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Citizens First Corporation Announces First Quarter 2019 Results, Declares Quarterly Common Dividend

BOWLING GREEN, Ky. , April 18, 2019 /PRNewswire/ -- Citizens First Corporation ( NASDAQ: CZFC ) today reported results for the three months ended March 31, 2019 which include the following:

For the quarter ended March 31, 2019 the Company reported net income of $1.12 million , or $0.44 per diluted common share (EPS).  This represents a 3.2% increase, or $35,000 , from the $1.08 million or $0.43 per diluted common share, for the quarter ended March 31, 2018 .  "We were pleased with a $6.4 million increase in outstanding loans during the first quarter of 2019," said Todd Kanipe , President and CEO. "Operating results were mixed with a flat net interest margin compared to a year ago," Kanipe added.

Income Statement First Quarter 2019 Compared to First Quarter 2018

Net interest income decreased $57,000 , or 1.5%, from the prior year. The Company's net interest margin was 3.55% for both quarters ended March 31, 2019 and March 31, 2018 .

There was no provision for loan losses in the first quarter of the current year compared to a $30,000 provision for loan losses in the first quarter of the prior year.

Non-interest income increased $22,000 , or 2.7%, from the prior year primarily due to an increase in gains on sale of mortgage loans of $30,000 , and an increase in lease income of $31,000 , partially offset by a decrease in service charges on deposit accounts of $38,000 .

Non-interest expenses increased $23,000 , or 0.7%, from the prior year primarily due to an increase in professional fees of $90,000 and an increase in data processing expense of $15,000 , offset by a decrease in personnel expense of $37,000 and decrease in other operating expenses of $25,000 . The increase in professional fees is related to the Company's agreement and plan of merger with and into German American Bancorp, Inc. ("German American") announced during the first quarter of 2019.

Income tax expenses decreased $63,000 , or 25.2%. The effective rate was 14% in 2019 compared to 19% in 2018.  The lower rate is 2019 is partially attributed to a deduction for equity based compensation.

Credit Quality

Non-performing assets totaled $1.3 million , or 0.27% of total assets for both March 31, 2019 and December 31 , 2018.   The allowance for loan losses at March 31, 2019 was $4.4 million , or 1.16% of total loans, compared to $4.4 million , or 1.18% of total loans as of December 31 , 2018.  The Company considers 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 the Company's loan portfolio.

Balance Sheet

Total assets at March 31, 2019 were $472.0 million , compared to $476.0 million at December 31, 2018 , a decrease of 0.8%.   Loans increased $6.4 million , or 1.7%, from December 31, 2018 to March 31, 2019. Deposits decreased $6.8 million , or 1.7%, from December 31, 2018 to March 31, 2019.  Borrowings from the Federal Home Loan Bank had no change from December 31, 2018 to March 31, 2019.

Stockholders' equity increased to $51.4 million at March 31, 2019 from $50.0 million at December 31, 2018 , an increase of $1.4 million or 2.7%.  The book value per common share and tangible book value per common share ratios were $20.18 and $18.55 , respectively, at March 31, 2019 compared to $19.71 and $18.07 , respectively, at December 31, 2018 .

Postponement of 2019 Annual Meeting of Shareholders

The Company's Board of Directors has postponed its 2019 Annual Meeting of Shareholders given Citizens First's proposed merger transaction with German American announced during the first quarter of 2019.  A postponed Annual Meeting would be held (and the meeting date, record date and related dates for stockholder proposals announced) later in 2019 only if the merger transaction with German American is not consummated.

Quarterly Common Dividend Payable May 16

On April 18, 2019 , the Board of Directors declared a quarterly cash dividend of $0.07 per common share payable May 16, 2019 to shareholders of record on May 2 , 2019.

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















(In Thousands, Except
Per Share Data and ratios)




March 31, 


December 31, 


December 31, 




2019


2018


2017


Assets











Cash and due from financial institutions


$

6,998


$

8,875


$

6,444


Federal funds sold





10,000




Interest-bearing deposits in other financial institutions



17,337



16,010



13,532


Available-for-sale securities



45,627



47,098



48,616


Loans held for sale



117



269



427


Loans



377,922



371,544



374,239


Allowance for loan losses



(4,399)



(4,373)



(4,724)


Premises and equipment, net



8,790



8,861



9,140


Bank owned life insurance (BOLI)



8,751



8,705



8,528


Federal Home Loan Bank (FHLB) stock, at cost



2,065



2,065



2,053


Accrued interest receivable



1,651



1,683



1,681


Deferred income taxes



430



545



670


Goodwill and other intangible assets



4,132



4,150



4,221


Other assets



2,660



550



555


Total Assets


$

472,081


$

475,982


$

465,382


Liabilities











Deposits











Noninterest bearing


$

52,542


$

55,006


$

53,259


Savings, NOW and money market



191,997



192,762



175,087


Time



137,262



140,841



143,968


Total deposits



381,801



388,609



372,314


FHLB advances and other borrowings



30,000



30,000



40,000


Subordinated debentures



5,000



5,000



5,000


Accrued interest payable



421



410



285


Other liabilities



3,473



1,944



1,949


Total Liabilities



420,695



425,963



419,548


Stockholders' Equity











Common stock



33,253



33,309



33,138


Retained earnings



18,307



17,365



13,142


Accumulated other comprehensive loss



(174)



(655)



(446)


Total stockholders' equity



51,386



50,019



45,834


Total liabilities and stockholders' equity


$

472,081


$

475,982


$

465,382


Consolidated Financial Highlights (Unaudited)

Consolidated Statement of Income





















Three months ended




(In Thousands, Except Per Share Data and ratios)




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 




2019


2018


2018


2018


2018


Interest and dividend income


$

5,156


$

5,112


$

5,094


$

5,162


$

4,860


Interest expense



1,313



1,277



1,182



1,064



960


   Net interest income



3,843



3,835



3,912



4,098



3,900



















Provision for loan losses





70



30



30



30



















Non-interest income

















Service charges on deposit accounts



260



332



291



309



298


Other service charges and fees



281



307



319



319



281


Gain on sale of mortgage loans



80



106



95



69



50


Non-deposit brokerage fees



95



109



110



101



99


Lease income



83



53



52



79



52


BOLI income



46



45



45



44



43


Total non-interest income



845



952



912



921



823



















Non-interest expenses

















Personnel expense



1,809



1,812



1,730



1,773



1,846


Net occupancy expense



448



436



457



432



453


Advertising and public relations



73



91



102



85



81


Professional fees



254



154



156



172



164


Data processing services



209



202



208



205



194


Franchise shares and deposit tax



120



120



120



120



120


FDIC insurance



35



45



42



43



42


Other



434



454



470



461



459


Total non-interest expenses



3,382



3,314



3,285



3,291



3,359



















Income before income taxes



1,306



1,403



1,509



1,698



1,334


Income taxes



187



240



311



324



250


Net income



1,119



1,163



1,198



1,374



1,084


Net income available for common stockholders


$

1,119


$

1,163


$

1,198


$

1,374


$

1,084


Basic earnings per common share


$

0.44


$

0.46


$

0.47


$

0.54


$

0.43


Diluted earnings per common share


$

0.44


$

0.45


$

0.47


$

0.54


$

0.43


Consolidated Financial Highlights (Unaudited)

Key Operating Statistics





















Three months ended




(In Thousands, Except Per Share Data and ratios)




March 31, 


December 31, 


September 30, 


June 30, 


March 31, 




2019


2018


2018


2018


2018


Average:

















Assets


$

469,202


$

473,070


$

482,506


$

478,836


$

476,063


Earning Assets



441,447



445,855



454,914



451,315



448,853


Loans



378,524



367,921



377,140



389,614



384,184


Interest-bearing deposits



329,733



329,096



333,042



328,931



322,627


Deposits



381,111



381,687



388,124



383,144



375,617


Borrowed funds



35,000



39,783



43,685



46,758



52,167


Equity



50,403



49,090



48,242



47,006



46,023


Common equity



50,403



49,090



48,242



47,006



46,023



















Return on average assets



0.97

%


0.98

%


0.99

%


1.15

%


0.92

%

Return on average equity



9.00

%


9.41

%


9.85

%


11.72

%


9.55

%


















Efficiency ratio



71.78

%


68.87

%


67.74

%


65.23

%


70.72

%

Non-interest income to average assets



0.73

%


0.80

%


0.75

%


0.77

%


0.70

%

Non-interest expenses to average assets



2.92

%


2.78

%


2.70

%


2.76

%


2.86

%

Net overhead to average assets



2.19

%


1.98

%


1.95

%


1.99

%


2.16

%

Yield on loans



5.08

%


4.99

%


4.89

%


4.94

%


4.75

%

Yield on investment securities (TE)



2.80

%


2.73

%


2.51

%


2.61

%


2.56

%

Yield on average earning assets (TE)



4.76

%


4.57

%


4.46

%


4.61

%


4.42

%

Cost of average interest bearing liabilities



1.46

%


1.37

%


1.24

%


1.14

%


1.04

%

Net interest margin (TE)



3.55

%


3.43

%


3.43

%


3.67

%


3.55

%

Number of FTE employees



93



97



98



99



96



















Asset Quality Indicators:

















Non-performing loans to total loans



0.34

%


0.35

%


0.54

%


0.54

%


0.54

%

Non-performing assets to total assets



0.27

%


0.27

%


0.43

%


0.43

%


0.43

%

Allowance for loan losses to total loans



1.16

%


1.18

%


1.29

%


1.24

%


1.21

%

YTD net charge-offs (recoveries) to average loans, annualized



(0.03)

%


0.13

%


0.01

%


0.02

%


0.06

%

YTD net charge-offs (recoveries)



(27)



511



38



34



61


Consolidated Financial Highlights (Unaudited)















(In Thousands, Except
Per Share Data and ratios)




March 31, 


December 31, 


December 31, 


Consolidated Capital Ratios


2019


2018


2017













Total shareholders' equity to total assets ratio



10.88

%


10.51

%


9.85

%

Tangible equity ratio (1)



10.10

%


9.72

%


9.02

%

Tangible common equity ratio (1)



10.10

%


9.72

%


9.02

%

Book value per common share


$

20.18


$

19.71


$

18.14


Tangible book value per common share (1)


$

18.55


$

18.07


$

16.47


End of period common share closing price


$

24.81


$

21.43


$

24.00














(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 Per 
Share Data and ratios)




March 31, 


December 31, 


December 31, 


Regulation G Non-GAAP Reconciliation:


2019


2018


2017













Total shareholders' equity (a)


$

51,386


$

50,019


$

45,834


Less:











Goodwill



(4,097)



(4,097)



(4,097)


Intangible assets



(35)



(53)



(124)


Tangible common equity (b)



47,254



45,869



41,613













Total assets (c)



472,081



475,982



465,382


Less:











Goodwill



(4,097)



(4,097)



(4,097)


Intangible assets



(35)



(53)



(124)


Tangible assets (d)


$

467,949


$

471,832


$

461,161


Shares outstanding (in thousands) (e)



2,547



2,538



2,526













Book value per common share (a/e)


$

20.18


$

19.71


$

18.14


Tangible book value per common share (b/e)


$

18.55


$

18.07


$

16.47


Equity to assets ratio (a/c)



10.88

%


10.51

%


9.85

%

Tangible equity ratio (b/d)



10.10

%


9.72

%


9.02

%

Common equity ratio (a/c)



10.88

%


10.51

%


9.85

%

Tangible common equity ratio (b/d)



10.10

%


9.72

%


9.02

%

Cision

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