Welcome!

News Feed Item

First Citizens Banc Corp Announces Earnings


SANDUSKY, Ohio, Jan. 10, 2014 /PRNewswire/ -- First Citizens Banc Corp (NASDAQ:FCZA) ("First Citizens") reported net income attributable to common shares of $753 thousand, or $0.10 per share, for the fourth quarter of 2013, a decrease of 55.1% compared with $1.7 million, or $0.22 per share, for the prior year period.  For the twelve-month period ended December 31, 2013, First Citizens reported net income available to common shareholders of $5.0 million or $0.65 per share, an increase of 14.5% compared to $4.4 million, or $0.57 per share, in the same period of 2012.  During the fourth quarter, First Citizens recognized a non-cash pension expense of approximately $1.5 million after tax, or $0.19 per share. 

"During the fourth quarter, we accomplished several key initiatives," said James O. Miller, President and CEO of First Citizens.  "We sold $4.8 million of nonperforming loans, we issued $25 million of preferred convertible stock, we began the process to repay the CPP funds and we finished the year with over $861 million in total loans, an increase of 5.6% over 2012.  As we look to 2014, we have continued momentum in the loan portfolio and are reviewing strategies to improve the efficiency ratio." 

Results of Operations:

Net interest income for the fourth quarter of 2013 increased $331 thousand, or 3.3%, from the prior year's fourth quarter and for the twelve months ended December 31, decreased $604 thousand, or 1.5%, when compared to the same period of 2012.  The increase in net interest income for the quarter was due to a decrease in interest expense of $245 thousand or 17.5%.  The decrease in net interest income for the year was due to a decrease in interest income of $1.9 million, or 4.0%.  The decrease in interest income, due primarily to decreased yields, was partially offset by an increase in average loans outstanding of $35.9 million, or 4.9%, when compared to the fourth quarter of 2012 and an increase of $38.4 million, or 4.9%, when compared to the twelve months of 2012.  The decline in interest income for the year was further offset by the decrease in interest expense of $1.3 million, or 20.7% compared to the same period ended 2012.  Mr. Miller continued, "Throughout most of 2013, our net interest income trailed to 2012.  During the fourth quarter we have seen this trend reduced.  While interest income continues to be pressured by the continued low interest rate environment, we have been successful at increasing average loans outstanding."

The provision for loan losses for the fourth quarter and twelve-months ended 2013 decreased $835 thousand, or 100.0%, and $5.3 million, or 82.8%, compared to the three and twelve-month periods ended 2012, respectively.  The decrease in provision for loan losses is due to improving asset quality.

Noninterest income increased $199 thousand, or 7.3%, compared to the prior year's fourth quarter and increased $862 thousand, or 7.7%, when compared to the twelve months of 2012.  The twelve-month increase was due to an increase in wealth management revenue of $464 thousand, as well as several smaller increases.  The increase in wealth management revenue is due to both an increase in asset valuations as well as an increase in accounts.  Both factors have contributed to an overall 15.5% increase in assets under management of $62.8 million to $468.1 million

Noninterest expense increased $2.9 million, or 31.4% when compared to the prior year's fourth quarter and $5.3 million, or 13.9%, when compared to the twelve months of 2012.  The increase in non-interest expense was primarily attributable to a one-time noncash increase in pension expense of $2.3 million related to a number of early retirements.  The increase is also attributable to an increase in salary and benefit costs, specifically to increased heath insurance costs as well as additional personnel that have been added. Mr. Miller continued, "As the recession progressed, we added experienced bankers in several areas including revenue producing individuals.  We have a team in place that can take us to our growth goals.  Now that we are moving out of the recession we have also begun to review strategies to improve our efficiency ratio."

Balance Sheet

Total assets increased $31.9 million, or 2.8%, from December 31, 2012 to December 31, 2013.  Total loans increased $45.7 million, or 5.6%, from December 31, 2012 to December 31, 2013.  Mr. Miller continued, "During the fourth quarter we were successful in adding $41.7 million in loans.  We also added a group of four mortgage lenders in the vibrant Dublin market.  We are excited about the opportunity that this group provides us in a market that consistently outperforms the rest of the state of Ohio. We also continue to have a strong commercial pipeline going into 2014 and while the economy is improving slowly, we are optimistic in our continued ability to grow the loan portfolio." 

Total deposits increased $16.1 million, or 1.7%, from December 31, 2012 to December 31, 2013.  Total shareholder's equity increased $21.8 million, or 21.0%, from December 31, 2012 to December 31, 2013.  During the fourth quarter, First Citizens issued $25 million of Series B Convertible Preferred Stock resulting in net proceeds of $23.1 million.  First Citizens is awaiting approval from the Federal Reserve to redeem the $23.2 million of Series A Preferred Stock.  Mr. Miller continued, "We successfully completed the offering of our Series B preferred stock in late December.  We expect to have approval from the Federal Reserve to redeem our Series A Preferred Stock shortly.  Our goal is to have the Series A redeemed prior to the increase in the interest rate on February 14th. " 

Asset Quality

Nonperforming assets decreased $11.7 million, or 31.2%, from December 31, 2012 to December 31, 2013.  Nonperforming assets to total assets also decreased 109 basis points to 2.21% from December 31, 2012 to December 31, 2013.  The decrease in nonperforming assets is due to the continuing workout of nonperforming loans as well as the sale of a pool of $4.8 million in nonperforming loans during the fourth quarter.  Mr. Miller continued, "Our continued ability to improve our asset quality profile allowed us to greatly reduce the provision for loan losses during 2013."    

First Citizens Banc Corp is a $1.1 billion financial holding company headquartered in Sandusky, Ohio.  The Company's banking subsidiary, The Citizens Banking Company, operates 28 locations in Central and North Central Ohio.

First Citizens Banc Corp may be accessed at www.fcza.com.  The Company's common shares are traded on the Nasdaq Capital Market under the symbol FCZA.

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of First Citizens. For these statements, First Citizens claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about First Citizens, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in First Citizens' reports filed with the Securities and Exchange Commission, including those described in "Item 1A Risk Factors" of Part I of First Citizens's Annual Report on Form 10-K for the fiscal year ended December 31, 2012.  Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. First Citizens does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

 

First Citizens Banc Corp

Financial Highlights

(dollars in thousands, except share amounts)

 

Consolidated Condensed Statement of Income










Three Months Ended


Twelve Months Ended


December 31,


December 31,


(unaudited)


(unaudited)


2013


2012


2013


2012









Interest income

11,443


11,357


44,881


46,762

Interest expense

1,153


1,398


4,907


6,184

Net interest income

10,290


9,959


39,974


40,578

Provision for loan losses

-


835


1,100


6,400

Net interest income after provision

10,290


9,124


38,874


34,178

Noninterest income

2,939


2,740


12,062


11,200

Noninterest expense

12,087


9,202


43,384


38,074

Income before taxes

1,142


2,662


7,552


7,304

Income tax expense

99


696


1,373


1,725

Net income

1,043


1,966


6,179


5,579

Preferred stock dividends 








and discount accretion

290


290


1,159


1,193

Net income available 








to common shareholders

753


1,676


5,020


4,386









Dividends per common share

$            0.04


$            0.03


$            0.15


$         0.12









Earnings per common share,








basic and diluted

$            0.10


$            0.22


$            0.65


$         0.57









Average shares outstanding,








basic and diluted

7,707,917


7,707,917


7,707,917


7,707,917









Selected financial ratios:








Return on average assets

0.35%


0.68%


0.53%


0.49%

Return on average equity

3.99%


7.42%


5.97%


5.36%

Dividend payout ratio

29.56%


11.76%


18.71%


16.58%

Net interest margin (tax equivalent)

3.85%


3.80%


3.79%


3.97%









 

 Selected Balance Sheet Items 






 December 31, 


 December 31, 


2013


2012






 (unaudited) 



 Investment securities 

$             199,613


$             203,961

 Loans 

861,241


815,553

 Less allowance for loan losses 

16,528


19,742

 Net loans 

844,713


795,811





 Total assets 

1,168,868


1,136,971

 Total deposits 

942,475


926,389

 Federal Home Loan Bank advances 

37,726


40,261

 Securities sold under agreements to repurchase 

20,053


23,219

 Subordinated debentures 

29,427


29,427

 Total shareholders' equity 

125,810


103,980





 Shares outstanding at period end 

7,707,917


7,707,917





 Book value per share 

$                  10.31


$                  10.48

 Tangible book value per share 

7.20


7.26

 Equity to asset ratio 

10.76%


9.15%





Selected asset quality ratios:




Allowance for loan losses to total loans

1.92%


2.42%

Non-performing assets to total assets

2.21%


3.30%

Allowance for loan losses to non-performing loans

64.33%


53.21%





Non-performing asset analysis




Nonaccrual loans

$                20,459


$                29,854

Troubled debt restructurings

5,234


7,250

Other real estate owned

173


471

Total

$                25,866


$                37,575

SOURCE First Citizens Banc Corp

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that TMC has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo and Big Data at Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Global buyers rely on TMC’s content-driven marketplaces to make purchase decisions and navigate markets. Learn how we can help you reach your marketing goals.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Managing mission-critical SAP systems and landscapes has never been easy. Add public cloud with its myriad of powerful cloud native services and this may not change any time soon. Public cloud offers exciting new possibilities for enterprise workloads. But to make use of these possibilities and capabilities, IT teams need to re-think everything they have done before. Otherwise, they will just end up using public cloud as a hosting platform for their workloads, aka known as “lift and shift.”
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
SYS-CON Events announced today that TechTarget has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets.
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
SYS-CON Events announced today that Silicon India has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Published in Silicon Valley, Silicon India magazine is the premiere platform for CIOs to discuss their innovative enterprise solutions and allows IT vendors to learn about new solutions that can help grow their business.
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...