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8-K - FORM 8-K - CIVISTA BANCSHARES, INC.d914197d8k.htm

Exhibit 99.1

 

LOGO

First Citizens Banc Corp Announces First Quarter 2015 Earnings

Sandusky, Ohio, April 24, 2015 – First Citizens Banc Corp (NASDAQ:FCZA) PRNewswire (“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.

For additional information, contact:

James O. Miller

Chairman, President and CEO

First Citizens Banc Corp

888-645-4121


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/  
     balance     Interest      rate *     balance     Interest      rate *  

Assets:

              

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

Repuchase 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