Welcome!

News Feed Item

Citizens Community Bank Announces Fourth Quarter And Full-Year 2013 Results

SOUTH HILL, Va., Feb. 12, 2014 /PRNewswire/ -- Citizens Community Bank (OTCQB: CZYB) today announced its unaudited results of operations for 2013. 

Earnings

Citizens Community Bank is pleased to announce earnings to common shareholders of $216,202 or $0.14 per share on both a basic and diluted basis for the fourth quarter of 2013, compared to a net loss to common shareholders of $972,649 or ($0.65) per share for the same time period of 2012.  For the year ended December 31, 2013, the Bank reported a net loss to common shareholders of $483,055 or ($0.32) per share on both a basic and diluted basis, compared to a net loss to common shareholders of $980,576 or ($0.65) per share for 2012.  Preferred dividend payments for 2013 totaled $54,605 compared to $177,432 for 2012, as growth in small business lending during 2013 offered lower dividend rates.

President and CEO James R. Black stated, "We posted another successful quarter, which allowed us to drastically reduce the net loss incurred during the first quarter of 2013. We continue to gain momentum on various fronts and expect a profitable and successful 2014. I am proud of our most recent advances and enthusiastic about CCB's future. We look forward to sharing more successes throughout the year."

In comparing the fourth quarter of 2013 to the same quarter in 2012, net interest income decreased by $129,429 or 8.7%.  This resulted from a tighter net interest margin, which equaled 3.65%, down 30 basis points from the fourth quarter of 2012. Noninterest income declined $21,836 or 10.0%, primarily as a result of a reduction in origination of mortgages for sale to the secondary market.  In the fourth quarter of 2013, the Bank was able to take a provision release of $109,377, compared to a provision expense of $1,042,713 in the fourth quarter of 2012.  This release serves as a tangible signal that the Bank continues to manage and resolve non-performing loans without deterioration of operating results.  Noninterest expense of $1,311,159 was $809,746 or 38.1% less than the fourth quarter of 2012, as a result of active control of non-interest expense and significant reductions in the write down and carrying expenses of nonperforming assets.  During the fourth quarter of 2013, there were no write-downs of other real estate owned and net gains on sales of $7,146 compares favorably to valuation write-downs and losses on the sale of other real estate owned of $327,339 in the fourth quarter of 2012.

For the year ended December 31, 2013, net interest income decreased $400,651 or 6.8% due to a tighter net interest margin and reductions in outstanding balances.  The net interest margin decreased 27 basis points to 3.74% as earning assets yields dropped 46 basis points, which was only partially offset by a 22 basis point reduction in funding costs. Lower earning assets yields resulted from the elevated level of nonperforming assets, especially in the first six months of 2013 and the reinvestment of loans and securities at lower yields during this abnormally low rate environment. For 2013, funding costs were lowered to 1.23%, down from 1.45% one year ago as result of the low rate environment and the ability to take advantage of lower-cost funding solutions.

Noninterest income for 2013 was $848,273, virtually flat to $851,369 reported for 2012.  Fee income for 2013 increased modestly at 1.0% over 2012.  The year-over-year reduction in mortgage loan origination fee income of 13.5% was fueled by rising rates in the secondary mortgage market, and contributed to the 2013 reduction in noninterest income.  When excluding write downs and gains and losses associated with the sale of other real estate, noninterest expense for 2013 was $5,401,337, which represents a decrease of $632,672 or 10.5% from 2012.  Reductions in collection expenses and carrying costs associated with nonperforming assets factored into the overall reduction in noninterest expense for 2013 as well as one-time severance costs recognized in 2012.

Growth

At December 31, 2013, total assets were $159.7 million, a reduction of $2.8 million, or 1.7% from December 31, 2012. Gross loans were $126.6 million, a decrease of $5.8 million or 4.4% from December 31, 2012.  While loan balances declined for the first eight months of 2013, each month in the fourth quarter brought net increases in outstanding balances, and the Bank continues to originate loans commensurate with its underwriting standards.  The securities portfolio balance, excluding restricted securities, increased by $5.8 million or 41.7% from December 31, 2012. Deposits totaled $132.9 million, a decrease of $5.8 million or 4.2% since December 31, 2012. Over the same comparable period, higher cost certificates of deposit decreased by $9.3 million or 12.2%. FHLB borrowings and overnight Federal funds purchased increased to $5.7 million over $2.0 million at December 31, 2012.   

Asset Quality

At December 31, 2013 the allowance for loan losses was $2,005,745 compared to $2,176,065 at December 31, 2012.  Provision expense for 2013 was $807,623 compared to $1,641,850 for 2012.  The provision expense incurred during 2013 replenished the allowance for loan losses after the write down and ultimate disposal of a large portion of loans which were nonperforming at December 31, 2012.  The provision release taken in the fourth quarter attests to improving asset quality.  The allowance for loan losses represented 1.58% of loans as of December 31, 2013 compared to 1.64% on December 31, 2012.  For 2013, net charge-offs equaled $977,942 or 0.77% of average loans compared to $2,130,585 or 1.65% of average loans one year ago. Nonperforming loans, which exclude performing troubled debt restructurings, equaled $2,850,874 or 2.04% of loans compared to $3,859,123 or 2.92% at December 31, 2012. There were no loans 90 days past due and still accruing interest on December 31, 2013.

At December 31, 2013, other real estate owned was $989,367 compared with $2,517,634 at year end 2012.  For 2013, there were $960,759 of valuation write-downs and net gains on sale of other real estate of $91,665.  In aggregate, nonperforming assets equaled $3,570,241 or 2.24% of total assets at December 31, 2013, down 44.0% from $6,376,757 or 3.92% of total assets at December 31, 2012.  As of December 31, 2013, total adversely classified assets totaled $5.2 million, down $4.7 million from December 31, 2012.

Capital

As of December 31, 2013, total risk-based capital was 17.1% compared to 16.7% one year ago, and significantly higher than the 10.0% minimum regulatory requirement for well capitalized institutions. Tier 1 leverage was 12.3%, down from 12.6% at December 31, 2012.

Citizens Community Bank is a Virginia state chartered bank headquartered in South Hill, Virginia.  Opened in December 1999, it operates four branches, three in south central Virginia and one 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 - December 31, 2013





















(Unaudited)









(Actual dollars, except per share data)


Three Months Ended December 31

Year Ended December 31

Selected Operating Data:



2013


2012

2013


2012










Net interest income



$   1,353,794


$    1,483,223

$   5,491,344


$    5,891,995

Provision for loan losses



(109,377)


1,042,713

807,623


1,641,850

Noninterest income



195,403


217,239

848,273


851,369

Noninterest expense



1,311,159


2,120,905

6,270,441


6,421,624

Income (loss) before income tax 


347,415


(1,463,156)

(738,447)


(1,320,110)

Income tax expense (benefit)



106,608


(518,112)

(309,997)


(516,966)

Net income (loss)



$      240,807


$      (945,044)

$    (428,450)


$      (803,144)

Less: Preferred dividends



$        24,605


$         27,605

$        54,605


$       177,432

Net income (loss) available to common






shareholders



$      216,202


$      (972,649)

$    (483,055)


$      (980,576)










Income (loss) per share available to







common shareholders:(1)









Basic 



$0.14


($0.65)

($0.32)


($0.65)

Diluted



$0.14


($0.65)

($0.32)


($0.65)










Average shares outstanding, basic


1,505,797


1,500,948

1,503,321


1,500,948

Average shares outstanding, diluted

1,505,797


1,500,948

1,503,321


1,500,948










(1) share amounts revised to show restricted stock grants awarded July 1 and December 18, 2013.



 



Citizens Community Bank



Financial Highlights











(Actual dollars, except per share data)


December 31


December 31,

Balance Sheet Data:


2013


2012






Total assets


$      159,712,201


$    162,545,826

Loans, net of ALLR


124,548,206


130,187,810

Deposits


132,882,671


138,637,742

Federal funds purchased


2,716,000


-

Borrowings


3,000,000


2,000,000

Preferred stock


4,000,000


4,000,000

Stockholders' equity


20,846,015


21,533,801

Book value per share (1) (2)


$                 11.18


$               11.68

Total shares outstanding (2)


1,507,212


1,500,948








Year ended December 31,

Performance Ratios:


2013


2012

Return on average assets


(0.30%)


(0.61%)

Return on average common equity


(2.87%)


(5.20%)

Net interest margin 


3.74%


4.01%

Overhead efficiency


98.91%


85.28%













December 31


December 31,

Asset Quality Data:


2013


2012

Allowance for loan loss


$          2,005,745


$        2,176,065

Nonperforming assets


3,570,241


6,376,757

Nonperforming loans (3)


2,580,874


3,859,123

Other real estate owned


989,367


2,517,634

Net charge-offs (recoveries)


977,942


2,130,585

Classified Loans


5,197,240


8,425,795

Total Classified Assets


6,186,607


10,943,429








December 31,


December 31,

Asset Quality Ratios:


2013


2012

Allowance for loan loss to total loans

1.58%


1.64%

Nonperforming loans to total loans


2.04%


2.92%

Nonperforming assets to total assets


2.24%


3.92%

Net charge-offs (recoveries) to average loans 

0.77%


1.65%






Capital Ratios:





Total risk-based capital


17.07%


16.67%

Tier 1 risk-based capital


15.81%


15.42%

Tier 1 leverage capital


12.32%


12.60%

 

Note:

(1) Book value excludes $4,000,0000 of preferred stock for December 31, 2013 and 2012.


(2) Shares outstanding reflect issuance of restricted stock awards on July 1 and December 18, 2013.


(3) Excludes performing troubled debt restructurings of $576,095 and $722,663, for December 31, 2013 and 2012, respectively.

 

SOURCE Citizens Community Bank

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
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, 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 Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.