CITIZENS FIRST CORP - FORM 8-K - EX-99.1 - PRESS RELEASE FOR SECOND QUARTER 2016

Attached files

file	filename
8-K - 6-30-16 CITIZENS FIRST CORPORATION EARNINGS RELEASE - CITIZENS FIRST CORP	secondqt16rearningrel.htm

Exhibit 99.1 Press Release dated July 21, 2016

Citizens First Corporation Announces Second Quarter 2016 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

·	Increase in earnings per share of 20% compared to second quarter 2015

·	Increase in net income of 19.5% compared to second quarter 2015

·	Net interest margin of 3.92%, up from 3.85% in second quarter of 2015

·	Non-performing assets down 79% from the second quarter of 2015

BOWLING GREEN, KY, July 21, 2016 – 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, 2016			December 31, 2015			December 31, 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, 2016			March 31, 2016		Dec 31, 2015			Sept 30, 2015		June 30, 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, 2016			March 31, 2016			Dec 31, 2015			Sept 30, 2015			June 30, 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, 2016			June 30, 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, 2016			June 30, 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, 2016			December 31, 2015			December 31, 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, 2016			December 31, 2015			December 31, 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	%

Attached files

Stock widget

Investing forum

CITIZENS FIRST CORP Reports