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
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
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.
SYS-CON Events announced today that Massive Networks will exhibit at 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. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
Given the popularity of the containers, further investment in the telco/cable industry is needed to transition existing VM-based solutions to containerized cloud native deployments. The networking architecture of the solution isolates the network traffic into different network planes (e.g., management, control, and media). This naturally makes support for multiple interfaces in container orchestration engines an indispensable requirement.
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" 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. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...