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) 07/20/2017
CITIZENS FIRST CORPORATION
(Exact name of registrant as specified in its charter)
Kentucky |
001-33126 |
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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ◻
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On July 20, 2017, 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 second quarter ended June 30, 2017.
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 July 20, 2017, 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 second quarter ended June 30, 2017. 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 July 20, 2017
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 |
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|
|
|
|
Date: July 20, 2017 |
3
EXHIBIT INDEX
99.1Press Release dated July 20, 2017
4
Exhibit 99.1
Citizens First Corporation Announces Second Quarter 2017 Results and Completion of Preferred Stock Redemption
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, July 20, 2017 – Citizens First Corporation (NASDAQ: CZFC) today reported results for the second quarter ending June 30, 2017, which include the following:
For the quarter ended June 30, 2017, the Company reported net income of $1.11 million, or $0.43 per diluted common share. This represents an increase of $34,000 from $1.07 million, or $0.42 per diluted common share, for the quarter ended June 30, 2016. For the six months ended June 30, 2017, net income totaled $2.02 million, or $0.79 per diluted common share. This represents an increase of $36,000, or $0.01 per diluted common share, from the net income of $1.98 million in the first six months of the previous year.
As of June 30, 2017, the Company completed the redemption of the 6.5% Cumulative Preferred Stock, which provided an additional $7.1 million in common equity. Outstanding common shares of the Company increased 25% as a result of the preferred shareholders’ option to convert preferred shares into common shares. The Company’s tangible common equity ratio increased from 6.83% at December 31, 2016 to 8.75% at June 30, 2017. “In addition to improving our tangible common equity, the conversion of the preferred shares will reduce annual preferred dividend expense by $476,000,” said Todd Kanipe, President and CEO.
Income Statement Second Quarter 2017 Compared to Second Quarter 2016
Net interest income decreased $45,000, or 1.2%, as the yield on loans decreased and the cost of funds increased from the second quarter of the prior year. The Company’s net interest margin was 3.69% for the quarter ended June 30, 2017, compared to 3.92% for the quarter ended June 30, 2016, a decrease of 23 basis points. The Company’s net interest margin decreased primarily due to a decline in the yield on loans and an increase in the cost of interest-bearing liabilities.
There was no provision for loan losses in the second quarter of the current year compared to an ($85,000) (credit) provision for loan losses in the second quarter of the prior year.
Non-interest income increased $7,000, or 0.8%, from the prior year primarily due to an increase in lease income of $31,000 and other service charges and fees of $29,000, offset by a decrease in gains on sale of securities of $55,000.
Non-interest expense decreased $177,000, or 5.2%, from the prior year primarily due to a decrease in other expenses of $78,000, a reduction in occupancy expenses of $46,000, and a decrease in personnel expense of $21,000.
Income Statement Current Year Compared to Prior Year
Net interest income decreased $128,000, or 1.6%, as the yield on loans decreased and the cost of funds increased from the prior year. The Company’s net interest margin was 3.68% for the six months ended June 30, 2017, and 3.93% for the six months ended June 30, 2016, a decrease of 25 basis points. The Company’s net interest margin decreased due to a decrease in the yield on average earning assets coupled with an increase in the cost of average interest-bearing liabilities.
Non-interest income decreased $40,000, or 2.2%, primarily due to a reduction in gains on the sale of securities of $83,000 and a decrease in service charges on deposit accounts of $59,000, offset by an increase in other service charges and fees of $45,000 and lease income of $38,000.
Non-interest expense decreased $340,000, or 5.0%, primarily due to reductions in all categories of expenses, including $71,000 in personnel expenses and $68,000 in occupancy expenses. “We have been successful in lowering operating expenses which has contributed to the improvement of the overall profitability of the Company,” Kanipe added.
Credit Quality
Non-performing assets totaled $2.9 million, or 0.63% of total assets, at June 30, 2017 compared to $23,000, or 0.01% of total assets at December 31, 2016, an increase of $2.9 million. Two agricultural-related credits were moved to non-accrual status during the first quarter of 2017.
The allowance for loan losses at June 30, 2017 was $4.9 million, or 1.36% 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 June 30, 2017 were $462.4 million compared to $455.4 million at December 31, 2016. Total assets increased $6.9 million, or 1.5%, from December 31, 2016 to June 30, 2017 due to a growth in loans and interest-bearing deposits in other financial institutions, partially offset by a decline in available-for-sale securities.
Loans increased $1.1 million, or 0.3%, from December 31, 2016 to June 30, 2017. “Higher than anticipated payoffs and softer loan demand resulted in flat average loan balances in the second quarter of 2017,” Kanipe noted. Deposits increased $426,000, or 0.1%, from December 31, 2016 to June 30, 2017. Borrowings from the Federal Home Loan Bank increased $5.0 million, or 14.3%, from December 31, 2016 to June 30, 2017.
Stockholders’ equity increased to $44.3 million at June 30, 2017 from $42.4 million at December 31, 2016. The book value per common share and tangible book value per common share ratios were $17.55 and $15.87, respectively, at June 30, 2017 compared to $17.54 and $15.40, respectively, at December 31, 2016.
Redemption and Conversion of Cumulative Preferred Stock
On May 15, 2017, the Board of Directors of the Company authorized the redemption of all 229 outstanding shares of the Company’s Cumulative Convertible Preferred Stock (“Preferred Shares”) as of June 30, 2017 (the “Redemption Date”) at the redemption price of $31,992 per share (the Stated Value of the Preferred Shares), plus accrued and unpaid dividends. The Preferred Shares were convertible at the option of the holder, until the day prior to the Redemption Date, into a number of shares of common stock determined by dividing the Stated Value of the Preferred Shares ($31,992) by $14.06, the conversion price.
From May 15, 2017 to the Redemption Date, the Company issued an aggregate of 507,325 shares of common stock upon conversion of 223 Preferred Shares. Six preferred shares with an aggregate redemption price of $191,952 were redeemed. As a result of the conversion of Preferred Shares, the outstanding shares of the Company’s common stock have increased from 2,019,052 to 2,526,377 as of June 30, 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
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(In Thousands, Except Share Data and ratios) |
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|||||||
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June 30, |
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December 31, |
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December 31, |
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|
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2017 |
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2016 |
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2015 |
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Assets |
|
|
|
|
|
|
|
|
|
|
Cash and due from financial institutions |
|
$ |
6,769 |
|
$ |
8,542 |
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$ |
8,865 |
|
Federal funds sold |
|
|
— |
|
|
— |
|
|
6,390 |
|
Interest-bearing deposits in other financial institutions |
|
|
24,351 |
|
|
11,018 |
|
|
2,728 |
|
Available-for-sale securities |
|
|
48,560 |
|
|
53,547 |
|
|
60,200 |
|
Loans held for sale |
|
|
— |
|
|
264 |
|
|
— |
|
Loans |
|
|
360,470 |
|
|
359,391 |
|
|
330,782 |
|
Allowance for loan losses |
|
|
(4,898) |
|
|
(4,854) |
|
|
(4,916) |
|
Premises and equipment, net |
|
|
9,212 |
|
|
9,390 |
|
|
9,998 |
|
Bank owned life insurance (BOLI) |
|
|
8,439 |
|
|
8,351 |
|
|
8,174 |
|
Federal Home Loan Bank (FHLB) stock, at cost |
|
|
2,053 |
|
|
2,025 |
|
|
2,025 |
|
Accrued interest receivable |
|
|
1,435 |
|
|
1,622 |
|
|
1,680 |
|
Deferred income taxes |
|
|
1,210 |
|
|
1,464 |
|
|
1,328 |
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Goodwill and other intangible assets |
|
|
4,256 |
|
|
4,291 |
|
|
4,362 |
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Other real estate owned |
|
|
— |
|
|
— |
|
|
100 |
|
Other assets |
|
|
499 |
|
|
371 |
|
|
465 |
|
Total Assets |
|
$ |
462,356 |
|
$ |
455,422 |
|
$ |
432,181 |
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
Noninterest bearing |
|
$ |
50,404 |
|
$ |
52,322 |
|
$ |
48,522 |
|
Savings, NOW and money market |
|
|
175,400 |
|
|
173,620 |
|
|
168,335 |
|
Time |
|
|
145,061 |
|
|
144,497 |
|
|
153,531 |
|
Total deposits |
|
|
370,865 |
|
|
370,439 |
|
|
370,388 |
|
FHLB advances and other borrowings |
|
|
40,000 |
|
|
35,000 |
|
|
15,000 |
|
Subordinated debentures |
|
|
5,000 |
|
|
5,000 |
|
|
5,000 |
|
Accrued interest payable |
|
|
229 |
|
|
220 |
|
|
213 |
|
Other liabilities |
|
|
1,923 |
|
|
2,399 |
|
|
2,056 |
|
Total Liabilities |
|
|
418,017 |
|
|
413,058 |
|
|
392,657 |
|
Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
6.5% Cumulative convertible preferred stock |
|
|
— |
|
|
7,261 |
|
|
7,659 |
|
Common stock |
|
|
33,050 |
|
|
25,920 |
|
|
25,406 |
|
Retained earnings |
|
|
11,321 |
|
|
9,706 |
|
|
6,304 |
|
Accumulated other comprehensive income (loss) |
|
|
(32) |
|
|
(523) |
|
|
155 |
|
Total stockholders’ equity |
|
|
44,339 |
|
|
42,364 |
|
|
39,524 |
|
Total liabilities and stockholders’ equity |
|
$ |
462,356 |
|
$ |
455,422 |
|
$ |
432,181 |
|
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
|
|
Three months ended |
|
|||||||||||||
|
|
(In Thousands, Except Per Share Data and ratios) |
|
|||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|||||
|
|
2017 |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
|||||
Interest and dividend income |
|
$ |
4,593 |
|
$ |
4,457 |
|
$ |
4,572 |
|
$ |
4,557 |
|
$ |
4,536 |
|
Interest expense |
|
|
726 |
|
|
677 |
|
|
652 |
|
|
639 |
|
|
624 |
|
Net interest income |
|
|
3,867 |
|
|
3,780 |
|
|
3,920 |
|
|
3,918 |
|
|
3,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (credit) for loan losses |
|
|
— |
|
|
30 |
|
|
— |
|
|
— |
|
|
(85) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
327 |
|
|
278 |
|
|
371 |
|
|
361 |
|
|
339 |
|
Other service charges and fees |
|
|
301 |
|
|
264 |
|
|
245 |
|
|
262 |
|
|
272 |
|
Gain on sale of mortgage loans |
|
|
88 |
|
|
68 |
|
|
97 |
|
|
110 |
|
|
91 |
|
Non-deposit brokerage fees |
|
|
91 |
|
|
87 |
|
|
85 |
|
|
83 |
|
|
75 |
|
Lease income |
|
|
80 |
|
|
52 |
|
|
52 |
|
|
61 |
|
|
49 |
|
BOLI income |
|
|
45 |
|
|
43 |
|
|
44 |
|
|
45 |
|
|
44 |
|
Gain on sale of securities |
|
|
— |
|
|
23 |
|
|
— |
|
|
20 |
|
|
55 |
|
Total non-interest income |
|
|
932 |
|
|
815 |
|
|
894 |
|
|
942 |
|
|
925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personnel expense |
|
|
1,655 |
|
|
1,734 |
|
|
1,741 |
|
|
1,674 |
|
|
1,676 |
|
Net occupancy expense |
|
|
446 |
|
|
461 |
|
|
471 |
|
|
481 |
|
|
492 |
|
Advertising and public relations |
|
|
77 |
|
|
71 |
|
|
75 |
|
|
86 |
|
|
98 |
|
Professional fees |
|
|
171 |
|
|
130 |
|
|
50 |
|
|
98 |
|
|
137 |
|
Data processing services |
|
|
251 |
|
|
253 |
|
|
256 |
|
|
262 |
|
|
263 |
|
Franchise shares and deposit tax |
|
|
132 |
|
|
132 |
|
|
132 |
|
|
132 |
|
|
132 |
|
FDIC insurance |
|
|
49 |
|
|
49 |
|
|
47 |
|
|
58 |
|
|
59 |
|
Other real estate owned expenses |
|
|
— |
|
|
— |
|
|
1 |
|
|
(8) |
|
|
23 |
|
Other |
|
|
432 |
|
|
461 |
|
|
457 |
|
|
452 |
|
|
510 |
|
Total non-interest expenses |
|
|
3,213 |
|
|
3,291 |
|
|
3,230 |
|
|
3,235 |
|
|
3,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
1,586 |
|
|
1,274 |
|
|
1,584 |
|
|
1,625 |
|
|
1,532 |
|
Income taxes |
|
|
478 |
|
|
367 |
|
|
481 |
|
|
490 |
|
|
458 |
|
Net income |
|
|
1,108 |
|
|
907 |
|
|
1,103 |
|
|
1,135 |
|
|
1,074 |
|
Dividends on preferred stock |
|
|
119 |
|
|
119 |
|
|
124 |
|
|
124 |
|
|
123 |
|
Net income available for common stockholders |
|
$ |
989 |
|
$ |
788 |
|
$ |
979 |
|
$ |
1,011 |
|
$ |
951 |
|
Basic earnings per common share |
|
$ |
0.47 |
|
$ |
0.39 |
|
$ |
0.49 |
|
$ |
0.50 |
|
$ |
0.48 |
|
Diluted earnings per common share |
|
$ |
0.43 |
|
$ |
0.36 |
|
$ |
0.43 |
|
$ |
0.45 |
|
$ |
0.42 |
|
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
|
|
Three months ended |
|
|||||||||||||
|
|
(In Thousands, Except Per Share Data and ratios) |
|
|||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
|||||
|
|
2017 |
|
2017 |
|
2016 |
|
2016 |
|
2016 |
|
|||||
Average: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
454,524 |
|
$ |
452,265 |
|
$ |
444,168 |
|
$ |
442,042 |
|
$ |
439,081 |
|
Earning Assets |
|
|
427,675 |
|
|
424,349 |
|
|
417,161 |
|
|
414,569 |
|
|
409,722 |
|
Loans |
|
|
363,733 |
|
|
363,824 |
|
|
347,046 |
|
|
344,733 |
|
|
338,456 |
|
Interest-bearing deposits |
|
|
319,883 |
|
|
314,939 |
|
|
310,336 |
|
|
304,473 |
|
|
311,084 |
|
Deposits |
|
|
368,743 |
|
|
364,227 |
|
|
360,816 |
|
|
354,953 |
|
|
360,209 |
|
Borrowed funds |
|
|
39,769 |
|
|
43,078 |
|
|
38,429 |
|
|
42,490 |
|
|
35,868 |
|
Equity |
|
|
44,047 |
|
|
42,827 |
|
|
42,652 |
|
|
42,002 |
|
|
40,912 |
|
Common equity |
|
|
38,240 |
|
|
35,718 |
|
|
35,391 |
|
|
34,741 |
|
|
33,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.98 |
% |
|
0.81 |
% |
|
0.99 |
% |
|
1.02 |
% |
|
0.98 |
% |
Return on average equity |
|
|
10.09 |
% |
|
8.59 |
% |
|
10.29 |
% |
|
10.75 |
% |
|
10.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
66.10 |
% |
|
70.96 |
% |
|
66.20 |
% |
|
65.86 |
% |
|
69.74 |
% |
Non-interest income to average assets |
|
|
0.82 |
% |
|
0.73 |
% |
|
0.80 |
% |
|
0.85 |
% |
|
0.85 |
% |
Non-interest expenses to average assets |
|
|
2.84 |
% |
|
2.95 |
% |
|
2.89 |
% |
|
2.91 |
% |
|
3.11 |
% |
Net overhead to average assets |
|
|
2.01 |
% |
|
2.22 |
% |
|
2.09 |
% |
|
2.06 |
% |
|
2.26 |
% |
Yield on loans |
|
|
4.69 |
% |
|
4.60 |
% |
|
4.86 |
% |
|
4.86 |
% |
|
4.95 |
% |
Yield on investment securities (TE) |
|
|
2.85 |
% |
|
2.87 |
% |
|
2.58 |
% |
|
2.66 |
% |
|
2.77 |
% |
Yield on average earning assets (TE) |
|
|
4.37 |
% |
|
4.32 |
% |
|
4.42 |
% |
|
4.44 |
% |
|
4.53 |
% |
Cost of average interest bearing liabilities |
|
|
0.81 |
% |
|
0.77 |
% |
|
0.74 |
% |
|
0.73 |
% |
|
0.72 |
% |
Net interest margin (TE) |
|
|
3.69 |
% |
|
3.68 |
% |
|
3.80 |
% |
|
3.83 |
% |
|
3.92 |
% |
Number of FTE employees |
|
|
95 |
|
|
94 |
|
|
95 |
|
|
94 |
|
|
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Indicators: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans |
|
|
0.80 |
% |
|
0.83 |
% |
|
0.01 |
% |
|
0.05 |
% |
|
0.06 |
% |
Non-performing assets to total assets |
|
|
0.63 |
% |
|
0.65 |
% |
|
0.01 |
% |
|
0.04 |
% |
|
0.06 |
% |
Allowance for loan losses to total loans |
|
|
1.36 |
% |
|
1.34 |
% |
|
1.35 |
% |
|
1.45 |
% |
|
1.43 |
% |
YTD net charge-offs (recoveries) to average loans, annualized |
|
|
(0.01) |
% |
|
(0.02) |
% |
|
(0.01) |
% |
|
(0.05) |
% |
|
(0.07) |
% |
YTD net charge-offs (recoveries) |
|
|
(13) |
|
|
(22) |
|
|
(23) |
|
|
(130) |
|
|
(119) |
|
Consolidated Financial Highlights (Unaudited)
Consolidated Statement of Income
|
|
Six Months Ended |
|
||||
|
|
June 30, |
|
June 30, |
|
||
|
|
2017 |
|
2016 |
|
||
Interest and dividend income |
|
$ |
9,050 |
|
$ |
9,012 |
|
Interest expense |
|
|
1,403 |
|
|
1,237 |
|
Net interest income |
|
|
7,647 |
|
|
7,775 |
|
|
|
|
|
|
|
|
|
Provision (credit) for loan losses |
|
|
30 |
|
|
(85) |
|
|
|
|
|
|
|
|
|
Non-interest income |
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
605 |
|
|
664 |
|
Other service charges and fees |
|
|
565 |
|
|
520 |
|
Gain on sale of mortgage loans |
|
|
156 |
|
|
168 |
|
Non-deposit brokerage fees |
|
|
178 |
|
|
147 |
|
Lease income |
|
|
132 |
|
|
94 |
|
BOLI income |
|
|
88 |
|
|
88 |
|
Gain on sale of securities |
|
|
23 |
|
|
106 |
|
Total non-interest income |
|
|
1,747 |
|
|
1,787 |
|
|
|
|
|
|
|
|
|
Non-interest expenses: |
|
|
|
|
|
|
|
Personnel expense |
|
|
3,389 |
|
|
3,460 |
|
Net occupancy expense |
|
|
907 |
|
|
975 |
|
Advertising and public relations |
|
|
148 |
|
|
159 |
|
Professional fees |
|
|
301 |
|
|
317 |
|
Data processing services |
|
|
504 |
|
|
519 |
|
Franchise shares and deposit tax |
|
|
264 |
|
|
264 |
|
FDIC insurance |
|
|
98 |
|
|
118 |
|
Other real estate owned expenses |
|
|
— |
|
|
24 |
|
Other |
|
|
893 |
|
|
1,008 |
|
Total non-interest expenses |
|
|
6,504 |
|
|
6,844 |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
2,860 |
|
|
2,803 |
|
Income taxes |
|
|
845 |
|
|
824 |
|
Net income |
|
|
2,015 |
|
|
1,979 |
|
Dividends on preferred stock |
|
|
238 |
|
|
247 |
|
Net income available for common stockholders |
|
$ |
1,777 |
|
$ |
1,732 |
|
Basic earnings per common share |
|
$ |
0.86 |
|
$ |
0.87 |
|
Diluted earnings per common share |
|
$ |
0.79 |
|
$ |
0.78 |
|
Consolidated Financial Highlights (Unaudited)
Key Operating Statistics
|
|
Six Months Ended |
|
||||
|
|
(In Thousands, Except Per |
|
||||
|
|
Share Data and ratios) |
|
||||
|
|
June 30, |
|
June 30, |
|
||
|
|
2017 |
|
2016 |
|
||
Average: |
|
|
|
|
|
|
|
Assets |
|
$ |
453,401 |
|
$ |
436,112 |
|
Earning Assets |
|
|
426,021 |
|
|
406,181 |
|
Loans |
|
|
363,778 |
|
|
335,728 |
|
Interest-bearing deposits |
|
|
317,425 |
|
|
315,724 |
|
Deposits |
|
|
366,498 |
|
|
363,803 |
|
Borrowed funds |
|
|
41,415 |
|
|
29,631 |
|
Equity |
|
|
43,441 |
|
|
40,534 |
|
Common equity |
|
|
36,987 |
|
|
33,241 |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.90 |
% |
|
0.91 |
% |
Return on average equity |
|
|
9.35 |
% |
|
9.82 |
% |
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
68.47 |
% |
|
70.63 |
% |
Non-interest income to average assets |
|
|
0.78 |
% |
|
0.74 |
% |
Non-interest expenses to average assets |
|
|
2.89 |
% |
|
3.07 |
% |
Net overhead to average assets |
|
|
2.12 |
% |
|
2.33 |
% |
Yield on loans |
|
|
4.65 |
% |
|
4.95 |
% |
Yield on investment securities (TE) |
|
|
2.86 |
% |
|
2.77 |
% |
Yield on average earning assets (TE) |
|
|
4.34 |
% |
|
4.54 |
% |
Cost of average interest bearing liabilities |
|
|
0.79 |
% |
|
0.72 |
% |
Net interest margin (TE) |
|
|
3.68 |
% |
|
3.93 |
% |
Number of FTE employees |
|
|
95 |
|
|
96 |
|
Consolidated Financial Highlights (Unaudited)
|
|
(In Thousands, Except Share Data and ratios) |
|
|||||||
|
|
June 30, |
|
December 31, |
|
December 31, |
|
|||
Consolidated Capital Ratios |
|
2017 |
|
2016 |
|
2015 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity to total assets ratio |
|
|
9.59 |
% |
|
9.30 |
% |
|
9.15 |
% |
Tangible equity ratio (1) |
|
|
8.75 |
% |
|
8.44 |
% |
|
8.22 |
% |
Tangible common equity ratio (1) |
|
|
8.75 |
% |
|
6.83 |
% |
|
6.43 |
% |
Book value per common share |
|
$ |
17.55 |
|
$ |
17.54 |
|
$ |
16.18 |
|
Tangible book value per common share (1) |
|
$ |
15.87 |
|
$ |
15.40 |
|
$ |
13.97 |
|
End of period common share closing price |
|
$ |
22.14 |
|
$ |
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) |
|
|||||||
|
|
June 30, |
|
December 31, |
|
December 31, |
|
|||
Regulation G Non-GAAP Reconciliation: |
|
2017 |
|
2016 |
|
2015 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
Total shareholders’ equity (a) |
|
$ |
44,339 |
|
$ |
42,364 |
|
$ |
39,524 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
— |
|
|
(7,261) |
|
|
(7,659) |
|
Common equity (b) |
|
|
44,339 |
|
|
35,103 |
|
|
31,865 |
|
Goodwill |
|
|
(4,097) |
|
|
(4,097) |
|
|
(4,097) |
|
Intangible assets |
|
|
(159) |
|
|
(194) |
|
|
(265) |
|
Tangible common equity (c) |
|
|
40,083 |
|
|
30,812 |
|
|
27,503 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
— |
|
|
7,261 |
|
|
7,659 |
|
Tangible equity (d) |
|
|
40,083 |
|
|
38,073 |
|
|
35,162 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (e) |
|
|
462,356 |
|
|
455,422 |
|
|
432,181 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(4,097) |
|
|
(4,097) |
|
|
(4,097) |
|
Intangible assets |
|
|
(159) |
|
|
(194) |
|
|
(265) |
|
Tangible assets (f) |
|
$ |
458,100 |
|
$ |
451,131 |
|
$ |
427,819 |
|
Shares outstanding (in thousands) (g) |
|
|
2,526 |
|
|
2,001 |
|
|
1,969 |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (b/g) |
|
$ |
17.55 |
|
$ |
17.54 |
|
$ |
16.18 |
|
Tangible book value per common share (c/g) |
|
$ |
15.87 |
|
$ |
15.40 |
|
$ |
13.97 |
|
Equity to assets ratio (a/e) |
|
|
9.59 |
% |
|
9.30 |
% |
|
9.15 |
% |
Tangible equity ratio (d/f) |
|
|
8.75 |
% |
|
8.44 |
% |
|
8.22 |
% |
Common equity ratio (b/e) |
|
|
9.59 |
% |
|
7.71 |
% |
|
7.37 |
% |
Tangible common equity ratio (c/f) |
|
|
8.75 |
% |
|
6.83 |
% |
|
6.43 |
% |