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) November 14, 2012
Citizens Bancshares Corporation
(Exact name of registrant as specified in its charter)
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Georgia |
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333-38509 |
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58-1631302 |
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(State or other jurisdiction |
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(Commission |
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(IRS Employer |
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of incorporation) |
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File Number) |
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Identification No.) |
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75 Piedmont Avenue, NE, Atlanta, Georgia, USA |
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30303 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code (404) 659-5959
(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 obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On November 14, 2012, Citizens Bancshares Corporation (the “Registrant”) issued a press release announcing its third quarter results for 2012. A copy of the press release issued by the Registrant is filed herewith as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements, Pro Forma Information, and Exhibits
Exhibit 99.1
Press Release of Registrant, dated November 14, 2012, announcing third quarter 2012 results.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CITIZENS BANCSHARES CORPORATION | |||
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By: |
/s/ Cynthia N. Day | ||
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Cynthia N. Day | ||
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President and CEO | ||
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Dated: |
November 14, 2012 |
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Exhibit 99.1
FOR IMMEDIATE RELEASE
November 14, 2012
Citizens Bancshares Corporation Announces 2012 Third Quarter Results
ATLANTA, November 14, 2012/PRNewswire-FirstCall/ — Citizens Bancshares Corporation (OTC Bulletin Board: CZBS) (the “Company”), the parent company of Citizens Trust Bank (“CTB”), today announced third quarter net income before preferred dividends of $268,000 compared to net income before preferred dividends of $92,000 for the same period last year. Net income available to common shareholders for the third quarter of 2012 was $209,000, or $0.10 per diluted common share compared to a net income available to common shareholders of $33,000, or $0.02 per diluted common share, reported for the third quarter of 2011.
“We continue to be pleased with the results of our overall operations and the progress we are making in implementing our problem asset disposition plan” said President and Chief Executive Officer Cynthia N. Day. “Our nonperforming assets declined by $4.0 million, or 20% from the prior quarter, and $6.7 million, or 29%, year-to-date to $16 million. The improvement noted in the third quarter of 2012 includes a 22% reduction in nonperforming loans and a 15% reduction in foreclosed real estate. Also, credit quality continues to improve as our provision for loan losses declined $225,000 from the prior quarter and $255,000 compared to the same quarter last year.”
Year-to-date, the Company reported a net income before preferred dividends of $153,000 compared to a net loss of $64,000 before preferred dividends for the same period in 2011. Net loss available to common shareholders for the nine month period was $25,000, or $0.01 per diluted common share compared to a net loss available to common shareholders of $241,000, or $0.11 per diluted common share, reported for the same period in 2011. The loss realized for the nine months is mainly due to an additional $1.8 million in OREO related expenses compared to last year due to our nonperforming asset disposition strategy. This expense was partially offset by a $707,000 decrease in our loan loss provision due to improved credit quality.
Other financial highlights:
· Average loans increased $1.5 million compared to the previous quarter and increased by $2.1 million on a year over year basis.
· The Company’s net interest margin on a year-to-date basis remains strong on a fully tax equivalent basis at 4.45%.
· Core expenses continue to be closely managed. Excluding OREO related expenses, total noninterest expense declined by $62,000 compared to the third quarter of 2011. All inclusive, total noninterest expense decreased by $89,000 compared to the same quarter last year. Year-to-date, excluding OREO related expenses, total noninterest expense declined by $603,000 compared to the same nine month period in 2011.
· The Company’s capital position remains strong at September 30, 2012 as both the Company and the Bank’s capital position exceed the well capitalized minimum levels currently required by regulation.
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3rd |
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3rd |
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Quarter |
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Quarter |
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(In thousands, expect per share data) |
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2012 |
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2011 |
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Change |
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Income Statement |
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Net income available to common shareholders |
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$ |
209 |
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$ |
33 |
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533.3 |
% |
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Net income per diluted common share |
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0.10 |
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0.02 |
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400.0 |
% | ||
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Total revenue |
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5,289 |
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5,446 |
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(2.9 |
)% | ||
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Provision for loan losses |
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525 |
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780 |
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(32.7 |
)% | ||
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Noninterest income |
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1,305 |
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1,411 |
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(7.5 |
)% | ||
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Noninterest expense |
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4,298 |
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4,387 |
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(2.0 |
)% | ||
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Balance Sheet |
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Average loans, gross |
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197,309 |
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195,220 |
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1.1 |
% | ||
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Average deposits |
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340,451 |
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341,543 |
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(0.3 |
)% | ||
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Capital |
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Total capital (to risk weighted assets) |
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18 |
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18 |
% |
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Tier 1 capital (to risk weighted assets) |
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17 |
% |
17 |
% |
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Tier 1 capital (to average assets) |
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11 |
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11 |
% |
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The allowance for loan losses was $3.9 million and $4.0 million at September 30, 2012 and December 31, 2011, respectively. At September 30, 2012, the allowance for loan losses was 37% of nonperforming loans compared to 31% at December 31, 2011. The Company considers its allowance for loan losses at September 30, 2012 to be adequate.
Citizens Trust Bank prides itself on offering a full range of quality products and services throughout metropolitan Atlanta and Columbus, Georgia, and in Birmingham and Eutaw, Alabama. Since its inception, the Bank has remained dedicated to the growth and development of communities through superior products and extraordinary service. Through its parent company, Citizens Bancshares Corporation, the Bank offers its common stock over-the-counter to the general public under the trading symbol CZBS and can be found on the web at www.CTBconnect.com.
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, risks and uncertainties. More information about these factors, risks and uncertainties is contained in our filings with the Securities and Exchange Commission.
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Contact: |
SOURCE: Citizens Bancshares Corporation |
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Citizens Bancshares Corporation |
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Samuel J. Cox, Chief Financial Officer |
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(404) 575-8306 |
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