Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 09, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | CITIZENS FIRST CORP | |
Entity Central Index Key | 1,073,475 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,537,605 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from financial institutions | $ 6,546 | $ 6,444 |
Interest-bearing deposits in other financial institutions | 30,166 | 13,532 |
Available-for-sale securities | 46,432 | 48,616 |
Loans held for sale | 147 | 427 |
Loans, net of allowance for loan losses of $4,750 and $4,724 at June 30, 2018 and December 31, 2017, respectively | 378,539 | 369,515 |
Premises and equipment, net | 8,988 | 9,140 |
Bank owned life insurance (BOLI) | 8,615 | 8,528 |
Federal Home Loan Bank (FHLB) stock, at cost | 2,065 | 2,053 |
Accrued interest receivable | 1,549 | 1,681 |
Deferred income taxes | 762 | 670 |
Goodwill and other intangible assets | 4,185 | 4,221 |
Other assets | 594 | 555 |
Total assets | 488,588 | 465,382 |
Deposits. | ||
Noninterest bearing | 53,119 | 53,259 |
Savings, NOW and money market | 188,213 | 175,087 |
Time | 147,286 | 143,968 |
Total deposits | 388,618 | 372,314 |
FHLB advances and other borrowings | 45,000 | 40,000 |
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 347 | 285 |
Other liabilities | 1,946 | 1,949 |
Total liabilities | 440,911 | 419,548 |
Stockholders' equity | ||
Common stock, no par value, authorized 5,000,000 shares; issued and outstanding 2,537,605 shares at June 30, 2018 and 2,526,377 shares at December 31, 2017, respectively | 33,201 | 33,138 |
Retained earnings | 15,359 | 13,142 |
Accumulated other comprehensive income (loss) | (883) | (446) |
Total stockholders' equity | 47,677 | 45,834 |
Total liabilities and stockholders' equity | $ 488,588 | $ 465,382 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets | ||
Loans, allowance for loan losses (in dollars) | $ 4,750 | $ 4,724 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, authorized shares | 5,000,000 | 5,000,000 |
Common stock, issued shares | 2,537,605 | 2,526,377 |
Common stock, outstanding shares | 2,537,605 | 2,526,377 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest and dividend income | ||||
Loans | $ 4,796 | $ 4,257 | $ 9,293 | $ 8,381 |
Taxable securities | 174 | 142 | 342 | 291 |
Non-taxable securities | 97 | 127 | 200 | 264 |
Federal funds sold and other | 95 | 67 | 187 | 114 |
Total interest and dividend income | 5,162 | 4,593 | 10,022 | 9,050 |
Interest expense | ||||
Deposits | 826 | 595 | 1,555 | 1,142 |
FHLB advances and other borrowings | 188 | 96 | 377 | 193 |
Subordinated debentures | 50 | 35 | 92 | 68 |
Total interest expense | 1,064 | 726 | 2,024 | 1,403 |
Net interest income | 4,098 | 3,867 | 7,998 | 7,647 |
Provision for loan losses | 30 | 60 | 30 | |
Net interest income after provision for loan losses | 4,068 | 3,867 | 7,938 | 7,617 |
Non-interest income | ||||
Service charges on deposit accounts | 309 | 607 | ||
Gain on sale of mortgage loans | 69 | 88 | 119 | 156 |
Non-deposit brokerage fees | 101 | 200 | ||
Lease income | 79 | 80 | 131 | 132 |
BOLI income | 44 | 45 | 87 | 88 |
Gain on sale of available-for-sale securities | 23 | |||
Total non-interest income | 921 | 932 | 1,744 | 1,747 |
Non-interest expenses | ||||
Salaries and employee benefits | 1,773 | 1,655 | 3,619 | 3,389 |
Net occupancy expense | 432 | 446 | 885 | 907 |
Advertising and public relations | 85 | 77 | 166 | 148 |
Professional fees | 172 | 171 | 336 | 301 |
Data processing services | 205 | 251 | 399 | 504 |
Franchise shares and deposit tax | 120 | 132 | 240 | 264 |
FDIC insurance | 43 | 49 | 85 | 98 |
Other | 461 | 432 | 920 | 893 |
Total non-interest expenses | 3,291 | 3,213 | 6,650 | 6,504 |
Income before income taxes | 1,698 | 1,586 | 3,032 | 2,860 |
Income taxes | 324 | 478 | 574 | 845 |
Net income | 1,374 | 1,108 | 2,458 | 2,015 |
Dividends on preferred stock | 119 | 238 | ||
Net income available for common stockholders | $ 1,374 | $ 989 | $ 2,458 | $ 1,777 |
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.47 | $ 0.97 | $ 0.86 |
Diluted earnings per common share (in dollars per share) | $ 0.54 | $ 0.43 | $ 0.97 | $ 0.79 |
Deposit accounts | ||||
Non-interest income | ||||
Service charges on deposit accounts | $ 309 | $ 327 | $ 607 | $ 605 |
Other | ||||
Non-interest income | ||||
Other service charges and fees | 319 | 301 | 600 | 565 |
Brokerage fees | ||||
Non-interest income | ||||
Non-deposit brokerage fees | $ 101 | $ 91 | $ 200 | $ 178 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Comprehensive income, net of tax | ||||
Net income | $ 1,374 | $ 1,108 | $ 2,458 | $ 2,015 |
Other comprehensive income (loss) | ||||
Reclassification adjustment for gains included in net income, net of taxes | (15) | |||
Change in unrealized gain (loss) on available for sale securities, net of taxes | 20 | 276 | (349) | 506 |
Total other comprehensive income (loss) | 20 | 276 | (349) | 491 |
Comprehensive income | $ 1,394 | $ 1,384 | $ 2,109 | $ 2,506 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock. | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2016 | $ 7,261 | $ 25,920 | $ 9,706 | $ (523) | $ 42,364 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,015 | 2,015 | |||
Conversion of cumulative preferred | (7,077) | 7,077 | |||
Redemption of cumulative preferred | $ (184) | (8) | |||
Stock based compensation | 61 | 61 | |||
Change in accumulated other comprehensive income | 491 | 491 | |||
Dividend declared and paid on common stock | (162) | (162) | |||
Dividend declared and paid on preferred stock | (238) | (238) | |||
Balance at Jun. 30, 2017 | 33,050 | 11,321 | (32) | 44,339 | |
Balance at Dec. 31, 2017 | 33,138 | 13,142 | (446) | 45,834 | |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,458 | 2,458 | |||
Stock based compensation | 63 | 63 | |||
Change in accumulated other comprehensive income | (349) | (349) | |||
Dividend declared and paid on common stock | (329) | (329) | |||
Balance at Jun. 30, 2018 | $ 33,201 | 15,359 | (883) | $ 47,677 | |
Increase (Decrease) in Stockholders' Equity | |||||
Reclassification of disproportionate tax effect | $ 88 | $ (88) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Statements of Changes in Stockholders' Equity | ||
Dividend declared and paid on common stock (in dollars per share) | $ 0.13 | $ 0.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating Activities | ||
Net income | $ 2,458 | $ 2,015 |
Items not requiring (providing) cash: | ||
Depreciation | 197 | 234 |
Provision (credit) for loan losses | 60 | 30 |
Amortization of premiums and discounts on securities | 104 | 108 |
Amortization of core deposit intangible | 35 | 35 |
Stock based compensation | 63 | 61 |
BOLI Income | (87) | (88) |
Proceeds from sale of mortgage loans held for sale | 5,455 | 8,093 |
Origination of mortgage loans held for sale | (5,056) | (7,673) |
Gains on sales of available-for-sale securities | (23) | |
Gains on sales of mortgage loans held for sale | (119) | (156) |
Loss (gain) on sale premises and equipment | (8) | (6) |
Changes in: | ||
Accrued interest receivable | 132 | 187 |
Other assets | (37) | (128) |
Accrued interest payable and other liabilities | 59 | (467) |
Net cash provided by operating activities | 3,256 | 2,222 |
Investing Activities | ||
Loan originations and payments, net | (9,084) | (1,065) |
Increase in interest-bearing deposits in other financial institutions | (16,634) | (13,333) |
Purchase of premises and equipment | (45) | (57) |
Proceeds from maturities of available-for-sale securities | 4,778 | 3,836 |
Purchase of available-for-sale securities | 3,140 | 3,059 |
Proceeds from sales of available-for-sale securities | 4,870 | |
Proceeds from sales of premises and equipment | 8 | 7 |
Purchase of FHLB stock | (12) | (28) |
Net cash used in investing activities | (24,129) | (8,829) |
Financing Activities | ||
Net change in demand deposits, money market, NOW and savings accounts | 12,986 | (138) |
Net change in time deposits | 3,318 | 564 |
Proceeds from FHLB advances | 18,000 | 22,000 |
Repayment of FHLB advances | (13,000) | (17,000) |
Redemption of preferred stock | (192) | |
Dividends paid on common stock | (329) | (162) |
Dividends paid on preferred stock | (238) | |
Net cash provided by financing activities | 20,975 | 4,834 |
Increase (Decrease) in Cash and Cash Equivalents | 102 | (1,773) |
Cash and Cash Equivalents, Beginning of Year | 6,444 | 8,542 |
Cash and Cash Equivalents, End of Year | 6,546 | 6,769 |
Supplemental Cash Flows Information | ||
Interest paid | 1,962 | 1,394 |
Income taxes paid | $ 465 | 815 |
Conversion of cumulative preferred stock | $ 7,069 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1 - Nature of Operations and Summary of Significant Accounting Policies The accounting and reporting policies of Citizens First Corporation (the “Company”) and its wholly owned subsidiary, Citizens First Bank, Inc. (the “Bank”), conform to U.S. generally accepted accounting principles and general practices within the banking industry. The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates used in the preparation of the financial statements are based on various factors including the current interest rate environment and the general strength of the local economy. Changes in the overall interest rate environment can significantly affect the Company’s net interest income and the value of its recorded assets and liabilities. Actual results could differ from those estimates used in the preparation of the financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in the accompanying unaudited financial statements. Those adjustments consist only of normal recurring adjustments. Results of interim periods are not necessarily indicative of results to be expected for the full year. Recent Accounting Pronouncements– On January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income related to loans, securities and other sources that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 for the three months ended June 30, 2018 include service charges on deposit accounts of $309, debit card interchange income of $224, and non-deposit brokerage fees of $101. Services within the scope of ASC 606 for the six months ended June 30, 2018 include service charges on deposit accounts of $607, debit card interchange income of $421, and non-deposit brokerage fees of $200. We elected to implement using the modified retrospective application, with the cumulative effect recorded as an adjustment to opening retained earnings at January 1, 2018. Due to immateriality, we had no cumulative effect to record. In January 2016 the FASB issued ASU 2016-01 which amends existing guidance on the classification and measurement of financial instruments. This new standard revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The new standard is effective for reporting periods beginning after December 15, 2017. Adopting the provisions of ASU 2016-01 did not have a material impact on our consolidated financial statements. The Company currently does not have any equity investments. In February 2016 the FASB issued ASU 2016-02 which establishes the principles to report information about the assets and liabilities that arise from leases. This new standard changes the way operating leases are accounted for and reflected on the lessee’s balance sheet. The new standard is intended to increase transparency and comparability by requiring lessees to recognize the financial obligation and right-of-use asset associated with operating leases that have a lease term of more than 12 months on the balance sheet. The new standard is effective for reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. Based on the leases outstanding at June 30, 2018, we do not expect the new standard to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which introduces the current expected credit loss (CECL) model and replaces the incurred loss model. The most significant impact for financial institutions will be to the allowance for loan and lease losses (ALLL). The standard allows for various expected credit loss estimation methods and is scalable. This standard is effective for public companies for reporting periods beginning after December 15, 2019. We have attended training sessions and are assessing our data and system needs and evaluating the impact of adopting this new accounting standard. The Company expects to recognize a one-time increase to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of this standard on the consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. The final standard will shorten the amortization period for premiums on callable debt securities by requiring that premiums be amortized to the first (or earliest) call date instead of as an adjustment to the yield over the contractual life. The standard is effective for public companies for fiscal years beginning after December 15, 2018. Early adoption is permitted. This new accounting standard is not expected to have a material impact on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU permitted a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted twenty-one percent corporate income tax rate. The Company adopted during the first quarter of 2018 and recorded an increase to retained earnings and an increase to accumulated other comprehensive loss of approximately $88,000. |
Reclassifications
Reclassifications | 6 Months Ended |
Jun. 30, 2018 | |
Reclassifications | |
Reclassifications | Note 2 - Reclassifications Certain reclassifications have been made to the consolidated financial statements of prior periods to conform to the current period presentation. These reclassifications do not affect net income or total stockholders’ equity as previously reported. |
Available-For-Sale Securities
Available-For-Sale Securities | 6 Months Ended |
Jun. 30, 2018 | |
Available-For-Sale Securities | |
Available-For-Sale Securities | Note 3 - Available-For-Sale Securities The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at June 30, 2018 and December 31, 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: (Dollars in Thousands) Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2018 U. S. government agencies and government sponsored entities $ 8,430 $ 3 $ (193) $ 8,240 Agency mortgage-backed securities: residential 19,437 — (508) 18,929 State and municipal 17,792 64 (253) 17,603 Trust preferred security 1,891 — (231) 1,660 Total Available-for-Sale Securities $ 47,550 $ 67 $ (1,185) $ 46,432 December 31, 2017 U. S. government agencies and government sponsored entities $ 1,998 $ — $ (21) $ 1,977 Agency mortgage-backed securities: residential 26,024 14 (227) 25,811 State and municipal 19,381 143 (136) 19,388 Trust preferred security 1,889 — (449) 1,440 Total Available-for-Sale Securities $ 49,292 $ 157 $ (833) $ 48,616 The amortized cost and fair value of investment securities at June 30, 2018 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. June 30, 2018 (Dollars in Thousands) Available-For-Sale Amortized Cost Fair Value Due in one year or less $ 2,962 $ 2,964 Due from one to five years 10,570 10,519 Due from five to ten years 10,644 10,393 Due after ten years 3,937 3,627 Agency mortgage-backed: residential 19,437 18,929 Total $ 47,550 $ 46,432 The following table summarizes the investment securities with unrealized losses by portfolio segment at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position: (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2018: U.S. government agencies and government sponsored entities $ 6,130 $ (128) $ 1,761 $ (65) $ 7,891 $ (193) Agency mortgage-backed: residential 14,230 (350) 3,532 (158) 17,762 (508) State and municipal 11,743 (221) 281 (32) 12,024 (253) Trust preferred security — — 1,660 (231) 1,660 (231) Total temporarily impaired $ 32,103 $ (699) $ 7,234 $ (486) $ 39,337 $ (1,185) (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2017: U.S. government agencies and government sponsored entities $ — $ — $ 1,977 $ (21) $ 1,977 $ (21) Agency mortgage-backed: residential 17,798 (113) 4,754 (114) 22,552 (227) State and municipal 8,270 (116) 294 (20) 8,564 (136) Trust preferred security — — 1,440 (449) 1,440 (449) Total temporarily impaired $ 26,068 $ (229) $ 8,465 $ (604) $ 34,533 $ (833) Other-Than-Temporary-Impairment Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Investment securities classified as available-for-sale are generally evaluated for OTTI under ASC Topic 320, “Investments - Debt and Equity Securities.” In determining OTTI under the ASC Topic 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. All rated securities are investment grade. For those that are not rated, the financial condition has been evaluated and no adverse conditions were identified related to repayment. Declines in fair value are a function of rate differences in the market and market illiquidity. The Company does not intend or is not expected to be required to sell these securities before recovery of their amortized cost basis. 47.5% of the Company’s unrealized losses 12 months or more relate to its investment in a single trust preferred security. The security is a single-issuer trust preferred that is not rated. No impairment charge is being taken as no loss of principal or interest is anticipated. All principal and interest payments are being received as scheduled. On a quarterly basis, we evaluate the creditworthiness of the issuer, a bank holding company with operations in the state of Kentucky. Based on the issuer’s continued profitability and well-capitalized position, we do not deem that there is credit loss. The decline in fair value is primarily attributable to illiquidity affecting these markets and not the expected cash flows of the individual securities. We have evaluated the financial condition and near term prospects of the issuer and expect to fully recover our cost basis. This security continues to pay interest as agreed and future payments are expected to be made as agreed. This security is not considered to be other-than-temporarily impaired. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 4 - Loans and Allowance for Loan Losses Categories of loans include: (Dollars in Thousands) June 30, 2018 December 31, 2017 Commercial $ 58,929 $ 61,221 Commercial real estate: Construction 48,797 44,391 Other 181,337 182,443 Residential real estate 90,120 82,230 Consumer: Auto 1,034 1,184 Other 3,072 2,770 Total Loans 383,289 374,239 Less: Allowance for loan losses (4,750) (4,724) Net loans $ 378,539 $ 369,515 The following table sets forth an analysis of our allowance for loan losses for the three months ended June 30, 2018 and 2017. (Dollars in Thousands) June 30, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 617 $ 3,475 $ 576 $ 10 $ 15 $ 4,693 Provision (credit) for loan losses 6 24 (14) 7 7 30 Loans charged-off — — — (7) — (7) Recoveries 3 — 31 — — 34 Total ending allowance balance $ 626 $ 3,499 $ 593 $ 10 $ 22 $ 4,750 (Dollars in Thousands) June 30, 2017 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 665 $ 3,640 $ 537 $ 13 $ 51 $ 4,906 Provision (credit) for loan losses 27 (18) (23) (2) 16 — Loans charged-off (17) — — (1) — (18) Recoveries 6 — 3 1 — 10 Total ending allowance balance $ 681 $ 3,622 $ 517 $ 11 $ 67 $ 4,898 The following table sets forth an analysis of our allowance for loan losses for the six months ended June 30, 2018 and 2017. (Dollars in Thousands) June 30, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 633 $ 3,515 $ 554 $ 10 $ 12 $ 4,724 Provision (credit) for loan losses 28 (16) 31 7 10 60 Loans charged-off (38) — (27) (8) — (73) Recoveries 3 — 35 1 — 39 Total ending allowance balance $ 626 $ 3,499 $ 593 $ 10 $ 22 $ 4,750 (Dollars in Thousands) June 30, 2017 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 615 $ 3,628 $ 527 $ 14 $ 70 $ 4,854 Provision (credit) for loan losses 57 (6) (16) (2) (3) 30 Loans charged-off (17) — — (3) — (20) Recoveries 25 — 6 2 — 33 Total ending allowance balance $ 681 $ 3,622 $ 517 $ 11 $ 67 $ 4,898 The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of June 30, 2018 and December 31, 2017, which includes net deferred loan fees. As of June 30, 2018 and December 31, 2017, accrued interest receivable of $1.3 million and $1.4 million, respectively, are not considered significant and therefore not included in the recorded investment in loans presented in the following tables. (Dollars in Thousands) June 30, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 397 $ 9 $ — $ — $ 406 Collectively evaluated 626 3,102 584 10 22 4,344 Total ending allowance balance $ 626 $ 3,499 $ 593 $ 10 $ 22 $ 4,750 Loans: Individually evaluated for impairment $ — $ 2,039 $ 172 $ 4 $ — $ 2,215 Collectively evaluated 58,929 228,095 89,948 4,102 — 381,074 Total ending loans balance $ 58,929 $ 230,134 $ 90,120 $ 4,106 $ — $ 383,289 (Dollars in Thousands) December 31, 2017 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 45 $ — $ — $ — $ 45 Collectively evaluated 633 3,470 554 10 12 4,679 Total ending allowance balance $ 633 $ 3,515 $ 554 $ 10 $ 12 $ 4,724 Loans: Individually evaluated for impairment $ 2 $ 1,393 $ 82 $ 7 $ — $ 1,484 Collectively evaluated 61,219 225,441 82,148 3,947 — 372,755 Total ending loans balance $ 61,221 $ 226,834 $ 82,230 $ 3,954 $ — $ 374,239 The following table presents information related to impaired loans by class of loans as of June 30, 2018 and December 31, 2017. In this table presentation the unpaid principal balance of the loans has not been reduced by partial net charge-offs and the recorded investment of the loans was reduced by partial net charge-offs. (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 December 31, 2017 Unpaid Recorded Allowance for Loan Losses Allocated Unpaid Recorded Allowance With no related allowance recorded: Commercial $ — $ — $ — $ 2 $ 2 $ — Commercial real estate: Other 1,269 1,269 — 1,317 1,317 — Residential real estate 71 71 — 82 82 — Consumer: Other 4 4 — 7 7 — Subtotal $ 1,344 $ 1,344 $ — $ 1,408 $ 1,408 $ — With an allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Commercial real estate: Other 770 770 397 76 76 45 Residential real estate 101 101 9 — — — Consumer: Other — — — — — — Subtotal $ 871 $ 871 $ 406 $ 76 $ 76 $ 45 Total $ 2,215 $ 2,215 $ 406 $ 1,484 $ 1,484 $ 45 Information on impaired loans for the three months ended June 30, 2018 and 2017 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 June 30, 2017 Average Interest Cash Basis Average Interest Cash B asis Commercial $ — $ — $ — $ 105 $ — $ — Commercial real estate: Construction — — — — — — Other 2,050 26 1 3,324 42 12 Residential real estate 173 2 1 1,094 13 8 Consumer: Auto — — — — — — Other 4 — — 21 — — Total $ 2,227 $ 28 $ 2 $ 4,544 $ 55 $ 20 Information on impaired loans for the six months ended June 30, 2018 and 2017 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 June 30, 2017 Average Recorded Investment Interest Income Recognized Cash Basis Average Interest Cash Basis Commercial $ — $ — $ — $ 106 $ 2 $ 2 Commercial real estate: Construction — — — — — — Other 2,067 52 2 3,328 56 24 Residential real estate 174 4 1 1,097 21 15 Consumer: Auto — — — — — — Other 5 — — 21 1 1 Total $ 2,246 $ 56 $ 3 $ 4,552 $ 80 $ 42 The recorded investment in nonaccrual and loans past due 90 days and over still on accrual by class of loans as of June 30, 2018 and December 31, 2017 are summarized below: (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 December 31, 2017 Loans Past Due Nonaccrual Loans Past Due Nonaccrual Commercial real estate: Other — 1,967 — 1,317 Residential real estate — 119 — 27 Total $ — $ 2,086 $ — $ 1,344 Nonaccrual loans and loans past due 90 days and over still on accrual include individually classified impaired loans. The following tables present the aging of the recorded investment in past due loans as of June 30, 2018 and December 31, 2017 by class of loans. Non-accrual loans are included and have been categorized based on their payment status: (Dollars in Thousands) 30-59 60-89 90 and Over Days Past Due Total Past Current Total June 30, 2018 Commercial $ — $ — $ — $ — $ 58,929 $ 58,929 Commercial real estate: Construction 129 — — 129 48,668 48,797 Other 49 — 698 747 180,590 181,337 Residential real estate 110 — 119 229 89,891 90,120 Consumer: Auto — — — — 1,034 1,034 Other 3 — — 3 3,069 3,072 Subtotal $ 291 $ — $ 817 $ 1,108 $ 382,181 $ 383,289 (Dollars in Thousands) 30-59 60-89 90 and Over Total Past Current Total December 31, 2017 Commercial $ 9 $ — $ — $ 9 $ 61,212 $ 61,221 Commercial real estate: Construction — — — — 44,391 44,391 Other — — — — 182,443 182,443 Residential real estate 90 — 27 117 82,113 82,230 Consumer: Auto — — — — 1,184 1,184 Other 3 — — 3 2,767 2,770 Subtotal $ 102 $ — $ 27 $ 129 $ 374,110 $ 374,239 Troubled Debt Restructurings: The Company reported total troubled debt restructurings of $1.4 million and $1.5 million as of June 30, 2018 and December 31, 2017, respectively. The Company has no commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings. Troubled debt restructurings are included in impaired loans. The modifications of the terms of these loans included reducing the interest rate, granting an interest only payment period, or extending the terms of the debt for customers experiencing financial difficulties. Of the five troubled debt restructurings reported at quarter end, three loans totaling $130,000 were on accrual status and two loans totaling $1.3 million were on non-accrual status. The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2018 and 2017. (Dollars in Thousands) (Dollars in Thousands) Number Pre- Post- Number Pre- Post- June 30, 2018 June 30, 2017 Troubled Debt Restructurings: Commercial — $ — $ — 1 $ 5 $ 5 Total — $ — $ — 1 $ 5 $ 5 The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2018 and 2017. (Dollars in Thousands) (Dollars in Thousands) Number Pre- Post- Number Pre- Post-Modification Outstanding Recorded June 30, 2018 June 30, 2017 Troubled Debt Restructurings: Commercial — $ — $ — 1 $ 5 $ 5 Total — $ — $ — 1 $ 5 $ 5 Specific allocations of $47,000 and $191,000 were reported for troubled debt restructurings as of June 30, 2018 and June 30, 2017. For the three and six months ended June 30, 2018 no payment defaults or charge-offs were reported for troubled debt restructurings made during the prior 12 months, and for the three and six months ended June 30, 2017, no payment defaults or charge-offs were reported for the troubled debt restructurings made during the prior 12 months. The terms of certain other loans were modified during the six months ended June 30, 2018 and 2017 that did not meet the definition of a troubled debt restructuring. These loans modified during the six months ended June 30, 2018 have a total recorded investment of $16.4 million as of June 30, 2018. The loans modified during the six months ended June 30, 2017 had a total recorded investment of $17.2 million as of June 30, 2017. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and commercial real estate loans with an outstanding balance greater than $25 thousand and is reviewed on a monthly basis. For residential real estate and consumer loans the analysis primarily involves monitoring the past due status of these loans and at such time that these loans are past due, the Company evaluates the loans to determine if a change in risk category is warranted. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. All loans in all loan categories are assigned risk ratings. Based on the most recent analyses performed, the risk category of loans by class of loans is as follows: (Dollars in Thousands) Pass Special Substandard Doubtful Total June 30, 2018 Commercial $ 58,061 $ — $ 868 $ — $ 58,929 Commercial real estate: Construction 48,797 — — — 48,797 Other 179,169 — 2,168 — 181,337 Residential real estate 90,018 — 102 — 90,120 Consumer: Auto 1,034 — — — 1,034 Other 3,066 — 6 — 3,072 Total $ 380,145 $ — $ 3,144 $ — $ 383,289 (Dollars in Thousands) Pass Special Substandard Doubtful Total December 31, 2017 Commercial $ 60,306 $ — $ 915 $ — $ 61,221 Commercial real estate: Construction 44,391 — — — 44,391 Other 178,462 703 3,278 — 182,443 Residential real estate 82,148 55 27 — 82,230 Consumer: Auto 1,184 — — — 1,184 Other 2,762 — 8 — 2,770 Total $ 369,253 $ 758 $ 4,228 $ — $ 374,239 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Fair Value Measurements | Note 5 - Fair Value Measurements Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that are supported by little or no market activity, reflect a company’s own assumptions about market participant assumptions of fair value, and are significant to the fair value of the assets or liabilities. In determining the appropriate levels, the Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities: The fair value of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (level 2 inputs). The Company does not have any Level 1 securities. Level 2 securities include certain U.S. agency bonds, collateralized mortgage and debt obligations, and certain municipal securities. The Company also has one Level 3 security. The value of this single issue trust preferred security is obtained on a quarterly basis directly from the originating broker. Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other Real Estate Owned: Commercial and residential real estate properties classified as other real estate owned (OREO) are measured at fair value, less costs to sell. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for collateral-dependent impaired loans and real estate properties classified as other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by Bank management. The appraisal values for collateral-dependent impaired loans are discounted to allow for selling expenses and fees, the limited use nature of various properties, the age of the most recent appraisal, and additional discretionary discounts for location, condition, etc. The Bank annually obtains an updated current appraisal value for each OREO property to certify that the fair value has not declined. For each parcel of OREO that has declined in value, the Bank records the decline in value by a direct writedown of the asset. Assets measured at fair value on a recurring basis: Fair Value Measurements at: (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 December 31, 2017 Quoted Significant Significant Quoted Significant Significant Assets: Securities available-for-sale U. S. government agencies and government sponsored entities — $ 8,240 — — $ 1,977 — Agency mortgage-backed securities-residential — 18,929 — — 25,811 — State and municipal — 17,603 — — 19,388 — Trust preferred security — — 1,660 — — 1,440 Corporate bonds — — — — — — Total investment securities $ — $ 44,772 $ 1,660 $ — $ 47,176 $ 1,440 The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30: Trust Preferred Security 2018 2017 Balance of recurring Level 3 assets at January 1 $ 1,440 $ 1,240 Total gains or (losses) for the period included in other comprehensive income 220 140 Balance of recurring Level 3 assets at June 30 $ 1,660 $ 1,380 As of June 30, 2018, there were impaired loans with a fair value totaling $440,000 measured using significant unobservable inputs (level 3). These loans had adjustments using sales comparison valuation techniques for limited used nature of certain properties, age of appraisal, location, and/or condition. There were no financial assets measured at fair value on a non-recurring basis as of December 31, 2017. The following table presents quantitative and qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis at June 30, 2018. June 30, 2018 Valuation Unobservable Inputs (Dollars in thousands) Range (Weighted Avg) Impaired loans: Commercial RE 348 Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition (22.69) % Residential RE 92 Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 15-20 (17.83) % Impaired loans, which are measured for impairment using the fair value of collateral for collateral dependent loans, had a principal balance of $799,000 at June 30, 2018 with a valuation allowance of $359,000, resulting in an additional provision for loan losses of $359,000 in the six months ending June 30, 2018. There were no loans measured for impairment using the fair value of collateral dependent loans, no valuation allowance, and no resulting provision for loan losses as of December 31, 2017. There was no other real estate owned to measure at fair value at June 30, 2018 or December 31, 2017. No writedowns of other real estate owned were taken in the six months ended June 30, 2018 or June 30, 2017. The carrying amount and estimated fair values of financial instruments at June 30, 2018 and December 31, 2017 were as follows: Fair Value Measurements at June 30, 2018 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 6,546 $ 6,546 $ — $ — $ 6,546 Interest-bearing deposits in other financial institutions 30,166 30,166 — — 30,166 Available-for-sale-securities 46,044 — 44,772 1,660 46,432 Loans, net of allowance 378,539 — — 370,721 370,721 Loans held for sale 147 — 150 — 150 Accrued interest receivable 1,549 16 230 1,303 1,549 Federal Home Loan Bank stock 2,065 — — — N/A Financial Liabilities Demand and savings deposits $ 241,332 $ 241,332 $ — $ — $ 241,332 Time deposits 147,286 — 145,222 — 145,222 FHLB advances 45,000 — 44,665 — 44,665 Subordinated debentures 5,000 — — 2,543 2,543 Accrued interest payable 347 13 282 52 347 Fair Value Measurements at December 31, 2017 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 6,444 $ 6,444 $ — $ — $ 6,444 Interest-bearing deposits in other financial institutions 13,532 13,532 — — 13,532 Available-for-sale-securities 48,616 — 47,176 1,440 48,616 Loans, net of allowance 369,515 — — 367,159 367,159 Loans held for sale 427 — 435 — 435 Accrued interest receivable 1,681 18 234 1,429 1,681 Federal Home Loan Bank stock 2,053 — — — N/A Financial Liabilities Demand and savings deposits $ 228,346 $ 228,346 $ — $ — $ 228,346 Time deposits 143,968 — 142,440 — 142,440 FHLB advances 40,000 — 39,776 — 39,776 Subordinated debentures 5,000 — — 2,543 2,543 Accrued interest payable 285 14 232 39 285 The methods and assumptions used to estimate fair value are described as follows: (a) Cash and Cash Equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. (b) Interest Bearing Deposits in Other Financial Institutions: Fair values are based on quoted market prices. (c) Loans, Net: At June 30, 2018, fair values of loans, excluding loans held for sale, are determined using an estimated exit price. Contractual cash flow estimates are projected using a loan's balance, interest rate, repricing characteristics, maturity and payment amounts. Loans are grouped into homogenous pools for valuation purposes based on type and credit risk metrics. Contractual cash flows are adjusted for potential prepayment estimates, as well as potential defaults over the expected life of each pool. A discount rate is determined based upon current financial conditions and the nature of the cash flow forecast. The resulting exit price for the portfolio is a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. At December 31, 2017, fair values of loans, excluding loans held for sale, was estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values were based on carrying values resulting in a Level 3 classification. Fair values for other loans were estimated using discounted cash flow analyses, using interest rates being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost fair value as described previously. The methods utilized to estimate the fair value of loans did not necessarily represent an exit price. (d) Loans Held for Sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. (e) FHLB Stock: It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. (f) Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate certificates of deposit approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. (g) FHLB Advances and Other Borrowings/Subordinated Debentures: The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. (h) Accrued Interest Receivable/Payable: The carrying amounts of accrued interest approximate fair value resulting in a Level 1 or Level 2 classification consistent with the asset/liability they are associated with. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share | |
Earnings Per Share | Note 6 - Earnings Per Share Basic earnings per share have been computed by dividing net income available for common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share have been computed the same as basic earnings per share and assumes the conversion of performance share units and convertible preferred stock, if dilutive. The following table reconciles the basic and diluted earnings per share computations for the three months and six months ended June 30, 2018 and 2017. 2018 2017 Quarter ended June 30, 2018 Quarter ended June 30, 2017 Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ 1,374 $ 1,108 Dividends on preferred stock during the year — (119) Net income available to common shareholders $ 1,374 2,537,605 $ 0.54 $ 989 2,104,002 $ 0.47 Effect of dilutive securities Performance share units — 8,254 — 10,246 Convertible preferred stock — — 119 435,875 Diluted earnings per share Net income available to common stockholders and assumed conversions $ 1,374 2,545,859 $ 0.54 $ 1,108 2,550,123 $ 0.43 (Dollars in Thousands) Six months ended June 30, 2018 Six months ended June 30, 2017 Weighted Weighted Average Per Share Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ 2,458 $ 2,015 Dividends on preferred stock during the year — (238) Net income available to common shareholders $ 2,458 2,533,077 $ 0.97 $ 1,777 2,058,318 $ 0.86 Effect of dilutive securities: Performance share units — 8,152 — 10,021 Convertible preferred stock — — 238 481,634 Diluted earnings per share: Net income available to common stockholders and assumed conversions $ 2,458 2,541,229 $ 0.97 $ 2,015 2,549,973 $ 0.79 |
Regulatory Capital Matters
Regulatory Capital Matters | 6 Months Ended |
Jun. 30, 2018 | |
Regulatory Capital Matters | |
Regulatory Capital Matters | Note 7 - Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of June 30, 2018 and December 31, 2017, the Company and Citizens First Bank met all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Under quantitative measures established by regulation to ensure capital adequacy, we are required to maintain minimum amounts and ratios of total Tier 1 capital to risk-weighted assets and to total assets. Interim Final Basel III rules require the Bank to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in computing regulatory capital. The rules also established a "capital conservation buffer" of 2.5%, to be phased in through January 1, 2019, above the new regulatory minimum risk-based capital ratios. The buffer is 1.875% as of June 30, 2018. The buffer could limit the payment of dividends and discretionary bonuses to officers if a bank fails to maintain required capital levels. The Company’s and Citizens First Bank, Inc.’s actual capital amounts and ratios are also presented in the following table. (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions June 30, 2018 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ 54,304 13.41 % $ 32,393 8.00 % N/A N/A Citizens First Bank, Inc. 53,306 13.18 % 32,368 8.00 % $ 40,460 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 49,554 12.24 % 24,294 6.00 % N/A N/A Citizens First Bank, Inc. 48,556 12.00 % 24,726 6.00 % 32,967 8.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 49,554 11.00 % 18,221 4.50 % N/A N/A Citizens First Bank, Inc. 48,556 12.00 % 18,207 4.50 % 26,299 6.50 % Tier I Leverage Capital to average assets Consolidated 49,554 10.50 % 18,882 4.00 % N/A N/A Citizens First Bank, Inc. 48,556 10.23 % 18,985 4.00 % 23,732 5.0 % (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ 51,988 13.07 % $ 31,823 8.00 % N/A N/A Citizens First Bank, Inc. 51,112 12.86 % 31,802 8.00 % $ 39,753 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 47,264 11.88 % 23,867 6.00 % N/A N/A Citizens First Bank, Inc. 46,388 11.67 % 23,852 6.00 % 31,802 8.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 42,502 10.68 % 17,900 4.50 % N/A N/A Citizens First Bank, Inc. 46,388 11.67 % 17,889 4.50 % 25,839 6.50 % Tier I Leverage Capital to average assets Consolidated 47,264 10.31 % 18,343 4.00 % N/A N/A Citizens First Bank, Inc. 46,388 10.14 % 18,301 4.00 % 22,876 5.0 % (1) When fully phased-in on January 1, 2019, Basel III Capital Rules will require banking organizations to maintain: a minimum ratio of common equity Tier 1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer”; a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer; a minimum ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer; and a minimum ratio of Tier 1 capital to adjusted average consolidated assets of at least 4.0%. |
Nature of Operations and Summ16
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies The accounting and reporting policies of Citizens First Corporation (the “Company”) and its wholly owned subsidiary, Citizens First Bank, Inc. (the “Bank”), conform to U.S. generally accepted accounting principles and general practices within the banking industry. The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates used in the preparation of the financial statements are based on various factors including the current interest rate environment and the general strength of the local economy. Changes in the overall interest rate environment can significantly affect the Company’s net interest income and the value of its recorded assets and liabilities. Actual results could differ from those estimates used in the preparation of the financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in the accompanying unaudited financial statements. Those adjustments consist only of normal recurring adjustments. Results of interim periods are not necessarily indicative of results to be expected for the full year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements– On January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income related to loans, securities and other sources that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 for the three months ended June 30, 2018 include service charges on deposit accounts of $309, debit card interchange income of $224, and non-deposit brokerage fees of $101. Services within the scope of ASC 606 for the six months ended June 30, 2018 include service charges on deposit accounts of $607, debit card interchange income of $421, and non-deposit brokerage fees of $200. We elected to implement using the modified retrospective application, with the cumulative effect recorded as an adjustment to opening retained earnings at January 1, 2018. Due to immateriality, we had no cumulative effect to record. In January 2016 the FASB issued ASU 2016-01 which amends existing guidance on the classification and measurement of financial instruments. This new standard revises an entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The new standard is effective for reporting periods beginning after December 15, 2017. Adopting the provisions of ASU 2016-01 did not have a material impact on our consolidated financial statements. The Company currently does not have any equity investments. In February 2016 the FASB issued ASU 2016-02 which establishes the principles to report information about the assets and liabilities that arise from leases. This new standard changes the way operating leases are accounted for and reflected on the lessee’s balance sheet. The new standard is intended to increase transparency and comparability by requiring lessees to recognize the financial obligation and right-of-use asset associated with operating leases that have a lease term of more than 12 months on the balance sheet. The new standard is effective for reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. Based on the leases outstanding at June 30, 2018, we do not expect the new standard to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which introduces the current expected credit loss (CECL) model and replaces the incurred loss model. The most significant impact for financial institutions will be to the allowance for loan and lease losses (ALLL). The standard allows for various expected credit loss estimation methods and is scalable. This standard is effective for public companies for reporting periods beginning after December 15, 2019. We have attended training sessions and are assessing our data and system needs and evaluating the impact of adopting this new accounting standard. The Company expects to recognize a one-time increase to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of this standard on the consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. The final standard will shorten the amortization period for premiums on callable debt securities by requiring that premiums be amortized to the first (or earliest) call date instead of as an adjustment to the yield over the contractual life. The standard is effective for public companies for fiscal years beginning after December 15, 2018. Early adoption is permitted. This new accounting standard is not expected to have a material impact on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The ASU permitted a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate as a result of the Tax Cuts and Jobs Act. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted twenty-one percent corporate income tax rate. The Company adopted during the first quarter of 2018 and recorded an increase to retained earnings and an increase to accumulated other comprehensive loss of approximately $88,000. |
Available-For-Sale Securities (
Available-For-Sale Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Available-For-Sale Securities | |
Summary of the amortized cost and fair value of the available for sale investment securities portfolio | (Dollars in Thousands) Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2018 U. S. government agencies and government sponsored entities $ 8,430 $ 3 $ (193) $ 8,240 Agency mortgage-backed securities: residential 19,437 — (508) 18,929 State and municipal 17,792 64 (253) 17,603 Trust preferred security 1,891 — (231) 1,660 Total Available-for-Sale Securities $ 47,550 $ 67 $ (1,185) $ 46,432 December 31, 2017 U. S. government agencies and government sponsored entities $ 1,998 $ — $ (21) $ 1,977 Agency mortgage-backed securities: residential 26,024 14 (227) 25,811 State and municipal 19,381 143 (136) 19,388 Trust preferred security 1,889 — (449) 1,440 Total Available-for-Sale Securities $ 49,292 $ 157 $ (833) $ 48,616 |
Summary of the amortized cost and fair value of investment securities by contractual maturity | June 30, 2018 (Dollars in Thousands) Available-For-Sale Amortized Cost Fair Value Due in one year or less $ 2,962 $ 2,964 Due from one to five years 10,570 10,519 Due from five to ten years 10,644 10,393 Due after ten years 3,937 3,627 Agency mortgage-backed: residential 19,437 18,929 Total $ 47,550 $ 46,432 |
Summary of the investment securities with unrealized losses aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position | (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses June 30, 2018: U.S. government agencies and government sponsored entities $ 6,130 $ (128) $ 1,761 $ (65) $ 7,891 $ (193) Agency mortgage-backed: residential 14,230 (350) 3,532 (158) 17,762 (508) State and municipal 11,743 (221) 281 (32) 12,024 (253) Trust preferred security — — 1,660 (231) 1,660 (231) Total temporarily impaired $ 32,103 $ (699) $ 7,234 $ (486) $ 39,337 $ (1,185) (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2017: U.S. government agencies and government sponsored entities $ — $ — $ 1,977 $ (21) $ 1,977 $ (21) Agency mortgage-backed: residential 17,798 (113) 4,754 (114) 22,552 (227) State and municipal 8,270 (116) 294 (20) 8,564 (136) Trust preferred security — — 1,440 (449) 1,440 (449) Total temporarily impaired $ 26,068 $ (229) $ 8,465 $ (604) $ 34,533 $ (833) |
Loans and Allowance for Loan 18
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans and Allowance for Loan Losses | |
Schedule of categories of loans | (Dollars in Thousands) June 30, 2018 December 31, 2017 Commercial $ 58,929 $ 61,221 Commercial real estate: Construction 48,797 44,391 Other 181,337 182,443 Residential real estate 90,120 82,230 Consumer: Auto 1,034 1,184 Other 3,072 2,770 Total Loans 383,289 374,239 Less: Allowance for loan losses (4,750) (4,724) Net loans $ 378,539 $ 369,515 |
Schedule of activity in the allowance for loan losses | The following table sets forth an analysis of our allowance for loan losses for the three months ended June 30, 2018 and 2017. (Dollars in Thousands) June 30, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 617 $ 3,475 $ 576 $ 10 $ 15 $ 4,693 Provision (credit) for loan losses 6 24 (14) 7 7 30 Loans charged-off — — — (7) — (7) Recoveries 3 — 31 — — 34 Total ending allowance balance $ 626 $ 3,499 $ 593 $ 10 $ 22 $ 4,750 (Dollars in Thousands) June 30, 2017 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 665 $ 3,640 $ 537 $ 13 $ 51 $ 4,906 Provision (credit) for loan losses 27 (18) (23) (2) 16 — Loans charged-off (17) — — (1) — (18) Recoveries 6 — 3 1 — 10 Total ending allowance balance $ 681 $ 3,622 $ 517 $ 11 $ 67 $ 4,898 The following table sets forth an analysis of our allowance for loan losses for the six months ended June 30, 2018 and 2017. (Dollars in Thousands) June 30, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 633 $ 3,515 $ 554 $ 10 $ 12 $ 4,724 Provision (credit) for loan losses 28 (16) 31 7 10 60 Loans charged-off (38) — (27) (8) — (73) Recoveries 3 — 35 1 — 39 Total ending allowance balance $ 626 $ 3,499 $ 593 $ 10 $ 22 $ 4,750 (Dollars in Thousands) June 30, 2017 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 615 $ 3,628 $ 527 $ 14 $ 70 $ 4,854 Provision (credit) for loan losses 57 (6) (16) (2) (3) 30 Loans charged-off (17) — — (3) — (20) Recoveries 25 — 6 2 — 33 Total ending allowance balance $ 681 $ 3,622 $ 517 $ 11 $ 67 $ 4,898 |
Schedule of balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method | (Dollars in Thousands) June 30, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 397 $ 9 $ — $ — $ 406 Collectively evaluated 626 3,102 584 10 22 4,344 Total ending allowance balance $ 626 $ 3,499 $ 593 $ 10 $ 22 $ 4,750 Loans: Individually evaluated for impairment $ — $ 2,039 $ 172 $ 4 $ — $ 2,215 Collectively evaluated 58,929 228,095 89,948 4,102 — 381,074 Total ending loans balance $ 58,929 $ 230,134 $ 90,120 $ 4,106 $ — $ 383,289 (Dollars in Thousands) December 31, 2017 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 45 $ — $ — $ — $ 45 Collectively evaluated 633 3,470 554 10 12 4,679 Total ending allowance balance $ 633 $ 3,515 $ 554 $ 10 $ 12 $ 4,724 Loans: Individually evaluated for impairment $ 2 $ 1,393 $ 82 $ 7 $ — $ 1,484 Collectively evaluated 61,219 225,441 82,148 3,947 — 372,755 Total ending loans balance $ 61,221 $ 226,834 $ 82,230 $ 3,954 $ — $ 374,239 |
Schedule of impaired loans by class of loans | (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 December 31, 2017 Unpaid Recorded Allowance for Loan Losses Allocated Unpaid Recorded Allowance With no related allowance recorded: Commercial $ — $ — $ — $ 2 $ 2 $ — Commercial real estate: Other 1,269 1,269 — 1,317 1,317 — Residential real estate 71 71 — 82 82 — Consumer: Other 4 4 — 7 7 — Subtotal $ 1,344 $ 1,344 $ — $ 1,408 $ 1,408 $ — With an allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Commercial real estate: Other 770 770 397 76 76 45 Residential real estate 101 101 9 — — — Consumer: Other — — — — — — Subtotal $ 871 $ 871 $ 406 $ 76 $ 76 $ 45 Total $ 2,215 $ 2,215 $ 406 $ 1,484 $ 1,484 $ 45 Information on impaired loans for the three months ended June 30, 2018 and 2017 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 June 30, 2017 Average Interest Cash Basis Average Interest Cash B asis Commercial $ — $ — $ — $ 105 $ — $ — Commercial real estate: Construction — — — — — — Other 2,050 26 1 3,324 42 12 Residential real estate 173 2 1 1,094 13 8 Consumer: Auto — — — — — — Other 4 — — 21 — — Total $ 2,227 $ 28 $ 2 $ 4,544 $ 55 $ 20 Information on impaired loans for the six months ended June 30, 2018 and 2017 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 June 30, 2017 Average Recorded Investment Interest Income Recognized Cash Basis Average Interest Cash Basis Commercial $ — $ — $ — $ 106 $ 2 $ 2 Commercial real estate: Construction — — — — — — Other 2,067 52 2 3,328 56 24 Residential real estate 174 4 1 1,097 21 15 Consumer: Auto — — — — — — Other 5 — — 21 1 1 Total $ 2,246 $ 56 $ 3 $ 4,552 $ 80 $ 42 |
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 December 31, 2017 Loans Past Due Nonaccrual Loans Past Due Nonaccrual Commercial real estate: Other — 1,967 — 1,317 Residential real estate — 119 — 27 Total $ — $ 2,086 $ — $ 1,344 |
Schedule of aging of the recorded investment in past due loans by class of loans | (Dollars in Thousands) 30-59 60-89 90 and Over Days Past Due Total Past Current Total June 30, 2018 Commercial $ — $ — $ — $ — $ 58,929 $ 58,929 Commercial real estate: Construction 129 — — 129 48,668 48,797 Other 49 — 698 747 180,590 181,337 Residential real estate 110 — 119 229 89,891 90,120 Consumer: Auto — — — — 1,034 1,034 Other 3 — — 3 3,069 3,072 Subtotal $ 291 $ — $ 817 $ 1,108 $ 382,181 $ 383,289 (Dollars in Thousands) 30-59 60-89 90 and Over Total Past Current Total December 31, 2017 Commercial $ 9 $ — $ — $ 9 $ 61,212 $ 61,221 Commercial real estate: Construction — — — — 44,391 44,391 Other — — — — 182,443 182,443 Residential real estate 90 — 27 117 82,113 82,230 Consumer: Auto — — — — 1,184 1,184 Other 3 — — 3 2,767 2,770 Subtotal $ 102 $ — $ 27 $ 129 $ 374,110 $ 374,239 |
Schedule of loans by class modified as troubled debt restructurings | The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended June 30, 2018 and 2017. (Dollars in Thousands) (Dollars in Thousands) Number Pre- Post- Number Pre- Post- June 30, 2018 June 30, 2017 Troubled Debt Restructurings: Commercial — $ — $ — 1 $ 5 $ 5 Total — $ — $ — 1 $ 5 $ 5 The following table presents loans by class modified as troubled debt restructurings that occurred during the six months ended June 30, 2018 and 2017. (Dollars in Thousands) (Dollars in Thousands) Number Pre- Post- Number Pre- Post-Modification Outstanding Recorded June 30, 2018 June 30, 2017 Troubled Debt Restructurings: Commercial — $ — $ — 1 $ 5 $ 5 Total — $ — $ — 1 $ 5 $ 5 |
Schedule of risk category of loans by class of loans based on the most recent analyses performed | (Dollars in Thousands) Pass Special Substandard Doubtful Total June 30, 2018 Commercial $ 58,061 $ — $ 868 $ — $ 58,929 Commercial real estate: Construction 48,797 — — — 48,797 Other 179,169 — 2,168 — 181,337 Residential real estate 90,018 — 102 — 90,120 Consumer: Auto 1,034 — — — 1,034 Other 3,066 — 6 — 3,072 Total $ 380,145 $ — $ 3,144 $ — $ 383,289 (Dollars in Thousands) Pass Special Substandard Doubtful Total December 31, 2017 Commercial $ 60,306 $ — $ 915 $ — $ 61,221 Commercial real estate: Construction 44,391 — — — 44,391 Other 178,462 703 3,278 — 182,443 Residential real estate 82,148 55 27 — 82,230 Consumer: Auto 1,184 — — — 1,184 Other 2,762 — 8 — 2,770 Total $ 369,253 $ 758 $ 4,228 $ — $ 374,239 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements at: (Dollars in Thousands) (Dollars in Thousands) June 30, 2018 December 31, 2017 Quoted Significant Significant Quoted Significant Significant Assets: Securities available-for-sale U. S. government agencies and government sponsored entities — $ 8,240 — — $ 1,977 — Agency mortgage-backed securities-residential — 18,929 — — 25,811 — State and municipal — 17,603 — — 19,388 — Trust preferred security — — 1,660 — — 1,440 Corporate bonds — — — — — — Total investment securities $ — $ 44,772 $ 1,660 $ — $ 47,176 $ 1,440 |
Schedule of reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Trust Preferred Security 2018 2017 Balance of recurring Level 3 assets at January 1 $ 1,440 $ 1,240 Total gains or (losses) for the period included in other comprehensive income 220 140 Balance of recurring Level 3 assets at June 30 $ 1,660 $ 1,380 |
Schedule of quantitative and qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis | June 30, 2018 Valuation Unobservable Inputs (Dollars in thousands) Range (Weighted Avg) Impaired loans: Commercial RE 348 Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition (22.69) % Residential RE 92 Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 15-20 (17.83) % |
Schedule of carrying amount and estimated fair values of financial instruments | Fair Value Measurements at June 30, 2018 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 6,546 $ 6,546 $ — $ — $ 6,546 Interest-bearing deposits in other financial institutions 30,166 30,166 — — 30,166 Available-for-sale-securities 46,044 — 44,772 1,660 46,432 Loans, net of allowance 378,539 — — 370,721 370,721 Loans held for sale 147 — 150 — 150 Accrued interest receivable 1,549 16 230 1,303 1,549 Federal Home Loan Bank stock 2,065 — — — N/A Financial Liabilities Demand and savings deposits $ 241,332 $ 241,332 $ — $ — $ 241,332 Time deposits 147,286 — 145,222 — 145,222 FHLB advances 45,000 — 44,665 — 44,665 Subordinated debentures 5,000 — — 2,543 2,543 Accrued interest payable 347 13 282 52 347 Fair Value Measurements at December 31, 2017 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ 6,444 $ 6,444 $ — $ — $ 6,444 Interest-bearing deposits in other financial institutions 13,532 13,532 — — 13,532 Available-for-sale-securities 48,616 — 47,176 1,440 48,616 Loans, net of allowance 369,515 — — 367,159 367,159 Loans held for sale 427 — 435 — 435 Accrued interest receivable 1,681 18 234 1,429 1,681 Federal Home Loan Bank stock 2,053 — — — N/A Financial Liabilities Demand and savings deposits $ 228,346 $ 228,346 $ — $ — $ 228,346 Time deposits 143,968 — 142,440 — 142,440 FHLB advances 40,000 — 39,776 — 39,776 Subordinated debentures 5,000 — — 2,543 2,543 Accrued interest payable 285 14 232 39 285 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share | |
Schedule of reconciliation of basic and diluted earnings per share computations | 2018 2017 Quarter ended June 30, 2018 Quarter ended June 30, 2017 Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ 1,374 $ 1,108 Dividends on preferred stock during the year — (119) Net income available to common shareholders $ 1,374 2,537,605 $ 0.54 $ 989 2,104,002 $ 0.47 Effect of dilutive securities Performance share units — 8,254 — 10,246 Convertible preferred stock — — 119 435,875 Diluted earnings per share Net income available to common stockholders and assumed conversions $ 1,374 2,545,859 $ 0.54 $ 1,108 2,550,123 $ 0.43 (Dollars in Thousands) Six months ended June 30, 2018 Six months ended June 30, 2017 Weighted Weighted Average Per Share Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ 2,458 $ 2,015 Dividends on preferred stock during the year — (238) Net income available to common shareholders $ 2,458 2,533,077 $ 0.97 $ 1,777 2,058,318 $ 0.86 Effect of dilutive securities: Performance share units — 8,152 — 10,021 Convertible preferred stock — — 238 481,634 Diluted earnings per share: Net income available to common stockholders and assumed conversions $ 2,458 2,541,229 $ 0.97 $ 2,015 2,549,973 $ 0.79 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Regulatory Capital Matters | |
Schedule of the Company's and the Bank's actual capital amounts and ratios | (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions June 30, 2018 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ 54,304 13.41 % $ 32,393 8.00 % N/A N/A Citizens First Bank, Inc. 53,306 13.18 % 32,368 8.00 % $ 40,460 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 49,554 12.24 % 24,294 6.00 % N/A N/A Citizens First Bank, Inc. 48,556 12.00 % 24,726 6.00 % 32,967 8.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 49,554 11.00 % 18,221 4.50 % N/A N/A Citizens First Bank, Inc. 48,556 12.00 % 18,207 4.50 % 26,299 6.50 % Tier I Leverage Capital to average assets Consolidated 49,554 10.50 % 18,882 4.00 % N/A N/A Citizens First Bank, Inc. 48,556 10.23 % 18,985 4.00 % 23,732 5.0 % (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ 51,988 13.07 % $ 31,823 8.00 % N/A N/A Citizens First Bank, Inc. 51,112 12.86 % 31,802 8.00 % $ 39,753 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 47,264 11.88 % 23,867 6.00 % N/A N/A Citizens First Bank, Inc. 46,388 11.67 % 23,852 6.00 % 31,802 8.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 42,502 10.68 % 17,900 4.50 % N/A N/A Citizens First Bank, Inc. 46,388 11.67 % 17,889 4.50 % 25,839 6.50 % Tier I Leverage Capital to average assets Consolidated 47,264 10.31 % 18,343 4.00 % N/A N/A Citizens First Bank, Inc. 46,388 10.14 % 18,301 4.00 % 22,876 5.0 % (1) When fully phased-in on January 1, 2019, Basel III Capital Rules will require banking organizations to maintain: a minimum ratio of common equity Tier 1 to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer”; a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer; a minimum ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer; and a minimum ratio of Tier 1 capital to adjusted average consolidated assets of at least 4.0%. |
Nature of Operations and Summ22
Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Nature of Operations and Summary of Significant Accounting Policies | |||
Service charges on deposit accounts | $ 309 | $ 607 | |
Debit card interchange income | 224 | 421 | |
Non-deposit brokerage fees | 101 | 200 | |
Cumulative effect | $ 15,359 | $ 15,359 | $ 13,142 |
Statutory rate (as a percent) | 21.00% |
Available-For-Sale Securities -
Available-For-Sale Securities - Amortized Cost and Fair Value with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | $ 47,550 | $ 49,292 |
Gross Unrealized Gains | 67 | 157 |
Gross Unrealized Losses | (1,185) | (833) |
Fair value of securities | 46,432 | 48,616 |
U. S. government agencies and government sponsored entities | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 8,430 | 1,998 |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (193) | (21) |
Fair value of securities | 8,240 | 1,977 |
Agency mortgage-backed securities: residential | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 19,437 | 26,024 |
Gross Unrealized Gains | 14 | |
Gross Unrealized Losses | (508) | (227) |
Fair value of securities | 18,929 | 25,811 |
State and municipal | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 17,792 | 19,381 |
Gross Unrealized Gains | 64 | 143 |
Gross Unrealized Losses | (253) | (136) |
Fair value of securities | 17,603 | 19,388 |
Trust preferred security | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 1,891 | 1,889 |
Gross Unrealized Losses | (231) | (449) |
Fair value of securities | $ 1,660 | $ 1,440 |
Available-For-Sale Securities24
Available-For-Sale Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 2,962 | |
Due from one to five years | 10,570 | |
Due from five to ten years | 10,644 | |
Due after ten years | 3,937 | |
Agency mortgage-backed: residential | 19,437 | |
Amortized Cost | 47,550 | $ 49,292 |
Fair Value | ||
Due in one year or less | 2,964 | |
Due from one to five years | 10,519 | |
Due from five to ten years | 10,393 | |
Due after ten years | 3,627 | |
Agency mortgage-backed: residential | 18,929 | |
Fair Value | $ 46,432 | $ 48,616 |
Available-For-Sale Securities25
Available-For-Sale Securities - Investment Securities with Unrealized Losses by Investment Category (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Investment holdings | ||
Fair Value, Less than 12 Months | $ 32,103 | $ 26,068 |
Unrealized Losses, Less than 12 Months | (699) | (229) |
Fair Value, 12 Months or More | 7,234 | 8,465 |
Unrealized Losses, 12 Months or More | (486) | (604) |
Fair Value, Total | 39,337 | 34,533 |
Unrealized Losses, Total | $ (1,185) | (833) |
Unrealized losses, 12 months or more (as a percent) | 47.50% | |
Impairment charge on available for sale securities | $ 0 | |
Other than temporary impairment losses on investments | ||
Number of adverse conditions identified, related to repayment of securities that are not rated | item | 0 | |
Loss of principal anticipated | $ 0 | |
Loss of interest anticipated | 0 | |
U. S. government agencies and government sponsored entities | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 6,130 | |
Unrealized Losses, Less than 12 Months | (128) | |
Fair Value, 12 Months or More | 1,761 | 1,977 |
Unrealized Losses, 12 Months or More | (65) | (21) |
Fair Value, Total | 7,891 | 1,977 |
Unrealized Losses, Total | (193) | (21) |
Agency mortgage-backed securities: residential | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 14,230 | 17,798 |
Unrealized Losses, Less than 12 Months | (350) | (113) |
Fair Value, 12 Months or More | 3,532 | 4,754 |
Unrealized Losses, 12 Months or More | (158) | (114) |
Fair Value, Total | 17,762 | 22,552 |
Unrealized Losses, Total | (508) | (227) |
State and municipal | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 11,743 | 8,270 |
Unrealized Losses, Less than 12 Months | (221) | (116) |
Fair Value, 12 Months or More | 281 | 294 |
Unrealized Losses, 12 Months or More | (32) | (20) |
Fair Value, Total | 12,024 | 8,564 |
Unrealized Losses, Total | (253) | (136) |
Trust preferred security | ||
Investment holdings | ||
Fair Value, 12 Months or More | 1,660 | 1,440 |
Unrealized Losses, 12 Months or More | (231) | (449) |
Fair Value, Total | 1,660 | 1,440 |
Unrealized Losses, Total | $ (231) | $ (449) |
Loans and Allowance for Loan 26
Loans and Allowance for Loan Losses - Loans By Category (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Categories of loans | ||||||
Total loans | $ 383,289 | $ 374,239 | ||||
Less Allowance for loan losses | (4,750) | $ (4,693) | (4,724) | $ (4,898) | $ (4,906) | $ (4,854) |
Net Loans | 378,539 | 369,515 | ||||
Commercial | ||||||
Categories of loans | ||||||
Total loans | 58,929 | 61,221 | ||||
Less Allowance for loan losses | (626) | (617) | (633) | (681) | (665) | (615) |
Commercial Real Estate | ||||||
Categories of loans | ||||||
Total loans | 230,134 | 226,834 | ||||
Less Allowance for loan losses | (3,499) | (3,475) | (3,515) | (3,622) | (3,640) | (3,628) |
Residential Real Estate | ||||||
Categories of loans | ||||||
Total loans | 90,120 | 82,230 | ||||
Less Allowance for loan losses | (593) | (576) | (554) | (517) | (537) | (527) |
Consumer | ||||||
Categories of loans | ||||||
Total loans | 4,106 | 3,954 | ||||
Less Allowance for loan losses | (10) | (10) | (10) | (11) | (13) | (14) |
Unallocated | ||||||
Categories of loans | ||||||
Less Allowance for loan losses | (22) | $ (15) | (12) | $ (67) | $ (51) | $ (70) |
Commercial | Commercial | ||||||
Categories of loans | ||||||
Total loans | 58,929 | 61,221 | ||||
Real estate | Residential Real Estate | ||||||
Categories of loans | ||||||
Total loans | 90,120 | 82,230 | ||||
Construction | Commercial Real Estate | ||||||
Categories of loans | ||||||
Total loans | 48,797 | 44,391 | ||||
Auto | Consumer | ||||||
Categories of loans | ||||||
Total loans | 1,034 | 1,184 | ||||
Other | Commercial Real Estate | ||||||
Categories of loans | ||||||
Total loans | 181,337 | 182,443 | ||||
Other | Consumer | ||||||
Categories of loans | ||||||
Total loans | $ 3,072 | $ 2,770 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses - Allowance Roll-forward and Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | ||||||
Beginning Balance | $ 4,693 | $ 4,906 | $ 4,724 | $ 4,854 | ||
Provision (credit) for loan losses | 30 | 60 | 30 | |||
Loans charged-off | (7) | (18) | (73) | (20) | ||
Recoveries | 34 | 10 | 39 | 33 | ||
Total ending allowance balance | 4,750 | 4,898 | 4,750 | 4,898 | ||
Accrued interest receivable | $ 1,549 | $ 1,681 | ||||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 406 | 45 | ||||
Collectively evaluated | 4,344 | 4,679 | ||||
Total ending allowance balance | 4,693 | 4,906 | 4,724 | 4,854 | 4,750 | 4,724 |
Loans: | ||||||
Individually evaluated for impairment | 2,215 | 1,484 | ||||
Collectively evaluated | 381,074 | 372,755 | ||||
Loans and Leases Receivable, Gross, Total | 383,289 | 374,239 | ||||
Loans Receivable | ||||||
Allowance for loan losses: | ||||||
Interest receivable not included in recorded investment | 1,300 | 1,400 | ||||
Commercial | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 617 | 665 | 633 | 615 | ||
Provision (credit) for loan losses | 6 | 27 | 28 | 57 | ||
Loans charged-off | (17) | (38) | (17) | |||
Recoveries | 3 | 6 | 3 | 25 | ||
Total ending allowance balance | 626 | 681 | 626 | 681 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Collectively evaluated | 626 | 633 | ||||
Total ending allowance balance | 617 | 665 | 633 | 615 | 626 | 633 |
Loans: | ||||||
Individually evaluated for impairment | 2 | |||||
Collectively evaluated | 58,929 | 61,219 | ||||
Loans and Leases Receivable, Gross, Total | 58,929 | 61,221 | ||||
Commercial Real Estate | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 3,475 | 3,640 | 3,515 | 3,628 | ||
Provision (credit) for loan losses | 24 | (18) | (16) | (6) | ||
Total ending allowance balance | 3,499 | 3,622 | 3,499 | 3,622 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 397 | 45 | ||||
Collectively evaluated | 3,102 | 3,470 | ||||
Total ending allowance balance | 3,475 | 3,640 | 3,515 | 3,628 | 3,499 | 3,515 |
Loans: | ||||||
Individually evaluated for impairment | 2,039 | 1,393 | ||||
Collectively evaluated | 228,095 | 225,441 | ||||
Loans and Leases Receivable, Gross, Total | 230,134 | 226,834 | ||||
Residential Real Estate | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 576 | 537 | 554 | 527 | ||
Provision (credit) for loan losses | (14) | (23) | 31 | (16) | ||
Loans charged-off | (27) | |||||
Recoveries | 31 | 3 | 35 | 6 | ||
Total ending allowance balance | 593 | 517 | 593 | 517 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 9 | |||||
Collectively evaluated | 584 | 554 | ||||
Total ending allowance balance | 576 | 537 | 554 | 527 | 593 | 554 |
Loans: | ||||||
Individually evaluated for impairment | 172 | 82 | ||||
Collectively evaluated | 89,948 | 82,148 | ||||
Loans and Leases Receivable, Gross, Total | 90,120 | 82,230 | ||||
Consumer | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 10 | 13 | 10 | 14 | ||
Provision (credit) for loan losses | 7 | (2) | 7 | (2) | ||
Loans charged-off | (7) | (1) | (8) | (3) | ||
Recoveries | 1 | 1 | 2 | |||
Total ending allowance balance | 10 | 11 | 10 | 11 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Collectively evaluated | 10 | 10 | ||||
Total ending allowance balance | 10 | 13 | 10 | 14 | 10 | 10 |
Loans: | ||||||
Individually evaluated for impairment | 4 | 7 | ||||
Collectively evaluated | 4,102 | 3,947 | ||||
Loans and Leases Receivable, Gross, Total | 4,106 | 3,954 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 15 | 51 | 12 | 70 | ||
Provision (credit) for loan losses | 7 | 16 | 10 | (3) | ||
Total ending allowance balance | 22 | 67 | 22 | 67 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Collectively evaluated | 22 | 12 | ||||
Total ending allowance balance | $ 15 | $ 51 | $ 12 | $ 70 | 22 | 12 |
Commercial | Commercial | ||||||
Loans: | ||||||
Loans and Leases Receivable, Gross, Total | 58,929 | 61,221 | ||||
Real estate | Residential Real Estate | ||||||
Loans: | ||||||
Loans and Leases Receivable, Gross, Total | 90,120 | 82,230 | ||||
Construction | Commercial Real Estate | ||||||
Loans: | ||||||
Loans and Leases Receivable, Gross, Total | 48,797 | 44,391 | ||||
Auto | Consumer | ||||||
Loans: | ||||||
Loans and Leases Receivable, Gross, Total | 1,034 | 1,184 | ||||
Other | Commercial Real Estate | ||||||
Loans: | ||||||
Loans and Leases Receivable, Gross, Total | 181,337 | 182,443 | ||||
Other | Consumer | ||||||
Loans: | ||||||
Loans and Leases Receivable, Gross, Total | $ 3,072 | $ 2,770 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Unpaid Principal Balance | |||||
With no related allowance recorded | $ 1,344 | $ 1,344 | $ 1,408 | ||
With an allowance recorded | 871 | 871 | 76 | ||
Total | 2,215 | 2,215 | 1,484 | ||
Recorded Investment | |||||
With no related allowance recorded | 1,344 | 1,344 | 1,408 | ||
With an allowance recorded | 871 | 871 | 76 | ||
Total | 2,215 | 2,215 | 1,484 | ||
Allowance for Loan Losses Allocated | |||||
Total | 406 | 406 | 45 | ||
Average Recorded Investment | |||||
Total | 2,227 | $ 4,544 | 2,246 | $ 4,552 | |
Interest Income Recognized | |||||
Total | 28 | 55 | 56 | 80 | |
Cash Basis Interest Recognized | |||||
Total | 2 | 20 | 3 | 42 | |
Commercial | |||||
Average Recorded Investment | |||||
Total | 106 | ||||
Interest Income Recognized | |||||
Total | 2 | ||||
Cash Basis Interest Recognized | |||||
Total | 2 | ||||
Residential Real Estate | |||||
Average Recorded Investment | |||||
Total | 174 | 1,097 | |||
Interest Income Recognized | |||||
Total | 4 | 21 | |||
Cash Basis Interest Recognized | |||||
Total | 1 | 15 | |||
Commercial | Commercial | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 2 | ||||
Recorded Investment | |||||
With no related allowance recorded | 2 | ||||
Average Recorded Investment | |||||
Total | 105 | ||||
Real estate | Residential Real Estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 71 | 71 | 82 | ||
With an allowance recorded | 101 | 101 | |||
Recorded Investment | |||||
With no related allowance recorded | 71 | 71 | 82 | ||
With an allowance recorded | 101 | 101 | |||
Allowance for Loan Losses Allocated | |||||
Total | 9 | 9 | |||
Average Recorded Investment | |||||
Total | 173 | 1,094 | |||
Interest Income Recognized | |||||
Total | 2 | 13 | |||
Cash Basis Interest Recognized | |||||
Total | 1 | 8 | |||
Other | Commercial Real Estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 1,269 | 1,269 | 1,317 | ||
With an allowance recorded | 770 | 770 | 76 | ||
Recorded Investment | |||||
With no related allowance recorded | 1,269 | 1,269 | 1,317 | ||
With an allowance recorded | 770 | 770 | 76 | ||
Allowance for Loan Losses Allocated | |||||
Total | 397 | 397 | 45 | ||
Average Recorded Investment | |||||
Total | 2,050 | 3,324 | 2,067 | 3,328 | |
Interest Income Recognized | |||||
Total | 26 | 42 | 52 | 56 | |
Cash Basis Interest Recognized | |||||
Total | 1 | 12 | 2 | 24 | |
Other | Consumer | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 4 | 4 | 7 | ||
Recorded Investment | |||||
With no related allowance recorded | 4 | 4 | $ 7 | ||
Average Recorded Investment | |||||
Total | $ 4 | $ 21 | $ 5 | 21 | |
Interest Income Recognized | |||||
Total | 1 | ||||
Cash Basis Interest Recognized | |||||
Total | $ 1 |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses - Investment in Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | $ 2,086 | $ 1,344 |
Residential Real Estate | ||
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | 119 | 27 |
Other | Commercial Real Estate | ||
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | $ 1,967 | $ 1,317 |
Loans and Allowance for Loan 30
Loans and Allowance for Loan Losses - Aging of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Aging of the recorded investment in past due loans | ||
Total Past Due | $ 1,108 | $ 129 |
Current | 382,181 | 374,110 |
Loans and Leases Receivable, Gross, Total | 383,289 | 374,239 |
Commercial | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 58,929 | 61,221 |
Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 230,134 | 226,834 |
Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 90,120 | 82,230 |
Consumer | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 4,106 | 3,954 |
Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 9 | |
Current | 58,929 | 61,212 |
Loans and Leases Receivable, Gross, Total | 58,929 | 61,221 |
Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 229 | 117 |
Current | 89,891 | 82,113 |
Loans and Leases Receivable, Gross, Total | 90,120 | 82,230 |
Construction | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 129 | |
Current | 48,668 | 44,391 |
Loans and Leases Receivable, Gross, Total | 48,797 | 44,391 |
Auto | Consumer | ||
Aging of the recorded investment in past due loans | ||
Current | 1,034 | 1,184 |
Loans and Leases Receivable, Gross, Total | 1,034 | 1,184 |
Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 747 | |
Current | 180,590 | 182,443 |
Loans and Leases Receivable, Gross, Total | 181,337 | 182,443 |
Other | Consumer | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 3 | 3 |
Current | 3,069 | 2,767 |
Loans and Leases Receivable, Gross, Total | 3,072 | 2,770 |
30 to 59 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 291 | 102 |
30 to 59 Days Past Due | Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 9 | |
30 to 59 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 110 | 90 |
30 to 59 Days Past Due | Construction | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 129 | |
30 to 59 Days Past Due | Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 49 | |
30 to 59 Days Past Due | Other | Consumer | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 3 | 3 |
Over 90 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 817 | 27 |
Over 90 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 119 | $ 27 |
Over 90 Days Past Due | Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | $ 698 |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)loanitem | Jun. 30, 2017USD ($)loan | Jun. 30, 2018USD ($)loanitem | Jun. 30, 2017USD ($)loan | Dec. 31, 2017USD ($) | |
Troubled Debt Restructurings | |||||
Total troubled debt restructurings | $ 1,400,000 | $ 1,400,000 | $ 1,500,000 | ||
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | $ 0 | |||
Number of loans reported as troubled debt restructurings | item | 5 | 5 | |||
Number of loans accruing that are classified as troubled debt restructurings | loan | 3 | ||||
Loans accruing that are classified as troubled debt restructurings | $ 130,000 | $ 130,000 | |||
Number of loans on nonaccrual status that are classified as troubled debt restructurings | loan | 2 | ||||
Loans on nonaccrual status that are classified as troubled debt restructurings | 1,300,000 | $ 1,300,000 | |||
Number of loans modified as troubled debt restructurings that occurred during the year | loan | 1 | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ 5,000 | $ 5,000 | |||
Post-Modification Outstanding Recorded Investment | 5,000 | 5,000 | |||
Specific allocations reported for the troubled debt restructurings | $ 47,000 | $ 191,000 | $ 47,000 | $ 191,000 | |
Number of payment defaults reported for troubled debt restructurings | loan | 0 | 0 | 0 | 0 | |
Troubled debt restructurings charged off | $ 0 | ||||
Total recorded investment for loans modified (other than through troubled debt restructuring) | $ 16,400,000 | $ 17,200,000 | $ 16,400,000 | $ 17,200,000 | |
Commercial | |||||
Troubled Debt Restructurings | |||||
Number of loans modified as troubled debt restructurings that occurred during the year | loan | 1 | ||||
Pre-Modification Outstanding Recorded Investment | $ 5,000 | ||||
Post-Modification Outstanding Recorded Investment | $ 5,000 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Credit Quality Indicators | ||
Minimum outstanding balance of loans to be reviewed on a monthly basis | $ 25 | |
Total loans | 383,289 | $ 374,239 |
Pass | ||
Credit Quality Indicators | ||
Total loans | 380,145 | 369,253 |
Special Mention | ||
Credit Quality Indicators | ||
Total loans | 758 | |
Substandard | ||
Credit Quality Indicators | ||
Total loans | 3,144 | 4,228 |
Commercial | Commercial | ||
Credit Quality Indicators | ||
Total loans | 58,929 | 61,221 |
Commercial | Commercial | Pass | ||
Credit Quality Indicators | ||
Total loans | 58,061 | 60,306 |
Commercial | Commercial | Substandard | ||
Credit Quality Indicators | ||
Total loans | 868 | 915 |
Real estate | Residential Real Estate | ||
Credit Quality Indicators | ||
Total loans | 90,120 | 82,230 |
Real estate | Residential Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 90,018 | 82,148 |
Real estate | Residential Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Total loans | 55 | |
Real estate | Residential Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total loans | 102 | 27 |
Construction | Commercial Real Estate | ||
Credit Quality Indicators | ||
Total loans | 48,797 | 44,391 |
Construction | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 48,797 | 44,391 |
Auto | Consumer | ||
Credit Quality Indicators | ||
Total loans | 1,034 | 1,184 |
Auto | Consumer | Pass | ||
Credit Quality Indicators | ||
Total loans | 1,034 | 1,184 |
Other | Commercial Real Estate | ||
Credit Quality Indicators | ||
Total loans | 181,337 | 182,443 |
Other | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 179,169 | 178,462 |
Other | Commercial Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Total loans | 703 | |
Other | Commercial Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total loans | 2,168 | 3,278 |
Other | Consumer | ||
Credit Quality Indicators | ||
Total loans | 3,072 | 2,770 |
Other | Consumer | Pass | ||
Credit Quality Indicators | ||
Total loans | 3,066 | 2,762 |
Other | Consumer | Substandard | ||
Credit Quality Indicators | ||
Total loans | $ 6 | $ 8 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Assets: | |||
Securities available-for-sale | $ 46,432,000 | $ 48,616,000 | |
Fair value, assets measured on recurring basis, unobservable input reconciliation | |||
Impaired loans | 2,215,000 | 1,484,000 | |
Principal balance of impaired loans | 799,000 | 0 | |
Valuation allowance | 359,000 | 0 | |
Increase in the provision for loan losses | 359,000 | 0 | |
U. S. government agencies and government sponsored entities | |||
Assets: | |||
Securities available-for-sale | 8,240,000 | 1,977,000 | |
Agency mortgage-backed securities: residential | |||
Assets: | |||
Securities available-for-sale | 18,929,000 | 25,811,000 | |
State and municipal | |||
Assets: | |||
Securities available-for-sale | 17,603,000 | 19,388,000 | |
Trust preferred security | |||
Assets: | |||
Securities available-for-sale | 1,660,000 | 1,440,000 | |
Level 2 | |||
Assets: | |||
Securities available-for-sale | 44,772,000 | 47,176,000 | |
Level 3 | |||
Assets: | |||
Securities available-for-sale | 1,660,000 | 1,440,000 | |
Recurring basis | Level 2 | |||
Assets: | |||
Securities available-for-sale | 44,772,000 | 47,176,000 | |
Recurring basis | Level 2 | U. S. government agencies and government sponsored entities | |||
Assets: | |||
Securities available-for-sale | 8,240,000 | 1,977,000 | |
Recurring basis | Level 2 | Agency mortgage-backed securities: residential | |||
Assets: | |||
Securities available-for-sale | 18,929,000 | 25,811,000 | |
Recurring basis | Level 2 | State and municipal | |||
Assets: | |||
Securities available-for-sale | 17,603,000 | 19,388,000 | |
Recurring basis | Level 3 | |||
Assets: | |||
Securities available-for-sale | 1,660,000 | 1,440,000 | |
Recurring basis | Level 3 | Trust preferred security | |||
Assets: | |||
Securities available-for-sale | 1,660,000 | 1,440,000 | |
Fair value, assets measured on recurring basis, unobservable input reconciliation | |||
Recurring Level 3 assets, beginning of period balance | 1,440,000 | $ 1,240,000 | 1,240,000 |
Losses for the period included in other comprehensive income | 220,000 | 140,000 | |
Recurring Level 3 assets, end of period balance | 1,660,000 | $ 1,380,000 | $ 1,440,000 |
Residential Real Estate | Level 3 | |||
Fair value, assets measured on recurring basis, unobservable input reconciliation | |||
Impaired loans | $ 440,000 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative and Qualitative Information of Level 3 Fair Value Measurements (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Valuation techniques | ||
Impaired loans | $ 2,215,000 | $ 1,484,000 |
Level 3 | Residential Real Estate | ||
Valuation techniques | ||
Impaired loans | 440,000 | |
Non-recurring basis | ||
Valuation techniques | ||
Financial assets measured at fair value | $ 0 | |
Non-recurring basis | Level 3 | Commercial Real Estate | Sales Comparison | ||
Valuation techniques | ||
Impaired loans | 348,000 | |
Non-recurring basis | Level 3 | Residential Real Estate | Sales Comparison | ||
Valuation techniques | ||
Impaired loans | $ 92,000 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Interest-bearing deposits in other financial institutions | $ 30,166 | $ 13,532 |
Available-for-sale securities | 46,432 | 48,616 |
Loans, net of allowance | 378,539 | 369,515 |
Accrued interest receivable | 1,549 | 1,681 |
Federal Home Loan Bank stock | 2,065 | 2,053 |
Financial Liabilities | ||
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 347 | 285 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 6,546 | 6,444 |
Interest-bearing deposits in other financial institutions | 30,166 | 13,532 |
Accrued interest receivable | 16 | 18 |
Financial Liabilities | ||
Demand and savings deposits | 241,332 | 228,346 |
Accrued interest payable | 13 | 14 |
Level 2 | ||
Financial Assets | ||
Available-for-sale securities | 44,772 | 47,176 |
Loans held for sale | 150 | 435 |
Accrued interest receivable | 230 | 234 |
Financial Liabilities | ||
Time deposits | 145,222 | 142,440 |
FHLB advances | 44,665 | 39,776 |
Accrued interest payable | 282 | 232 |
Level 3 | ||
Financial Assets | ||
Available-for-sale securities | 1,660 | 1,440 |
Loans, net of allowance | 370,721 | 367,159 |
Accrued interest receivable | 1,303 | 1,429 |
Financial Liabilities | ||
Subordinated debentures | 2,543 | 2,543 |
Accrued interest payable | 52 | 39 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 6,546 | 6,444 |
Interest-bearing deposits in other financial institutions | 30,166 | 13,532 |
Available-for-sale securities | 46,044 | 48,616 |
Loans, net of allowance | 378,539 | 369,515 |
Loans held for sale | 147 | 427 |
Accrued interest receivable | 1,549 | 1,681 |
Federal Home Loan Bank stock | 2,065 | 2,053 |
Financial Liabilities | ||
Demand and savings deposits | 241,332 | 228,346 |
Time deposits | 147,286 | 143,968 |
FHLB advances | 45,000 | 40,000 |
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 347 | 285 |
Total | ||
Financial Assets | ||
Cash and cash equivalents | 6,546 | 6,444 |
Interest-bearing deposits in other financial institutions | 30,166 | 13,532 |
Available-for-sale securities | 46,432 | 48,616 |
Loans, net of allowance | 370,721 | 367,159 |
Loans held for sale | 150 | 435 |
Accrued interest receivable | 1,549 | 1,681 |
Financial Liabilities | ||
Demand and savings deposits | 241,332 | 228,346 |
Time deposits | 145,222 | 142,440 |
FHLB advances | 44,665 | 39,776 |
Subordinated debentures | 2,543 | 2,543 |
Accrued interest payable | $ 347 | $ 285 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic earnings per share: | ||||
Net income | $ 1,374 | $ 1,108 | $ 2,458 | $ 2,015 |
Less: Dividends on preferred stock during the quarter | (119) | (238) | ||
Net income available for common stockholders | $ 1,374 | $ 989 | $ 2,458 | $ 1,777 |
Weighted Average Shares, basic | ||||
Weighted Average Shares, basic | 2,537,605 | 2,104,002 | 2,533,077 | 2,058,318 |
Weighted Average Shares, diluted | ||||
Net income available to common stockholders and assumed conversions | $ 1,374 | $ 1,108 | $ 2,458 | $ 2,015 |
Weighted Average Shares, diluted | 2,545,859 | 2,550,123 | 2,541,229 | 2,549,973 |
Per Share Amount | ||||
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.47 | $ 0.97 | $ 0.86 |
Diluted earnings per common share (in dollars per share) | $ 0.54 | $ 0.43 | $ 0.97 | $ 0.79 |
Diluted earnings per share | ||||
Net income available to common stockholders and assumed conversions | $ 1,374 | $ 1,108 | $ 2,458 | $ 2,015 |
Convertible preferred stock | ||||
Effect of dilutive securities | ||||
Income | $ 119 | $ 238 | ||
Convertible preferred stock (in shares) | 435,875 | 481,634 | ||
Performance share units | ||||
Effect of dilutive securities | ||||
Performance share units (in shares) | 8,254 | 10,246 | 8,152 | 10,021 |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)item | Dec. 31, 2017USD ($) | |
Regulatory capital matters | ||
Number of classifications for prompt corrective action regulations | item | 5 | |
Capital conservation buffer (as a percent) | 1.875% | |
Tier one risk based minimum required capital conservation | 2.50% | |
Total Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 54,304 | $ 51,988 |
For Capital Adequacy Purposes, Amount | $ 32,393 | $ 31,823 |
Total Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 13.41% | 13.07% |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 49,554 | $ 47,264 |
For Capital Adequacy Purposes, Amount | $ 24,294 | $ 23,867 |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 12.24% | 11.88% |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual Amount | $ 49,554 | $ 42,502 |
For Capital Adequacy Purposes, Amount | $ 18,221 | $ 17,900 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 11.00% | 10.68% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | 4.50% |
Tier I Leverage Capital to Average Assets | ||
Actual, Amount | $ 49,554 | $ 47,264 |
For Capital Adequacy Purposes, Amount | $ 18,882 | $ 18,343 |
Tier I Capital (to Average Assets) | ||
Actual, Ratio (as a percent) | 10.50% | 10.31% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
Citizens First Bank, Inc. | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 53,306 | $ 51,112 |
For Capital Adequacy Purposes, Amount | 32,368 | 31,802 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 40,460 | $ 39,753 |
Total Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 13.18% | 12.86% |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 10.00% | 10.00% |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 48,556 | $ 46,388 |
For Capital Adequacy Purposes, Amount | 24,726 | 23,852 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 32,967 | $ 31,802 |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 12.00% | 11.67% |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual Amount | $ 48,556 | $ 46,388 |
For Capital Adequacy Purposes, Amount | 18,207 | 17,889 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 26,299 | $ 25,839 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 12.00% | 11.67% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 6.50% | 6.50% |
Tier I Leverage Capital to Average Assets | ||
Actual, Amount | $ 48,556 | $ 46,388 |
For Capital Adequacy Purposes, Amount | 18,985 | 18,301 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 23,732 | $ 22,876 |
Tier I Capital (to Average Assets) | ||
Actual, Ratio (as a percent) | 10.23% | 10.14% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |