Citizens First Corp (CZFC, Financial) filed Quarterly Report for the period ended 2009-06-30.
CITIZENS FIRST CORPORATION operates as a holding company for Citizens First Inc. which provides various banking and financial services primarily to individual and corporate customers in Barren Hart Simpson and Warren counties Kentucky. The company\'s deposit portfolio primarily includes checking accounts regular savings accounts NOW accounts money market accounts sweep accounts fixed and variable-rate IRA accounts certificate of deposit accounts and safety deposit boxes. It makes commercial loans principally to small and medium-sized businesses; originates and maintains commercial real estate loans; and offers residential mortgage loans to borrowers for purchasing and refinancing one to four family properties. Citizens First Corp has a market cap of $8.9 million; its shares were traded at around $4.5 with and P/S ratio of 0.4.
For the quarter ended June 30, 2009, net interest income was $2.6 million, a decrease of $100,000 from net interest income of $2.7 million for the comparable period in 2008. For the six months ended June 30, 2009, net interest income was $5.3 million, a decrease of $200,000 from net interest income of $5.5 million for the comparable period in 2008.
The provision for loan losses for the second quarter of 2009 was $2.9 million, or 1.08% of average loans, compared to $227,000, or 0.08% of average loans for the second quarter of 2008. For the six months ended June 30, 2009 and 2008, the provision for loan losses was $3.2 million and $277,000, respectively. The increase in the provision expense is reflective of the charge-off of previously classified loans that have experienced further deterioration in the current economic environment. Non-performing assets totaled $3.1 million at June 30, 2009, compared to $3.7 million at December 31, 2008, a decrease of $600,000. The decrease in non-performing assets can be attributed primarily to the sale of other real estate owned since December 31, 2008.
Non-interest income for the six months ended June 30, 2009 and 2008, respectively, was $1,673,000 and $1,377,000, an increase of $296,000, or 21.5%. Included in non-interest income for the first six months of 2009 is a decrease in lease income of $24,000, or 22.9%, resulting from the loss of a tenant in the Company s main office building due to the tenant s termination of the lease agreement. A new tenant is currently being sought. Service charges on deposit accounts decreased $131,000 for the first six months of 2009, or 17%, as compared to the first six months of 2008. Gain on the sale of mortgage loans increased $57,000, or 41.3%, for the six months ended June 30, 2009 as compared to the same period for 2008, as mortgage lending increased primarily as a result of first time home buyer tax credits. With lower mortgage rates, home refinancings have also increased.
Non-interest expense was $3.3 million in the second quarter of 2009, up from $2.7 million in the same quarter of 2008, an increase of $527,000, or 19.3%. An increase in salary and employee benefit expense of $185,000, due to a severance payment in the second quarter of 2009 offset by a reduction in the number of employees in 2008 due to streamlining of personnel in the first quarter of 2008 and a reduction in stock-based compensation expense in 2009 accounted for the most significant variance compared to the same period in 2008. Professional fees increased $74,000, or 74.7%, for the three months ended June 30, 2009 as compared to the three months ended June 30, 2008 as a result of the legal fees associated with the termination of the an executive officer and fees on problem loans. FDIC insurance increased $205,000 in the second quarter of 2009, or 372.7%, as compared to the same period for 2008. The second quarter of 2009 included a 5 basis point special assessment in addition to the increased premiums implemented in 2009 to replenish the deposit insurance fund.
Non-interest expense was $6.1 million for the six months ended June 30, 2009, up from $5.5 million in the same period of 2008. Occupancy expense increased $54,000 due to a new branch opening in the first quarter of 2009. Professional fees increased $136,000 or 70.8%, for the six months ended June 30, 2009 as compared to the same period for 2008 due primarily to the increase in legal fees in the second quarter of 2009 noted above. FDIC insurance increased $270,000 for the first six months of 2009 as compared to the first six months of 2008 due to the increased FDIC assessments.
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CITIZENS FIRST CORPORATION operates as a holding company for Citizens First Inc. which provides various banking and financial services primarily to individual and corporate customers in Barren Hart Simpson and Warren counties Kentucky. The company\'s deposit portfolio primarily includes checking accounts regular savings accounts NOW accounts money market accounts sweep accounts fixed and variable-rate IRA accounts certificate of deposit accounts and safety deposit boxes. It makes commercial loans principally to small and medium-sized businesses; originates and maintains commercial real estate loans; and offers residential mortgage loans to borrowers for purchasing and refinancing one to four family properties. Citizens First Corp has a market cap of $8.9 million; its shares were traded at around $4.5 with and P/S ratio of 0.4.
Highlight of Business Operations:
The Company reported a net loss before dividends to preferred shareholders for the three months ended June 30, 2009 of $(1,577,000) compared to net income of $370,000 in the second quarter of 2008. Net loss available to common shareholders was $(1,833,000) or, $(.93) per basic and diluted share this quarter, compared to net income available to common shareholders of $240,000, or $0.13 per basic and diluted common share for the first quarter of 2008. Net income was impacted negatively by further compression in the net interest margin, provision expense, and a FDIC insurance special assessment in addition to a normal increase in premiums.For the quarter ended June 30, 2009, net interest income was $2.6 million, a decrease of $100,000 from net interest income of $2.7 million for the comparable period in 2008. For the six months ended June 30, 2009, net interest income was $5.3 million, a decrease of $200,000 from net interest income of $5.5 million for the comparable period in 2008.
The provision for loan losses for the second quarter of 2009 was $2.9 million, or 1.08% of average loans, compared to $227,000, or 0.08% of average loans for the second quarter of 2008. For the six months ended June 30, 2009 and 2008, the provision for loan losses was $3.2 million and $277,000, respectively. The increase in the provision expense is reflective of the charge-off of previously classified loans that have experienced further deterioration in the current economic environment. Non-performing assets totaled $3.1 million at June 30, 2009, compared to $3.7 million at December 31, 2008, a decrease of $600,000. The decrease in non-performing assets can be attributed primarily to the sale of other real estate owned since December 31, 2008.
Non-interest income for the six months ended June 30, 2009 and 2008, respectively, was $1,673,000 and $1,377,000, an increase of $296,000, or 21.5%. Included in non-interest income for the first six months of 2009 is a decrease in lease income of $24,000, or 22.9%, resulting from the loss of a tenant in the Company s main office building due to the tenant s termination of the lease agreement. A new tenant is currently being sought. Service charges on deposit accounts decreased $131,000 for the first six months of 2009, or 17%, as compared to the first six months of 2008. Gain on the sale of mortgage loans increased $57,000, or 41.3%, for the six months ended June 30, 2009 as compared to the same period for 2008, as mortgage lending increased primarily as a result of first time home buyer tax credits. With lower mortgage rates, home refinancings have also increased.
Non-interest expense was $3.3 million in the second quarter of 2009, up from $2.7 million in the same quarter of 2008, an increase of $527,000, or 19.3%. An increase in salary and employee benefit expense of $185,000, due to a severance payment in the second quarter of 2009 offset by a reduction in the number of employees in 2008 due to streamlining of personnel in the first quarter of 2008 and a reduction in stock-based compensation expense in 2009 accounted for the most significant variance compared to the same period in 2008. Professional fees increased $74,000, or 74.7%, for the three months ended June 30, 2009 as compared to the three months ended June 30, 2008 as a result of the legal fees associated with the termination of the an executive officer and fees on problem loans. FDIC insurance increased $205,000 in the second quarter of 2009, or 372.7%, as compared to the same period for 2008. The second quarter of 2009 included a 5 basis point special assessment in addition to the increased premiums implemented in 2009 to replenish the deposit insurance fund.
Non-interest expense was $6.1 million for the six months ended June 30, 2009, up from $5.5 million in the same period of 2008. Occupancy expense increased $54,000 due to a new branch opening in the first quarter of 2009. Professional fees increased $136,000 or 70.8%, for the six months ended June 30, 2009 as compared to the same period for 2008 due primarily to the increase in legal fees in the second quarter of 2009 noted above. FDIC insurance increased $270,000 for the first six months of 2009 as compared to the first six months of 2008 due to the increased FDIC assessments.
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