UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
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CITIZENS FIRST CORPORATION
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(Exact name of registrant as specified in its charter)
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Kentucky 333-67435 61-0912615
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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1065 Ashley Street, Bowling Green, Kentucky 42103
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(Address of principal executive offices)
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(Zip Code)
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Not Applicable
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(Former name or former address, if changed since last report)
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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):
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM 7.01. REGULATION FD DISCLOSURE.
On July 21, 2016, 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 includes the results of operations and the financial condition of the Company as of and for the quarter and six months ending June 30, 2016. See “Item 2.02 Results of Operations and Financial Condition” which is incorporated by reference in this item 7.01.
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ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
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99.1 Press Release dated July 21, 2016
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CITIZENS FIRST CORPORATION
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(Registrant)
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By: /s/ M. Todd Kanipe
M. Todd Kanipe
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President and Chief Executive Officer
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Date: July 21, 2016
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EXHIBIT INDEX
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99.1Press Release dated July 21, 2016
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NEWS
For Immediate Release
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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
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·
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Increase in earnings per share of 20% compared to second quarter 2015
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·
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Increase in net income of 19.5% compared to second quarter 2015
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·
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Net interest margin of 3.92%, up from 3.85% in second quarter of 2015
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·
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Non-performing assets down 79% from the second quarter of 2015
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Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Condition
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||||||||||||
(In Thousands, Except Share Data and ratios)
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June 30, 2016
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December 31, 2015
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December 31, 2014
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Assets
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||||||||||||
Cash and due from financial institutions
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$ | 6,259 | $ | 8,865 | $ | 7,962 | ||||||
Federal funds sold
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1,095 | 6,390 | 3,360 | |||||||||
Interest-bearing deposits in other financial institutions
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2,728 | 2,728 | - | |||||||||
Available-for-sale securities
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58,541 | 60,200 | 58,986 | |||||||||
Loans held for sale
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118 | - | - | |||||||||
Loans.
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347,013 | 330,782 | 318,477 | |||||||||
Allowance for loan losses
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(4,949 | ) | (4,916 | ) | (4,885 | ) | ||||||
Premises and equipment, net
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9,543 | 9,998 | 10,758 | |||||||||
Bank owned life insurance (BOLI)
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8,262 | 8,174 | 7,993 | |||||||||
Federal Home Loan Bank (FHLB) stock, at cost
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2,025 | 2,025 | 2,025 | |||||||||
Accrued interest receivable
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1,536 | 1,680 | 1,527 | |||||||||
Deferred income taxes
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1,177 | 1,328 | 1,479 | |||||||||
Goodwill and other intangible assets
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4,327 | 4,362 | 4,433 | |||||||||
Other real estate owned
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66 | 100 | 198 | |||||||||
Other assets
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514 | 465 | 501 | |||||||||
Total Assets
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$ | 438,255 | $ | 432,181 | $ | 412,814 | ||||||
Liabilities
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Deposits
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Noninterest bearing
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$ | 49,623 | $ | 48,522 | $ | 41,975 | ||||||
Savings, NOW and money market
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163,951 | 168,335 | 148,935 | |||||||||
Time
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139,859 | 153,531 | 150,874 | |||||||||
Total deposits
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353,433 | 370,388 | 341,784 | |||||||||
FHLB advances and other borrowings
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36,000 | 15,000 | 25,500 | |||||||||
Subordinated debentures
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5,000 | 5,000 | 5,000 | |||||||||
Accrued interest payable
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223 | 213 | 231 | |||||||||
Other liabilities
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2,152 | 2,056 | 1,851 | |||||||||
Total Liabilities
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396,808 | 392,657 | 374,366 | |||||||||
Stockholders’ Equity
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||||||||||||
6.5% Cumulative convertible preferred stock.
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7,261 | 7,659 | 7,659 | |||||||||
Common stock
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25,862 | 25,406 | 27,072 | |||||||||
Retained earnings ..
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7,876 | 6,304 | 3,373 | |||||||||
Accumulated other comprehensive income
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448 | 155 | 344 | |||||||||
Total stockholders’ equity
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41,447 | 39,524 | 38,448 | |||||||||
Total liabilities and stockholders’ equity
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$ | 438,255 | $ | 432,181 | $ | 412,814 | ||||||
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
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Three months ended
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(In Thousands, Except Per Share Data and ratios)
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June 30, 2016
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March 31, 2016
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Dec 31, 2015
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Sept 30, 2015
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June 30, 2015
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Interest and dividend income
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$ | 4,536 | $ | 4,476 | $ | 4,494 | $ | 4,415 | $ | 4,469 | ||||||||||
Interest expense
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624 | 613 | 623 | 662 | 678 | |||||||||||||||
Net interest income
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3,912 | 3,863 | 3,871 | 3,753 | 3,791 | |||||||||||||||
Provision (credit) for loan losses
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(85 | ) | - | (65 | ) | - | 120 | |||||||||||||
Non-interest income
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Service charges on deposit accounts
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339 | 325 | 360 | 386 | 358 | |||||||||||||||
Other service charges and fees
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179 | 164 | 260 | 187 | 176 | |||||||||||||||
Gain on sale of mortgage loans
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91 | 77 | 63 | 60 | 79 | |||||||||||||||
Non-deposit brokerage fees
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75 | 72 | 82 | 103 | 87 | |||||||||||||||
Lease income.
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49 | 45 | 43 | 59 | 70 | |||||||||||||||
BOLI income
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44 | 44 | 45 | 45 | 46 | |||||||||||||||
Gain on sale of securities
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55 | 51 | 68 | - | 10 | |||||||||||||||
Total non-interest income
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832 | 778 | 921 | 840 | 826 | |||||||||||||||
Non-interest expenses:
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Personnel expense
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1,676 | 1,784 | 1,648 | 1,650 | 1,589 | |||||||||||||||
Net occupancy expense
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492 | 483 | 464 | 495 | 493 | |||||||||||||||
Advertising and public relations
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98 | 61 | 80 | 75 | 123 | |||||||||||||||
Professional fees
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137 | 180 | 176 | 183 | 187 | |||||||||||||||
Data processing services
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263 | 256 | 262 | 262 | 238 | |||||||||||||||
Franchise shares and deposit tax
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132 | 132 | 96 | 146 | 145 | |||||||||||||||
FDIC insurance
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59 | 59 | 61 | 61 | 63 | |||||||||||||||
Other real estate owned expenses
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23 | 1 | 52 | 6 | 29 | |||||||||||||||
Loss on branch disposal
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27 | - | - | 262 | - | |||||||||||||||
Other
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390 | 414 | 380 | 390 | 379 | |||||||||||||||
Total non-interest expenses
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3,297 | 3,370 | 3,219 | 3,530 | 3,246 | |||||||||||||||
Income before income taxes
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1,532 | 1,271 | 1,638 | 1,063 | 1,251 | |||||||||||||||
Income taxes
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458 | 366 | 487 | 288 | 352 | |||||||||||||||
Net income
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1,074 | 905 | 1,151 | 775 | 899 | |||||||||||||||
Dividends on preferred stock
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123 | 124 | 131 | 131 | 130 | |||||||||||||||
Net income available for common stockholders
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$ | 951 | $ | 781 | $ | 1,020 | $ | 644 | $ | 769 | ||||||||||
Basic earnings per common share
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$ | 0.48 | $ | 0.39 | $ | 0.52 | $ | 0.33 | $ | 0.39 | ||||||||||
Diluted earnings per common share
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$ | 0.42 | $ | 0.36 | $ | 0.45 | $ | 0.31 | $ | 0.35 | ||||||||||
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
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Three months ended
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(In Thousands, Except Per Share Data and ratios)
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June 30, 2016
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March 31, 2016
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Dec 31, 2015
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Sept 30, 2015
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June 30, 2015
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Average:
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Assets
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$ | 439,081 | $ | 433,143 | $ | 430,174 | $ | 428,331 | $ | 434,003 | ||||||||||
Earning Assets
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409,722 | 402,638 | 399,055 | 396,906 | 403,814 | |||||||||||||||
Loans
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338,456 | 333,000 | 329,131 | 319,053 | 319,758 | |||||||||||||||
Interest-bearing deposits
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311,084 | 320,363 | 316,979 | 321,643 | 327,010 | |||||||||||||||
Deposits
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360,209 | 367,397 | 365,401 | 366,627 | 370,820 | |||||||||||||||
Borrowed funds
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35,868 | 23,394 | 23,179 | 20,696 | 23,022 | |||||||||||||||
Equity
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40,912 | 40,156 | 39,181 | 38,516 | 38,180 | |||||||||||||||
Common equity
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33,651 | 32,831 | 31,522 | 30,857 | 30,521 | |||||||||||||||
Return on average assets
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0.98 | % | 0.84 | % | 1.06 | % | 0.72 | % | 0.83 | % | ||||||||||
Return on average equity
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10.56 | % | 9.06 | % | 11.66 | % | 7.97 | % | 9.44 | % | ||||||||||
Efficiency ratio
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69.15 | % | 72.15 | % | 66.91 | % | 75.43 | % | 69.14 | % | ||||||||||
Non-interest income to average assets
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0.76 | % | 0.72 | % | 0.85 | % | 0.78 | % | 0.76 | % | ||||||||||
Non-interest expenses to average assets
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3.02 | % | 3.13 | % | 2.97 | % | 3.27 | % | 3.00 | % | ||||||||||
Net overhead to average assets
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2.26 | % | 2.41 | % | 2.12 | % | 2.49 | % | 2.24 | % | ||||||||||
Yield on loans
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4.95 | % | 4.96 | % | 4.97 | % | 5.04 | % | 5.15 | % | ||||||||||
Yield on investment securities (TE)
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2.77 | % | 2.77 | % | 2.84 | % | 2.79 | % | 2.85 | % | ||||||||||
Yield on average earning assets (TE)
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4.53 | % | 4.55 | % | 4.55 | % | 4.50 | % | 4.53 | % | ||||||||||
Cost of average interest bearing liabilities
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0.72 | % | 0.72 | % | 0.73 | % | 0.77 | % | 0.78 | % | ||||||||||
Net interest margin (TE)
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3.92 | % | 3.94 | % | 3.94 | % | 3.84 | % | 3.85 | % | ||||||||||
Number of FTE employees
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96 | 98 | 98 | 98 | 99 | |||||||||||||||
Asset Quality Indicators:
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Non-performing loans to total loans
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0.06 | % | 0.18 | % | 0.16 | % | 0.25 | % | 0.33 | % | ||||||||||
Non-performing assets to total assets
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0.06 | % | 0.16 | % | 0.15 | % | 0.24 | % | 0.29 | % | ||||||||||
Allowance for loan losses to total loans
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1.43 | % | 1.53 | % | 1.49 | % | 1.53 | % | 1.59 | % | ||||||||||
YTD net charge-offs (recoveries) to average loans, annualized
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(0.07 | %) | (0.15 | %) | 0.03 | % | 0.03 | % | 0.06 | % | ||||||||||
YTD net charge-offs (recoveries)
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(119 | ) | (128 | ) | 104 | 64 | 102 | |||||||||||||
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
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Six months ended
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(In Thousands, Except Per Share Data and ratios)
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June 30, 2016
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June 30, 2015
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Interest and dividend income
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$ | 9,012 | $ | 8,775 | ||||
Interest expense
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1,237 | 1,322 | ||||||
Net interest income
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7,775 | 7,453 | ||||||
Provision (credit) for loan losses
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(85 | ) | 200 | |||||
Non-interest income
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Service charges on deposit accounts
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664 | 675 | ||||||
Other service charges and fees
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343 | 311 | ||||||
Gain on sale of mortgage loans
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168 | 110 | ||||||
Non-deposit brokerage fees
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147 | 179 | ||||||
Lease income
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94 | 143 | ||||||
BOLI income
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88 | 91 | ||||||
Gain on sale of securities
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106 | 10 | ||||||
Total non-interest income
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1,610 | 1,519 | ||||||
Non-interest expenses:
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Personnel expense
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3,460 | 3,237 | ||||||
Net occupancy expense
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975 | 1,021 | ||||||
Advertising and public relations
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159 | 175 | ||||||
Professional fees
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317 | 351 | ||||||
Data processing services
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519 | 477 | ||||||
Franchise shares and deposit tax
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264 | 291 | ||||||
FDIC insurance
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118 | 122 | ||||||
Other real estate owned expenses
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24 | 36 | ||||||
Loss on branch disposal
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27 | - | ||||||
Other
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804 | 739 | ||||||
Total non-interest expenses
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6,667 | 6,449 | ||||||
Income before income taxes
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2,803 | 2,323 | ||||||
Income taxes
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824 | 642 | ||||||
Net income
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1,979 | 1,681 | ||||||
Dividends on preferred stock
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247 | 258 | ||||||
Net income available for common stockholders
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$ | 1,732 | $ | 1,423 | ||||
Basic earnings per common share
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$ | 0.87 | $ | 0.72 | ||||
Diluted earnings per common share
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$ | 0.78 | $ | 0.64 | ||||
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
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Six months ended
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(In Thousands, Except Per Share Data and ratios)
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June 30, 2016
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June 30, 2015
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Average:
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Assets
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$ | 436,112 | $ | 431,122 | ||||
Earning Assets
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406,181 | 400,883 | ||||||
Loans
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335,728 | 320,390 | ||||||
Interest-bearing deposits
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315,724 | 321,813 | ||||||
Deposits
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363,803 | 365,559 | ||||||
Borrowed funds
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29,631 | 24,983 | ||||||
Equity
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40,534 | 38,602 | ||||||
Common equity
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33,241 | 30,943 | ||||||
Return on average assets
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0.91 | % | 0.79 | % | ||||
Return on average equity
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9.82 | % | 8.78 | % | ||||
Efficiency ratio
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70.63 | % | 70.59 | % | ||||
Non-interest income to average assets
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0.74 | % | 0.71 | % | ||||
Non-interest expenses to average assets
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3.07 | % | 3.02 | % | ||||
Net overhead to average assets
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2.33 | % | 2.31 | % | ||||
Yield on loans
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4.95 | % | 5.07 | % | ||||
Yield on investment securities (TE)
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2.77 | % | 2.87 | % | ||||
Yield on average earning assets (TE)
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4.54 | % | 4.50 | % | ||||
Cost of average interest bearing liabilities
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0.72 | % | 0.77 | % | ||||
Net interest margin (TE)
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3.93 | % | 3.84 | % | ||||
Consolidated Financial Highlights (Unaudited)
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(In Thousands, Except Share Data and ratios)
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Consolidated Capital Ratios
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June 30, 2016
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December 31, 2015
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December 31, 2014
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Total shareholders’ equity to total assets ratio
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9.46 | % | 9.15 | % | 9.31 | % | ||||||
Tangible equity ratio (1)
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8.55 | % | 8.22 | % | 8.33 | % | ||||||
Common equity ratio
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7.80 | % | 7.37 | % | 7.46 | % | ||||||
Tangible common equity ratio (1)
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6.88 | % | 6.43 | % | 6.45 | % | ||||||
Book value per common share
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$ | 17.09 | $ | 16.18 | $ | 15.64 | ||||||
Tangible book value per common share (1)
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$ | 14.93 | $ | 13.97 | $ | 13.39 | ||||||
End of period common share closing price
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$ | 14.24 | $ | 13.74 | $ | 11.90 |
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(1)
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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.
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(In Thousands, Except Share Data and ratios)
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Regulation G Non-GAAP Reconciliation:
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June 30, 2016
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December 31, 2015
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December 31, 2014
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Total shareholders’ equity (a)
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$ | 41,447 | $ | 39,524 | $ | 38,448 | ||||||
Less:
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Preferred stock
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(7,261 | ) | (7,659 | ) | (7,659 | ) | ||||||
Common equity (b)
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34,186 | 31,865 | 30,789 | |||||||||
Goodwill
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(4,097 | ) | (4,097 | ) | (4,097 | ) | ||||||
Intangible assets
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(230 | ) | (265 | ) | (336 | ) | ||||||
Tangible common equity (c)
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29,859 | 27,503 | 26,356 | |||||||||
Add:
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Preferred stock
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7,261 | 7,659 | 7,659 | |||||||||
Tangible equity (d)
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37,120 | 35,162 | 34,015 | |||||||||
Total assets (e)
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438,255 | 432,181 | 412,814 | |||||||||
Less:
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Goodwill
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(4,097 | ) | (4,097 | ) | (4,097 | ) | ||||||
Intangible assets
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(230 | ) | (265 | ) | (336 | ) | ||||||
Tangible assets (f)
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$ | 433,928 | $ | 427,819 | $ | 408,381 | ||||||
Shares outstanding (in thousands) (g)
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2,000 | 1,969 | 1,969 | |||||||||
Book value per common share (b/g)
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$ | 17.09 | $ | 16.18 | $ | 15.64 | ||||||
Tangible book value per common share (c/g)
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$ | 14.93 | $ | 13.97 | $ | 13.39 | ||||||
Equity to assets ratio (a/e)
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9.46 | % | 9.15 | % | 9.31 | % | ||||||
Tangible equity ratio (d/f)
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8.55 | % | 8.22 | % | 8.33 | % | ||||||
Common equity ratio (b/e)
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7.80 | % | 7.37 | % | 7.46 | % | ||||||
Tangible common equity ratio (c/f)
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6.88 | % | 6.43 | % | 6.45 | % | ||||||