Citizens First Corporation Announces Fourth Quarter 2009 And Year End Results

BOWLING GREEN, Ky., Feb. 17 /PRNewswire-FirstCall/ -- Citizens First Corporation (Nasdaq: CZFC) today reported its results of operations for the fourth quarter and year ending December 31, 2009 which include the following:

• For the quarter ended December 31, 2009, the Company reported a net loss before dividends to preferred shareholders of ($542,000).  Net loss available to common shareholders was ($798,000) or, ($0.41) per basic and diluted common share for the quarter ending December 31, 2009.  The quarterly operations were impacted by the branch restructuring plan announced in October, an increase in the provision for loan losses, and expenses incurred to defend the Company from the unsuccessful hostile tender offer initiated by Porter Bancorp.

• Net interest income for the quarter ended December 31, 2009 increased $254,000, or 9.5%, compared to the same quarter in the previous year.  Net interest income for the twelve month period ended December 31, 2009 increased $80,000, or 0.7%, compared to the previous year.

• The Company's net interest margin was 3.83% for the quarter ended December 31, 2009 compared to 3.44% for the quarter ended December 31, 2008.  The Company's net interest margin was 3.63% for the twelve months ended December 31, 2009 compared to 3.52% for the twelve months ended December 31, 2008.

• Provision for loan losses for the quarter ended December 31, 2009 increased $115,000, or 10.7%, for the fourth quarter of 2009 compared to the previous year.  Provision for loan losses for the twelve month period ended December 31, 2009 increased $2.8 million, or 143.4%, compared to the previous year.

• Total deposits increased to $288.5 million at December 31, 2009 compared to $273.0 million at December 31, 2008, while total loans declined to $263.9 million at December 31, 2009 compared to $271.7 million at December 31, 2008.

• For the twelve months ending December 31, 2009, the Company reported a net loss before dividends to preferred shareholders of $(1.6) million.  Net loss available to common shareholders was $(2.6) million or $(1.32) per basic and diluted common share for the twelve months ended December 31, 2009

Todd Kanipe, President & CEO, stated "The fourth quarter was a challenging time for the company.  On October 20, we announced a plan designed to streamline branch delivery and significantly reduce operating expenses in order to improve financial performance and enhance shareholder value.  On October 23, Porter Bancorp publicly announced a hostile tender offer to acquire control of Citizens First.  The offer was ultimately withdrawn by Porter on December 14; however, not before Citizens First incurred additional fourth quarter expenses of approximately $350,000 defending against this unsolicited tender offer."

Kanipe continued, "Despite the distraction and additional costs related to Porter's hostile attempt, management moved forward with the implementation of its plan, including:  the closing of three branches, a 20% reduction in staffing, and the reorganizing of its administrative services.  These actions resulted in charges of approximately $300,000 in the fourth quarter, but we expect these changes will reduce operating expenses by approximately $800,000 in 2010."

"During the fourth quarter we expanded the focus of our profit improvement efforts to a complete review of the income statement," Kanipe added.  "In addition to the expense reductions announced in October, we instituted more disciplined loan floor pricing and adjusted our deposit charges and waiver policy.  We expect these changes to have a positive impact in the first quarter and build throughout the year."