First Citizens Banc Corp Announces Earnings

                 First Citizens Banc Corp Announces Earnings

PR Newswire

SANDUSKY, Ohio, Jan. 10, 2014

SANDUSKY, Ohio, Jan. 10, 2014 /PRNewswire/ --First Citizens Banc Corp
(NASDAQ:FCZA) ("First Citizens") reported net income attributable to common
shares of $753 thousand, or $0.10 per share, for the fourth quarter of 2013, a
decrease of 55.1% compared with $1.7 million, or $0.22 per share, for the
prior year period. For the twelve-month period ended December 31, 2013, First
Citizens reported net income available to common shareholders of $5.0 million
or $0.65 per share, an increase of 14.5% compared to $4.4 million, or $0.57
per share, in the same period of 2012. During the fourth quarter, First
Citizens recognized a non-cash pension expense of approximately $1.5 million
after tax, or $0.19 per share.

"During the fourth quarter, we accomplished several key initiatives," said
James O. Miller, President and CEO of First Citizens. "We sold $4.8 million
of nonperforming loans, we issued $25 million of preferred convertible stock,
we began the process to repay the CPP funds and we finished the year with over
$861 million in total loans, an increase of 5.6% over 2012. As we look to
2014, we have continued momentum in the loan portfolio and are reviewing
strategies to improve the efficiency ratio."

Results of Operations:

Net interest income for the fourth quarter of 2013 increased $331 thousand, or
3.3%, from the prior year's fourth quarter and for the twelve months ended
December 31, decreased $604 thousand, or 1.5%, when compared to the same
period of 2012. The increase in net interest income for the quarter was due
to a decrease in interest expense of $245 thousand or 17.5%. The decrease in
net interest income for the year was due to a decrease in interest income of
$1.9 million, or 4.0%. The decrease in interest income, due primarily to
decreased yields, was partially offset by an increase in average loans
outstanding of $35.9 million, or 4.9%, when compared to the fourth quarter of
2012 and an increase of $38.4 million, or 4.9%, when compared to the twelve
months of 2012. The decline in interest income for the year was further
offset by the decrease in interest expense of $1.3 million, or 20.7% compared
to the same period ended 2012. Mr. Miller continued, "Throughout most of
2013, our net interest income trailed to 2012. During the fourth quarter we
have seen this trend reduced. While interest income continues to be pressured
by the continued low interest rate environment, we have been successful at
increasing average loans outstanding."

The provision for loan losses for the fourth quarter and twelve-months ended
2013 decreased $835 thousand, or 100.0%, and $5.3 million, or 82.8%, compared
to the three and twelve-month periods ended 2012, respectively. The decrease
in provision for loan losses is due to improving asset quality.

Noninterest income increased $199 thousand, or 7.3%, compared to the prior
year's fourth quarter and increased $862 thousand, or 7.7%, when compared to
the twelve months of 2012. The twelve-month increase was due to an increase
in wealth management revenue of $464 thousand, as well as several smaller
increases. The increase in wealth management revenue is due to both an
increase in asset valuations as well as an increase in accounts. Both factors
have contributed to an overall 15.5% increase in assets under management of
$62.8 million to $468.1 million.

Noninterest expense increased $2.9 million, or 31.4% when compared to the
prior year's fourth quarter and $5.3 million, or 13.9%, when compared to the
twelve months of 2012. The increase in non-interest expense was primarily
attributable to a one-time noncash increase in pension expense of $2.3 million
related to a number of early retirements. The increase is also attributable
to an increase in salary and benefit costs, specifically to increased heath
insurance costs as well as additional personnel that have been added. Mr.
Miller continued, "As the recession progressed, we added experienced bankers
in several areas including revenue producing individuals. We have a team in
place that can take us to our growth goals. Now that we are moving out of the
recession we have also begun to review strategies to improve our efficiency
ratio."

Balance Sheet

Total assets increased $31.9 million, or 2.8%, from December 31, 2012 to
December 31, 2013. Total loans increased $45.7 million, or 5.6%, from
December 31, 2012 to December 31, 2013. Mr. Miller continued, "During the
fourth quarter we were successful in adding $41.7 million in loans. We also
added a group of four mortgage lenders in the vibrant Dublin market. We are
excited about the opportunity that this group provides us in a market that
consistently outperforms the rest of the state of Ohio. We also continue to
have a strong commercial pipeline going into 2014 and while the economy is
improving slowly, we are optimistic in our continued ability to grow the loan
portfolio."

Total deposits increased $16.1 million, or 1.7%, from December 31, 2012 to
December 31, 2013. Total shareholder's equity increased $21.8 million, or
21.0%, from December 31, 2012 to December 31, 2013. During the fourth
quarter, First Citizens issued $25 million of Series B Convertible Preferred
Stock resulting in net proceeds of $23.1 million. First Citizens is awaiting
approval from the Federal Reserve to redeem the $23.2 million of Series A
Preferred Stock. Mr. Miller continued, "We successfully completed the
offering of our Series B preferred stock in late December. We expect to have
approval from the Federal Reserve to redeem our Series A Preferred Stock
shortly. Our goal is to have the Series A redeemed prior to the increase in
the interest rate on February 14^th. "

Asset Quality

Nonperforming assets decreased $11.7 million, or 31.2%, from December 31, 2012
to December 31, 2013. Nonperforming assets to total assets also decreased 109
basis points to 2.21% from December 31, 2012 to December 31, 2013. The
decrease in nonperforming assets is due to the continuing workout of
nonperforming loans as well as the sale of a pool of $4.8 million in
nonperforming loans during the fourth quarter. Mr. Miller continued, "Our
continued ability to improve our asset quality profile allowed us to greatly
reduce the provision for loan losses during 2013." 

First Citizens Banc Corp is a $1.1 billion financial holding company
headquartered in Sandusky, Ohio. The Company's banking subsidiary, The
Citizens Banking Company, operates 28 locations in Central and North Central
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.

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, 2012. 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        Twelve Months Ended
                              December 31,              December 31,
                              (unaudited)               (unaudited)
                              2013         2012         2013         2012
Interest income               11,443       11,357       44,881       46,762
Interest expense              1,153        1,398        4,907        6,184
Net interest income           10,290       9,959        39,974       40,578
Provision for loan losses     -            835          1,100        6,400
Net interest income after     10,290       9,124        38,874       34,178
provision
Noninterest income            2,939        2,740        12,062       11,200
Noninterest expense           12,087       9,202        43,384       38,074
Income before taxes           1,142        2,662        7,552        7,304
Income tax expense            99           696          1,373        1,725
Net income                    1,043        1,966        6,179        5,579
Preferred stock dividends
and discount accretion        290          290          1,159        1,193
Net income available
to common shareholders        753          1,676        5,020        4,386
Dividends per common share    $       $       $       $    
                              0.04        0.03        0.15        0.12
Earnings per common share,
basic and diluted             $       $       $       $    
                              0.10        0.22        0.65        0.57
Average shares outstanding,
basic and diluted             7,707,917    7,707,917    7,707,917    7,707,917
Selected financial ratios:
Return on average assets      0.35%        0.68%        0.53%        0.49%
Return on average equity      3.99%        7.42%        5.97%        5.36%
Dividend payout ratio         29.56%       11.76%       18.71%       16.58%
Net interest margin (tax      3.85%        3.80%        3.79%        3.97%
equivalent)



Selected Balance Sheet Items
                                   December 31,            December 31,
                                   2013                      2012
                                   (unaudited)
Investment securities            $       199,613     $      
                                                             203,961
Loans                            861,241                   815,553
Less allowance for loan losses   16,528                    19,742
Net loans                        844,713                   795,811
Total assets                     1,168,868                 1,136,971
Total deposits                   942,475                   926,389
Federal Home Loan Bank advances  37,726                    40,261
Securities sold under agreements  20,053                    23,219
to repurchase
Subordinated debentures          29,427                    29,427
Total shareholders' equity       125,810                   103,980
Shares outstanding at period end 7,707,917                 7,707,917
Book value per share             $         10.31  $        
                                                             10.48
Tangible book value per share    7.20                      7.26
Equity to asset ratio            10.76%                    9.15%
Selected asset quality ratios:
Allowance for loan losses to total 1.92%                     2.42%
loans
Non-performing assets to total     2.21%                     3.30%
assets
Allowance for loan losses to       64.33%                    53.21%
non-performing loans
Non-performing asset analysis
Nonaccrual loans                   $        20,459   $       
                                                             29,854
Troubled debt restructurings       5,234                     7,250
Other real estate owned            173                       471
Total                              $        25,866   $       
                                                             37,575

SOURCE First Citizens Banc Corp

Website: http://www.fcza.com
Contact: James O. Miller, President and CEO of First Citizens Banc Corp,
888-645-4121; Todd A. Michel, Senior Vice President and Controller of First
Citizens Banc Corp, 888-645-4121
 
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