First Citizens Banc Corp Announces First Quarter 2015 Earnings
SANDUSKY, Ohio, April 24, 2015 /PRNewswire/ -- First Citizens Banc Corp (NASDAQ:FCZA) ("First Citizens") reported a 34.5% increase in net income attributable to common shares of $2.8 million, or $0.29 per share, diluted, for the first quarter of 2015, compared with $2.1 million, or $0.22 per share, diluted, for the prior year period.
"We are pleased with our performance for the first quarter of 2015 and our positioning for the remainder of the year. In January, we opened a new loan production office in Mayfield Heights, Ohio staffed with two very experienced lenders. This office will provide additional lending opportunities in the greater southeast Cleveland market. At the close of business on March 6th we completed the TCNB transaction giving us market presence in Dayton, Ohio. This $100 million institution will provide loan, cash management, and wealth management opportunities in the greater Dayton area. This transaction will be accretive to our earnings in 2015 by approximately $0.11 per share," said James O. Miller, Chairman, President and CEO of First Citizens.
Mr. Miller continued, "Also in the first quarter we rebranded our Citizens and Champaign banking operations as Civista Bank. With 16 other Citizens in Ohio and 316 in the nation, we felt it was time to consolidate our brand and differentiate us from the others. Effective May 1, 2015, we will complete our brand transition by changing our holding company name from First Citizens Banc Corp to Civista Bancshares, Inc. Our ticker symbol will also change to CIVB.
Results of Operations:
Net interest income for the first quarter of 2015 increased $750 thousand, or 7.4%, from the prior year's first quarter. Interest income increased $447 thousand, or 4.0%, for the first quarter compared to the prior year period. The increase in interest income was due primarily to an increase in average loans outstanding of $73.5 million, or 8.6% for the three-month period, compare to a year ago. The increase in average loans was partially offset by decreased loan yield of 16 basis points for the three-month period compared to 2014. Interest expense decreased $303 thousand or 26.3% for the three months ended March 31, 2015. Net interest margin for the three months of 2015 was 3.65% compared to 3.51% for the same period last year.
For the period ended March 31, 2015, the provision for loan losses decreased $350 thousand, or 46.7%, compared to the same period last year. Net charge-offs totaled $353 thousand for quarter 2015 compared to $512 thousand for the same period in 2014.
Noninterest income decreased $222 thousand, or 4.8%, compared to the prior year's first quarter. The decrease was primarily due to a $277 thousand decrease in fee income related to income tax refund processing, due to a change in the fee structure. Gain on the sale of loans increased $93 thousand, or 90.3% compared to the same period a year ago due to an increase in the volume of loans sold.
Noninterest expense increased $175 thousand, or 1.7%, when compared to the prior year's first quarter. Salaries and benefits increased $173 thousand, or 3.0% compared to the prior year due to annual and merit salary increases, an increase in FTEs and an increase to 401k expenses due to changes in calculation methodologies. Data processing expense increased $163 thousand, or 57.2% largely attributable to the merger and to upgrades and additional services utilized. Marketing expense decreased $121 thousand, or 40.3% for the three-month period due to re-branding expenses which were recorded in 2014. Repossession expenses decreased $89 thousand, or 48.4% compared to the same period in the prior year.
Balance Sheet
Total assets increased $194.0 million, or 16.0%, from December 31, 2014 to March 31, 2015. This was due primarily to addition of the assets of TCNB Financial Corp. ("TCNB"), as well as cash related to the tax refund processing program. Total assets of TCNB prior to the merger were $97.4 million, including $76.8 million in loans.
Total deposits increased $228.4 million, or 23.6%, from December 31, 2014 to March 31, 2015. The increase in deposits was due to the acquisition of TCNB, which included $86.9 million in deposits. As with assets, deposits also increased related to the tax refund processing program. Total shareholder's equity increased $3.0 million, or 2.6%, from December 31, 2014 to March 31, 2015 due to increased retained earnings of $2.4 million and changes to Accumulated Other Comprehensive Income of $631 thousand.
Asset Quality
Nonperforming assets at March 31, 2015 were $19.2 million, virtually unchanged from December 31, 2014, and decreased $7.8 million compared to March 31, 2014. Mr. Miller continued, "The accomplishments we had in 2014, paying off the Capital Purchase Program preferred stock, the consolidation of four branches, reducing non-performing loans, announcing the acquisition of TCNB and increasing our loan totals by 6.2% have provided great momentum going into the first quarter of 2015. During the first quarter we maintained our asset quality, closed on the TCNB acquisition which added three branches and $100 million in assets and opened a loan production office on the east side of Cleveland. We are optimistic on the prospects for maintaining that momentum for the remainder of 2015."
First Citizens Banc Corp is a $1.4 billion financial holding company headquartered in Sandusky, Ohio. The Company's banking subsidiary, Civista Bank, operates 28 locations in North Central, West Central and Southwestern Ohio.
First Citizens Banc Corp may be accessed at www.fcza.com. The Company's common shares are traded on the NASDAQ Capital Market under the symbol "FCZA". The Company's depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol "FCZAP".
This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of First Citizens. For these statements, First Citizens claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about First Citizens, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in First Citizens' reports filed with the Securities and Exchange Commission, including those described in "Item 1A Risk Factors" of Part I of First Citizens's Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. First Citizens does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
| First Citizens Banc Corp |
|||
| Financial Highlights |
|||
| (dollars in thousands, except share amounts) |
|||
| Consolidated Condensed Statement of Income |
|||
| Three Months Ended |
|||
| March 31, |
|||
| (unaudited) |
|||
| 2015 |
2014 |
||
| Interest income |
$ 11,762 |
$ 11,315 |
|
| Interest expense |
847 |
1,150 |
|
| Net interest income |
10,915 |
10,165 |
|
| Provision for loan losses |
400 |
750 |
|
| Net interest income after provision |
10,515 |
9,415 |
|
| Noninterest income |
4,402 |
4,624 |
|
| Noninterest expense |
10,603 |
10,428 |
|
| Income before taxes |
4,314 |
3,611 |
|
| Income tax expense |
1,143 |
899 |
|
| Net income |
3,171 |
2,712 |
|
| Preferred stock dividends |
404 |
655 |
|
| Net income available |
|||
| to common shareholders |
$ 2,767 |
$ 2,057 |
|
| Dividends per common share |
$ 0.05 |
$ 0.04 |
|
| Earnings per common share, |
|||
| basic |
$ 0.36 |
$ 0.27 |
|
| diluted |
$ 0.29 |
$ 0.22 |
|
| Average shares outstanding, |
|||
| basic |
7,756,168 |
7,707,917 |
|
| diluted |
10,904,844 |
10,904,848 |
|
| Selected financial ratios: |
|||
| Return on average assets |
0.93% |
0.82% |
|
| Return on average equity |
10.99% |
9.47% |
|
| Dividend payout ratio |
12.23% |
11.37% |
|
| Net interest margin (tax equivalent) |
3.65% |
3.51% |
|
| Selected Balance Sheet Items |
|||
| March 31, |
December 31, |
||
| 2015 |
2014 |
||
| (unaudited) |
|||
| Cash and due from financial institutions |
$ 142,339 |
$ 29,858 |
|
| Investment securities |
199,693 |
197,905 |
|
| Loans held for sale |
2,919 |
2,410 |
|
| Loans |
984,105 |
914,857 |
|
| Less allowance for loan losses |
14,315 |
14,268 |
|
| Net loans |
969,790 |
900,589 |
|
| Other securities |
13,400 |
12,586 |
|
| Fixed assets |
16,163 |
14,400 |
|
| Goodwill and other intangibles |
29,790 |
23,745 |
|
| Bank owned life insurance |
19,754 |
19,637 |
|
| Other assets |
13,391 |
12,061 |
|
| Total assets |
1,407,239 |
1,213,191 |
|
| Total deposits |
1,197,316 |
968,918 |
|
| Federal Home Loan Bank advances |
17,500 |
65,200 |
|
| Securities sold under agreements to repurchase |
21,488 |
21,613 |
|
| Subordinated debentures |
29,427 |
29,427 |
|
| Accrued expenses and other liabilities |
22,581 |
12,124 |
|
| Total shareholders' equity |
118,927 |
115,909 |
|
| Total liabilities and shareholders' equity |
1,407,239 |
1,213,191 |
|
| Shares outstanding at period end |
7,821,593 |
7,707,917 |
|
| Book value per share |
$ 12.25 |
$ 12.04 |
|
| Tangible book value per share |
8.44 |
8.96 |
|
| Equity to asset ratio |
8.45% |
9.55% |
|
| Selected asset quality ratios: |
|||
| Allowance for loan losses to total loans |
1.45% |
1.56% |
|
| Non-performing assets to total assets |
1.36% |
1.57% |
|
| Allowance for loan losses to non-performing loans |
76.81% |
77.18% |
|
| Non-performing asset analysis |
|||
| Nonaccrual loans |
$ 13,582 |
$ 13,558 |
|
| Troubled debt restructurings |
5,056 |
4,928 |
|
| Other real estate owned |
528 |
560 |
|
| Total |
$ 19,166 |
$ 19,046 |
|
| Average Balance Analysis |
||||||||
| (Unaudited - Dollars in thousands except share data) |
||||||||
| Three Months Ended March 31, |
||||||||
| 2015 |
2014 |
|||||||
| Average |
Yield/ |
Average |
Yield/ |
|||||
| Assets: |
balance |
Interest |
rate * |
balance |
Interest |
rate * |
||
| Interest-earning assets: |
||||||||
| Loans |
$ 927,105 |
$ 10,246 |
4.49% |
$ 853,642 |
$ 9,782 |
4.65% |
||
| Taxable securities |
141,902 |
832 |
2.42% |
160,004 |
872 |
2.22% |
||
| Non-taxable securities |
69,619 |
624 |
5.82% |
61,131 |
574 |
5.86% |
||
| Interest-bearing deposits in other banks |
116,298 |
60 |
0.21% |
136,374 |
87 |
0.26% |
||
| Total interest-earning assets |
$ 1,254,924 |
11,762 |
3.93% |
$ 1,211,151 |
11,315 |
3.90% |
||
| Noninterest-earning assets: |
||||||||
| Cash and due from financial institutions |
66,687 |
74,735 |
||||||
| Premises and equipment, net |
15,407 |
16,909 |
||||||
| Accrued interest receivable |
3,885 |
3,889 |
||||||
| Intangible assets |
24,760 |
23,943 |
||||||
| Other assets |
9,512 |
9,281 |
||||||
| Bank owned life insurance |
19,678 |
19,190 |
||||||
| Less allowance for loan losses |
(14,446) |
(16,689) |
||||||
| Total Assets |
$ 1,380,407 |
$ 1,342,409 |
||||||
| Liabilities and Shareholders Equity: |
||||||||
| Interest-bearing liabilities: |
||||||||
| Demand and savings |
$ 525,363 |
$ 98 |
0.08% |
$ 494,003 |
$ 90 |
0.08% |
||
| Time |
224,596 |
444 |
0.80% |
235,714 |
525 |
0.90% |
||
| FHLB |
34,447 |
121 |
1.42% |
37,723 |
324 |
3.48% |
||
| Federal funds purchased |
- |
- |
0.00% |
- |
- |
0.00% |
||
| Subordinated debentures |
29,427 |
179 |
2.47% |
29,427 |
205 |
2.83% |
||
| Repurchase Agreements |
20,205 |
5 |
0.10% |
23,942 |
6 |
0.10% |
||
| Total interest-bearing liabilities |
$ 834,038 |
847 |
0.41% |
$ 820,809 |
1,150 |
0.57% |
||
| Noninterest-bearing deposits |
414,715 |
393,353 |
||||||
| Other liabilities |
14,633 |
12,128 |
||||||
| Shareholders' Equity |
117,021 |
116,119 |
||||||
| Total Liabilities and Shareholders' Equity |
$ 1,380,407 |
$ 1,342,409 |
||||||
| Net interest income and interest rate spread |
$ 10,915 |
3.52% |
$ 10,165 |
3.33% |
||||
| Net interest margin |
3.65% |
3.51% |
||||||
| * - All yields and costs are presented on an annualized basis |
||||||||
| Supplemental Financial Information |
|||||||||
| (Unaudited - Dollars in thousands except share data) |
|||||||||
| March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||
| End of Period Balances |
2015 |
2014 |
2014 |
2014 |
2014 |
||||
| Assets |
|||||||||
| Cash and due from banks |
$ 142,339 |
$ 29,858 |
$ 24,128 |
$ 50,650 |
$ 120,388 |
||||
| Securities available for sale |
199,693 |
197,905 |
200,891 |
197,680 |
203,997 |
||||
| Loans held for sale |
2,919 |
2,410 |
1,399 |
2,168 |
545 |
||||
| Loans |
984,105 |
914,857 |
887,018 |
867,978 |
857,368 |
||||
| Allowance for loan losses |
(14,315) |
(14,268) |
(15,445) |
(15,395) |
(16,767) |
||||
| Net Loans |
969,790 |
900,589 |
871,573 |
852,583 |
840,601 |
||||
| Other securities |
13,400 |
12,586 |
12,554 |
12,548 |
12,414 |
||||
| Fixed assets |
16,163 |
14,400 |
14,471 |
14,858 |
15,797 |
||||
| Goodwill and other intangibles |
29,790 |
23,745 |
23,900 |
24,090 |
24,286 |
||||
| Bank owned life insurance |
19,754 |
19,637 |
19,518 |
19,400 |
19,275 |
||||
| Other assets |
13,391 |
13,479 |
13,565 |
11,153 |
13,584 |
||||
| Total Assets |
$ 1,407,239 |
$ 1,214,609 |
$ 1,181,999 |
$ 1,185,130 |
$ 1,250,887 |
||||
| Liabilities |
|||||||||
| Total Deposits |
$ 1,197,316 |
$ 968,918 |
$ 980,634 |
$ 979,136 |
$ 1,044,820 |
||||
| Federal Home Loan Bank advances |
17,500 |
65,200 |
26,200 |
37,500 |
37,717 |
||||
| Securities sold under agreement to repurchase |
21,488 |
21,613 |
20,128 |
17,881 |
17,949 |
||||
| Subordinated debentures |
29,427 |
29,427 |
29,427 |
29,427 |
29,427 |
||||
| Accrued expenses and other liabilities |
22,581 |
11,540 |
9,727 |
7,281 |
12,363 |
||||
| Total liabilities |
1,288,312 |
1,096,698 |
1,066,116 |
1,071,225 |
1,142,276 |
||||
| Shareholders' equity |
|||||||||
| Preferred shares, Series B |
22,309 |
23,132 |
23,132 |
23,132 |
23,132 |
||||
| Common Stock |
115,187 |
114,365 |
114,365 |
114,365 |
114,365 |
||||
| Accumulated deficit |
(1,918) |
(4,306) |
(5,785) |
(7,300) |
(8,747) |
||||
| Treasury stock |
(17,235) |
(17,235) |
(17,235) |
(17,235) |
(17,235) |
||||
| Accumulated other comprehensive income (loss) |
584 |
1,955 |
1,406 |
943 |
(2,904) |
||||
| Total shareholders' equity |
118,927 |
117,911 |
115,883 |
113,905 |
108,611 |
||||
| Total liabilities and shareholders' equity |
$ 1,407,239 |
$ 1,214,609 |
$ 1,181,999 |
$ 1,185,130 |
$ 1,250,887 |
||||
| Quarterly Average Balances |
|||||||||
| Assets: |
|||||||||
| Earning assets |
$ 1,254,924 |
$ 1,116,900 |
$ 1,110,722 |
$ 1,132,251 |
$ 1,211,151 |
||||
| Securities |
211,521 |
211,955 |
210,635 |
212,909 |
221,135 |
||||
| Loans |
927,105 |
898,197 |
883,459 |
861,842 |
853,642 |
||||
| Liabilities and shareholders' equity |
|||||||||
| Total deposits |
$ 1,164,674 |
$ 987,803 |
$ 986,151 |
$ 1,009,276 |
$ 1,123,070 |
||||
| Interest-bearing deposits |
749,959 |
727,424 |
728,248 |
731,010 |
729,717 |
||||
| Interest-bearing liabilities |
84,079 |
79,314 |
78,339 |
83,666 |
91,092 |
||||
| Total shareholders' equity |
117,021 |
116,695 |
114,362 |
109,879 |
116,119 |
||||
| Supplemental Financial Information |
|||||||||
| (Unaudited - Dollars in thousands except share data) |
|||||||||
| Three Months Ended |
|||||||||
| March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|||||
| Income statement |
2015 |
2014 |
2014 |
2014 |
2014 |
||||
| Total interest income |
$ 11,762 |
$ 11,623 |
$ 11,667 |
$ 11,365 |
$ 11,315 |
||||
| Total interest expense |
847 |
872 |
983 |
1,099 |
1,150 |
||||
| Net interest income |
10,915 |
10,751 |
10,684 |
10,266 |
10,165 |
||||
| Provision for loan losses |
400 |
- |
- |
750 |
750 |
||||
| Noninterest income |
4,402 |
2,858 |
3,012 |
3,380 |
4,624 |
||||
| Noninterest expense |
10,603 |
10,482 |
10,661 |
9,979 |
10,428 |
||||
| Income before taxes |
4,314 |
3,127 |
3,035 |
2,917 |
3,611 |
||||
| Income tax expense |
1,143 |
857 |
729 |
677 |
899 |
||||
| Net income |
3,171 |
2,270 |
2,306 |
2,240 |
2,712 |
||||
| Preferred stock dividends |
404 |
406 |
406 |
406 |
655 |
||||
| Net income available to common shareholders |
$ 2,767 |
$ 1,864 |
$ 1,900 |
$ 1,834 |
$ 2,057 |
||||
| Common stock dividend paid |
$ 385 |
$ 385 |
$ 385 |
$ 385 |
$ 308 |
||||
| Per share data |
|||||||||
| Basic net income per common share |
$ 0.36 |
$ 0.23 |
$ 0.25 |
$ 0.24 |
$ 0.27 |
||||
| Diluted net income per common share |
0.29 |
0.21 |
0.21 |
0.21 |
0.22 |
||||
| Dividends per common share |
0.05 |
0.05 |
0.05 |
0.05 |
0.04 |
||||
| Average common shares outstanding - basic |
7,757,168 |
7,707,917 |
7,707,917 |
7,707,917 |
7,707,917 |
||||
| Average common shares outstanding - diluted |
10,904,844 |
10,904,848 |
10,904,848 |
10,904,848 |
10,904,848 |
||||
| Asset quality |
|||||||||
| Allowance for loan losses, beginning of period |
$ 14,268 |
$ 15,445 |
$ 15,395 |
$ 16,767 |
$ 16,528 |
||||
| Charge-offs |
(585) |
(1,341) |
(456) |
(2,332) |
(652) |
||||
| Recoveries |
232 |
164 |
506 |
210 |
141 |
||||
| Provision |
400 |
- |
- |
750 |
750 |
||||
| Allowance for loan losses, end of period |
$ 14,315 |
$ 14,268 |
$ 15,445 |
$ 15,395 |
$ 16,767 |
||||
| Ratios |
|||||||||
| Allowance to total loans |
1.45% |
1.56% |
1.74% |
1.77% |
1.96% |
||||
| Allowance to nonperforming assets |
74.69% |
74.91% |
73.92% |
67.11% |
62.14% |
||||
| Allowance to nonperforming loans |
76.81% |
77.18% |
74.88% |
67.95% |
62.60% |
||||
| Nonperforming assets |
|||||||||
| Nonperforming loans |
$ 18,638 |
$ 18,486 |
$ 20,628 |
$ 22,656 |
$ 26,786 |
||||
| Other real estate owned |
528 |
560 |
266 |
282 |
196 |
||||
| Total nonperforming assets |
$ 19,166 |
$ 19,046 |
$ 20,894 |
$ 22,938 |
$ 26,982 |
||||
| Capital and liquidity |
|||||||||
| Tier 1 leverage ratio |
8.91% |
10.37% |
10.28% |
9.77% |
8.58% |
||||
| Tier 1 risk-based capital ratio |
12.10% |
13.52% |
13.77% |
13.67% |
13.39% |
||||
| Total risk-based capital ratio |
13.35% |
14.78% |
15.03% |
14.92% |
14.67% |
||||
| Tangible common equity ratio |
4.79% |
5.96% |
5.95% |
5.51% |
4.99% |
||||
SOURCE First Citizens Banc Corp
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