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Exhibit 99.1 Press Release dated July 21, 2004
FOR IMMEDIATE RELEASE FOR MORE INFORMATION:
July 26, 2004 Bill D. Wright
Chief Financial Officer
(270)-393-0700
CITIZENS FIRST CORPORATION ANNOUNCES SECOND QUARTER 2004 RESULTS
BOWLING GREEN, KY - Citizens First Corporation (OTC Bulletin Board: CZFC) today
reported its results of operations for the quarter and six months ended June 30,
2004. Mary D. Cohron, President and CEO, reported that the company's net income
on a consolidated basis for the second quarter of 2004 was $182,749, or $0.22
per common share, compared to a net loss of ($748,086) or ($1.16) per common
share for the second quarter of 2003. The company recorded a provision for loan
losses of $45,000 for the second quarter of 2004, compared to $1,490,000 for the
second quarter of 2003. "Citizens First's quarterly net income continues to
improve in 2004, primarily as a result of the improvement in the net interest
margin," said Cohron. "Although the Company continues to grow in 2004, the focus
is on performance."
In addition, the Company announced, subsequent to the end of the second quarter
of 2004, the completion of the private placement of 250 shares of Cumulative
Convertible Preferred Stock, stated value $31,992 per share (Preferred Stock),
for an aggregate purchase price of $7,998,000. The proceeds from the issuance of
the Preferred Stock will be used for general corporate purposes, including the
contribution of capital to Citizens First Bank and the repayment of outstanding
borrowings under the Company's credit facility. The Preferred Stock was sold for
$31,992 per share, is entitled to quarterly cumulative dividends at an annual
fixed rate of 6.5% and is convertible into shares of common stock of the Company
at a price of $15.50 on and after three years from the date of issuance. The
Preferred Stock was placed by Howe Barnes Investments, Inc., Chicago, Illinois.
For the six months ended June 30, 2004, the company reported net income of
$328,357, or $0.39 per common share, compared to a net loss of ($630,337), or
($0.98) per common share for the same period in 2003. For the first six months
of 2004, the company recorded a provision for loan losses of $120,000, compared
to $1,643,000 for the same period of 2003. The significant decrease came from
the provision recorded for the second quarter of 2003, as noted above.
Net interest income for the quarter ended June 30, 2004 was $1,425,543, versus
$1,160,403 for the same quarter of 2003, an increase of $265,140 or 22.8%.
Non-interest income was $396,141 during the second quarter of 2004, compared to
$565,972 in the same quarter of 2003, a decrease of $169,831 or 30.0%. Included
in non-interest income for the second quarter of 2004 is income from the sale of
secondary market loans of $115,889, compared to $188,808 for the same period of
2003, a decrease of $72,919, or 38.6%. This decrease is attributable to the
strong refinance market that existed during a time of historically low home
mortgage rates during the second quarter of 2003. Also included in the
non-interest income total for the second quarter of 2003 are gains on the sale
of investment securities of $134,732, compared to none for the same period of
2004. Non-interest expense was $1,508,135 for the second quarter of 2004, versus
$1,373,561 for the same period of 2003, an increase of $134,574 or 9.8%.
For the six months ended June 30, 2004, net interest income was $2,804,100,
compared to $2,226,735 for the same period in 2003, an increase of $577,365 or
25.9%. Non-interest income for the first half of the year totaled $664,865 in
2004, compared to $847,932 for the same period of 2003, a decrease of $183,067
or 21.6%. The decrease is attributable to income from secondary market loan
sales, which decreased $101,286 for the period, to $179,460 from $280,746, and
from the sale of investment securities, down $178,392, with a loss of $34,368
during the first half of 2004 compared to a gain of $144,024 during the same
period of 2003. An increase in service
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charge income of $89,278 in 2004 compared o 2003 partially offset these
decreases. Non-interest expense during the first half of 2004 was $2,869,008,
an increase of $472,754 or 19.7% over the total of $2,396,254 from the same
period of 2003.
Total assets at June 30, 2004 were $164,735,856, up $10,300,282 or 6.7%, from
$154,435,574 at June 30, 2003. Loans increased $13,765,786, or 11.0%, from
$124,787,812 at June 30, 2003 to $138,553,598 at June 30, 2004. Stockholders'
equity of $9,781,202 equaled 5.9% of total assets as of June 30, 2004.
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CITIZENS FIRST CORPORATION
(Unaudited)
Financial Highlights
Quarter Quarter
Ended Ended
6/30/2004 6/30/2003
Interest Income .......................... $2,075,408 $ 1,888,444
Interest Expense.......................... 649,865 728,041
--------- ----------
Net Interest Income ...................... 1,425,543 1,160,403
Provision for Loan Losses 45,000 1,490,000
--------- ----------
Net Interest Income (loss) after Provision 1,380,543 (329,597)
Non-Interest Income ...................... 396,141 565,972
Non-Interest Expenses .................... 1,508,135 1,373,561
--------- -----------
Gain (loss) before Taxes ................. 268,549 (1,137,186)
Income Tax Provision (Benefit) ........... 85,800 (389,100)
--------- -----------
NET INCOME (LOSS) PER SHARE .............. $ 182,749 $ (748,086)
========== ===========
NET INCOME (LOSS) PER SHARE .............. $ 0.22 $ ( 1.16)
Six Months Six Months
Ended Ended
6/30/2004 6/30/2003
Interest Income ................... $4,137,739 $3,613,144
Interest Expense 1,333,639 1,386,409
---------- ----------
Net Interest Income ............... 2,804,100 2,226,735
Provision for Loan Losses 120,000 1,643,000
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Net Interest Income after Provision 2,684,100 583,735
Non-Interest Income ............... 664,865 847,932
Non-Interest Expenses ............. 2,869,008 2,396,254
---------- ----------
Gain (loss) before Taxes .......... 479,957 (964,587)
Income Tax Provision (Benefit) .... 151,600 (334,250)
---------- ----------
NET INCOME (LOSS)............ $ 328,357 $(630,337)
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NET INCOME (LOSS) PER SHARE ....... $ 0.39 $ (0.98)
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CITIZENS FIRST CORPORATION
(Unaudited)
As of As of
6/30/2004 6/30/2003
(in 000's) (in 000's)
ASSETS
Cash and cash equivalents ............ $ 8,384 $ 7,697
Investment securities ................ 12,860 17,688
FHLB stock ........................... 571 417
Mortgage loans held for sale ......... 269 1,500
Loans ................................ 138,554 124,788
Allowance for loan losses ............ (1,998) (2,901)
Other assets ......................... 6,096 5,247
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TOTAL ASSETS .................... $ 164,736 $ 154,436
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LIABILITIES
Demand deposits, savings,
NOW and money market accounts ...... $ 70,418 $ 59,708
Time deposits ........................ 63,061 68,177
--------- ---------
TOTAL DEPOSITS ................... 133,479 127,885
FHLB borrowings ...................... 13,000 11,000
Federal Funds Purchased and Securities
sold under agreements to repurchase . 4,734 4,431
Other borrowings ..................... 3,000 2,300
Other Liabilities .................... 742 674
--------- ---------
TOTAL LIABILITIES ................ 154,955 146,290
STOCKHOLDERS' EQUITY ............. 9,781 8,146
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY ............... $ 164,736 $ 154,436
========= =========
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