BOWLING GREEN, Ky.,
April 20, 2017 /PRNewswire/ --
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
|
%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/citizens-first-corporation-announces-first-quarter-2017-results-300442906.html
SOURCE Citizens First Corporation