payable



421

410

285

Other liabilities



3,473

1,944

1,949

Total Liabilities

420,695

425,963

419,548

Stockholders' Equity









Common stock

33,253

33,309

33,138

Retained earnings



18,307

17,365

13,142

Accumulated other comprehensive loss

(174)

(655)

(446)

Total stockholders' equity

51,386

50,019

45,834

Total liabilities and stockholders' equity

$

472,081

$

475,982

$

465,382

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, 


2019

2018

2018

2018

2018

Interest and dividend income

$

5,156

$

5,112

$

5,094

$

5,162

$

4,860

Interest expense

1,313

1,277

1,182

1,064

960

   Net interest income

3,843

3,835

3,912

4,098

3,900

















Provision for loan losses

—

70

30

30

30

















Non-interest income















Service charges on deposit accounts

260

332

291

309

298

Other service charges and fees

281

307

319

319

281

Gain on sale of mortgage loans

80

106

95

69

50

Non-deposit brokerage fees

95

109

110

101

99

Lease income

83

53

52

79

52

BOLI income

46

45

45

44

43

Total non-interest income

845

952

912

921

823

















Non-interest expenses















Personnel expense

1,809

1,812

1,730

1,773

1,846

Net occupancy expense

448

436

457

432

453

Advertising and public relations

73

91

102

85

81

Professional fees

254

154

156

172

164

Data processing services

209

202

208

205

194

Franchise shares and deposit tax

120

120

120

120

120

FDIC insurance



35

45

42

43

42

Other

434

454

470

461

459

Total non-interest expenses

3,382

3,314

3,285

3,291

3,359

















Income before income taxes



1,306

1,403

1,509

1,698

1,334

Income taxes

187

240

311

324

250

Net income

1,119

1,163

1,198

1,374

1,084

Net income available for common stockholders

$

1,119

$

1,163

$

1,198

$

1,374

$

1,084

Basic earnings per common share

$

0.44

$

0.46

$

0.47

$

0.54

$

0.43

Diluted earnings per common share

$

0.44

$

0.45

$

0.47

$

0.54

$

0.43

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, 


2019

2018

2018

2018

2018

Average:















Assets

$

469,202

$

473,070

$

482,506

$

478,836

$

476,063

Earning Assets

441,447

445,855

454,914

451,315

448,853

Loans

378,524

367,921

377,140

389,614

384,184

Interest-bearing deposits

329,733

329,096

333,042

328,931

322,627

Deposits

381,111

381,687

388,124

383,144

375,617

Borrowed funds

35,000

39,783

43,685

46,758

52,167

Equity

50,403

49,090

48,242

47,006

46,023

Common equity

50,403

49,090

48,242

47,006

46,023

















Return on average assets

0.97

%

0.98

%

0.99

%

1.15

%

0.92

%

Return on average equity

9.00

%

9.41

%

9.85

%

11.72

%

9.55

%

















Efficiency ratio

71.78

%

68.87

%

67.74

%

65.23

%

70.72

%

Non-interest income to average assets

0.73

%

0.80

%

0.75

%

0.77

%

0.70

%

Non-interest expenses to average assets

2.92

%

2.78

%

2.70

%

2.76

%

2.86

%

Net overhead to average assets

2.19

%

1.98

%

1.95

%

1.99

%

2.16

%

Yield on loans

5.08

%

4.99

%

4.89

%

4.94

%

4.75

%

Yield on investment securities (TE)

2.80

%

2.73

%

2.51

%

2.61

%

2.56

%

Yield on average earning assets (TE)

4.76

%

4.57

%

4.46

%

4.61

%

4.42

%

Cost of average interest bearing liabilities

1.46

%

1.37

%

1.24

%

1.14

%

1.04

%

Net interest margin (TE)

3.55

%

3.43

%

3.43

%

3.67

%

3.55

%

Number of FTE employees

93

97

98

99

96

















Asset Quality Indicators:















Non-performing loans to total loans

0.34

%

0.35

%

0.54

%

0.54

%

0.54

%

Non-performing assets to total assets

0.27

%

0.27

%

0.43

%

0.43

%

0.43

%

Allowance for loan losses to total loans

1.16

%

1.18

%

1.29

%

1.24

%

1.21

%

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

(0.03)

%

0.13

%

0.01

%

0.02

%

0.06

%

YTD net charge-offs (recoveries)

(27)

511

38

34

61

Consolidated Financial Highlights (Unaudited)














(In Thousands, Except
Per Share Data and ratios)


March 31, 

December 31, 

December 31, 

Consolidated Capital Ratios

2019

2018

2017











Total shareholders' equity to total assets ratio

10.88

%

10.51

%

9.85

%

Tangible equity ratio (1)

10.10

%

9.72

%

9.02

%

Tangible common equity ratio (1)

10.10

%

9.72

%

9.02

%

Book value per common share

$

20.18

$

19.71

$

18.14

Tangible book value per common share (1)

$

18.55

$

18.07

$

16.47

End of period common share closing price

$

24.81

$

21.43

$

24.00












(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 Per 
Share Data and ratios)


March 31, 

December 31, 

December 31, 

Regulation G Non-GAAP Reconciliation:

2019

2018

2017











Total shareholders' equity (a)

$

51,386

$

50,019

$

45,834

Less:









Goodwill

(4,097)

(4,097)

(4,097)

Intangible assets

(35)

(53)

(124)

Tangible common equity (b)

47,254

45,869

41,613











Total assets (c)

472,081

475,982

465,382

Less:









Goodwill

(4,097)

(4,097)

(4,097)

Intangible assets

(35)

(53)

(124)

Tangible assets (d)

$

467,949

$

471,832

$

461,161

Shares outstanding (in thousands) (e)

2,547

2,538

2,526











Book value per common share (a/e)

$

20.18

$

19.71

$

18.14

Tangible book value per common share (b/e)

$

18.55

$

18.07

$

16.47

Equity to assets ratio (a/c)

10.88

%

10.51

%

9.85

%

Tangible equity ratio (b/d)

10.10

%

9.72

%

9.02

%

Common equity ratio (a/c)

10.88

%

10.51

%

9.85

%

Tangible common equity ratio (b/d)

10.10

%

9.72

%

9.02

%

SOURCE Citizens First Corporation

Related Links

http://www.citizensfirstbank.com

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