BOWLING GREEN, Ky., July 21, 2016 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter and six months ending June 30, 2016, which include the following:
For the quarter ended June 30, 2016, the Company reported net income of $1,074,000, or $0.42 per diluted common share. This represents an increase of $175,000, or $0.07 per diluted common share, from $899,000, or $0.35 per diluted common share, for the quarter ended June 30, 2015. Todd Kanipe, President & CEO of Citizens First commented, "Improved loan growth and margin in the second quarter combined with low credit costs increased EPS 20% from the same quarter a year ago."
For the six months ended June 30, 2016, net income totaled $1.98 million, or $0.78 per diluted common share. This represents an increase of $298,000, or $0.14 per diluted common share, from the net income of $1.68 million in the first six months of the previous year.
Income Statement Second Quarter 2016 Compared to Second Quarter 2015
Net interest income increased $121,000, or 3.2%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.92% for the quarter ended June 30, 2016, and 3.85% for the quarter ended June 30, 2015, an increase of 7 basis points. The Company's net interest margin increased due to a decline in the cost of average interest-bearing liabilities.
The provision for loan losses decreased $205,000 from the second quarter in the prior year due to the continued reduction in non-performing assets.
Non-interest income increased $6,000, or 0.7%, primarily due to gains on the sale of securities, offset by a decline in lease income.
Non-interest expense increased $51,000, or 1.6%, primarily due to an increase in personnel expenses as a result of normal salary adjustments, partially offset by a reduction in professional fees.
Income Statement Current Year Compared to Prior Year
Net interest income increased $322,000, or 4.3%, as the volume of earning assets increased from the prior year. The Company's net interest margin was 3.93% for the six months ended June 30, 2016, and 3.84% for the six months ended June 30, 2015, an increase of 9 basis points. The Company's net interest margin increased due to an increase in the yield on average earning assets coupled with a decline in the cost of average interest-bearing liabilities.
Non-interest income increased $91,000, or 6.0%, primarily due to gains on the sale of securities and gains on sale of mortgage loans, offset by a decline in lease income.
Non-interest expense increased $218,000, or 3.4%, primarily due to an increase in personnel expenses, which were a result of normal salary adjustments.
Credit Quality
Non-performing assets totaled $265,000, or 0.06% of total assets, at June 30, 2016 compared to $1.2 million, or 0.29% of total assets at June 30, 2015, a decrease of $985,000.
The allowance for loan losses at June 30, 2016 was $4.9 million, or 1.43% of total loans, compared to $4.9 million, or 1.49% of total loans as of December 31, 2015. We consider 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 our loan portfolio.
Balance Sheet
Total assets at June 30, 2016 were $438.3 million compared to $432.2 million at December 31, 2015. Total assets increased $6.1 million, or 1.4%, from December 31, 2015 to June 30, 2016 due to a growth in loans, partially offset by a decline in fed funds and securities.
Loans increased $16.2 million, or 4.9%, from December 31, 2015 to June 30, 2016. Deposits decreased $17.0 million, or 4.6%, from December 31, 2015 to June 30, 2016. The decrease in deposits was offset by an increase in borrowings of $21 million. The reduction in deposits was primarily due to maturing time deposits that were not renewed in favor of lower cost borrowings.
Stockholders' equity increased to $41.4 million at June 30, 2016 from $39.5 million at December 31, 2015. The common equity and tangible common equity ratios were 7.80% and 6.88%, respectively, as of June 30, 2016 compared to 7.37% and 6.43%, respectively, at December 31, 2015. The book value and tangible book value per common share ratios were $17.09 and $14.93, respectively, at June 30, 2016 compared to $16.18 and $13.97, respectively, at December 31, 2015.
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 Share Data and ratios) June 30, December 31, December 31, 2016 2015 2014 ---- ---- ---- Assets Cash and due from financial institutions $6,259 $8,865 $7,962 Federal funds sold 1,095 6,390 3,360 Interest-bearing deposits in other financial institutions 2,728 2,728 - Available-for-sale securities 58,541 60,200 58,986 Loans held for sale 118 - - Loans 347,013 330,782 318,477 Allowance for loan losses (4,949) (4,916) (4,885) Premises and equipment, net 9,543 9,998 10,758 Bank owned life insurance (BOLI) 8,262 8,174 7,993 Federal Home Loan Bank (FHLB) stock, at cost 2,025 2,025 2,025 Accrued interest receivable 1,536 1,680 1,527 Deferred income taxes 1,177 1,328 1,479 Goodwill and other intangible assets 4,327 4,362 4,433 Other real estate owned 66 100 198 Other assets 514 465 501 Total Assets $438,255 $432,181 $412,814 -------- -------- -------- Liabilities Deposits Noninterest bearing $49,623 $48,522 $41,975 Savings, NOW and money market 163,951 168,335 148,935 Time 139,859 153,531 150,874 ------- ------- ------- Total deposits 353,433 370,388 341,784 FHLB advances and other borrowings 36,000 15,000 25,500 Subordinated debentures 5,000 5,000 5,000 Accrued interest payable 223 213 231 Other liabilities 2,152 2,056 1,851 Total Liabilities 396,808 392,657 374,366 ------- ------- ------- Stockholders' Equity 6.5% Cumulative convertible preferred stock 7,261 7,659 7,659 Common stock 25,862 25,406 27,072 Retained earnings 7,876 6,304 3,373 Accumulated other comprehensive income 448 155 344 Total stockholders' equity 41,447 39,524 38,448 ------ ------ ------ Total liabilities and stockholders' equity $438,255 $432,181 $412,814 ======== ======== ========
Consolidated Financial Highlights (Unaudited) Consolidated Statement of Income Three months ended (In Thousands, Except Per Share Data and ratios) June 30, March 31, Dec 31, Sept 30, June 30, 2016 2016 2015 2015 2015 ---- ---- ---- ---- ---- Interest and dividend income $4,536 $4,476 $4,494 $4,415 $4,469 Interest expense 624 613 623 662 678 Net interest income 3,912 3,863 3,871 3,753 3,791 Provision (credit) for loan losses (85) - (65) - 120 Non-interest income Service charges on deposit accounts 339 325 360 386 358 Other service charges and fees 179 164 260 187 176 Gain on sale of mortgage loans 91 77 63 60 79 Non-deposit brokerage fees 75 72 82 103 87 Lease income 49 45 43 59 70 BOLI income 44 44 45 45 46 Gain on sale of securities 55 51 68 - 10 Total non-interest income 832 778 921 840 826 --- --- --- --- --- Non-interest expenses: Personnel expense 1,676 1,784 1,648 1,650 1,589 Net occupancy expense 492 483 464 495 493 Advertising and public relations 98 61 80 75 123 Professional fees 137 180 176 183 187 Data processing services 263 256 262 262 238 Franchise shares and deposit tax 132 132 96 146 145 FDIC insurance 59 59 61 61 63 Other real estate owned expenses 23 1 52 6 29 Loss on branch disposal 27 - - 262 - Other 390 414 380 390 379 Total non-interest expenses 3,297 3,370 3,219 3,530 3,246 Income before income taxes 1,532 1,271 1,638 1,063 1,251 Income taxes 458 366 487 288 352 Net income 1,074 905 1,151 775 899 Dividends on preferred stock 123 124 131 131 130 --- --- --- --- --- Net income available for common stockholders $951 $781 $1,020 $644 $769 ==== ==== ====== ==== ==== Basic earnings per common share $0.48 $0.39 $0.52 $0.33 $0.39 ===== ===== ===== ===== ===== Diluted earnings per common share $0.42 $0.36 $0.45 $0.31 $0.35 ===== ===== ===== ===== =====
Consolidated Financial Highlights (Unaudited) Key Operating Statistics Three months ended (In Thousands, Except Per Share Data and ratios) June 30, March 31, Dec 31, Sept 30, June 30, 2016 2016 2015 2015 2015 ---- ---- ---- ---- ---- Average: Assets $439,081 $433,143 $430,174 $428,331 $434,003 Earning Assets 409,722 402,638 399,055 396,906 403,814 Loans 338,456 333,000 329,131 319,053 319,758 Interest-bearing deposits 311,084 320,363 316,979 321,643 327,010 Deposits 360,209 367,397 365,401 366,627 370,820 Borrowed funds 35,868 23,394 23,179 20,696 23,022 Equity 40,912 40,156 39,181 38,516 38,180 Common equity 33,651 32,831 31,522 30,857 30,521 Return on average assets 0.98% 0.84% 1.06% 0.72% 0.83% Return on average equity 10.56% 9.06% 11.66% 7.97% 9.44% Efficiency ratio 69.15% 72.15% 66.91% 75.43% 69.14% Non-interest income to average assets 0.76% 0.72% 0.85% 0.78% 0.76% Non-interest expenses to average assets 3.02% 3.13% 2.97% 3.27% 3.00% Net overhead to average assets 2.26% 2.41% 2.12% 2.49% 2.24% Yield on loans 4.95% 4.96% 4.97% 5.04% 5.15% Yield on investment securities (TE) 2.77% 2.77% 2.84% 2.79% 2.85% Yield on average earning assets (TE) 4.53% 4.55% 4.55% 4.50% 4.53% Cost of average interest bearing liabilities 0.72% 0.72% 0.73% 0.77% 0.78% Net interest margin (TE) 3.92% 3.94% 3.94% 3.84% 3.85% Number of FTE employees 96 98 98 98 99 Asset Quality Indicators: Non-performing loans to total loans 0.06% 0.18% 0.16% 0.25% 0.33% Non-performing assets to total assets 0.06% 0.16% 0.15% 0.24% 0.29% Allowance for loan losses to total loans 1.43% 1.53% 1.49% 1.53% 1.59% YTD net charge-offs (recoveries) to average loans, annualized (0.07%) (0.15%) 0.03% 0.03% 0.06% YTD net charge-offs (recoveries) (119) (128) 104 64 102
Consolidated Financial Highlights (Unaudited) Consolidated Statement of Income Six months ended (In Thousands, Except Per Share Data and ratios) June 30, June 30, 2016 2015 ---- ---- Interest and dividend income $9,012 $8,775 Interest expense 1,237 1,322 Net interest income 7,775 7,453 Provision (credit) for loan losses (85) 200 Non-interest income Service charges on deposit accounts 664 675 Other service charges and fees 343 311 Gain on sale of mortgage loans 168 110 Non-deposit brokerage fees 147 179 Lease income 94 143 BOLI income 88 91 Gain on sale of securities 106 10 Total non-interest income 1,610 1,519 ----- ----- Non-interest expenses: Personnel expense 3,460 3,237 Net occupancy expense 975 1,021 Advertising and public relations 159 175 Professional fees 317 351 Data processing services 519 477 Franchise shares and deposit tax 264 291 FDIC insurance 118 122 Other real estate owned expenses 24 36 Loss on branch disposal 27 - Other 804 739 Total non-interest expenses 6,667 6,449 Income before income taxes 2,803 2,323 Income taxes 824 642 Net income 1,979 1,681 Dividends on preferred stock 247 258 --- Net income available for common stockholders $1,732 $1,423 ====== ====== Basic earnings per common share $0.87 $0.72 ===== ===== Diluted earnings per common share $0.78 $0.64 ===== =====
Consolidated Financial Highlights (Unaudited) Key Operating Statistics Six months ended (In Thousands, Except Per Share Data and ratios) June 30, June 30, 2016 2015 ---- ---- Average: Assets $436,112 $431,122 Earning Assets 406,181 400,883 Loans 335,728 320,390 Interest-bearing deposits 315,724 321,813 Deposits 363,803 365,559 Borrowed funds 29,631 24,983 Equity 40,534 38,602 Common equity 33,241 30,943 Return on average assets 0.91% 0.79% Return on average equity 9.82% 8.78% Efficiency ratio 70.63% 70.59% Non-interest income to average assets 0.74% 0.71% Non-interest expenses to average assets 3.07% 3.02% Net overhead to average assets 2.33% 2.31% Yield on loans 4.95% 5.07% Yield on investment securities (TE) 2.77% 2.87% Yield on average earning assets (TE) 4.54% 4.50% Cost of average interest bearing liabilities 0.72% 0.77% Net interest margin (TE) 3.93% 3.84%
Consolidated Financial Highlights (Unaudited) (In Thousands, Except Share Data and ratios) Consolidated Capital Ratios June 30, December 31, December 31, 2016 2015 2014 ---- ---- ---- Total shareholders' equity to total assets ratio 9.46% 9.15% 9.31% Tangible equity ratio (1) 8.55% 8.22% 8.33% Common equity ratio 7.80% 7.37% 7.46% Tangible common equity ratio (1) 6.88% 6.43% 6.45% Book value per common share $17.09 $16.18 $15.64 Tangible book value per common share (1) $14.93 $13.97 $13.39 End of period common share closing price $14.24 $13.74 $11.90
(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 Share Data and ratios) Regulation G Non-GAAP Reconciliation: June 30, December 31, December 31, 2016 2015 2014 ---- ---- ---- Total shareholders' equity (a) $41,447 $39,524 $38,448 Less: Preferred stock (7,261) (7,659) (7,659) ------ ------ ------ Common equity (b) 34,186 31,865 30,789 Goodwill (4,097) (4,097) (4,097) Intangible assets (230) (265) (336) Tangible common equity (c) 29,859 27,503 26,356 Add: Preferred stock 7,261 7,659 7,659 ----- ----- ----- Tangible equity (d) 37,120 35,162 34,015 Total assets (e) 438,255 432,181 412,814 Less: Goodwill (4,097) (4,097) (4,097) Intangible assets (230) (265) (336) ---- ---- ---- Tangible assets (f) $433,928 $427,819 $408,381 Shares outstanding (in thousands) (g) 2,000 1,969 1,969 Book value per common share (b/g) $17.09 $16.18 $15.64 Tangible book value per common share (c/g) $14.93 $13.97 $13.39 Equity to assets ratio (a/e) 9.46% 9.15% 9.31% Tangible equity ratio (d/f) 8.55% 8.22% 8.33% Common equity ratio (b/e) 7.80% 7.37% 7.46% Tangible common equity ratio (c/f) 6.88% 6.43% 6.45%
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SOURCE Citizens First Corporation