0001073475-14-000011.txt : 20141016 0001073475-14-000011.hdr.sgml : 20141016 20141016153729 ACCESSION NUMBER: 0001073475-14-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20141016 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20141016 DATE AS OF CHANGE: 20141016 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: 141159699 BUSINESS ADDRESS: STREET 1: 1065 ASHLEY STREET SUITE 150 CITY: BOWLING GREEN STATE: KY ZIP: 42103 BUSINESS PHONE: 2703930700 MAIL ADDRESS: STREET 1: 1065 ASHLEY STREET SUITE 150 CITY: BOWLING GREEN STATE: KY ZIP: 42103 8-K 1 intropressrel93014.htm INTRO TO PRESS RELEASE 9/30/14.HTM intropressrel93014.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) 10/16/2014                                                                
 
 
 
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 OPERATIONS AND FINANCIAL CONDITION.
On October 16, 2014, Citizens First Corporation (the “Company”) 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 ended September 30, 2014 and for the nine months ended September 30, 2014.
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.
            On October 16, 2014, the Company issued a press release, a copy of which is attached hereto and incorporated herein by reference. 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 October 16, 2014.
 
 
 
 

 
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: October 16, 2014

 
3 
 


 
EXHIBIT INDEX
 
99.1     Press Release dated October 16, 2014.


 
4 
 

EX-99.1 2 earnrel93014.htm EXHIBIT 99.1 9-30-14.HTM earnrel93014.htm

Exhibit 99.1  Press Release dated October 16, 2014


 
 
Citizens First Corporation Announces Third Quarter 2014 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, October 16, 2014 – Citizens First Corporation (NASDAQ: CZFC) today reported results for the quarter ending September 30, 2014, which include the following:

·  
For the quarter ended September 30, 2014, the Company reported net income of $930,000, which represents an increase of $197,000 from the linked quarter ended June 30, 2014 and an increase of $697,000 from the quarter ended September 30, 2013. “Our continued earnings improvement in 2014 is directly attributable to improved credit quality, loan growth, and a focus on margin,” said Todd Kanipe, President & CEO of Citizens First.  “Lower non-performing assets in 2014 have significantly reduced provision and collection expenses. In addition, loan growth in Kentucky and Tennessee and a stable expense structure have combined to improve core earnings.”

·  
Earnings per diluted common share for the current quarter were $0.38, an increase of $0.09 from the linked quarter ended June 30, 2014 and an increase of $0.36 for the quarter ended September 30, 2013.

·  
For the nine months ended September 30, 2014, net income totaled $2.35 million, or $0.94 per diluted common share.  This represents an increase of $1.21 million, or $0.67 per diluted common share, from the net income of $1.14 million in the first nine months of the previous year.
 

 
 
1
 
 
 
·  
The Company’s net interest margin was 3.91% for the quarter ended September 30, 2014 compared to 3.74% for the linked quarter ended June 30, 2014 and 3.88% for the quarter ended September 30, 2013, an increase of 17 basis points for the linked quarter and an increase of 3 basis points from the prior year.  The Company’s net interest margin increased from prior periods due to an improvement in the mix of earning assets.


Third Quarter 2014 Compared to Second Quarter 2014
 
·  
Net interest income increased $150,000, or 4.3%, as the volume of average loans increased $4.6 million.

 
·  
Non-interest income increased $6,000, or 0.8%, primarily due to an increase in other service charges and fees of $57,000 and gain on the sale of mortgage loans of $25,000, offset by a decrease in security gains of $74,000.


·  
Non-interest expense increased $8,000, or 0.3%, compared to the previous quarter, primarily due to an increase in personnel expense.

 
Third Quarter 2014 Compared to Third Quarter 2013
 
·  
Net interest income increased $45,000, or 1.2%, as the volume of average earning assets increased over the prior year.

 
·  
Non-interest income decreased $32,000, or 4.0%, primarily due to a decline in service charges on deposit accounts.

 
·  
Non-interest expense decreased $138,000, or 4.2%, due to a decrease in legal and collection expenses.

 

 
Balance Sheet at September 30, 2014
 
·  
Total assets increased $842,000, or 0.2%, from December 31, 2013 to September 30, 2014 due to a growth in loans which was offset primarily by a reduction in federal funds sold.  Average assets year-to-date decreased 0.3%, or $1.3 million, from 2013.  Average interest earning assets year-to-date decreased 0.2%, or $657,000, from 2013.

 
·  
Loans outstanding increased $15.8 million, or 5.4%, from December 31, 2013 to September 30, 2014, while average loans year-to-date decreased $689,000, or 0.2%.

 
·  
Non-performing assets totaled $2.2 million, or 0.52% of total assets, at September 30, 2014 compared to $2.0 million, or 0.49% of total assets at December 31, 2013, an increase of $145,000.
 
 
 
 
2
 
 
 
 
 

 
·  
The allowance for loan losses at September 30, 2014 was $4.9 million, or 1.58% of total loans, compared to $4.7 million, or 1.58% of total loans as of December 31, 2013.  The allowance increased due to an increase in outstanding loans for the year.

·  
Deposits decreased $5.8 million, or 1.7%, from December 31, 2013 to September 30, 2014.  Average deposits year-to-date increased $4.0 million, or 1.2%, compared to 2013.

·  
Stockholders’ equity decreased $713,000, or 1.9%, from December 31, 2013 to September 30, 2014.  During the first quarter of 2014, the Company paid $3.3 million to repurchase the remaining 93 shares of the Series A preferred stock that the Company had issued to the Treasury in 2008 under the TARP Capital Purchase Program.

·  
The tangible equity ratio declined slightly to 8.15% as of September 30, 2014 compared to 8.28% at December 31, 2013 due to the repurchase of the Company’s Series A preferred stock noted above. The tangible book value per common share improved from $11.51 at December 31, 2013, to $12.93 at September 30, 2014.  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, 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 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.
 

 
3 
 

Consolidated Financial Highlights (Unaudited)
In thousands, except per share data and ratios
Consolidated Statement of Income:
 
 
Three Months Ended
 
Sept 30
June 30
March 31
Dec 31
Sept 30
 
2014
2014
2014
2013
2013
Interest income
$4,354
$4,230
$4,181
$4,411
$4,381
Interest expense
675
701
683
682
747
Net interest income
3,679
3,529
3,498
3,729
3,634
           
Provision for loan losses
-
150
125
450
900
           
Non-interest income:
          
   Service charges on deposits
300
296
261
319
341
   Other service charges and fees
198
141
153
133
156
   Gain on sale of mortgage loans
76
51
24
36
81
   Non-deposit brokerage fees
67
75
69
72
91
   Lease income
76
74
75
75
74
   BOLI income
47
47
47
49
53
   Securities gains
-
74
-
27
-
      Total
764
758
629
711
796
           
Non-interest expenses:
          
   Personnel expense
1,519
1,486
1,527
1,419
1,382
   Net occupancy expense
501
479
482
485
499
   Advertising and public relations
74
93
83
65
70
   Professional fees
137
149
153
141
201
   Data processing services
250
248
233
266
280
   Franchise shares and deposit tax
146
145
146
145
146
   FDIC insurance
73
74
77
119
150
   Core deposit intangible amortization
82
82
84
79
84
   Postage and office supplies
54
59
51
38
35
   Other real estate owned expenses
10
47
10
46
7
   Other
295
271
216
258
425
      Total
3,141
3,133
3,062
3,061
3,279
           
Income before income taxes
1,302
1,004
940
929
251
Provision for income taxes
372
271
249
227
18
Net income
930
733
691
702
233
           
Dividends and accretion on preferred stock
131
127
132
184
178
Net income available for common shareholders
$799
$606
$559
$518
$55
Basic earnings per common share
$0.41
$0.31
$0.28
$0.26
$0.03
Diluted earnings per common share
$0.38
$0.29
$0.27
$0.25
$0.02


 
4 
 


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

Key Operating Statistics:
        
 
Three Months Ended
  
         
 
September
 30
June
 30
March
 31
December
 31
September
 30
 
2014
2014
2014
2013
2013
           
Average assets
$412,761
$419,630
$414,089
$408,792
$413,293
Average earning assets
381,471
387,457
381,485
375,658
380,154
Average loans
308,087
303,489
303,438
298,833
307,618
Average interest-bearing deposits
301,378
309,820
305,239
298,646
298,972
Average deposits
343,287
350,943
346,089
340,938
340,067
Average equity
37,328
36,501
36,213
38,469
37,937
Average common equity
29,669
28,842
28,046
27,548
27,023
           
Return on average assets
0.89%
0.70%
0.68%
0.68%
0.22%
Return on average equity
9.88%
8.05%
7.74%
7.24%
2.44%
           
Efficiency ratio
69.41%
72.88%
72.73%
68.07%
72.66%
Non-interest income to average assets
0.73%
0.72%
0.62%
0.69%
0.77%
Non-interest expenses to average assets
3.02%
2.99%
3.00%
2.97%
3.15%
Net overhead to average assets
2.28%
2.27%
2.38%
2.28%
2.38%
Yield on loans
5.16%
5.13%
5.14%
5.42%
5.26%
Yield on investment securities (TE)
2.80%
2.94%
3.02%
2.97%
2.87%
Yield on average earning assets (TE)
4.61%
4.47%
4.53%
4.75%
4.66%
Cost of average interest bearing liabilities
0.81%
0.83%
0.83%
0.83%
0.89%
Net interest margin (TE)
3.91%
3.74%
3.81%
4.03%
3.88%
Number of FTE employees
98
99
98
100
100
           
Asset Quality Indicators:
          
Non-performing loans to total loans
0.50%
0.60%
0.65%
0.40%
1.94%
Non-performing assets to total assets
0.52%
0.60%
0.62%
0.49%
1.56%
Allowance for loan losses to total loans
1.58%
1.59%
1.60%
1.58%
1.60%
YTD net charge-offs (recoveries) to average loans, annualized
0.01%
(0.03)%
(0.06)%
1.22%
1.36%
YTD net charge-offs (recoveries)
25
(25)
(49)
3,718
3,101

 
5 
 

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

     
 
Nine Months Ended
     
 
September 30
September 30
 
2014
2013
Interest income
$12,765
$13,134
Interest expense
2,059
2,279
Net interest income
10,706
10,855
     
Provision for loan losses
275
2,200
     
Non-interest income:
    
   Service charges on deposits
857
953
   Other service charges and fees
492
452
   Gain on sale of mortgage loans
151
241
   Non-deposit brokerage fees
211
234
   Lease income
225
223
   BOLI income
141
170
   Securities gains
74
37
      Total
2,151
2,310
     
Non-interest expenses:
    
   Personnel expense
4,532
4,240
   Occupancy expense
1,462
1,425
   Advertising and public relations
250
258
   Professional fees
439
539
   Data processing services
731
817
   Franchise shares and deposit tax
437
428
   FDIC insurance
224
261
   Core deposit intangible amortization
248
253
   Postage and office supplies
164
113
   Other real estate owned expenses
67
38
   Other
782
1,168
      Total
9,336
9,540
     
Income before income taxes
3,246
1,425
Provision for income taxes
892
289
Net income
2,354
1,136
     
Dividends and accretion on preferred stock
390
571
Net income available for common shareholders
$1,964
$565
Basic earnings per common share
$1.00
$0.29
Diluted earnings per common share
$0.94
$0.27
     
     
 
 
 
6
 

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

Key Operating Statistics:


   
 
Nine Months Ended
     
 
September
 30
September
 30
 
2014
2013
     
Average assets
$415,487
$416,763
Average earning assets
383,470
384,127
Average loans
305,021
305,710
Average interest-bearing deposits
305,465
300,637
Average deposits
346,763
342,751
Average equity
36,685
38,810
Average common equity
28,858
27,385
     
Return on average assets
0.76%
0.36%
Return on average equity
8.58%
3.91%
     
Efficiency ratio
71.63%
71.30%
Non-interest income to average assets
0.69%
0.74%
Non-interest expenses to average assets
3.00%
3.06%
Net overhead to average assets
2.31%
2.32%
Yield on loans
5.14%
5.35%
Yield on investment securities (TE)
2.90%
2.87%
Yield on average earning assets (TE)
4.54%
4.66%
Cost of average interest bearing liabilities
0.82%
0.91%
Net interest margin (TE)
3.82%
3.87%


 
7 
 

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


Consolidated Statement of Condition:
As of
As of
As of
 
September 30,
December 31,
December 31,
2014
2013
2012
Cash and due from financial institutions
$ 9,010
$ 8,572
$9,549
Federal funds sold
4,230
28,490
25,250
Available for sale securities
62,248
51,633
46,639
Loans held for sale
-
-
61
Loans
310,877
295,068
298,754
Allowance for loan losses
(4,903)
(4,653)
(5,721)
Premises and equipment, net
10,801
11,054
11,568
Bank owned life insurance (BOLI)
7,947
7,806
7,587
Federal Home Loan Bank Stock, at cost
2,025
2,025
2,025
Accrued interest receivable
1,638
1,554
1,660
Deferred income taxes
1,596
2,279
2,180
Intangible assets
4,514
4,762
5,094
Other real estate owned
588
833
191
Other assets
446
752
1,719
  Total Assets
$411,017
$410,175
$406,556
       
Deposits:
      
    Noninterest bearing
$ 42,579
$ 39,967
$ 41,725
    Savings, NOW and money market
138,214
143,602
111,194
    Time
156,392
159,382
178,814
      Total deposits
$337,185
$342,951
$331,733
FHLB advances and other borrowings
29,000
22,000
26,000
Subordinated debentures
5,000
5,000
5,000
Accrued interest payable
231
243
238
Other liabilities
1,967
1,634
2,019
Total Liabilities
373,383
371,828
364,990
6.5% Cumulative preferred stock
7,659
7,659
7,659
Series A preferred stock
-
3,266
6,519
Common stock
27,072
27,072
27,072
Retained earnings (deficit)
2,617
653
(430)
Accumulated other comprehensive income (loss)
286
(303)
746
Total Stockholders’ Equity
37,634
38,347
41,566
Total Liabilities and Stockholders’ Equity
$411,017
$410,175
$406,556





 
8 
 

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

   
September 30, 2014
December 31, 2013
December 31, 2012
Capital Ratios:
        
Tier 1 leverage
  
9.23%
9.57%
10.20%
Tier 1 risk-based capital
  
11.30%
12.56%
13.16%
Total risk based capital
  
12.55%
13.81%
14.41%
Tangible equity ratio (1)
  
8.15%
8.28%
9.08%
Tangible common equity ratio (1)
  
6.26%
5.59%
5.55%
Book value per common share
  
$15.22
$13.93
$13.91
Tangible book value per common share (1)
  
$12.93
$11.51
$11.32
End of period common share closing price
  
$11.79
$9.86
$8.78
_____________
        
(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.

Regulation G Non-GAAP Reconciliation:
  
September 30, 2014
December 31, 2013
December 31, 2012
         
Total shareholders’ equity (a)
  
$37,634
$38,348
$41,566
Less:
        
   Preferred stock
  
(7,659)
(10,925)
(14,178)
Common equity (b)
  
29,975
27,423
27,388
   Goodwill
  
(4,097)
(4,097)
(4,097)
   Intangible assets
  
(417)
(665)
(997)
Tangible common equity (c)
  
25,461
22,661
22,294
Add:
        
   Preferred stock
  
7,659
10,925
14,178
Tangible equity (d)
  
$33,120
$33,586
$36,472
         
Total assets (e)
  
$411,017
$410,175
$406,556
Less:
        
   Goodwill
  
(4,097)
(4,097)
(4,097)
   Intangible assets
  
(417)
(665)
(997)
Tangible assets (f)
  
$406,503
$405,413
$401,462
Shares outstanding (in thousands) (g)
  
1,969
1,969
1,969
         
Book value per common share (b/g)
  
$15.22
$13.93
$13.91
Tangible book value per common share (c/g)
  
$12.93
$11.51
$11.32
         
Total shareholders’ equity to total assets ratio (a/e)
  
9.16%
9.35%
10.22%
Tangible equity ratio (d/f)
  
8.15%
8.28%
9.08%
Tangible common equity ratio (c/f)
  
6.26%
5.59%
5.55%


 
9