CITIZENS FIRST CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 PRESS RELEASE

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8-K - FOURTH QUARTER 2015 EARNINGS RELEASE - CITIZENS FIRST CORP	earningsrelease4thqtr15.htm

Exhibit 99.1 Citizens First Corporation Announces Fourth Quarter and Year-End 2015 Results

NEWS For Immediate Release
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

BOWLING GREEN, KY, Jan. 21, 2016 - Citizens First Corporation (NASDAQ: CZFC) today reported results for the fourth quarter and year ending December 31, 2015, which include the following:

For the quarter ended December 31, 2015, the Company reported net income of $1.15 million, or $0.45 per diluted common share. This represents an increase of $376,000, or $0.14 per diluted common share from the linked quarter ended September 30, 2015 and an increase of $264,000, or $0.10 per diluted common share, from the quarter ended December 31, 2014. "Growth in average loan balances, steady margins, and expense control drove fourth quarter profitability," said Todd Kanipe, President and CEO. "Asset quality also contributed as non-performing assets continued their positive trend, helping keep credit costs low."

For the year ended December 31, 2015, net income totaled $3.61 million, or $1.40 per diluted common share. This represents an increase of $366,000, or $0.11 per diluted common share, from the net income of $3.24 million in the previous year. "Our strategy of targeted loan and deposit growth produced a second consecutive year of record profitability and our fourth in five years," Kanipe added. "These earnings enabled continued execution of our capital plan. During 2015 we retired all warrants associated with TARP, resumed a common dividend, and continued to improve the tangible book value of our company."

·	Non-performing assets totaled $637,000, or 0.15% of total assets, at December 31, 2015 compared to $1.36 million, or 0.33% of total assets at December 31, 2014, a decrease of $728,000. Non-performing assets decreased $376,000 from the linked quarter ended September 30, 2015.

The Company's net interest margin was 3.94% for the quarter ended December 31, 2015 compared to 3.84% for the linked quarter ended September 30, 2015, and 3.94% for the quarter ended December 31, 2014, an increase of 10 basis points for the linked quarter and unchanged from the prior year. The Company's net interest margin improved from the linked quarter due primarily to a reduction in the cost of interest-bearing liabilities.

·	Total loans increased 3.9% to $330.8 million at December 31, 2015 compared to $318.5 million at December 31, 2014. Total deposits increased 8.4% to $370.4 million at December 31, 2015 compared to $341.8 million at December 31, 2014.

·	Shares of CZFC closed at $13.74 as of December 31, 2015, an increase of 15.5% from the closing price of $11.90 at December 31, 2014, and an increase of 39.4% from the closing price of $9.86 at December 31, 2013.

Fourth Quarter 2015 Compared to Third Quarter 2015

·	Net interest income increased $118,000, or 3.1%, due to an increase in average loan balances for the quarter.

·	Non-interest income increased $81,000, or 9.6%, primarily due to a gain on the sale of loans included in other non-interest income of $95,000 and to a gain on the sale of investment securities of $68,000, partially offset by declines in non-deposit brokerage fees and service charges on deposits.

·	Non-interest expense decreased $311,000, or 8.8%, compared to the previous quarter, primarily due to the $262,000 loss on disposal of a former branch facility which occurred in the third quarter.

Fourth Quarter 2015 Compared to Fourth Quarter 2014

·	Net interest income increased $151,000, or 4.1%, as the volume of earning assets increased from the prior year.

·	Non-interest income increased $184,000, or 25.0%, primarily due to a gain on the sale of loans included in other non-interest income of $95,000 and an increase in the gain on the sale of investment securities of $47,000.

·	Non-interest expense decreased $3,000, or 0.1%, primarily due to a decrease in core deposit intangible expense and franchise tax expense of $64,000 and $61,000, respectively, partially offset by an increase in personnel expenses of $42,000.

Balance Sheet at December 31, 2015

Total assets increased $19.4 million, or 4.7%, from December 31, 2014 to December 31, 2015 due primarily to a growth in outstanding loans. Average assets year-to-date increased 3.6%, or $14.9 million from December 31, 2014. Average interest earning assets year-to-date increased 4.1%, or $15.8 million, from December 31, 2014.

Stockholders' equity increased $1.1 million, or 2.8%, from December 31, 2014 to December 31, 2015. During 2015, the Company repurchased the 254,218 warrants issued in 2008 to the US Treasury as part of its participation in the US Treasury's Capital Purchase Program for $1.7 million. The tangible common equity ratio declined slightly to 6.43% as of December 31, 2015 compared to 6.45% at December 31, 2014 due to the warrants redemption. The Company paid a cash dividend of $.08 per common share in the fourth quarter of 2015, which marks the first common dividend paid since December, 2008.

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 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
	Dec 31		Sept 30		June 30		March 31		Dec 31
	2015		2015		2015		2015		2014
Interest income	$	4,494	$	4,415	$	4,469	$	4,306	$	4,370
Interest expense		623		662		678		644		650
Net interest income		3,871		3,753		3,791		3,662		3,720

Provision (credit) for loan losses		(65)		-		120		80		-

Non-interest income:
Service charges on deposits		360		386		358		317		339
Other service charges and fees		260		187		176		135		138
Gain on sale of mortgage loans		63		60		79		31		39
Non-deposit brokerage fees		82		103		87		92		90
Lease income		43		59		70		73		63
BOLI income		45		45		46		45		47
Securities gains		68		-		10		-		21
Total		921		840		826		693		737

Non-interest expenses:
Personnel expense		1,648		1,650		1,589		1,648		1,606
Net occupancy expense		464		495		493		528		483
Advertising and public relations		80		75		123		52		73
Professional fees		176		183		187		164		142
Data processing services		262		262		238		239		242
Franchise shares and deposit tax		96		146		145		146		157
FDIC insurance		61		61		63		59		63
Core deposit intangible amortization		18		18		17		18		82
Postage and office supplies		43		55		52		40		43
Other real estate owned expenses		52		6		29		7		25
Loss on branch disposal		-		262		-		-		-
Other		319		317		310		302		306
Total		3,219		3,530		3,246		3,203		3,222

Income before income taxes		1,638		1,063		1,251		1,072		1,235
Provision for income taxes		487		288		352		290		348
Net income		1,151		775		899		782		887

Dividends on preferred stock		131		131		130		128		131
Net income available for common shareholders	$	1,020	$	644	$	769	$	654	$	756
Basic earnings per common share	$	0.52	$	0.33	$	0.39	$	0.33	$	0.38
Diluted earnings per common share	$	0.45	$	0.31	$	0.35	$	0.29	$	0.35

Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios

Key Operating Statistics:

	Three Months Ended

	December 31			September 30			June 30			March 31			December 31
	2015			2015			2015			2015			2014

Average assets	$	430,174		$	428,331		$	434,003		$	428,210		$	414,852
Average earning assets		399,055			396,906			403,814			397,920			384,050
Average loans		329,131			319,053			319,758			321,028			313,888
Average interest-bearing deposits		316,979			321,643			327,010			316,558			298,101
Average deposits		365,401			366,627			370,820			360,240			341,128
Average borrowed funds		23,179			20,696			23,022			26,967			33,366
Average equity		39,181			38,516			38,180			39,029			38,249
Average common equity		31,522			30,857			30,521			31,370			30,590

Return on average assets		1.06	%		0.72	%		0.83	%		0.74	%		0.85	%
Return on average equity		11.66	%		7.97	%		9.44	%		8.13	%		9.20	%

Efficiency ratio		66.91	%		75.43	%		69.14	%		72.06	%		71.19	%
Non-interest income to average assets		0.85	%		0.78	%		0.76	%		0.66	%		0.70	%
Non-interest expenses to average assets		2.97	%		3.27	%		3.00	%		3.03	%		3.08	%
Net overhead to average assets		2.12	%		2.49	%		2.24	%		2.38	%		2.36	%
Yield on loans		4.97	%		5.04	%		5.15	%		4.99	%		5.06	%
Yield on investment securities (TE)		2.84	%		2.79	%		2.85	%		2.88	%		2.75	%
Yield on average earning assets (TE)		4.55	%		4.50	%		4.53	%		4.48	%		4.61	%
Cost of average interest bearing liabilities		0.73	%		0.77	%		0.78	%		0.76	%		0.78	%
Net interest margin (TE)		3.94	%		3.84	%		3.85	%		3.82	%		3.94	%
Number of FTE employees		98			98			99			95			97

Asset Quality Indicators:
Non-performing loans to total loans		0.16	%		0.25	%		0.33	%		0.38	%		0.37	%
Non-performing assets to total assets		0.15	%		0.24	%		0.29	%		0.34	%		0.33	%
Allowance for loan losses to total loans		1.49	%		1.53	%		1.59	%		1.55	%		1.53	%
YTD net charge-offs to average loans, annualized		0.03	%		0.03	%		0.06	%		0.02	%		0.01	%
YTD net charge-offs		104			64			102			18			43

Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios

	Twelve Months Ended

	December 31		December 31
	2015		2014
Interest income	$	17,684	$	17,135
Interest expense		2,607		2,709
Net interest income		15,077		14,426

Provision for loan losses		135		275

Non-interest income:
Service charges on deposits		1,421		1,196
Other service charges and fees		758		630
Gain on sale of mortgage loans		233		190
Non-deposit brokerage fees		364		301
Lease income		245		288
BOLI income		181		188
Securities gains		78		95
Total		3,280		2,888

Non-interest expenses:
Personnel expense		6,535		6,138
Occupancy expense		1,980		1,945
Advertising and public relations		330		323
Professional fees		710		581
Data processing services		1,001		973
Franchise shares and deposit tax		533		594
FDIC insurance		244		287
Core deposit intangible amortization		71		330
Postage and office supplies		190		207
Other real estate owned expenses		94		92
Loss on branch disposal		262		-
Other		1,248		1,088
Total		13,198		12,558

Income before income taxes		5,024		4,481
Provision for income taxes		1,417		1,240
Net income		3,607		3,241

Dividends on preferred stock		520		521
Net income available for common shareholders	$	3,087	$	2,720
Basic earnings per common share	$	1.57	$	1.38
Diluted earnings per common share	$	1.40	$	1.29

Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios

Key Operating Statistics:

	Twelve Months Ended
	December 31			December 31
	2015			2014

Average assets	$	430,180		$	415,327
Average earning assets		399,420			383,617
Average loans		322,256			307,256
Average interest-bearing deposits		320,551			303,609
Average deposits		365,788			345,342
Average borrowings		23,488			30,895
Average equity		38,726			37,079
Average common equity		31,067			29,295

Return on average assets		0.84	%		0.78	%
Return on average equity		9.32	%		8.74	%

Efficiency ratio		70.84	%		71.51	%
Non-interest income to average assets		0.76	%		0.70	%
Non-interest expenses to average assets		3.07	%		3.02	%
Net overhead to average assets		2.31	%		2.33	%
Yield on loans		5.04	%		5.12	%
Yield on investment securities (TE)		2.84	%		2.87	%
Yield on average earning assets (TE)		4.52	%		4.56	%
Cost of average interest bearing liabilities		0.76	%		0.81	%
Net interest margin (TE)		3.86	%		3.85	%

Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios

Consolidated Statement of Condition:	As of		As of		As of
	December 31,		December 31,		December 31,
	2015		2014		2013
Cash and due from financial institutions	$	8,865	$	7,962	$	8,572
Federal funds sold		6,390		3,360		28,490
Interest-bearing deposits in other financial institutions		2,728		-		-
Available for sale securities		60,200		58,986		51,633
Loans held for sale		-		-		-
Loans		330,782		318,477		295,068
Allowance for loan losses		(4,916)		(4,885)		(4,653)
Premises and equipment, net		9,998		10,758		11,054
Bank owned life insurance (BOLI)		8,174		7,993		7,806
Federal Home Loan Bank Stock, at cost		2,025		2,025		2,025
Accrued interest receivable		1,680		1,527		1,554
Deferred income taxes		1,328		1,479		2,279
Intangible assets		4,362		4,433		4,762
Other real estate owned		100		198		833
Other assets		465		501		752
Total Assets	$	432,181	$	412,814	$	410,175

Deposits:
Noninterest bearing	$	48,522	$	41,975	$	39,967
Savings, NOW and money market		168,335		148,935		143,602
Time		153,531		150,874		159,382
Total deposits	$	370,388	$	341,784	$	342,951
FHLB advances and other borrowings		15,000		25,500		22,000
Subordinated debentures		5,000		5,000		5,000
Accrued interest payable		213		231		243
Other liabilities		2,056		1,851		1,634
Total Liabilities		392,657		374,366		371,828
6.5% Cumulative preferred stock		7,659		7,659		7,659
Series A preferred stock		-		-		3,266
Common stock		25,406		27,072		27,072
Retained earnings		6,304		3,373		653
Accumulated other comprehensive income (loss)		155		344		(303)
Total Stockholders' Equity		39,524		38,448		38,347
Total Liabilities and Stockholders' Equity	$	432,181	$	412,814	$	410,175

Consolidated Financial Highlights (Unaudited) In thousands, except per share data and ratios

	December 31, 2015			December 31, 2014			December 31, 2013			December 31, 2012
Consolidated Capital Ratios:
Tangible equity ratio (1)		8.22	%		8.33	%		8.28	%		9.08	%
Tangible common equity ratio (1)		6.43	%		6.45	%		5.59	%		5.55	%
Book value per common share	$	16.18		$	15.64		$	13.93		$	13.91
Tangible book value per common share (1)	$	13.97		$	13.39		$	11.51		$	11.32
End of period common share closing price	$	13.74		$	11.90		$	9.86		$	8.78
_____________
(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.


	December 31, 2015			December 31, 2014			December 31, 2013			December 31, 2012
Regulation G Non-GAAP Reconciliation:
Total shareholders' equity (a)	$	39,524		$	38,448		$	38,348		$	41,566
Less:
Preferred stock		(7,659)			(7,659)			(10,925)			(14,178)
Common equity (b)		31,865			30,789			27,423			27,388
Goodwill		(4,097)			(4,097)			(4,097)			(4,097)
Intangible assets		(265)			(336)			(665)			(997)
Tangible common equity (c)		27,503			26,356			22,661			22,294
Add:
Preferred stock		7,659			7,659			10,925			14,178
Tangible equity (d)	$	35,162		$	34,015		$	33,586		$	36,472

Total assets (e)	$	432,181		$	412,814		$	410,175		$	406,556
Less:
Goodwill		(4,097)			(4,097)			(4,097)			(4,097)
Intangible assets		(265)			(336)			(665)			(997)
Tangible assets (f)	$	427,819		$	408,381		$	405,413		$	401,462
Shares outstanding (in thousands) (g)		1,969			1,969			1,969			1,969

Book value per common share (b/g)	$	16.18		$	15.64		$	13.93		$	13.91
Tangible book value per common share (c/g)	$	13.97		$	13.39		$	11.51		$	11.32
Total shareholders' equity to total assets ratio (a/e)		9.15	%		9.31	%		9.35	%		10.22	%
Tangible equity ratio (d/f)		8.22	%		8.33	%		8.28	%		9.08	%
Tangible common equity ratio (c/f)		6.43	%		6.45	%		5.59	%		5.55	%

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