Citizens First Corporation Announces Second Quarter 2014 Results

BOWLING GREEN, Ky., July 21, 2014

• For the quarter ended June 30, 2014, the Company reported net income of $733,000, which represents an increase of $42,000 from the linked quarter ended March 31, 2014 and a decrease of $55,000 from the quarter ended June 30, 2013. Earnings per diluted common share for the current quarter were $0.29, an increase of $0.02 from the linked quarter ended March 31, 2014 and a decrease of $0.01 for the quarter ended June 30, 2013.
• For the six months ended June 30, 2014, net income totaled $1.42 million, or $0.56 per diluted common share.  This represents an increase of $521,000, or $0.31 per diluted common share, from the net income of $903,000 in the first six months of the previous year.
• The Company's net interest margin was 3.74% for the quarter ended June 30, 2014 compared to 3.81% for the linked quarter ended March 31, 2014 and 3.77% for the quarter ended June 30, 2013, a decrease of 7 basis points for the linked quarter and a decrease of 3 basis points from the prior year.  The Company's net interest margin decreased from prior periods due to a decline in the yield on loans.
• Total loans increased $16.4 million, or 5.6%, to $311.5 million at June 30, 2014 compared to $295.1 million at December 31, 2013. Total deposits increased $2.8 million, or 0.8%, to $345.8 million at June 30, 2014 compared to $343.0 million at December 31, 2013.  Todd Kanipe, President & CEO of Citizens First, commented, "commercial loan growth during the first half of the year along with a much lower provision for loan losses and improved asset quality were significant contributors to improved profitability.  We remain encouraged by overall loan demand in our markets."

Second Quarter 2014 Compared to First Quarter 2014

Net interest income for the quarter ended June 30, 2014 improved $31,000 from the previous quarter, or 0.9%, as the volume of average earning assets increased $6.0 million for the second quarter of 2014.

Non-interest income for the three months ended June 30, 2014 increased $129,000, or 20.5%, compared to the previous quarter, primarily due to an increase in service charges on deposits of $35,000 and an increase in security gains of $74,000.  Non-interest expense for the three months ended June 30, 2014 increased $71,000, or 2.3%, compared to the previous quarter, primarily due to an increase in other real estate expense.

A $150,000 provision for loan losses was recorded for the second quarter of 2014, compared to a $125,000 provision in the previous quarter, an increase of $25,000.  The allowance for loan losses to total loans remained relatively constant at 1.59% compared to 1.60% in the first quarter.  Net charge-offs (recoveries) were $24,000 for the second quarter of 2014 compared to $(49,000) in the first quarter of 2014.  

Second Quarter 2014 Compared to Second Quarter 2013

Net interest income for the quarter ended June 30, 2014 decreased $26,000, or 0.7%, compared to the previous year.  The decrease in net interest income was impacted by a reduction in interest expense of $69,000 combined with a decrease in interest income of $95,000.  The decrease in interest income was created by a decline in the yield on loans from 5.28% in the second quarter of 2013 to 5.13% in the second quarter of 2014.  Loan yields have declined as maturing loans were repriced at a lower rate.