Welcome!

News Feed Item

First Citizens Banc Corp Announces First Quarter Earnings

SANDUSKY, Ohio, April 18, 2014 /PRNewswire/ -- First Citizens Banc Corp (NASDAQ: FCZA) ("First Citizens") reported net income attributable to common shares of $2.1 million, or $0.27 per share, for the first quarter of 2014, an increase of 31.2% compared with $1.6 million, or $0.21 per share, for the prior year's first quarter. 

"During the first quarter, we completed several initiatives which will improve our efficiency ratio," said James O. Miller, President and CEO of First Citizens.  "We completed the process of repaying the Series A preferred shares in February.  In March we announced that we will be closing three branches on June 6, 2014 which will lead to estimated annualized cost savings of $250,000.  We are also in the process of freezing our defined benefit pension plan as part of a change to our compensation package, which will also lead to cost reductions." 

Results of Operations:

Net interest income for the first quarter of 2014 increased $177 thousand, or 1.8%, from the prior year's first quarter.  The increase in net interest income was primarily due to a decrease in interest expense of $149 thousand or 11.5%.  Interest income also increased slightly, due primarily to an increase in average loans outstanding when compared to the first quarter of 2013.  Mr. Miller continued, "While interest income continues to be pressured by the extended low interest rate environment, we have been successful at increasing lending."  The net interest margin decreased to 3.51% compared to 3.75% in the same period of 2013 and 3.85% in the linked quarter ending December 31, 2013.  The average balance of interest-bearing deposits relating to tax refund processing was $94.3 million for the first quarter of 2014.  Removing the impact of the First Citizen's tax refund processing, the net interest margin would have been 28 basis points higher for the first quarter of 2014, which is a 6 basis point reduction from the linked quarter.

The provision for loan losses for the first quarter ended 2014 increased $250 thousand, compared to the same period of 2013.  Improvements in asset quality in 2013 allowed us to reduce the size of the reserve and the provision expense.  The increase in provision for loan losses in the first quarter of 2014 is related to the increased size of the loan portfolio compared to a year ago.   

Noninterest income increased $1.4 million, or 43.8%, compared to the prior year's first quarter.  The increase was primarily due to an increase in fees received for tax refund processing and wealth management revenue, partially offset by a decrease in mortgage banking revenue.  Tax refund processing fees increased $1.5 million or 425.8% compared to the same period in 2013.  The increase in tax refund processing fees is due to an increase in the number of tax refunds processed.  Wealth management fees increased $185 thousand or 30% compared to the same period in 2013.  The increase in wealth management fees is due to an increase in assets under management as a result of an increase in market valuations.  Mortgage banking revenue decreased $119 thousand or 52% compared to the same period in 2013.  The decrease in mortgage banking revenue is primarily due to weather related issues.  Mr. Miller continued, "Our mortgage banking business was adversely affected by the weather in the first quarter of 2014.  As the weather has improved our pipeline of mortgages has grown quickly.  We believe we will be back on track in the second quarter of 2014.  We are very pleased with the results of our tax refund processing program.  We increased the volume of refunds processed and have been very successful in 2014."     

Noninterest expense increased $220 thousand, or 2.2% when compared to the prior year's first quarter.  The increase in noninterest expense was attributable to an increase in salary and benefit costs of $173 thousand or 4.1%, specifically to increased commission expense and increased health insurance costs.  Occupancy expenses increased $77 thousand or 12.6% compared to the same period in 2013 primarily due to snow removal.  Other noninterest expenses decreased $61 thousand or 3.9% primarily due to repossession expense. 

Balance Sheet

Total assets increased $83.4 million, or 7.1%, from December 31, 2013 to March 31, 2014.  Cash and due from banks increased $85.8 million or 253.3%.  This was a direct result of cash flows related to the tax refund processing program.  While the cash basically flows in and out, there can be a few days lag between the inflows and outflows, which inflates our cash position.  The loan portfolio decreased $4.1 million or 0.5% from December 31, 2013 to March 31, 2014.  This decrease tends to be a seasonal occurrence. 

Total deposits increased $102.3 million, or 10.9%, from December 31, 2013 to March 31, 2014, again, largely related to the tax refund processing program.  As of March 31, 2014 the balance related to the tax refund processing program was over $80 million.  Total shareholder's equity decreased $19.8 million, or 15.4%, from December 31, 2013 to March 31, 2014 as a result of the redemption $23.2 million of Series A Preferred Stock. 

Asset Quality

Nonperforming assets increased $1.1 million, or 4.3%, from December 31, 2013 to March 31, 2014. Nonperforming assets to total assets decreased 6 basis points to 2.15% from December 31, 2013 to March 31, 2014 because Total Assets are up.  Mr. Miller continued, "We continue to be conservative on how we view asset quality.  If we see potential weakness in a credit, we strive to identify it early and reserve appropriately.  We continue to see improvements in our asset quality.  When we look back to March 2013, we have reduced non-performing loans by $9.6 million. "    

First Citizens Banc Corp is a $1.2 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".  The Company's depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol "FCZAP".

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, 2013.  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


March 31,


(unaudited)


2014


2013





Interest income

11,315


11,287

Interest expense

1,150


1,299

Net interest income

10,165


9,988

Provision for loan losses

750


500

Net interest income after provision

9,415


9,488

Noninterest income

4,624


3,215

Noninterest expense

10,428


10,208

Income before taxes

3,611


2,495

Income tax expense

899


582

Net income

2,712


1,913

Preferred stock dividends 

655


290

Net income available 




to common shareholders

2,057


1,623





Dividends per common share

$             0.04


$             0.03





Earnings per common share,




basic

$             0.27


$             0.21

diluted

$             0.22


$             0.21





Average shares outstanding,




basic

7,707,917


7,707,917

diluted

10,904,848


7,707,917





Selected financial ratios:




Return on average assets

0.82%


0.64%

Return on average equity

9.47%


7.46%

Dividend payout ratio

16.08%


12.09%

Net interest margin (tax equivalent)

3.51%


3.75%

 

 

 Selected Balance Sheet Items 






 March 31, 


 December 31, 


2014


2013






 (unaudited) 



 Investment securities 

$         203,997


$         199,613

 Loans 

857,368


861,241

 Less allowance for loan losses 

16,767


16,528

 Net loans 

840,601


844,713





 Total assets 

1,250,887


1,167,546

 Total deposits 

1,044,820


942,475

 Federal Home Loan Bank advances 

37,717


37,726

 Securities sold under agreements to repurchase 

17,949


20,053

 Subordinated debentures 

29,427


29,427

 Total shareholders' equity 

108,611


128,376





 Shares outstanding at period end 

7,707,917


7,707,917





 Book value per share 

$              11.09


$              10.65

 Tangible book value per share 

8.00


7.53

 Equity to asset ratio 

8.68%


11.00%





Selected asset quality ratios:




Allowance for loan losses to total loans

1.96%


1.92%

Non-performing assets to total assets

2.16%


2.22%

Allowance for loan losses to non-performing loans

62.60%


64.33%





Non-performing asset analysis




Nonaccrual loans

$            21,184


$            20,459

Troubled debt restructurings

5,602


5,234

Other real estate owned

196


173

Total

$            26,982


$            25,866

 

 

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
Organizations planning enterprise data center consolidation and modernization projects are faced with a challenging, costly reality. Requirements to deploy modern, cloud-native applications simultaneously with traditional client/server applications are almost impossible to achieve with hardware-centric enterprise infrastructure. Compute and network infrastructure are fast moving down a software-defined path, but storage has been a laggard. Until now.
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection. In his session at 18th Cloud Expo, Bradley Holt, a Developer Advocate with IBM Cloud Data Services, discussed...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...