CITIZENS FIRST CORP. 
By BOWLING GREEN, Ky., Jan. 26, 2012 /PRNewswire/ -- Citizens First Corporation (NASDAQ: CZFC) today reported results for the fourth quarter and year ending December 30, 2011, which include the following:
-- For the quarter ended December 31, 2011, the Company reported net income
of $395,000, or $.09 per diluted common share. This represents a
decrease of $375,000, or $.17 per share, from the linked quarter ended
September 30, 2011. Compared to the quarter ended December 31 a year
ago, net income decreased $338,000 or $.14 per share. Provision for
loan losses was $1.2 million for the fourth quarter of 2011 compared to
$300,000 for the linked quarter ended September 30, 2011 and $350,000
for the quarter ended December 31, 2010. Todd Kanipe, President & CEO of
Citizens First commented, "The increase in our provision for loan losses
for the quarter is a result of our growth in the loan portfolio and our
identification of specific allocations in our allowance for three loans
placed on nonaccrual status. Our core earnings remain strong and we are
excited about the growth of our balance sheet. We continue to
aggressively monitor the loan portfolio for borrowers who might be at
risk of suffering adverse financial conditions impacting their ability
to repay their loan."
-- For the twelve months ended December 31, 2011, the Company reported net
income of $2.6 million, or $.81 per diluted common share. This
represents an increase of $70,000, or $.06 per share, from the net
income of $2.5 million in the previous year.
-- The Company's net interest margin was 4.01% for the quarter ended
December 31, 2011 compared to 4.11% for the quarter ended September 30,
2011 and 4.13% for the quarter ended December 31, 2010, a decrease of 10
basis points for the linked quarter and a decrease of 12 basis points
from the prior year. The Company's net interest margin declined due to
an increase in the level of fed funds sold for the quarter and year.
-- The efficiency ratio improved to 61.61% for the fourth quarter of 2011
compared to 65.19% for the fourth quarter of 2010, as a result of
increasing net interest income and reducing operating expenses.
-- Total deposits increased 15.2% to $332.7 million at December 31, 2011
compared to $288.7 million at December 31, 2010, while total loans
increased 9.7% to $294.4 million at December 31, 2011 compared to $268.3
million at December 31, 2010.
-- Nonperforming assets increased to $4.9 million at December 31, 2011
compared to $3.1 million at September 30, 2011 and $2.6 million at
December 31, 2010. Two credit relationships related to the food
services industry totaling $1.5 million and a $780,000 credit secured by
real estate were all placed on nonaccrual status during the quarter.
Specific allocations in the allowance for loan losses have been made for
these loans which have been measured for impairment.
A summary of nonperforming assets is presented for the periods indicated:
December September December
(In thousands) 31, 30, 31,
2011 2011 2010
Nonaccrual loans $3,322 $2,277 $1,262
Loans 90 days or
more past due and
still accruing - - 2
Restructured loans 942 - -
Total
nonperforming
loans 4,264 2,277 1,264
Other real estate
owned 637 812 1,368
Other foreclosed
assets - - -
Total
nonperforming
assets $4,901 $3,089 $2,632
Ratio of total
nonperforming
assets to total
assets 1.21% 0.79% 0.75%
Fourth Quarter 2011 Compared to Third Quarter 2011
Net interest income for the quarter ended December 31, 2011 increased $252,000, or 7.6%, compared to the previous quarter. Net interest income increased due to an increase in interest income of $220,000, which was primarily loan income, combined with a reduction in interest expense of $32,000.
Non-interest income for the three months ended December 31, 2011 increased $171,000, or 22.7%, compared to the previous quarter, primarily due to an increase in security gains of $128,000 and services charges on deposit accounts of $28,000.
Non-interest expense for the three months ended December 31, 2011 increased $94,000, or 3.5%, compared to the previous quarter, primarily due to an increase in salaries and benefits of $116,000.
A $1.2 million provision for loan losses was recorded for the fourth quarter of 2011, compared to a $300,000 provision in the previous quarter. Net charge-offs were $267,000 for the fourth quarter of 2011 compared to $583,000 in the third quarter of 2011. The allowance for loan losses increased as a percentage of loans from 1.76% in the third quarter to 1.99% in the fourth quarter.
Fourth Quarter 2011 Compared to Fourth Quarter 2010
Net interest income for the quarter ended December 31, 2011 increased $331,000, or 10.3 %, compared to the previous year. The increase in net interest income was impacted by a reduction in interest expense of $170,000 combined with an increase in interest income of $161,000.
Non-interest income for the three months ended December 31, 2011 increased $164,000, or 21.6%, compared to the three months ended December 31, 2010, primarily due to an increase in securities gains of $141,000 from the prior year.
Non-interest expense for the three months ended December 31, 2011 increased $157,000, or 5.9%, compared to the three months ended December 31, 2010, primarily due to an increase in personnel expenses totaling $95,000.
A $1.2 million provision for loan losses was recorded for the fourth quarter of 2011, compared to a $350,000 provision in the fourth quarter of 2010, an increase of $850,000. Net charge-offs were $267,000 for the fourth quarter of 2011 compared to net charge-offs of $188,000 in the fourth quarter of 2010.
Full Year Comparison
Net interest income for the twelve months ended December 31, 2011 increased $794,000, or 6.3%, compared to the previous year. Net interest income increased as a result of lower interest expense of $895,000 as maturing deposits and borrowings were repriced at lower rates.
Provision for loan losses for the twelve month period ended December 31, 2011 was $2.0 million, an increase of $450,000 from $1.6 million for the previous year. Net charge-offs were $1.2 million for the year ended December 31, 2011 compared to $562,000 for 2010. Net charge-offs as a percent of average loans were 0.42% for the year to date 2011, compared to 0.21% for the year to date 2010.
Balance Sheet
Total assets at December 31, 2011 were $403.8 million, up $54.1 million, or 15.5%, from $349.7 million at December 31, 2010. Loans increased $26.1 million, or 9.7%, from $268.3 million at December 31, 2010 to $294.4 million at December 31, 2011. Deposits at December 31, 2011 were $332.7 million, an increase of $44 million, or 15.2%, compared to $288.7 million at December 31, 2010.
Non-performing assets totaled $4.9 million at December 31, 2011 compared to $2.6 million at December 31, 2010, an increase of $2.3 million. The allowance for loan losses at December 31, 2011 was $5.9 million, or 1.99% of total loans, compared to $5.0 million, or 1.86% of total loans as of December 31, 2010.
At December 31, 2011, total shareholders' equity was $38.9 million and total tangible shareholders' equity was $33.4 million. The Company's tangible equity ratio was 8.39% as of December 31, 2011. The Company and Citizens First Bank are categorized as "well capitalized" under regulatory guidelines.
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.
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
December September June March December
31 30 30 31 31
2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Interest income $4,533 $4,313 $4,318 $4,319 $4,372
Interest expense 979 1,011 1,088 1,100 1,149
--- ----- ----- ----- -----
Net interest income 3,554 3,302 3,230 3,219 3,223
Provision for loan
losses 1,200 300 300 225 350
----- --- --- --- ---
Net interest income
after provision
for loan losses 2,354 3,002 2,930 2,994 2,873
Non-interest income 923 752 760 662 759
Non-interest
expense 2,815 2,721 2,721 2,704 2,658
----- ----- ----- ----- -----
Income before
income taxes 462 1,033 969 952 974
Provision (benefit)
for income taxes 67 263 241 236 241
--- --- --- --- ---
Net income 395 770 728 716 733
Preferred dividends
and discount
accretion 225 225 223 285 257
--- --- --- --- ---
Net income
available for
common
shareholders $170 $545 $505 $431 $476
==== ==== ==== ==== ====
Basic earnings per
common share $0.09 $0.27 $0.26 $0.22 $0.25
===== ===== ===== ===== =====
Diluted earnings
per common share $0.09 $0.26 $0.25 $0.21 $0.23
===== ===== ===== ===== =====
Three Months Ended
June
December September 30 March December
31 30 31 31
2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Average assets $398,264 $358,477 $363,007 $357,002 $349,671
Return on
average assets 0.39% 0.85% 0.80% 0.81% 0.83%
Return on
average equity 4.01% 7.97% 7.80% 7.71% 7.49%
Efficiency
ratio 61.61% 65.61% 66.62% 68.06% 65.19%
Non-interest
income to
average assets 0.92% 0.83% 0.84% 0.75% 0.86%
Non-interest
expenses to
average assets (2.80%) (3.01)% (3.01)% (3.07)% (3.02%)
Yield on
average
earning assets
(tax
equivalent) 5.09% 5.34% 5.32% 5.47% 5.56%
Cost of average
interest
bearing
liabilities 1.22% 1.42% 1.54% 1.59% 1.68%
Net interest
margin (tax
equivalent) 4.01% 4.11% 4.01% 4.11% 4.13%
Number of FTE
employees 100 90 88 90 89
Consolidated Financial Highlights
(Unaudited)
In thousands, except per share data
and ratios
Consolidated Statement of
Income:
Year Ended
December December
31 31
2011 2010
---- ----
Interest income $17,483 $17,584
Interest expense 4,178 5,073
----- -----
Net interest income 13,305 12,511
Provision for loan losses 2,025 1,575
----- -----
Net interest income after
provision for loan losses 11,280 10,936
Non-interest income 3,097 2,874
Non-interest expense 10,961 10,532
------ ------
Income before income taxes 3,416 3,278
Provision for income taxes 807 739
--- ---
Net income 2,609 2,539
Preferred dividends and
discount accretion 958 1,024
--- -----
Net income available for
common shareholders $1,651 $1,515
====== ======
Basic earnings per common
share $0.84 $0.77
===== =====
Diluted earnings per common
share $0.81 $0.75
===== =====
December December
31 31
2011 2010
---- ----
Average assets $369,271 $348,309
Return on average
assets 0.71% 0.73%
Return on average
equity 6.84% 6.66%
Efficiency ratio 65.35% 64.59%
Non-interest income
to average assets 0.84% 0.83%
Non-interest expenses
to average assets (2.97)% (3.02)%
Yield on average
earning assets (tax
equivalent) 5.30% 5.68%
Cost of average
interest bearing
liabilities 1.44% 1.87%
Net interest margin
(tax equivalent) 4.06% 4.08%
Number of full time
equivalent employees 100 89
Consolidated Financial Highlights
(Unaudited)
In thousands, except per share data and
ratios
Consolidated Statement
of Condition: As of As of As of
December September December
31, 30, 31,
2011 2011 2010
---- ---- ----
Cash and cash
equivalents $30,549 $36,140 $14,811
Available for sale
securities 50,718 44,848 39,531
Loans held for sale 180 0 151
Loans 294,352 280,385 268,303
Allowance for loan
losses (5,865) (4,932) (5,001)
Premises and
equipment, net 11,849 11,944 10,352
Bank owned life
insurance (BOLI) 7,324 7,255 7,051
Federal Home Loan Bank
Stock, at cost 2,025 2,025 2,025
Accrued interest
receivable 1,858 2,088 1,940
Deferred income taxes 3,382 3,304 3,677
Intangible assets 5,443 5,537 3,604
Other real estate
owned 637 812 1,368
Other assets 1,342 1,366 1,919
----- ----- -----
Total Assets $403,794 $390,772 $349,731
======== ======== ========
Deposits:
Noninterest bearing $38,352 $36,886 $36,250
Savings, NOW and money
market 116,968 108,529 72,612
Time 177,411 184,146 179,878
------- ------- -------
Total deposits $332,731 $329,561 $288,740
FHLB advances and
other borrowings 25,000 15,000 15,712
Subordinated
debentures 5,000 5,000 5,000
Other liabilities 2,191 2,424 1,970
----- ----- -----
Total Liabilities 364,922 351,985 311,422
6.5% Cumulative
preferred stock 7,659 7,659 7,659
Series A preferred
stock 6,471 6,459 8,586
Common stock 27,072 27,072 27,072
Retained (deficit) (2,706) (2,876) (4,357)
Accumulated other
comprehensive income
(loss) 376 473 (651)
--- --- ----
Total Stockholders'
Equity 38,872 38,787 38,309
------ ------ ------
Total Liabilities and
Stockholders' Equity $403,794 $390,772 $349,731
======== ======== ========
December September December
31, 30, 31,
--------- ---------- ---------
2011 2011 2010
---- ---- ---
Asset Quality Ratios:
Non-performing loans
to total loans 1.45% 0.81% 0.47%
Non-performing assets
to total assets 1.21% 0.79% 0.75%
Allowance for loan
losses to total loans 1.99% 1.76% 1.86%
Net charge-offs to
average loans,
annualized 0.42% 0.44% 0.21%
Consolidated Financial Highlights
(Unaudited)
In thousands, except per share data and
ratios
December September December
31, 30, 31,
--------- ---------- ---------
2011 2011 2010
---- ---- ---
Capital Ratios:
Tier 1 leverage 9.46% 10.47% 10.98%
Tier 1 risk-based
capital 11.86% 12.23% 13.31%
Total risk based
capital 13.11% 13.49% 14.57%
Tangible equity to
tangible assets
ratio (1) 8.39% 8.63% 10.02%
Book value per
common share $12.57 $12.53 $11.21
Tangible book value
per common share
(1) $9.80 $9.72 $9.37
Shares outstanding
(in thousands) 1,969 1,969 1,969
_____________
1. The tangible equity to tangible assets 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.
Regulation G Non-GAAP
Reconciliation: December September December
-------- --------- --------
31, 2011 30, 2011 31, 2010
-------- -------- --------
Total shareholders'
equity (a) $38,872 $38,787 $38,309
Less:
Preferred stock (14,130) (14,118) (16,245)
------- ------- -------
Common equity (b) 24,742 24,669 22,064
Goodwill (4,097) (4,102) (2,575)
Intangible assets (1,346) (1,435) (1,029)
------ ------ ------
Tangible common equity
(c) 19,299 19,132 18,460
Add:
Preferred stock 14,130 14,118 16,245
------ ------ ------
Tangible equity (d) $33,429 $33,250 $34,705
Total assets (e) $403,794 $390,772 $349,890
Less:
Goodwill (4,097) (4,102) (2,575)
Intangible assets (1,346) (1,435) (1,029)
------ ------ ------
Tangible assets (f) $398,351 $385,235 $346,286
Shares outstanding (in
thousands) (g) 1,969 1,969 1,969
Book value per common
share (b/g) $12.57 $12.53 $11.21
Tangible book value
per common share (c/
g) $9.80 $9.72 $9.37
Total shareholders'
equity to total
assets ratio (a/e) 9.63% 9.93% 10.95%
Tangible equity ratio
(d/f) 8.39% 8.63% 10.02%
SOURCE Citizens First Corporation
