First Clover Leaf Financial Corp. Announces 2013 Year End Financial Results

First Clover Leaf Financial Corp. Announces 2013 Year End Financial Results

EDWARDSVILLE, Ill., Feb. 25, 2014 (GLOBE NEWSWIRE) -- First Clover Leaf
Financial Corp. (the "Company") (Nasdaq:FCLF) announced net income of $3.4
million, or $0.46 per basic and diluted share, for the year ended December 31,
2013, compared to net income of $4.1 million, or $0.53 per basic and diluted
share, for the year ended December 31, 2012.

First Clover Leaf Financial President and CEO Dave Kuhl commented, "Our
strategic plan calls for the organization to continue to focus on increasing
shareholder value. While our results in 2013 were solid, we believe we have
positioned the bank for stronger profitability in 2014. Our capital and asset
quality remains strong, which should enable the bank to expand into other
markets and lines of business consistent with our growth focus."

For the year ended December 31, 2013, net interest income after provision for
loan losses was $16.0 million compared to $15.6 million for the year ended
December 31, 2012. The provision for loan losses totaled $485,000 for the year
ended December 31, 2013 compared to $1.6 million for the year ended December
31, 2012. Interest income decreased to $19.8 million for the year ended
December 31, 2013 from $21.7 million for the year ended December 31, 2012.
Interest expense decreased to $3.3 million for the year ended December 31,
2013 from $4.5 million for the year ended December 31, 2012. Net Interest
income declined to $16.5 million for the year ended December 31, 2013 compared
to $17.2 million for the year ended December 31, 2012. The decline is
primarily due to a decrease in our net interest rate spread which decreased to
2.85% for the year ended December 31, 2013 compared to 3.22% for the year
ended December 31, 2012. In addition, our net interest margin decreased to
2.95% for the year ended December 31, 2013 compared to 3.39% for the year
ended December 31, 2012. The decrease in the interest rate spread was
attributable to the yield on interest-earning assets declining faster than the
cost of funds. The Company's yield on earning assets and costs of funds are
largely dependent on the interest rate environment.

Non-interest income was $2.2 million for the year ended December 31, 2013
compared to $3.0 million for the year ended December 31, 2012. The decrease in
non-interest income was primarily the result of a decrease in gain on sale of
loans sold, which declined to $561,000 for the year ended December 31, 2013
compared to $1.6 million for the year ended December 31 2012. Refinancing
activity was very strong during 2012, and fell sharply in 2013. Non-interest
expense increased to $13.4 million for the year ended December 31, 2013
compared to $12.5 million for the year ended December 31, 2012. The increase
in non-interest expense was mainly due to an increase in foreclosed asset
related expenses, along with a slight increase in compensation and employee
benefits. For the year ended December 31, 2013, income tax expense totaled
$1.4 million compared to income tax expense of $2.0 for December 31, 2012.

Total assets at December 31, 2013 were $622.0 million compared to $600.8
million at December 31, 2012, an increase of $21.2 million. Cash and cash
equivalents increased to $84.7 million at December 31, 2013 from $71.4 million
at December 31, 2012. The $13.3 million increase was primarily due to an
increase of $22.2 million in federal funds sold, partially offset by a
decrease of $9.4 million in cash and due from banks. Investment securities
available for sale increased to $117.8 million at December 31, 2013 from $88.3
million at December 31, 2012, this was primarily due to purchases exceeding
calls, maturities, principal repayments, and sales by $34.5 million. Loans,
net of allowance for loan losses, decreased to $372.6 million at December 31,
2013 from $394.9 million at December 31, 2012, a decrease of $22.3 million.
Due to the current economic environment, we saw a reduction in loan demand
during 2013. Deposits were $502.5 million at December 31, 2013 compared to
$460.4 million at December 31, 2012, an increase of $42.1 million. The
significant increase in deposits is primarily related to two business
relationships. The increase is due to the transitional nature of their
accounts. Borrowings totaled $14.0 million at December 31, 2013 and $22.0
million at December 31, 2012, respectively.Stockholders' equity decreased to
$73.1 million at December 31, 2013 from $78.3 million at December 31,
2012.The decrease in stockholders' equity was mainly the result of a
reduction in accumulated other comprehensive income of $2.9 million,
repurchases of 474,034 shares of common stock for $3.9 million as part of the
Company's authorized ongoing stock repurchase program, and the payment of cash
dividends of $1.7 million, partially offset by net income of $3.4 million
during the year ended December 31, 2013.

President & CEO Dave Kuhl commented, "Loan quality has improved dramatically
and we continue to focus on increasing loan volume while adhering to rigid
underwriting standards.Controlling costs while still growing the bank will be
critical to our success.This will be difficult with the ever-increasing
regulatory burden that all banks face today.However, we believe we have the
professional staff and an enthusiastic drive to make it happen."

Asset quality improved during 2013.Total delinquent loans 90 days or more
past due was $734,000 at December 31, 2013 compared to $3.1 million at
December 31, 2012.Total non-accrual loans were $6.4 million at December 31,
2013 compared to $11.5 million at December 31, 2012.The allowance for loan
losses at December 31, 2013 was $5.6 million and represented 1.50% of total
loans and 77.28% of non-performing and impaired loans.At December 31, 2012,
the allowance for loan losses was $5.9 million and represented 1.51% of total
loans and 50.89% of non-performing and impaired loans.Foreclosed assets
decreased to $5.6 million at December 31, 2013 compared to $6.5 million at
December 31, 2012.

First Clover Leaf Financial Corp is the stock holding company for First Clover
Leaf Bank.First Clover Leaf Bank is a federally chartered savings bank.First
Clover Leaf Bank conducts business from its headquarters in Edwardsville,
Illinois as well as four branch offices also located in Madison County
Illinois.

When used in this press release, the words or phrases "will," "are expected
to," "we believe," "should," "is anticipated," "estimate," "project" or
similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to certain risks and uncertainties including, but
not limited to changes in general economic conditions, either nationally or in
our market areas, that are worse than expected; competition among depository
and other financial institutions; inflation and changes in the interest rate
environment that reduce our margins or reduce the fair value of financial
instruments; adverse changes in the securities markets; changes in laws or
government regulations or policies affecting financial institutions, including
changes in regulatory fees, capital requirements and allowance for loan losses
requirements; our ability to enter new markets successfully and capitalize on
growth opportunities; our ability to successfully integrate acquired entities,
if any; changes in consumer spending, borrowing and savings habits; changes in
accounting policies and practices, as may be adopted by the bank regulatory
agencies, the Financial Accounting Standards Board, the Securities and
Exchange Commission and the Public Company Accounting Oversight Board; changes
resulting from shutdowns of the federal government; changes in our
organization, compensation and benefit plans; changes in our financial
condition or results of operations that reduce capital available to pay
dividends; and changes in the financial condition or future prospects of
issuers of securities that we own, that could cause actual results to differ
materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution you not to place undue reliance on
any such forward-looking statements, which only speak as of the date made. The
Company wishes to advise you that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results
for future periods to differ materially from any opinions or statements
expressed with respect to future periods in any current statements.
Additional factors that could affect our results may be discussed in our Form
10-K for the year ended December 31, 2012 and in other reports we file with
the Securities and Exchange Commission.

The Company does not undertake, and specifically disclaims any obligation, to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date
of such statements or to reflect the occurrence of anticipated or
unanticipated events.




First Clover Leaf Financial Corp.
Consolidated Statements of Income
                                                             
                                              For the Year Ended
                                              December 31,   December 31,
                                              2013            2012
Interest and dividend income:                                 
Interest and fees on loans                     $17,589,152  $19,613,434
Securities:                                                   
Taxable interest income                        1,042,137     1,129,813
Nontaxable interest income                     1,008,926     836,665
Federal Home Loan Bank dividends               8,727         9,170
Interest-earning deposits, federal funds sold, 172,591       63,712
and other
Totalinterest and dividend income             19,821,533    21,652,794
                                                             
Interest expense:                                             
Deposits                                       2,769,685     3,833,610
Federal Home Loan Bank advances                444,070       518,647
Securities sold under agreements to repurchase 13,713        17,839
Subordinated debentures                        88,286        97,914
Totalinterest expense                         3,315,754     4,468,010
                                                             
Net interest income                            16,505,779    17,184,784
                                                             
Provision for loan losses                      485,000       1,550,000
                                                             
Net interest income after provision for loan   16,020,779    15,634,784
losses
                                                             
Other income:                                                 
Service fees on deposit accounts               371,424       370,082
Other service charges and fees                 376,115       375,045
Loan servicing fees                            284,875       219,117
Gain on sale of securities                     359,138       167,978
Gain on sale of loans                          560,526       1,599,694
Other                                          216,569       236,870
                                              2,168,647     2,968,786
                                                             
Other expenses:                                               
Compensation and employee benefits             6,298,405     5,959,622
Occupancy expense                              1,353,783     1,257,849
Data processing services                       723,977       703,957
Director fees                                  177,467       151,700
Professional fees                              448,423       519,331
FDIC insurance premiums                        476,731       469,104
Foreclosed asset related expenses              1,343,883     653,736
Amortization of core deposit intangible        264,000       281,000
Amortization of mortgage servicing rights      118,511       286,165
Other                                          2,242,177     2,211,571
                                              13,447,357    12,494,035
                                                             
Income before income taxes                     4,742,069     6,109,535
                                                             
Income tax expense                             1,386,008     2,045,034
                                                             
Net income                                     $3,356,061   $4,064,501
                                                             
                                                             
Basic earnings per share                       $0.46        $0.53
Diluted earnings per share                     $0.46        $0.53
                                                             
                                                             
                                                             
First Clover Leaf Financial Corp.
Consolidated Balance Sheets
                                                             
                                              At December 31, At December 31,
                                              2013            2012
ASSETS                                                        
                                                             
Cash and due from banks                        $14,363,461  $23,798,795
Interest-earning deposits                      8,681,426     8,161,322
Federal funds sold                             61,648,938    39,454,481
Total cash and cash equivalents                84,693,825    71,414,598
                                                             
Interest-earning time deposits                 1,766,493     1,749,744
Securities available for sale                  117,776,982   88,280,080
Federal Home Loan Bank stock                   2,887,763     2,887,763
Loans, net of allowance for loan losses of
$5,590,668 and $5,944,585 at 2013 and 2012,    372,568,962   394,868,626
respectively
Loans held for sale                            --            1,827,000
Property and equipment, net                    9,873,198     10,157,929
Goodwill                                       11,385,323    11,385,323
Bank-owned life insurance                      8,497,895     5,244,335
Core deposit intangible                        271,000       535,000
Foreclosed assets                              5,577,481     6,505,912
Mortgage servicing rights                      918,247       811,783
Accrued interest receivable                    1,551,258     1,592,307
Prepaid FDIC insurance premiums                --            1,001,161
Other assets                                   4,276,015     2,507,471
                                                             
Total assets                                   $622,044,442 $600,769,032
                                                             
LIABILITIES AND STOCKHOLDERS' EQUITY                          
                                                             
Liabilities:                                                  
Deposits:                                                     
Noninterest bearing                            $55,263,604  $60,330,245
Interest bearing                               447,276,088   400,043,801
Total deposits                                 502,539,692   460,374,046
                                                             
Federal Home Loan Bank advances                13,980,005    21,966,750
Securities sold under agreements to repurchase 26,766,169    34,494,579
Subordinated debentures                        4,000,000     4,000,000
Accrued interest payable                       199,764       284,270
Other liabilities                              1,463,182     1,392,984
Total liabilities                              548,948,812   522,512,629
                                                             
                                                             
Stockholders' Equity                                          
Common stock, $.10 par value, 20,000,000
shares authorized, 7,007,283 and 7,481,317     700,728       748,132
shares issued and outstanding at 2013 and 2012
Additional paid-in capital                     55,818,936    59,660,244
Retained earnings                              18,268,454    16,651,916
Accumulated other comprehensive income/(loss)  (1,692,488)   1,196,111
Total stockholders' equity                     73,095,630    78,256,403
                                                             
Total liabilities and stockholders' equity     $622,044,442 $600,769,032
                                                             
                                                             
                                                             
First Clover Leaf Financial Corp.
Asset Quality
                                                             
                                              At December 31, At December 31,
                                              2013            2012
                                                             
Delinquent loans 90 days or more past due      $733,740     $3,063,148
Non accrual loans                              $6,446,132   $11,471,329
Allowance for loan losses                      $5,590,668   $5,944,585
Allowance for loan losses to total loans       1.50%           1.51%
Allowance for loan losses to non accrual loans 77.28%          50.89%
                                                             
Foreclosed assets                              $5,577,481   $6,505,912

CONTACT: David Kuhl (618) 656-6122
 
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