0001073475-12-000002.txt : 20120126 0001073475-12-000002.hdr.sgml : 20120126 20120126142457 ACCESSION NUMBER: 0001073475-12-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20120126 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120126 DATE AS OF CHANGE: 20120126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CITIZENS FIRST CORP CENTRAL INDEX KEY: 0001073475 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 610912615 STATE OF INCORPORATION: KY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33126 FILM NUMBER: 12547246 BUSINESS ADDRESS: STREET 1: 1805 CAMPBELL LANE CITY: BOWLING GREEN STATE: KY ZIP: 42104 BUSINESS PHONE: 2703930700 MAIL ADDRESS: STREET 1: 1805 CAMPBELL LANE CITY: BOWLING GREEN STATE: KY ZIP: 42104 8-K 1 form8k1262012.htm FORM 8-K DATED JANUARY 26, 2012 form8k1262012.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 
Date of Report (Date of earliest event reported)  1/26/2012                                                                
 
 
 
CITIZENS FIRST CORPORATION
(Exact name of registrant as specified in its charter)

     
     
     
Kentucky                                                                                                                            333-67435                                                                                     61-0912615
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
     

   
   
                            1065 Ashley Street, Bowling Green, Kentucky        42103                 
(Address of principal executive offices)
(Zip Code)
   
 
Registrant's telephone number, including area code       (270) 393-0700                                                              
 
     
 
Not Applicable
  
 
                                                                                                                                                                       
  
 
(Former name or former address, if changed since last report)
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):
[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 

 
1 
 

ITEM  2.02. RESULTS OF OPERATION AND FINANCIAL CONDITION.
 
On January 26, 2012, Citizens First Corporation issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.  The press release announced the Company’s operating results for the quarter and twelve months ended December 31, 2011.
 
The information in this Item 2.02 in this Form 8-K and the Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities and Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
 
ITEM 7.01. REGULATION FD DISCLOSURE.
See “Item 2.02. Results of Operations and Financial Condition” which is incorporated by reference in this Item 7.01.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
99.1   Press Release dated January 26, 2012.

 

 
2 
 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
CITIZENS FIRST CORPORATION
(Registrant)
By:   /s/ M. Todd Kanipe
               M. Todd Kanipe
      President and Chief Executive Officer
 
Date: January 26, 2012

 
 3
 


 
EXHIBIT INDEX
99.1                               Press Release dated January 26, 2012

                                                               
 4
 


 EX-99.1 2 earningsrel123111.htm PRESS RELEASE DATED JANUARY 26, 2012 earningsrel123111.htm

Exhibit 99.1 Press Release dated January 26, 2012
 
Citizens First Corporation Announces Fourth Quarter 2011 and Year End 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, January 26, 2012 – 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.”

 
1
 

·  
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:


 
2
 



 
(In thousands)
  
December 31,
 2011
    
September 30,
 2011
        
December 31,
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.
 
3
 
 

 
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.
 

 
4
 
 
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.
 

 
5 
 

Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios

Consolidated Statement of Income:
          
 
Three Months Ended
 
December 31
September 30
June 30
March 31
December 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
  
 
December 31
September 30
June 30
March
 31
December 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

 
6 
 

Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios

Consolidated Statement of Income:
        
 
Year Ended
  
   
December 31
  
December 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 31
  
December 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



 
7 
 

Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios


Consolidated Statement of Condition:
As of
As of
As of
 
December 31,
September 30,
December 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 31, 2011
September 30, 2011
December 31, 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%


 
8 
 

Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios

   
December 31, 2011
September 30, 2011
December 31, 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 31, 2011
September 30, 2011
December 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%

                                                        9