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Exhibit 99.1 Press Release dated July 20, 2006
FOR IMMEDIATE RELEASE FOR MORE INFORMATION:
July 20, 2006 Steve Marcum
Chief Financial Officer
(270) 393-0700
CITIZENS FIRST CORPORATION ANNOUNCES SECOND QUARTER 2006 RESULTS
BOWLING GREEN, KY - Citizens First Corporation (OTC Bulletin Board: CZFC)
today reported net income of $1,027,000 for the six months ended June 30, 2006,
an increase of $72,000 or 7.5% compared to $955,000 reported for the six months
ended June 30, 2005. Basic and diluted net income per share was $0.82 and $0.67
respectively for the current six months, compared to $0.78 and $0.67 for the six
months ended June 30, 2005. Mary D. Cohron, President and CEO, reported that the
Company's net income on a consolidated basis for the second quarter of 2006 was
$478,000, or $0.37 and $0.31 per basic and diluted common share, respectively,
compared to net income of $504,000 or $0.42 and $0.35 per basic and diluted
common share, respectively, for the second quarter of 2005. "The Company
achieved another excellent quarter in many areas, particularly our improvement
in net interest income," said Cohron.
Net interest income for the quarter ended June 30, 2006 increased $296,000 or
15.6% compared to the previous year. Net interest income for the six month
period ended June 30, 2006 increased $636,000 or 17.5% compared to the previous
year as the yield on earning assets increased faster than the cost of funds in
an increasing interest rate environment. The Company's net interest margin
improved to 4.71% for 2006 year-to-date compared to 4.49% for 2005 year-to-date,
due primarily to a higher yield on loans.
Non-interest income increased $20,000 or 5.5% and $8,000 or 1.1% in the
quarterly and year to date comparisons, respectively. The increase in
non-interest income was led by lease income on the corporate headquarters
purchased during 2005. Non-interest expense increased $390,000 or 27.7% and
$604,000 or 21.8% for the current quarter and six months respectively, compared
to the same periods a year earlier. The Company recorded expenses in the amount
of $104,000 in the second quarter of 2006 and $150,000 for the year-to-date
related to the new accounting standards for the expensing of stock options, as
no option expenses were recorded in 2005. Occupancy and equipment expenses also
increased $107,000 for the second quarter of 2006 and $162,000 year-to-date as
the Company relocated its main office and opened an additional retail location
at its newly opened corporate headquarters at 1065 Ashley Street in Bowling
Green.
No provision for loan losses was deemed necessary in 2006 resulting in a
decrease of $85,000 and $120,000 respectively in the quarterly and year-to-date
comparisons. The reduction in the provision expense is attributed to continued
improvement in the credit quality of the Company's loan portfolio, including a
decline in classified loans and stable loan growth. Non-performing loans totaled
$687,000 at June 30, 2006 compared to $769,000 at June 30, 2005, a decrease of
$82,000. Non-performing loans to total loans ratio was 0.43% and 0.49% at
June 30, 2006 and June 30, 2005, respectively. Management continues to evaluate
the risks within the loan portfolio and emphasizing collection efforts.
Total assets at June 30, 2006 were $202,855,000, up $23,259,000 or 13.0%,
from $179,596,000 at June 30, 2005. Return on average assets for the Company
was 1.04% at June 30, 2006 compared to 1.11% for the previous year. Loans
increased $3,931,000, or 2.5%, from $156,554,000 at June 30, 2005 to
$160,484,000 at June 30, 2006. Deposits at June 30, 2006 were $161,992,000, an
increase of $21,365,000 or 15.2% compared to $140,627,000 at June 30, 2005.
Stockholders' equity of $20,640,000 equaled 10.17% of total assets as of
June 30, 2006. "We are extremely pleased that we are meeting our growth
objectives," stated Cohron. "We are committed to keeping our capital base strong
as we grow." The Company's annualized return on average equity was 10.11% for
the six months ending June 30, 2006 compared to an annualized return of
10.28% for the six months ending June 30, 2005.
As previously disclosed, the Company announced on June 1, 2006 that it had
reached an agreement to acquire Kentucky Banking Centers, Inc. ("KBC"). The
results presented by the Company will not include the results of KBC until after
the transaction closes, which is expected to be in the fourth quarter of 2006.
This release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are based upon the
Company's current expectations, but are subject to certain risks and
uncertainties that may cause actual results to differ materially. Among the
risks and uncertainties that could cause actual results to differ materially are
economic conditions generally and in the market areas of the Company, overall
loan demand, increased competition in the financial services industry which
could negatively impact the Company's ability to increase total earning assets,
and retention of key personnel. Actions by the Federal Reserve Board and changes
in interest rates, loan prepayments by, and the financial health of, the
Company's borrowers, and other factors described in the reports filed by the
Company with the Securities and Exchange Commission could also impact current
expectations.
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Consolidated Financial Highlights (Unaudited)
In Thousands except per share data
Three Months Ended Six Months Ended
June 30 June 30
2006 2005 2006 2005
Interest Income ................................... $3,479 $2,657 $6,712 $5,070
Interest Expense .................................. 1,285 760 2,432 1,426
Net Interest Income ............................... 2,194 1,897 4,280 3,644
Provision for Loan Losses ......................... -- 120 -- 85
Net Interest Income After Provision For Loan Losses 2,193 1,812 4,280 3,524
Non-Interest Income ............................... 381 361 701 693
Non-Interest Expenses ............................. 1,800 1,409 3,373 2,769
Income before Taxes ............................... 775 764 1,608 1,448
Income Tax Provision .............................. 297 260 581 493
Net Income ........................................ 478 504 1,027 955
Preferred Dividends ............................... 130 130 258 258
Net Income Available for Common Shareholders ...... $ 348 $ 374 $ 769 $ 697
Basic Earnings Per Common Share ................... $ 0.37 $ 0.42 $ 0.82 $ 0.78
Diluted Earnings Per Common Share ................. $ 0.31 $ 0.35 $ 0.67 $ 0.67
June 30 June 30
2006 2005
Cash and Cash Equivalents ................... $ 16,125 $ 4,855
Available-for-Sale Securities ............... 12,690 12,657
Loans Held for Sale........ ................. 2,436 492
Loans ....................................... 160,484 156,554
Allowance For Loan Losses ................... (1,881) (1,891)
Other Assets ................................ 13,001 6,929
Total Assets ............................. $ 202,855 $ 179,596
Deposits .................................... $ 161,992 $ 140,627
Federal Funds Purchased and Securities
Sold Under Agreement to Repurchase .......... 3,711 4,830
FHLB Advances ............................... 15,396 14,000
Other Liabilities ........................... 1,116 1,020
Total Liabilities ........................ 182,215 160,477
Stockholders' Equity ........................ 20,640 19,119
Total Liabilities and Stockholders' Equity $ 202,855 $ 179,596
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