SOUTH HILL, Va., April 29, 2014 /PRNewswire/ --Citizens Community Bank (OTCQB: CZYB) today announced its unaudited results of operations for the first quarter of 2014.
Earnings
Citizens Community Bank is pleased to report net earnings of $269,474 to common shareholders after preferred stock dividends of $10,000 for the first quarter of 2014. The fourth consecutive quarter of positive earnings, these results translate into $0.18 per share on a basic and diluted basis and a return on average assets of 0.67%. For the first quarter of 2013, the Bank reported a net loss to common shareholders of $1,081,003 after preferred stock dividends of $10,000 or a net loss of ($0.72) per share on a basic and diluted basis.
"We have surely had a great start for 2014. Ridding ourselves of a $2 million nonperforming loan that repaid in full certainly propelled earnings for the quarter and further reduced the level of nonperforming assets. Our asset quality ranks among the top of community banks in Virginia and North Carolina, which definitely speaks to the quality and strength of the balance sheet," stated James R. Black, President and CEO. "I am also pleased to announce that we just opened our fifth full service branch, which is located in Henderson, North Carolina. This facility complements our existing branch network and demonstrates our enhanced branching model of high quality service and efficiency. The outlook for 2014 remains positive with continual improvement in franchise value."
Net interest income increased by $54,028, or 3.8% from the first quarter of 2013. The net interest margin for the first quarter of 2014 was 3.97%, compared to 3.93% for the first quarter of 2013. Net interest income without the effect of full recovery from the $2 million nonperforming loan would have been decreased by $83,310 or 5.6% at March 31, 2013. Accordingly, the net interest margin for the first quarter of 2014 would have been 3.60% or 33 basis points less than the quarter ended March 31, 2013. The yield on earning assets was 4.84% for the first quarter of 2014, 14 basis points under the first quarter of 2013, and 37 basis points lower than the first quarter of 2013 without consideration of the nonperforming loan recovery. The weighted cost of funds for the first quarter of 2014 was 0.92%, a 20 basis point improvement over the first quarter of 2013. This is attributed to continued management of interest rates as well as improvements in the deposit mix.
Noninterest income totaled $204,926 for the first quarter of 2014, an increase of $2,341 or 1.2% over the first quarter of 2013, at $202,586. Noninterest expense for the first quarter of 2014 was $1,284,140, a reduction of 45.7% from the first quarter of 2013. Noninterest expense in 2013 was $2,364,947 and was high due primarily to write-downs and losses on the sale of other real estate owned, costs associated with foreclosures and collections, coupled with additional professional and legal expenses. During the first quarter of 2014, net losses on the sale of other real estate owned totaled $1,895 compared to net losses of $30,391 for the first quarter of 2013. There were no valuation write downs on other real estate in the first quarter of 2014 compared to $960,759 at March 31, 2013. Legal and professional expenses were higher in 2013 due to the preparation of reducing problematic assets and other initiatives designed to enhance future core earnings.
Growth
At March 31, 2014, total assets were $165.3 million, up $5.6 million, or 3.5% from December 31, 2013. Gross loans were $125.4 million, a decrease of $1.1 million or 0.9% from December 31, 2013. Exclusive of the $2 million nonaccrual loan payoff, gross loans increased $855 thousand or 0.7% from December 31, 2013. Generally, loan demand continues to be tepid; however, our loan pipeline is healthy. The securities portfolio balance decreased by $454 thousand or 2.3% from December 31, 2013. Deposits totaled $141.9 million, an increase of $9.0 million or 6.8% from December 31, 2013. Over the same comparable period, noninterest bearing demand deposits increased $2.4 million of 12.7%, interest-bearing checking and savings deposits increased $2.2 million or 15.8%, and FHLB advance balances and Federal funds purchased decreased $3.7 million or 65.0%.
Asset Quality
There was no provision expense for the first quarter of 2014 compared to $907,000 provided to the loan loss reserve in the first quarter of 2013. The sharp increase in the provision in 2013 was due to higher charge-offs as well as an increase in general reserves. Net charge-offs at March 31, 2014 are $10,802 compared to $637,189 at March 31, 2013. The allowance for loan losses represented 1.59% of loans as of March 31, 2014, compared to 1.58% on December 31, 2013 and 1.88% as of March 31, 2013. Nonperforming loans, which exclude performing troubled debt restructurings, equaled $386,826 or 0.31% of loans compared to $3,027,441 or 2.33% of loans at December 31, 2013. In the first quarter of 2014 a single $2.0 million loan which had been placed in nonaccrual in the first quarter of 2013 paid out with a full recovery of principal and interest. There are no loans delinquent over 90 days and still accruing interest at March 31, 2014.
At March 31, 2014, other real estate owned totaled $1.0 million with $990 thousand at December 31, 2013 and $2.1 million at March 31, 2013. There have been no valuation write downs on other real estate in 2014 compared to $960,759 in valuation write-downs at March 31, 2013. Total nonperforming assets at March 31, 2014 were $1.4 million or 0.85% of total assets, compared to $3.6 million or 2.24% of total assets at December 31, 2013, and $5.1 million or 3.20% of total assets at March 31, 2013.
Capital
As of March 31, 2014, total risk-based capital was 17.6% compared to 15.8% one year ago, and significantly higher than the 10.0% minimum regulatory requirement for well capitalized institutions. Tier 1 leverage was 12.4%, up from 12.3% at December 31, 2013.
Citizens Community Bank is a Virginia state chartered bank headquartered in South Hill, Virginia. Opened in December 1999, it operates five branches, three in south central Virginia, two in northern North Carolina, as well as a loan production office in Oxford, North Carolina. For more information and additional financial data, please visit www.ccbsite.com.
This press release contains "forward-looking statements" that concern future events which are subject to risks and uncertainties. Any such statements are based on certain assumptions and analyses by the Bank and other factors it believes are appropriate in the circumstances and at the time at which such statements are made. The Bank's actual results, events and developments may differ materially from those contemplated by any forward-looking statement. The Bank has no responsibility to update such forward-looking statements.
Citizens Community Bank - Financial Highlights - March 31, 2014 | ||||||||
(Unaudited) | ||||||||
(Actual dollars, except per share data) | Three Months Ended March 31 | Year Ended December 31 | ||||||
Selected Operating Data: | 2014 | 2013 | 2013 | 2012 | ||||
Net interest income | $ 1,476,857 | $ 1,422,829 | $ 5,491,344 | $ 5,891,995 | ||||
Provision for loan losses | - | 907,000 | 807,623 | 1,641,850 | ||||
Noninterest income | 204,926 | 202,585 | 848,273 | 851,369 | ||||
Noninterest expense | 1,284,140 | 2,364,947 | 6,270,441 | 6,421,624 | ||||
Income (loss) before income tax | 397,643 | (1,646,533) | (738,447) | (1,320,110) | ||||
Income tax expense (benefit) | 118,169 | (575,529) | (309,997) | (516,966) | ||||
Net income (loss) | $ 279,474 | $ (1,071,004) | $ (428,450) | $ (803,144) | ||||
Less: Preferred dividends | $ 10,000 | $ 10,000 | $ 54,605 | $ 177,432 | ||||
Net income (loss) available to common | ||||||||
shareholders | $ 269,474 | $ (1,081,004) | $ (483,055) | $ (980,576) | ||||
Income (loss) per share available to | ||||||||
common shareholders:(1) | ||||||||
Basic | $0.18 | ($0.72) | ($0.32) | ($0.65) | ||||
Diluted | $0.18 | ($0.72) | ($0.32) | ($0.65) | ||||
Average shares outstanding, basic | 1,507,583 | 1,500,948 | 1,503,321 | 1,500,948 | ||||
Average shares outstanding, diluted | 1,507,583 | 1,500,948 | 1,503,321 | 1,500,948 | ||||
(1) share amounts revised to show restricted stock grants awarded in 2013 and 2014. | ||||||||
Citizens Community Bank | ||||||
Financial Highlights | ||||||
(Actual dollars, except per share data) | March 31 | December 31 | March 31 | |||
Balance Sheet Data: | 2014 | 2013 | 2013 | |||
Total assets | $ 165,338,301 | $ 159,712,201 | $ 160,976,633 | |||
Loans, net of ALLR | 123,422,688 | 124,548,206 | 127,673,395 | |||
Deposits | 141,911,300 | 132,882,671 | 138,310,495 | |||
Federal funds purchased | - | 2,716,000 | - | |||
Borrowings | 2,000,000 | 3,000,000 | 2,000,000 | |||
Preferred stock | 4,000,000 | 4,000,000 | 4,000,000 | |||
Stockholders' equity | 21,151,235 | 20,846,015 | 20,427,108 | |||
Book value per share (1) (2) | $ 11.37 | $ 11.18 | $ 10.94 | |||
Total shares outstanding (2) | 1,508,046 | 1,507,212 | 1,500,948 | |||
Three months ended March 31 | ||||||
Performance Ratios: | 2014 | 2013 | ||||
Return on average assets | 0.67% | (2.70%) | ||||
Return on average common equity | 6.38% | (24.83%) | ||||
Net interest margin | 3.97% | 3.93% | ||||
Overhead efficiency | 76.33% | 145.50% | ||||
March 31 | March 31 | December 31 | ||||
Asset Quality Data: | 2014 | 2013 | 2013 | |||
Allowance for loan loss | $ 1,994,943 | $ 2,445,875 | $ 2,005,745 | |||
Nonperforming loans (3) | $ 386,826 | $ 3,027,441 | $ 2,580,874 | |||
Other real estate owned | $ 1,014,904 | $ 2,116,184 | $ 989,367 | |||
Nonperforming assets (3) | $ 1,401,730 | $ 5,143,625 | $ 3,570,241 | |||
Performing troubled debt restructurings | $ 635,393 | $ 620,344 | $ 576,095 | |||
Net charge offs (recoveries) | $ 10,802 | $ 637,189 | $ 977,942 | |||
Classified loans | $ 5,429,617 | $ 5,519,427 | $ 5,197,240 | |||
Total Classified Assets | $ 6,444,521 | $ 7,635,611 | $ 6,186,607 | |||
March 31 | March 31 | December 31, | ||||
Asset Quality Ratios: | 2014 | 2013 | 2013 | |||
Allowance for loan loss to total loans | 1.59% | 1.88% | 1.58% | |||
Nonperforming loans to total loans | 0.31% | 2.33% | 2.04% | |||
Nonperforming assets to total assets | 0.85% | 3.20% | 2.24% | |||
Net charge-offs (recoveries) to average loans | 0.01% | 1.94% | 0.77% | |||
Capital Ratios: | ||||||
Total risk-based capital | 17.58% | 15.76% | 17.07% | |||
Tier 1 risk-based capital | 16.33% | 14.50% | 15.81% | |||
Tier 1 leverage capital | 12.42% | 11.70% | 12.32% | |||
Note: (1) Book value excludes $4,000,0000 of preferred stock for March 31, 2014 and December 31, 2013. | ||||||
(2) Shares outstanding reflect issuance of restricted stock awards in 2013 and 2014. | ||||||
(3) Excludes performing troubled debt restructurings. | ||||||
SOURCE Citizens Community Bank
