Citizens First Corporation Announces Fourth Quarter and Year-End 2015 Results

BOWLING GREEN, Ky., Jan. 21, 2016

• For the quarter ended December 31, 2015, the Company reported net income of $1.15 million, or $0.45 per diluted common share. This represents an increase of $376,000, or $0.14 per diluted common share from the linked quarter ended September 30, 2015 and an increase of $264,000, or $0.10 per diluted common share, from the quarter ended December 31, 2014. "Growth in average loan balances, steady margins, and expense control drove fourth quarter profitability," said Todd Kanipe, President and CEO. "Asset quality also contributed as non-performing assets continued their positive trend, helping keep credit costs low."
• For the year ended December 31, 2015, net income totaled $3.61 million, or $1.40 per diluted common share. This represents an increase of $366,000, or $0.11 per diluted common share, from the net income of $3.24 million in the previous year. "Our strategy of targeted loan and deposit growth produced a second consecutive year of record profitability and our fourth in five years," Kanipe added. "These earnings enabled continued execution of our capital plan. During 2015 we retired all warrants associated with TARP, resumed a common dividend, and continued to improve the tangible book value of our company."
• Non-performing assets totaled $637,000, or 0.15% of total assets, at December 31, 2015 compared to $1.36 million, or 0.33% of total assets at December 31, 2014, a decrease of $728,000. Non-performing assets decreased $376,000 from the linked quarter ended September 30, 2015.
• The Company's net interest margin was 3.94% for the quarter ended December 31, 2015 compared to 3.84% for the linked quarter ended September 30, 2015, and 3.94% for the quarter ended December 31, 2014, an increase of 10 basis points for the linked quarter and unchanged from the prior year. The Company's net interest margin improved from the linked quarter due primarily to a reduction in the cost of interest-bearing liabilities.
• Total loans increased 3.9% to $330.8 million at December 31, 2015 compared to $318.5 million at December 31, 2014. Total deposits increased 8.4% to $370.4 million at December 31, 2015 compared to $341.8 million at December 31, 2014.
• Shares of CZFC closed at $13.74 as of December 31, 2015, an increase of 15.5% from the closing price of $11.90 at December 31, 2014, and an increase of 39.4% from the closing price of $9.86 at December 31, 2013.

Fourth Quarter 2015 Compared to Third Quarter 2015

• Net interest income increased $118,000, or 3.1%, due to an increase in average loan balances for the quarter.
• Non-interest income increased $81,000, or 9.6%, primarily due to a gain on the sale of loans included in other non-interest income of $95,000 and to a gain on the sale of investment securities of $68,000, partially offset by declines in non-deposit brokerage fees and service charges on deposits.
• Non-interest expense decreased $311,000, or 8.8%, compared to the previous quarter, primarily due to the $262,000 loss on disposal of a former branch facility which occurred in the third quarter.

Fourth Quarter 2015 Compared to Fourth Quarter 2014

• Net interest income increased $151,000, or 4.1%, as the volume of earning assets increased from the prior year.
• Non-interest income increased $184,000, or 25.0%, primarily due to a gain on the sale of loans included in other non-interest income of $95,000 and an increase in the gain on the sale of investment securities of $47,000.
• Non-interest expense decreased $3,000, or 0.1%, primarily due to a decrease in core deposit intangible expense and franchise tax expense of $64,000 and $61,000, respectively, partially offset by an increase in personnel expenses of $42,000.

Balance Sheet at December 31, 2015

• Total assets increased $19.4 million, or 4.7%, from December 31, 2014 to December 31, 2015 due primarily to a growth in outstanding loans. Average assets year-to-date increased 3.6%, or $14.9 million from December 31, 2014. Average interest earning assets year-to-date increased 4.1%, or $15.8 million, from December 31, 2014.
• Stockholders' equity increased $1.1 million, or 2.8%, from December 31, 2014 to December 31, 2015. During 2015, the Company repurchased the 254,218 warrants issued in 2008 to the US Treasury as part of its participation in the US Treasury's Capital Purchase Program for $1.7 million. The tangible common equity ratio declined slightly to 6.43% as of December 31, 2015 compared to 6.45% at December 31, 2014 due to the warrants redemption. The Company paid a cash dividend of $.08 per common share in the fourth quarter of 2015, which marks the first common dividend paid since December, 2008.

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