Civista Bancshares (CIVB) 8-K First Citizens Banc Corp Announces Fourth Quarter and Full Year 2014 Earnings

Exhibit 99.1

First Citizens Banc Corp Announces Fourth Quarter and Full Year 2014 Earnings

Sandusky, Ohio, January 23, 2015 – First Citizens Banc Corp (NASDAQ:FCZA) PRNewswire (“First Citizens”) reported net income attributable to common shares of $2.3 million, or $0.21 per share, diluted, for the fourth quarter of 2014, an increase of 117.7% compared with $1.0 million, or $0.09 per share, diluted, for the prior year period. For the year ended December 31, 2014, First Citizens reported net income available to common shareholders of $7.7 million or $0.85 per share, diluted, an increase of 52.5% compared to $5.0 million, or $0.64 per share, diluted, in the same period of 2013.

“The 2014 year was a busy and successful one for First Citizens. We repaid our preferred stock from the U.S. Treasury’s Capital Purchase Program, closed four branches, announced the agreement for the acquisition of TCNB Financial in Dayton, reduced non-performing assets 26.4% and, during the same period, increased our loans by 6.2%. We also added person to person payments, mobile deposit and several mortgage banking products. Our shareholders enjoyed a total return of 61.1% on our stock during 2014.” said James O. Miller, Chairman, President and CEO of First Citizens.

Results of Operations:

Net interest income for the fourth quarter of 2014 increased $461 thousand, or 4.5%, from the prior year’s fourth quarter and increased $1.9 million, or 4.7% for the year ended December 31, 2014, when compared to the same period of 2013. Interest income increased $180 thousand, or 1.6%, for the fourth quarter and $1.1 million, or 2.4%, for the year ended December 31, 2014. The increase in interest income was due primarily to an increase in average loans outstanding of $63.4 million, or 7.6% and $55.3 million, or 6.7% for the three- and twelve-month periods, respectively. The increase in average loans was partially offset by decreased loan yield of 21 basis points and 16 basis points for the respective three- and twelve-month periods during 2013. Interest expense decreased $281 thousand or 24.4% and $803 thousand, or 16.4% for the three and twelve months ended December 31, 2014. Net interest margin for the twelve months of 2014 and the twelve months of 2013 was 3.79%. Mr. Miller continued, “We are pleased that we have enjoyed loan growth and a stable margin in spite of this interest rate environment. This was accomplished without jeopardizing our lending standards and our desire to encourage variable rate or limited fixed rate financing. Our asset duration continues to be less than two years.”

For the year ended 2014, the provision for loan losses increased $400 thousand, or 36.4%, compared to the same period last year. Net charge-offs totaled $3.8 million for year 2014 compared to $4.3 million for the same period in 2013.

Noninterest income decreased $81 thousand, or 2.8%, compared to the prior year’s fourth quarter but increased $1.8 million, or 15.0%, when 2014 is compared to the twelve months of 2013. The increase in the twelve-month period was primarily due to an increase fee income related to income tax refund processing. Tax refund processing fees were up $1.9 million, or 440.5% for the twelve months of 2014 compared to the same period a year ago, due to increased volume of returns processed. Wealth management revenue increased $70 thousand, or 10.5%, for the three-month period ended December 31 compared to the same period in 2013 and increased $503 thousand, or 19.1%, for the twelve-month period ended December 31 compared to the same period in 2013. The increase in wealth management revenue is due to both an increase in asset valuations as well as an increase in accounts. These factors were offset by a $ 46.3 million decrease in assets related to First Citizens’ resignation as trustee for out-of-area accounts inherited from a previous acquisition. The out-of-area accounts were lower yielding accounts and the lost revenue was more than offset by increased revenue related to other assets under management. At $463.6 million, assets under management decreased by less than 1.0% from the end of 2013, however, in-market assets increased $41.8 million or 9.9% from the end of 2013.

Noninterest expense decreased $1.6 million, or 13.3%, when compared to the prior year’s fourth quarter and $1.8 million, or 4.2%, when compared to the twelve months of 2013. For the quarter and twelve-month period, the decrease in noninterest expense was primarily attributable to a $2.6 million decrease in pension expense for the fourth quarter and a decrease of $3.7 million for the twelve-month period. The decrease for the quarter and for the year was due to a nonrecurring $2.3 million pension settlement entry in 2013, as well as to the effects of freezing the pension as of April 30, 2014. While the plan still exists, no new participants will be added and no additional benefits will accrue going forward. Marketing expense increased $201 thousand and $525 for the three- and twelve-month periods, respectively, due to re-branding expenses related to a planned change in the name of the bank subsidiary.

“For the year 2014 we were able to increase net interest income, increase noninterest income and keep our noninterest expenses stable.” said James O. Miller, Chairman, President and CEO of First Citizens. “This supports our belief that we can continue to grow the company without significant overhead increases.”

Balance Sheet

Total assets increased $47.1 million, or 4.0%, from December 31, 2013 to December 31, 2014 due primarily to an increase in loans of $53.6 million or 6.2%, during that period.

Mr. Miller continued, “Loan growth for the 2014 year shows our continued effort to grow relationships with our customers. We recently opened a loan production office on the east side of Cleveland. This office is staffed with experienced commercial lenders with relationships. With this loan production office and the addition of the Dayton, Ohio market, we are optimistic regarding loan growth for 2015.”

Total deposits increased $26.4 million, or 2.8%, from December 31, 2013 to December 31, 2014. Total shareholder’s equity decreased $10.5 million, or 8.2%, from December 31, 2013 to December 31, 2014 as a result of the $23.2 million redemption of Series A Preferred Stock, partially offset by retained earnings of $6.5 million and changes to Accumulated Other Comprehensive Income of $6.2 million.

Asset Quality

Nonperforming assets decreased $6.8 million, or 26.4%, from December 31, 2013 to December 31, 2014 due to the continuing workout of nonperforming loans with delinquent customers. Total nonaccrual loans decreased $6.9 million, or 33.7%, from December 31, 2013 to December 31, 2014. Mr. Miller continued, “We continue to focus on reducing our non-performing assets. During the recession we made the decision to work with our customers which has kept our non-performing assets higher. Many of these relationships have now been resolved or are in the process of being resolved.”

First Citizens Banc Corp is a $1.2 billion financial holding company headquartered in Sandusky, Ohio. The Company’s banking subsidiary, The Citizens Banking Company, operates 25 locations in Central and North Central Ohio.

First Citizens Banc Corp may be accessed atwww.fcza.com. The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “FCZA”. The Company’s depositary shares, each representing a 1/40^th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “FCZAP”.

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of First Citizens. For these statements, First Citizens claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about First Citizens, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in First Citizens’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of First Citizens’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. First Citizens does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

For additional information, contact:

James O. Miller

Chairman, President and CEO

First Citizens Banc Corp

888-645-4121

First Citizens Banc Corp

Financial Highlights

(dollars in thousands, except share amounts)

Consolidated Condensed Statement of Income

		Twelve Months Ended
		December 31,
		(unaudited)
		2014			2013
Interest income	$	45,970		$	44,881
Interest expense		4,104			4,907
Net interest income		41,866			39,974
Provision for loan losses		1,500			1,100
Net interest income after provision		40,366			38,874
Noninterest income		13,874			12,062
Noninterest expense		41,550			43,384
Income before taxes		12,690			7,552
Income tax expense		3,162			1,373
Net income		9,528			6,179
Preferred stock dividends		1,873			1,159
Net income available to common shareholders	$	7,655		$	5,020
Dividends per common share	$	0.19		$	0.15
Earnings per common share,
basic	$	0.99		$	0.65
diluted	$	0.85		$	0.64
Average shares outstanding,
basic		7,707,917			7,707,917
diluted		10,904,848			7,821,780
Selected financial ratios:
Return on average assets		0.77	%		0.53	%
Return on average equity		8.34	%		5.97	%
Dividend payout ratio		15.37	%		18.71	%
Net interest margin (tax equivalent)		3.79	%		3.79	%

Selected Balance Sheet Items

	December 31, 2014			December 31, 2013
		(unaudited	)
Cash and due from financial institutions	$	29,858		$	34,186
Investment securities		197,905			199,613
Loans held for sale		2,410			438
Loans		914,857			861,241
Less allowance for loan losses		14,268			16,528
Net loans		900,589			844,713
Other securities		12,586			15,424
Fixed assets		14,400			16,313
Goodwill and other intangibles		23,745			24,483
Bank owned life insurance		19,637			19,145
Other assets		13,479			13,231
Total assets		1,214,609			1,167,546
Total deposits		968,918			942,475
Federal Home Loan Bank advances		65,200			37,726
Securities sold under agreements to repurchase		21,613			20,053
Subordinated debentures		29,427			29,427
Accrued expenses and other liabilities		11,540			9,489
Total shareholders’ equity		117,911			128,376
Total liabilities and shareholders’ equity		1,214,609			1,167,546
Shares outstanding at period end		7,707,917			7,707,917
Book value per share	$	12.30		$	10.65
Tangible book value per share		9.22			7.47
Equity to asset ratio		9.71	%		11.00	%
Selected asset quality ratios:
Allowance for loan losses to total loans		1.56	%		1.92	%
Non-performing assets to total assets		1.57	%		2.22	%
Allowance for loan losses to non-performing loans		77.18	%		64.33	%
Non-performing asset analysis
Nonaccrual loans	$	13,558		$	20,458
Troubled debt restructurings		4,928			5,234
Other real estate owned		560			173
Total	$	19,046		$	25,865

Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)

	December 31,			September 30,			June 30,			March 31,			December 31,
End of Period Balances	2014			2014			2014			2014			2013
Assets
Cash and due from banks	$	29,858		$	24,128		$	50,650		$	120,388		$	34,186
Securities available for sale		197,905			200,891			197,680			203,997			199,613
Loans held for sale		2,410			1,399			2,168			545			438
Loans		914,857			887,018			867,978			857,368			861,241
Allowance for loan losses		(14,268	)		(15,445	)		(15,395	)		(16,767	)		(16,528	)
Net Loans		900,589			871,573			852,583			840,601			844,713
Other securities		12,586			12,554			12,548			12,414			15,424
Fixed assets		14,400			14,471			14,858			15,797			16,313
Goodwill and other intangibles		23,745			23,900			24,090			24,286			24,483
Bank owned life insurance		19,637			19,518			19,400			19,275			19,145
Other assets		13,479			13,565			11,153			13,584			13,231
Total Assets	$	1,214,609		$	1,181,999		$	1,185,130		$	1,250,887		$	1,167,546
Liabilities
Total Deposits	$	968,918		$	980,634		$	979,136		$	1,044,820		$	942,475
Federal Home Loan Bank advances		65,200			26,200			37,500			37,717			37,726
Securities sold under agreement to repurchase		21,613			20,128			17,881			17,949			20,053
Subordinated debentures		29,427			29,427			29,427			29,427			29,427
Accrued expenses and other liabilities		11,540			9,727			7,281			12,363			9,489
Total liabilities		1,096,698			1,066,116			1,071,225			1,142,276			1,039,170
Shareholders’ equity
Preferred shares, Series A		—			—			—			—			23,184
Preferred shares, Series B		23,132			23,132			23,132			23,132			23,132
Common Stock		114,365			114,365			114,365			114,365			114,365
Accumulated deficit		(4,306	)		(5,785	)		(7,300	)		(8,747	)		(10,823	)
Treasury stock		(17,235	)		(17,235	)		(17,235	)		(17,235	)		(17,235	)
Accumulated other comprehensive income (loss)		1,955			1,406			943			(2,904	)		(4,247	)
Total shareholders’ equity		117,911			115,883			113,905			108,611			128,376
Total liabilities and shareholders’ equity	$	1,214,609		$	1,181,999		$	1,185,130		$	1,250,887		$	1,167,546
Average Balances
Assets:
Earning assets	$	1,142,384		$	1,151,007		$	1,171,483		$	1,211,151		$	1,091,609
Securities		214,123			214,855			216,999			221,135			216,848
Loans		874,432			866,424			857,765			853,642			819,152
Liabilities and shareholders’ equity
Total deposits	$	1,026,093		$	1,038,996		$	1,065,859		$	1,123,070		$	965,370
Interest-bearing deposits		729,090			729,651			730,367			729,717			731,778
Interest-bearing liabilities		83,058			84,320			87,659			91,092			89,496
Total shareholders’ equity		114,266			113,447			112,967			116,119			103,563

Supplemental Financial Information

(Unaudited—Dollars in thousands except share data)

	Three Months Ended
Income statement	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Total interest income	$	11,623		$	11,667		$	11,365		$	11,315		$	11,443
Total interest expense		872			983			1,099			1,150			1,153
Net interest income		10,751			10,684			10,266			10,165			10,290
Provision for loan losses		—			—			750			750			—
Noninterest income		2,858			3,012			3,380			4,624			2,939
Noninterest expense		10,482			10,661			9,979			10,428			12,087
Income before taxes		3,127			3,035			2,917			3,611			1,142
Income tax expense		857			729			677			899			99
Net income		2,270			2,306			2,240			2,712			1,043
Preferred stock dividends		406			406			406			655			290
Net income available to common shareholders	$	1,864		$	1,900		$	1,834		$	2,057		$	753
Common stock dividend paid	$	385		$	385		$	385		$	308		$	308
Preferred stock dividend paid	$	406		$	406		$	406		$	655		$	290
Per share data
Basic net income per common share	$	0.23		$	0.25		$	0.24		$	0.27		$	0.10
Diluted net income per common share		0.21			0.21			0.21			0.22			0.09
Dividends per common share		0.05			0.05			0.05			0.04			0.04
Average common shares outstanding—basic		7,707,917			7,707,917			7,707,917			7,707,917			7,707,917
Average common shares outstanding—diluted		10,904,848			10,904,848			10,904,848			10,904,848			7,821,780
Asset quality
Allowance for loan losses, beginning of period	$	15,445		$	15,395		$	16,767		$	16,528		$	17,297
Charge-offs		(1,341	)		(456	)		(2,332	)		(652	)		(1,084	)
Recoveries		164			506			210			141			315
Provision		—			—			750			750			—
Allowance for loan losses, end of period	$	14,268		$	15,445		$	15,395		$	16,767		$	16,528
Ratios
Allowance to total loans		1.56	%		1.74	%		1.77	%		1.96	%		1.92	%
Allowance to nonperforming assets		74.91	%		73.92	%		67.11	%		62.14	%		63.90	%
Allowance to nonperforming loans		77.18	%		74.88	%		67.95	%		62.60	%		64.33	%
Nonperforming assets
Nonperforming loans	$	18,486		$	20,628		$	22,656		$	26,786		$	25,692
Other real estate owned		560			266			282			196			173
Total nonperforming assets	$	19,046		$	20,894		$	22,938		$	26,982		$	25,865
Capital and liquidity
Tier 1 leverage ratio		10.37	%		10.28	%		9.77	%		8.58	%		11.64	%
Tier 1 risk-based capital ratio		13.52	%		13.77	%		13.67	%		13.39	%		15.82	%
Total risk-based capital ratio		14.78	%		15.03	%		14.92	%		14.67	%		17.08	%
Tangible common equity ratio		5.96	%		5.95	%		5.51	%		4.99	%		5.04	%