Citizens First Corporation Announces First Quarter 2014 Results

       Citizens First Corporation Announces First Quarter 2014 Results  PR Newswire  BOWLING GREEN, Ky., April 17, 2014  BOWLING GREEN, Ky., April 17, 2014 /PRNewswire/ --Citizens First Corporation (NASDAQ: CZFC) today reported results for the first quarter ending March 31, 2014, which include the following:    oFor the quarter ended March 31, 2014, the Company reported net income of     $691,000, which represents a decrease of $11,000 from the linked quarter     ended December 31, 2013 and an increase of $576,000 from March 31, 2013.     Earnings per diluted common share for the current quarter were $0.27, an     increase of $0.02 from the linked quarter ended December 31, 2013 and an     increase of $0.32 for the quarter ended March 31, 2013.    oThe Company's net interest margin was 3.81% for the quarter ended March     31, 2014 compared to 4.03% for the linked quarter ended December 31, 2013     and 3.96% for the quarter ended March 31, 2013, a decrease of 22 basis     points for the linked quarter and a decrease of 15 basis points from the     prior year. The Company's net interest margin decreased from prior periods     due to a decline in the yield on loans.    oTotal loans increased 2.2% to $301.6 million at March 31, 2014 compared to     $295.1 million at December 31, 2013. Total deposits increased 2.7% to     $352.2 million at March 31, 2014 compared to $343.0 million at December     31, 2013. Todd Kanipe, President & CEO of Citizens First commented, "We     are encouraged by the growth of loans on our balance sheet. Loan growth is     vital to improve our net interest income while interest rates continue to     remain at historically low levels. We have added to both our lending and     credit administration staff to focus on loan growth while maintaining     credit quality in our loan portfolio."  First Quarter 2014 Compared to Fourth Quarter 2013  Net interest income for the quarter ended March 31, 2014 declined $231,000 from the previous quarter as the yield on loans declined.  Non-interest income for the three months ended March 31, 2014 decreased $82,000, or 11.5%, compared to the previous quarter, primarily due to a decrease in service charges on deposits of $58,000. Non-interest expense for the three months ended March 31, 2014 increased $1,000, or .03%, compared to the previous quarter.  A $125,000 provision for loan losses was recorded for the first quarter of 2014, compared to a $450,000 provision in the previous quarter, a decrease of $325,000. The allowance for loan losses to total loans increased slightly from 1.58% to 1.60%. Net charge-offs (recoveries) were $(49,000) for the first quarter of 2014 compared to $617,000 in the fourth quarter of 2013.   First Quarter 2014 Compared to First Quarter 2013  Net interest income for the quarter ended March 31, 2014 decreased $168,000, or 4.6%, compared to the previous year. The decrease in net interest income was impacted by a reduction in interest expense of $79,000 combined with a decrease in interest income of $247,000. The decrease in interest income was created by a decline in the yield on loans from 5.50% in the first quarter of 2013 to 5.14% in the first quarter of 2014. Loan yields have declined as maturing loans were repriced at a lower rate.  Non-interest income for the three months ended March 31, 2014 decreased $90,000, or 12.5%, compared to the three months ended March 31, 2013, primarily due to a decline in gains on sale of mortgage loans of $58,000 from the prior year.  Non-interest expense for the three months ended March 31, 2014 decreased $20,000, or 0.6%, compared to the three months ended March 31, 2013, due to a decrease in legal and collection expenses.  A $125,000 provision for loan losses was recorded for the first quarter of 2014, a decrease of $1.1 million, from $1.3 million in the first quarter of 2013. The allowance for loan losses to total loans decreased from 2.21% of total loans at March 31, 2013 to 1.60% at March 31, 2014, primarily due to charge-offs of specific allocations which were included in the allowance at March 31, 2013. Net charge-offs (recoveries) were $(49,000) for the first quarter of 2014 compared to net charge-offs of $321,000 in the first quarter of 2013.  Balance Sheet  Total assets at March 31, 2014 were $420.1 million, an increase of $9.9 million from $410.2 million at December 31, 2013. Average assets during the first quarter were $414.1 million, a decrease of 0.9%, or $3.7 million, from $417.8 million in the first quarter of 2013. Average interest earning assets decreased 0.8%, or $3.1 million, from $384.6 million in the first quarter of 2013 to $381.5 million in the first quarter of 2014.  Loans increased $6.5 million, or 2.2%, from $295.1 million at December 31, 2013 to $301.6 million at March 31, 2014. Total loans averaged $303.4 million the first quarter of 2014, compared to $303.9 million the first quarter of 2013, a decrease of $0.5 million, or 0.2%.  Deposits at March 31, 2014 were $352.2 million, an increase of $9.2 million, or 2.7%, compared to $343.0 million at December 31, 2013. Total deposits averaged $346.1 million the first quarter of 2014, an increase of $3.6 million, or 1.1%, compared to $342.5 million during the first quarter of 2013. Average deposits increased during the year, but the cost of funds declined as higher cost deposits matured and were renewed at lower rates.  Non-performing assets totaled $2.6 million at March 31, 2014 compared to $2.0 million at December 31, 2013, an increase of $593,000. A summary of nonperforming assets is presented below:                                        March  December September June   March  (In thousands)                        31,    31,      30,       30,    31,                                        2014   2013     2013      2013   2013 Nonaccrual loans                      $1,104 $1,026   $3,784    $6,141 $7,097 Loans 90+ days past due/accruing      56     -        19        -      23 Restructured loans                    815    154      2,041     3,340  3,528 Total non-performing loans            1,975  1,180    5,844     9,481  10,648 Other real estate owned               631    833      547       517    232 Total non-performing assets           $2,606 $2,013   $6,391    $9,998 $10,880 Non-performing assets to total        0.62%  0.49%    1.56%     2.43%  2.58% assets  The allowance for loan losses at March 31, 2014 was $4.8 million, or 1.60% of total loans, compared to $4.7 million, or 1.58% of total loans as of December 31, 2013. The allowance increased due to an increase in nonperforming assets. A summary of the allowance for loan losses is presented below:                                         March  December September June   March  (In thousands)                         31,    31,      30,       30,    31,                                         2014  2013    2013     2013  2013 Balance at beginning of period         $4,653 $4,820   $6,064    $6,650 $5,721 Provision for loan losses              125    450      900       50     1,250 Charged-off loans                      22     788      2,198     678    358 Recoveries of previously charged-off   71     171      54        42     37 loans Balance at end of period               $4,827 $4,653   $4,820    $6,064 $6,650 Allowance for loan losses to total     1.60%  1.58%    1.60%     1.98%  2.21% loans  At March 31, 2014, total shareholders' equity was $35.9 million compared to $38.3 million at December 31, 2013, a decrease of $2.4 million. During the first quarter of 2014, the Company paid $3.3 million to repurchase the remaining 93 shares of the Series A preferred stock that the Company had issued to the Treasury in 2008 under the TARP Capital Purchase Program.  The Company's tangible equity ratio declined to 7.51% as of March 31, 2014 compared to 8.28% at December 31, 2013 due to the repayment of the TARP Capital Purchase Program funds. The tangible book value per common share improved from $11.51 at December 31, 2013, to $11.97 at March 31, 2014. The Company and Citizens First Bank are categorized as "well capitalized" under regulatory guidelines.  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.  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 economic conditions generally and in the market areas of the Company, a continuation or worsening of the current disruption in credit and other markets, goodwill impairment, overall loan demand, increased competition in the financial services industry which could negatively impact the Company's ability to increase total earning assets, and the retention of key personnel. Actions by the Department of the Treasury and federal and state bank regulators in response to changing economic conditions, changes in interest rates, loan prepayments by and the financial health of the Company's borrowers, 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) In thousands, except per share data and ratios Consolidated Statement of Income:                                       Three Months Ended                                                                               March 31 Dec 31 Sept 30 June 30 March 31                                       2014     2013   2013    2013    2013 Interest income             $4,181   $4,411 $4,381  $4,325  $4,428 Interest expense                      683      682    747     770     762 Net interest income                   3,498    3,729  3,634   3,555   3,666 Provision for loan losses             125      450    900     50      1,250 Non-interest income:  Service charges on deposits        261      319    341     321     291  Other service charges and fees     153      133    156     158     138  Gain on sale of mortgage loans     24       36     81      78      82  Non-deposit brokerage fees         69       72     91      78      65  Lease income                       75       75     74      75      74  BOLI income                        47       49     53      56      61  Securities gains                   -        27     -       29      8  Total                           629      711    796     795     719 Non-interest expenses:  Personnel expense                  1,527    1,419  1,382   1,417   1,441  Net occupancy expense              482      485    499     465     461  Advertising and public relations   83       65     70      110     78  Professional fees                  153      141    201     174     164  Data processing services           233      266    280     272     265  Franchise shares and deposit tax   146      145    146     141     141  FDIC insurance                     77       119    150     26      85  Core deposit intangible            84       79     84      85      84 amortization  Postage and office supplies        51       38     35      35      43  Other real estate owned expenses   10       46     7       20      11  Other                              216      258    425     434     309  Total                           3,062    3,061  3,279   3,179   3,082 Income before income taxes            940      929    251     1,121   53 Provision for income taxes            249      227    18      333     (62) Net income                            691      702    233     788     115 Preferred dividends and discount      132      184    178     176     217 accretion Net income (loss) available for       $559     $518   $55     $612    $(102) common shareholders Basic earnings (loss) per common      $0.28    $0.26  $0.03   $0.31   $(0.05) share Diluted earnings (loss) per common    $0.27    $0.25  $0.02   $0.30   $(0.05) share      Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios Key Operating Statistics:                                  Three Months Ended                                                                     March    December September June     March                                   31      31      30       30      31                                  2014     2013     2013      2013     2013 Average assets                   $414,089 $408,792 $413,293  $419,240 $417,804 Average earning assets           381,485  375,658  380,154   387,663  384,614 Average loans                    303,438  298,833  307,618   305,532  303,942 Average deposits                 346,089  340,938  340,067   345,738  342,475 Average equity                   36,213   38,469   37,937    38,353   40,164 Average common equity            28,046   27,548   27,023    27,445   27,695 Return on average assets         0.68%    0.68%    0.22%     0.75%    0.11% Return on average equity         7.74%    7.24%    2.44%     8.24%    1.16% Efficiency ratio                 72.73%   68.07%   72.66%    72.17%   68.96% Non-interest income to average   0.62%    0.69%    0.77%     0.76%    0.70% assets Non-interest expenses to average 3.00%    2.97%    3.15%     3.04%    2.99% assets Net overhead to average assets   2.38%    2.28%    2.38%     2.28%    2.29% Yield on loans                   5.14%    5.42%    5.26%     5.28%    5.50% Yield on investment securities   3.02%    2.97%    2.87%     2.78%    2.97% (TE) Yield on average earning assets  4.53%    4.75%    4.66%     4.56%    4.76% (TE) Cost of average interest bearing 0.83%    0.83%    0.89%     0.92%    0.93% liabilities Net interest margin (tax         3.81%    4.03%    3.88%     3.77%    3.96% equivalent) Number of FTE employees          98       100      100       98       99 Asset Quality Ratios: Non-performing loans to total    0.65%    0.40%    1.94%     3.09%    3.54% loans Non-performing assets to total   0.62%    0.49%    1.56%     2.43%    2.58% assets Allowance for loan losses to     1.60%    1.58%    1.60%     1.98%    2.21% total loans YTD net charge-offs (recoveries) (0.06)%  1.22%    1.36%     0.63%    0.43% to average loans, annualized      Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios Consolidated Statement of Condition:       As of     As of        As of                                            March 31, December 31, December 31,                                            2014      2013         2012 Cash and due from financial institutions   $ 8,166   $ 8,572      $9,549 Federal funds sold                         30,095    28,490       25,250 Available for sale securities              54,675    51,633       46,639 Loans held for sale                        85        -            61 Loans                                      301,598   295,068      298,754 Allowance for loan losses                  (4,827)   (4,653)      (5,721) Premises and equipment, net                10,970    11,054       11,568 Bank owned life insurance (BOLI)           7,853     7,806        7,587 Federal Home Loan Bank Stock, at cost      2,025     2,025        2,025 Accrued interest receivable                1,444     1,554        1,660 Deferred income taxes                      1,759     2,279        2,180 Intangible assets                          4,678     4,762        5,094 Other real estate owned                    631       833          191 Other assets                               976       752          1,719  Total Assets                             $420,128  $410,175     $406,556 Deposits:  Noninterest bearing                    $ 41,653  $ 39,967     $ 41,725  Savings, NOW and money market          146,130   143,602      111,194  Time                                   164,414   159,382      178,814  Total deposits                       $352,197  $342,951     $331,733 FHLB advances and other borrowings         25,300    22,000       26,000 Subordinated debentures                    5,000     5,000        5,000 Accrued interest payable                   241       243          238 Other liabilities                          1,477     1,634        2,019 Total Liabilities                          384,215   371,828      364,990 6.5% Cumulative preferred stock            7,659     7,659        7,659 Series A preferred stock                   -         3,266        6,519 Common stock                               27,072    27,072       27,072 Retained earnings (deficit)                1,212     653          (430) Accumulated other comprehensive income     (30)      (303)        746 (loss) Total Stockholders' Equity                 35,913    38,347       41,566 Total Liabilities and Stockholders' Equity $420,128  $410,175     $406,556      Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios                                           March 31, December 31, December 31,                                            2014      2013         2012 Capital Ratios: Tier 1 leverage                           8.86%     9.57%        10.20% Tier 1 risk-based capital                 11.48%    12.56%       13.16% Total risk based capital                  12.73%    13.81%       14.41% Tangible equity ratio (1)                 7.51%     8.28%        9.08% Tangible common equity ratio (1)          5.67%     5.59%        5.55% Book value per common share               $14.35    $13.93       $13.91 Tangible book value per common share (1)  $11.97    $11.51       $11.32 Shares outstanding (in thousands)         1,969     1,969        1,969 _____________      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 (1) 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.                                               March 31, December 31, December 31, Regulation G Non-GAAP Reconciliation:                                            2014      2013         2012 Total shareholders' equity (a)             $35,913   $38,348      $41,566 Less:  Preferred stock                         (7,659)   (10,925)     (14,178) Common equity (b)                          28,254    27,423       27,388  Goodwill                                (4,097)   (4,097)      (4,097)  Intangible assets                       (581)     (665)        (997) Tangible common equity (c)                 23,576    22,661       22,294 Add:  Preferred stock                         7,659     10,925       14,178 Tangible equity (d)                        $31,235   $33,586      $36,472 Total assets (e)                           $420,435  $410,175     $406,556 Less:  Goodwill                                (4,097)   (4,097)      (4,097)  Intangible assets                       (581)     (665)        (997) Tangible assets (f)                        $415,757  $405,413     $401,462 Shares outstanding (in thousands) (g)      1,969     1,969        1,969 Book value per common share (b/g)          $14.35    $13.93       $13.91 Tangible book value per common share       $11.97    $11.51       $11.32 (c/g) Total shareholders' equity to total        8.54%     9.35%        10.22% assets ratio (a/e) Tangible equity ratio (d/f)                7.51%     8.28%        9.08% Tangible common equity ratio (c/f)         5.67%     5.59%        5.55%    SOURCE Citizens First Corporation  Contact: Todd Kanipe, CEO, tkanipe@citizensfirstbank.com; Steve Marcum, CFO, smarcum@citizensfirstbank.com; Citizens First Corporation, 1065 Ashley Street, Suite 150, Bowling Green, KY 42103, 270.393.0700  
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