Exhibit 99.1 Press Release dated October 26, 2004
FOR IMMEDIATE RELEASE FOR MORE INFORMATION:
October 26, 2004 Bill D. Wright
Chief Financial Officer
(270) 393-0700
CITIZENS FIRST CORPORATION ANNOUNCES THIRD QUARTER 2004 RESULTS
BOWLING GREEN, KY - Citizens First Corporation (OTC Bulletin Board: CZFC) today
reported its results of operations for the quarter and nine months ended
September 30, 2004. Mary D. Cohron, President and CEO, reported that the
company's net income on a consolidated basis for the third quarter of 2004 was
$300,588, or $0.36 per common share, compared to net income of $220,062 or $0.30
per common share for the third quarter of 2003. The company recorded a provision
for loan losses of $40,000 for the third quarter of 2004, compared to $85,000
for the third quarter of 2003. "Citizens First's third quarter net income is a
record for the Company, primarily as a result of the continued improvement of
the net interest margin," said Cohron. "Management's focus on improving earnings
is paying off."
In addition, as previously announced, the company completed during the third
quarter of 2004 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 are being used for general corporate purposes, including the
contribution of capital to Citizens First Bank. In addition, the company repaid
$3,000,000 of outstanding borrowings under its 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 nine months ended September 30, 2004, the company reported net income of
$628,945, or $0.75 per common share, compared to a net loss of ($410,275), or
($0.61) per common share for the same period in 2003. For the first nine months
of 2004, the company recorded a provision for loan losses of $160,000, compared
to $1,728,000 for the same period of 2003.
Net interest income for the quarter ended September 30, 2004 was $1,580,089,
versus $1,277,239 for the same quarter of 2003, an increase of $302,850 or
23.7%. Non-interest income was $386,615 during the third quarter of 2004,
compared to $389,030 in the same quarter of 2003, a decrease of $2,415 or 0.1%.
Included in non-interest income for the third quarter of 2004 is income from the
sale of secondary market loans of $126,907, compared to $150,811 in the third
quarter of 2003, a decrease of $23,904, or 15.9%. Non-interest expense was
$1,479,366 for the third quarter of 2004, versus $1,251,207 for the same period
of 2003, an increase of $228,159 or 18.2%.
For the nine months ended September 30, 2004, net interest income was
$4,384,189, compared to $3,503,974 for the same period in 2003, an increase of
$880,215 or 25.1%. Non-interest income for the first nine months of the year
totaled $1,051,480 in 2004, compared to $1,236,962 for the same period of 2003,
a decrease of $185,482 or 15.0%. The decrease is attributable to income from
secondary market loan sales, which decreased $104,380 for the period, to
$306,367 from $410,747, and from the sale of investment securities, down
$178,392, with a loss of $34,368 during the first nine months of 2004 compared
to a gain of $144,024 during the same period of 2003. An increase in
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service charge income of $133,171 in 2004 compared to 2003 partially offset
these decreases. Non-interest expense during the first nine months of 2004 was
$4,348,374, an increase of $700,913 or 19.2% over the total of $3,647,461 from
the same period of 2003.
Total assets at September 30, 2004 were $166,596,083, up $4,317,959 or 2.7%,
from $162,278,124 at September 30, 2003. Loans increased $7,282,052, or 5.5%,
from $133,229,215 at September 30, 2003 to $140,511,267 at September 30, 2004.
Stockholders' equity of $17,969,694 equaled 10.8% of total assets as of
September 30, 2004.
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CITIZENS FIRST CORPORATION
(Unaudited)
Financial Highlights
Quarter Quarter
Ended Ended
9/30/2004 9/30/2003
Interest Income .......................... $2,181,432 $2,038,869
Interest Expense ......................... 601,343 761,630
---------- ----------
Net Interest Income ...................... 1,580,089 1,277,239
Provision for Loan Losses 40,000 85,000
---------- ----------
Net Interest Income (loss) after Provision 1,540,089 1,192,239
Non-Interest Income ...................... 386,615 389,030
Non-Interest Expenses .................... 1,479,366 1,251,207
---------- ----------
Gain before Taxes ........................ 447,338 330,062
Income Tax Provision ..................... 146,750 110,000
---------- ----------
NET INCOME ............................... $ 300,588 $ 220,062
========== ==========
NET INCOME PER SHARE ..................... $ 0.36 $ 0.30
Nine Months Nine Months
Ended Ended
9/30/2004 9/30/2003
Interest Income ................... $6,319,171 $ 5,652,013
Interest Expense 1,934,982 2,148,039
--------- ----------
Net Interest Income ............... 4,384,189 3,503,974
Provision for Loan Losses 160,000 1,728,000
--------- ----------
Net Interest Income after Provision 4,224,189 1,775,974
Non-Interest Income ............... 1,051,480 1,236,962
Non-Interest Expenses ............. 4,348,374 3,647,461
--------- ---------
Gain (loss) before Taxes .......... 927,295 (634,525)
Income Tax Provision (Benefit) .... 298,350 (224,250)
---------- ----------
NET INCOME (LOSS).................. $ 628,945 $ (410,275)
=========== ==========
NET INCOME (LOSS) PER SHARE ....... $ 0.75 $ (0.61)
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CITIZENS FIRST CORPORATION
(Unaudited)
As of As of
9/30/2004 9/30/2003
(in 000's) (in 000's)
ASSETS
Cash and cash equivalents ............ $ 4,578 $ 5,393
Federal funds sold ................... 2,976 0
Investment securities ................ 13,111 19,333
FHLB stock ........................... 577 421
Mortgage loans held for sale ......... 586 102
Loans ................................ 140,511 133,229
Allowance for loan losses ............ (1,697) (1,899)
Other assets ......................... 5,954 5,699
--------- ---------
TOTAL ASSETS .................... $ 166,596 $ 162,278
========= =========
LIABILITIES
Demand deposits, savings,
NOW and money market accounts ...... $ 71,795 $ 61,445
Time deposits ........................ 58,655 71,075
--------- ---------
TOTAL DEPOSITS ................... 130,450 132,520
FHLB borrowings ...................... 13,000 11,000
Federal funds purchased and Securities
sold under agreements to repurchase . 3,984 6,468
Other borrowings ..................... 0 3,000
Other Liabilities .................... 1,192 803
--------- ---------
TOTAL LIABILITIES ................ 148,626 153,791
STOCKHOLDERS' EQUITY ............. 17,970 8,487
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY ............... $ 166,596 $ 162,278
========= =========
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