Attached files
| file | filename |
|---|---|
| 8-K - 8-K - CITIZENS FIRST CORP | czfc-20170420x8k.htm |
Exhibit 99.1
Citizens First Corporation Announces First Quarter 2017 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, April 20, 2017 – Citizens First Corporation (NASDAQ: CZFC) today reported results for the first quarter ending March 31, 2017, which include the following:
For the quarter ended March 31, 2017, the Company reported net income of $907,000, or $0.36 per diluted common share. This represents an increase of $2,000 from $905,000, or $0.36 per diluted common share, for the quarter ended March 31, 2016.
“Increased non-performing loans in the quarter negatively impacted net interest margin, resulting in flat earnings compared to the first quarter of 2016,” said Todd Kanipe, President and CEO. “While our credit quality still compares favorably to peer and the industry, we did experience some deterioration in the agricultural portfolio. We believe current reserves are adequate for these loans; however, we anticipate some increased collection expenses as the loans are resolved.” Kanipe added, “Though net interest margin pressures persist, loan growth and operating efficiency improved over the first quarter of 2016. We anticipate steady loan demand and deposit growth in our core markets, reflective of the economic growth in the region.”
Income Statement
Net interest income decreased $83,000, or 2.1%, as the yield on loans decreased from the prior year. During the first quarter, $95,000 of loan income was reversed as loans totaling $3.0 million were placed on non-accrual status. The Company’s net interest margin was 3.68% for the quarter ended March 31, 2017, compared to 3.94% for the quarter ended March 31, 2016, a decrease of 26 basis points. The Company’s net interest margin decreased primarily due to a decline in the yield on loans.
There was a $30,000 provision for loan losses in the first quarter of the current year compared to no provision for loan losses in the first quarter of the prior year due to the growth of the loan portfolio and an increase in non-performing assets.
Non-interest income decreased $47,000, or 5.5%, from the prior year primarily due to a decrease in service charges on deposit accounts of $47,000.
Non-interest expense decreased $163,000, or 4.7%, from the prior year primarily due to a reduction in professional fees of $50,000, and a decrease in personnel expense of $50,000.
Credit Quality
Non-performing assets totaled $3.0 million, or 0.65% of total assets, at March 31, 2017 compared to $23,000, or 0.01% of total assets at December 31, 2016, an increase of $3.0 million. Two agricultural-related credits were moved to non-accrual status during the first quarter.
The allowance for loan losses at March 31, 2017 was $4.9 million, or 1.34% of total loans, compared to $4.9 million, or 1.35% of total loans as of December 31, 2016. 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 March 31, 2017 were $464.4 million compared to $455.4 million at December 31, 2016. Total assets increased $9.0 million, or 2.0%, from December 31, 2016 to March 31, 2017 due to a growth in loans and interest-bearing deposits in other financial institutions, partially offset by a decline in federal funds sold and available-for-sale securities.
Loans increased $6.2 million, or 1.7%, from December 31, 2016 to March 31, 2017. Deposits increased $3.0 million, or 0.8%, from December 31, 2016 to March 31, 2017. Borrowings from the Federal Home Loan Bank increased $6.0 million, or 17.1%, from December 31, 2016 to March 31, 2017.
Stockholders’ equity increased to $43.4 million at March 31, 2017 from $42.4 million at December 31, 2016. The common equity and tangible common equity ratios were 7.83% and 6.97%, respectively, as of March 31, 2017 compared to 7.71% and 6.83%, respectively, at December 31, 2016. The book value and tangible book value per common share ratios were $18.01 and $15.90, respectively, at March 31, 2017 compared to $17.54 and $15.40, respectively, at December 31, 2016.
Dividend to be paid May 17
On April 20, 2017, the Board of Directors declared a cash dividend of $.08 per common share payable May 17, 2017 to shareholders of record as of April 28, 2017.
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) |
|
|||||||
|
|
|
March 31, |
|
December 31, |
|
December 31, |
|
|||
|
|
|
2017 |
|
2016 |
|
2015 |
|
|||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from financial institutions |
|
$ |
6,715 |
|
$ |
8,542 |
|
$ |
8,865 |
|
|
Federal funds sold |
|
|
— |
|
|
— |
|
|
6,390 |
|
|
Interest-bearing deposits in other financial institutions |
|
|
22,537 |
|
|
11,018 |
|
|
2,728 |
|
|
Available-for-sale securities |
|
|
47,125 |
|
|
53,547 |
|
|
60,200 |
|
|
Loans held for sale |
|
|
221 |
|
|
264 |
|
|
— |
|
|
Loans |
|
|
365,562 |
|
|
359,391 |
|
|
330,782 |
|
|
Allowance for loan losses |
|
|
(4,906) |
|
|
(4,854) |
|
|
(4,916) |
|
|
Premises and equipment, net |
|
|
9,310 |
|
|
9,390 |
|
|
9,998 |
|
|
Bank owned life insurance (BOLI) |
|
|
8,394 |
|
|
8,351 |
|
|
8,174 |
|
|
Federal Home Loan Bank (FHLB) stock, at cost |
|
|
2,025 |
|
|
2,025 |
|
|
2,025 |
|
|
Accrued interest receivable |
|
|
1,386 |
|
|
1,622 |
|
|
1,680 |
|
|
Deferred income taxes |
|
|
1,353 |
|
|
1,464 |
|
|
1,328 |
|
|
Goodwill and other intangible assets |
|
|
4,274 |
|
|
4,291 |
|
|
4,362 |
|
|
Other real estate owned |
|
|
— |
|
|
— |
|
|
100 |
|
|
Other assets |
|
|
458 |
|
|
371 |
|
|
465 |
|
|
Total Assets |
|
$ |
464,454 |
|
$ |
455,422 |
|
$ |
432,181 |
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing |
|
$ |
48,598 |
|
$ |
52,322 |
|
$ |
48,522 |
|
|
Savings, NOW and money market |
|
|
174,726 |
|
|
173,620 |
|
|
168,335 |
|
|
Time |
|
|
150,072 |
|
|
144,497 |
|
|
153,531 |
|
|
Total deposits |
|
|
373,396 |
|
|
370,439 |
|
|
370,388 |
|
|
FHLB advances and other borrowings |
|
|
41,000 |
|
|
35,000 |
|
|
15,000 |
|
|
Subordinated debentures |
|
|
5,000 |
|
|
5,000 |
|
|
5,000 |
|
|
Accrued interest payable |
|
|
235 |
|
|
220 |
|
|
213 |
|
|
Other liabilities |
|
|
1,436 |
|
|
2,399 |
|
|
2,056 |
|
|
Total Liabilities |
|
|
421,067 |
|
|
413,058 |
|
|
392,657 |
|
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
6.5% Cumulative convertible preferred stock |
|
|
7,016 |
|
|
7,261 |
|
|
7,659 |
|
|
Common stock |
|
|
26,186 |
|
|
25,920 |
|
|
25,406 |
|
|
Retained earnings |
|
|
10,493 |
|
|
9,706 |
|
|
6,304 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(308) |
|
|
(523) |
|
|
155 |
|
|
Total stockholders’ equity |
|
|
43,387 |
|
|
42,364 |
|
|
39,524 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
464,454 |
|
$ |
455,422 |
|
$ |
432,181 |
|
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
|
|
|
Three months ended |
|
|||||||||||||
|
|
|
(In Thousands, Except Per Share Data and ratios) |
|
|||||||||||||
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|||||
|
|
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|||||
|
Interest and dividend income |
|
$ |
4,457 |
|
$ |
4,572 |
|
$ |
4,557 |
|
$ |
4,536 |
|
$ |
4,476 |
|
|
Interest expense |
|
|
677 |
|
|
652 |
|
|
639 |
|
|
624 |
|
|
613 |
|
|
Net interest income |
|
|
3,780 |
|
|
3,920 |
|
|
3,918 |
|
|
3,912 |
|
|
3,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (credit) for loan losses |
|
|
30 |
|
|
— |
|
|
— |
|
|
(85) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
278 |
|
|
371 |
|
|
361 |
|
|
339 |
|
|
325 |
|
|
Other service charges and fees |
|
|
264 |
|
|
245 |
|
|
262 |
|
|
272 |
|
|
248 |
|
|
Gain on sale of mortgage loans |
|
|
68 |
|
|
97 |
|
|
110 |
|
|
91 |
|
|
77 |
|
|
Non-deposit brokerage fees |
|
|
87 |
|
|
85 |
|
|
83 |
|
|
75 |
|
|
72 |
|
|
Lease income |
|
|
52 |
|
|
52 |
|
|
61 |
|
|
49 |
|
|
45 |
|
|
BOLI income |
|
|
43 |
|
|
44 |
|
|
45 |
|
|
44 |
|
|
44 |
|
|
Gain on sale of securities |
|
|
23 |
|
|
— |
|
|
20 |
|
|
55 |
|
|
51 |
|
|
Total non-interest income |
|
|
815 |
|
|
894 |
|
|
942 |
|
|
925 |
|
|
862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expense |
|
|
1,734 |
|
|
1,741 |
|
|
1,674 |
|
|
1,676 |
|
|
1,784 |
|
|
Net occupancy expense |
|
|
461 |
|
|
471 |
|
|
481 |
|
|
492 |
|
|
483 |
|
|
Advertising and public relations |
|
|
71 |
|
|
75 |
|
|
86 |
|
|
98 |
|
|
61 |
|
|
Professional fees |
|
|
130 |
|
|
50 |
|
|
98 |
|
|
137 |
|
|
180 |
|
|
Data processing services |
|
|
253 |
|
|
256 |
|
|
262 |
|
|
263 |
|
|
256 |
|
|
Franchise shares and deposit tax |
|
|
132 |
|
|
132 |
|
|
132 |
|
|
132 |
|
|
132 |
|
|
FDIC insurance |
|
|
49 |
|
|
47 |
|
|
58 |
|
|
59 |
|
|
59 |
|
|
Other real estate owned expenses |
|
|
— |
|
|
1 |
|
|
(8) |
|
|
23 |
|
|
1 |
|
|
Other |
|
|
461 |
|
|
457 |
|
|
452 |
|
|
510 |
|
|
498 |
|
|
Total non-interest expenses |
|
|
3,291 |
|
|
3,230 |
|
|
3,235 |
|
|
3,390 |
|
|
3,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
1,274 |
|
|
1,584 |
|
|
1,625 |
|
|
1,532 |
|
|
1,271 |
|
|
Income taxes |
|
|
367 |
|
|
481 |
|
|
490 |
|
|
458 |
|
|
366 |
|
|
Net income |
|
|
907 |
|
|
1,103 |
|
|
1,135 |
|
|
1,074 |
|
|
905 |
|
|
Dividends on preferred stock |
|
|
119 |
|
|
124 |
|
|
124 |
|
|
123 |
|
|
124 |
|
|
Net income available for common stockholders |
|
$ |
788 |
|
$ |
979 |
|
$ |
1,011 |
|
$ |
951 |
|
$ |
781 |
|
|
Basic earnings per common share |
|
$ |
0.39 |
|
$ |
0.49 |
|
$ |
0.50 |
|
$ |
0.48 |
|
$ |
0.39 |
|
|
Diluted earnings per common share |
|
$ |
0.36 |
|
$ |
0.43 |
|
$ |
0.45 |
|
$ |
0.42 |
|
$ |
0.36 |
|
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
|
|
|
Three months ended |
|
|||||||||||||
|
|
|
(In Thousands, Except Per Share Data and ratios) |
|
|||||||||||||
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|||||
|
|
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
|||||
|
Average: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
452,265 |
|
$ |
444,168 |
|
$ |
442,042 |
|
$ |
439,081 |
|
$ |
433,143 |
|
|
Earning Assets |
|
|
424,349 |
|
|
417,161 |
|
|
414,569 |
|
|
409,722 |
|
|
402,638 |
|
|
Loans |
|
|
363,824 |
|
|
347,046 |
|
|
344,733 |
|
|
338,456 |
|
|
333,000 |
|
|
Interest-bearing deposits |
|
|
314,939 |
|
|
310,336 |
|
|
304,473 |
|
|
311,084 |
|
|
320,363 |
|
|
Deposits |
|
|
364,227 |
|
|
360,816 |
|
|
354,953 |
|
|
360,209 |
|
|
367,397 |
|
|
Borrowed funds |
|
|
43,078 |
|
|
38,429 |
|
|
42,490 |
|
|
35,868 |
|
|
23,394 |
|
|
Equity |
|
|
42,827 |
|
|
42,652 |
|
|
42,002 |
|
|
40,912 |
|
|
40,156 |
|
|
Common equity |
|
|
35,718 |
|
|
35,391 |
|
|
34,741 |
|
|
33,651 |
|
|
32,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.81 |
% |
|
0.99 |
% |
|
1.02 |
% |
|
0.98 |
% |
|
0.84 |
% |
|
Return on average equity |
|
|
8.59 |
% |
|
10.29 |
% |
|
10.75 |
% |
|
10.56 |
% |
|
9.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
70.96 |
% |
|
66.20 |
% |
|
65.86 |
% |
|
69.74 |
% |
|
72.64 |
% |
|
Non-interest income to average assets |
|
|
0.73 |
% |
|
0.80 |
% |
|
0.85 |
% |
|
0.85 |
% |
|
0.80 |
% |
|
Non-interest expenses to average assets |
|
|
2.95 |
% |
|
2.89 |
% |
|
2.91 |
% |
|
3.11 |
% |
|
3.21 |
% |
|
Net overhead to average assets |
|
|
2.22 |
% |
|
2.09 |
% |
|
2.06 |
% |
|
2.26 |
% |
|
2.41 |
% |
|
Yield on loans |
|
|
4.60 |
% |
|
4.86 |
% |
|
4.86 |
% |
|
4.95 |
% |
|
4.96 |
% |
|
Yield on investment securities (TE) |
|
|
2.87 |
% |
|
2.58 |
% |
|
2.66 |
% |
|
2.77 |
% |
|
2.77 |
% |
|
Yield on average earning assets (TE) |
|
|
4.32 |
% |
|
4.42 |
% |
|
4.44 |
% |
|
4.53 |
% |
|
4.55 |
% |
|
Cost of average interest bearing liabilities |
|
|
0.77 |
% |
|
0.74 |
% |
|
0.73 |
% |
|
0.72 |
% |
|
0.72 |
% |
|
Net interest margin (TE) |
|
|
3.68 |
% |
|
3.80 |
% |
|
3.83 |
% |
|
3.92 |
% |
|
3.94 |
% |
|
Number of FTE employees |
|
|
94 |
|
|
95 |
|
|
94 |
|
|
96 |
|
|
98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Indicators: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.83 |
% |
|
0.01 |
% |
|
0.05 |
% |
|
0.06 |
% |
|
0.18 |
% |
|
Non-performing assets to total assets |
|
|
0.65 |
% |
|
0.01 |
% |
|
0.04 |
% |
|
0.06 |
% |
|
0.16 |
% |
|
Allowance for loan losses to total loans |
|
|
1.34 |
% |
|
1.35 |
% |
|
1.45 |
% |
|
1.43 |
% |
|
1.53 |
% |
|
YTD net charge-offs (recoveries) to average loans, annualized |
|
|
(0.02) |
% |
|
(0.01) |
% |
|
(0.05) |
% |
|
(0.07) |
% |
|
(0.15) |
% |
|
YTD net charge-offs (recoveries) |
|
|
(22) |
|
|
(23) |
|
|
(130) |
|
|
(119) |
|
|
(128) |
|
Consolidated Financial Highlights (Unaudited)
|
|
|
(In Thousands, Except Share Data and ratios) |
|
|||||||
|
|
|
March 31, |
|
December 31, |
|
December 31, |
|
|||
|
Consolidated Capital Ratios |
|
2017 |
|
2016 |
|
2015 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity to total assets ratio |
|
|
9.34 |
% |
|
9.30 |
% |
|
9.15 |
% |
|
Tangible equity ratio (1) |
|
|
8.50 |
% |
|
8.44 |
% |
|
8.22 |
% |
|
Tangible common equity ratio (1) |
|
|
6.97 |
% |
|
6.83 |
% |
|
6.43 |
% |
|
Book value per common share |
|
$ |
18.01 |
|
$ |
17.54 |
|
$ |
16.18 |
|
|
Tangible book value per common share (1) |
|
$ |
15.90 |
|
$ |
15.40 |
|
$ |
13.97 |
|
|
End of period common share closing price |
|
$ |
18.05 |
|
$ |
18.00 |
|
$ |
13.74 |
|
|
(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) |
|
|||||||
|
|
|
March 31, |
|
December 31, |
|
December 31, |
|
|||
|
Regulation G Non-GAAP Reconciliation: |
|
2017 |
|
2016 |
|
2015 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity (a) |
|
$ |
43,387 |
|
$ |
42,364 |
|
$ |
39,524 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
(7,016) |
|
|
(7,261) |
|
|
(7,659) |
|
|
Common equity (b) |
|
|
36,371 |
|
|
35,103 |
|
|
31,865 |
|
|
Goodwill |
|
|
(4,097) |
|
|
(4,097) |
|
|
(4,097) |
|
|
Intangible assets |
|
|
(177) |
|
|
(194) |
|
|
(265) |
|
|
Tangible common equity (c) |
|
|
32,097 |
|
|
30,812 |
|
|
27,503 |
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
7,016 |
|
|
7,261 |
|
|
7,659 |
|
|
Tangible equity (d) |
|
|
39,113 |
|
|
38,073 |
|
|
35,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (e) |
|
|
464,454 |
|
|
455,422 |
|
|
432,181 |
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(4,097) |
|
|
(4,097) |
|
|
(4,097) |
|
|
Intangible assets |
|
|
(177) |
|
|
(194) |
|
|
(265) |
|
|
Tangible assets (f) |
|
$ |
460,180 |
|
$ |
451,131 |
|
$ |
427,819 |
|
|
Shares outstanding (in thousands) (g) |
|
|
2,019 |
|
|
2,001 |
|
|
1,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (b/g) |
|
$ |
18.01 |
|
$ |
17.54 |
|
$ |
16.18 |
|
|
Tangible book value per common share (c/g) |
|
$ |
15.90 |
|
$ |
15.40 |
|
$ |
13.97 |
|
|
Equity to assets ratio (a/e) |
|
|
9.34 |
% |
|
9.30 |
% |
|
9.15 |
% |
|
Tangible equity ratio (d/f) |
|
|
8.50 |
% |
|
8.44 |
% |
|
8.22 |
% |
|
Common equity ratio (b/e) |
|
|
7.83 |
% |
|
7.71 |
% |
|
7.37 |
% |
|
Tangible common equity ratio (c/f) |
|
|
6.97 |
% |
|
6.83 |
% |
|
6.43 |
% |