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

%

 

SOURCE Citizens First Corporation


Source: Citizens First Corporation