Citizens First Corporation Announces First Quarter 2008 Results

BOWLING GREEN, Ky., April 17 /PRNewswire-FirstCall/ -- Citizens First
Corporation (Nasdaq: CZFC) (the "Company") today reported its results of
operations for the quarter ended March 31, 2008. Mary D. Cohron, President
and CEO, reported that the Company's net income on a consolidated basis for
the first quarter of 2008 was $468,000, or $0.17 per basic and diluted common
share, respectively, compared to net income of $472,000, or $0.17 per basic
and diluted common share, respectively, for the first quarter of 2007. "Our
efforts to improve earnings per share in 2008 are resulting in a gradual
return to stronger levels of profitability, with net income increasing
$473,000, as compared to the fourth quarter loss of $5,000 in 2007," Cohron
said.
"Our acquisition of Kentucky Banking Centers in November 2006 represented
a significant franchise expansion for the Company. During 2007, our successful
integration of the customers and operations of KBC required significant time
and cost. In November of 2007, we initiated a plan to increase earnings per
share by growing revenue while reducing expenses. As the plan is fully
implemented, we expect our results to show continued improvement."
Net interest income for the quarter ended March 31, 2008 was $2.8 million,
versus $3.2 million for the same quarter of 2007, a decrease of $400,000 or
12.5%. Net interest income in the first quarter was significantly impacted by
the 55 basis point decline in the net interest margin which was 3.68% for the
first quarter of 2008, compared to 4.23% for the first quarter of 2007, due to
a two hundred basis point drop in the prime rate during the first quarter.
Non-interest income was $672,000 during the first quarter of 2008,
compared to $558,000 in the same quarter of 2007, an increase of $114,000 or
20.4%. Included in non-interest income for the first quarter of 2008 is
interest earned on Company-owned life insurance of $73,000, which was
purchased in June of 2007.
Non-interest expense was $2.8 million for the first quarter of 2008,
versus $3.0 million for the same period of 2007, a decrease of $200,000, or
6.7%. Salaries and benefits decreased $159,000 as the Company began
streamlining its staff in early 2008 as part of the non-interest expense
reduction program. In addition, directors and professional fees decreased
$24,000 and data processing fees decreased $19,000 due to the negotiation of a
new processing contract where fees should be reduced 10% to 15% per year.
"Our focus on efficiency is beginning to show positive results," said Cohron.
A $50,000 provision for loan losses was recorded for the first quarter of
2008, compared to a $60,000 provision in the first quarter of 2007. Non-
performing assets totaled $3.4 million at March 31, 2008, compared to $4.5
million at December 31, 2007, a decrease of $1.1 million. Non-performing
assets to total loans ratio was 1.26% and 1.75% at March 31, 2008 and December
31, 2007, respectively. The allowance for loan losses at March 31, 2008 was
$3.2 million, or 1.20% of total loans, compared to $3.2 million, or 1.25% of
total loans as of December 31, 2007.
Of the $3.4 million in non-performing loans at December 31, 2007, $1.8
million represented nine (9) construction loans to two (2) related entities
that were fully collateralized by first mortgages on residential real estate.
The properties pledged to the Bank were sold in March, 2008. Proceeds
permitted the Bank's collection of all principal, all accrued interest up to
the date the loans were placed in nonaccrual status and some collection
expenses.
Total assets at March 31, 2008 were $357.6 million, up $11.2 million, or
3.2%, from $346.4 million at December 31, 2007. Loans increased $15.2
million, or 6.0%, from $254.8 million at December 31, 2007 to $270.0 million
at March 31, 2008. Deposits at March 31, 2008 were $291.9 million, an
increase of $9.6 million, or 3.4%, compared to $282.3 million at December 31,
2007. In the first quarter of 2008, the Company established an employee
incentive program to encourage growth in loans and deposits.
Stockholders' equity was 10.5% of total assets as of March 31, 2008 with
equity increasing from $37.0 million at the end of the first quarter of 2007
to $37.7 million at the end of the same quarter in 2008. The Company's
annualized return on average equity was 4.99% for the quarter ending March 31,
2008 compared to an annualized return of 5.21% for the quarter ending March
31, 2007. "We continue to be well capitalized under applicable regulatory
guidelines and in a position to grow our company."
Citizens First Corporation is a bank holding company headquartered in
Bowling Green, Kentucky and established in 1999. The Company currently has
ten offices located in Warren, Simpson, Barren and Hart Counties in Kentucky.
This release contains 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 economic conditions generally and in the market areas of the Company,
overall loan demand, increased competition in the financial services industry
which could negatively impact the Company's ability to increase total earning
assets and retention of key personnel. Actions by the Federal Reserve Board,
changes in interest rates, loan prepayments by and the financial health of the
Company's borrowers, and other factors described in the reports filed by the
Company with the Securities and Exchange Commission could also impact current
expectations.

CITIZENS FIRST CORPORATION
Consolidated Financial Highlights (unaudited)
In thousands, except per share data

Three Months Ended
March 31
2008 2007
Interest income $5,441 $5,814
Interest expense 2,654 2,632
Net interest income 2,787 3,182
Provision for loan losses 50 60
Net interest income after provision for loan
losses 2,737 3,122
Non-interest income 672 558
Non-interest expenses 2,816 2,983
Income before income taxes 593 697
Provision for income taxes 125 225
Net income 468 472
Preferred dividends 128 128
Net income available for common shareholders $340 $344
Basic earnings per common share $0.17 $0.17
Diluted earnings per common share $0.17 $0.17

March 31 December 31
2008 2007
Cash and cash equivalents $12,424 $13,862
Available for sale securities 39,646 42,316
Loans held for sale 947 796
Loans 269,986 254,765
Allowance for loan losses (3,248) (3,194)
Intangible assets 13,066 13,147
Other assets 24,809 24,661
Total assets $357,630 $346,353

Deposits $291,854 $282,276
Securities sold under repurchase agreements 3,053 3,181
FHLB advances 17,199 15,317
Other borrowings 5,000 5,000
Other liabilities 2,799 3,283
Total liabilities 319,905 309,057
Preferred stock 7,659 7,659
Common stock 26,609 26,573
Retained earnings 3,485 3,146
Accumulated comprehensive income (loss) (28) (82)
Total shareholders' equity 37,725 37,296
Total liabilities and shareholders' equity $357,630 $346,353

SOURCE Citizens First Corporation

Mary Cohron, President and Chief Executive Officer, of Citizens First
Corporation, +1-270-393-0700