Citizens First Bancorp, Inc. Announces Earnings for Fiscal Year Ended March 31, 2002.Business Editors PORT HURON Port Huron (hy  r`ən), city (1990 pop. 33,694), seat of St. Clair co., S Mich., a natural, deepwater port of entry at the junction of the St. Clair River with Lake Huron; inc. 1857. , Mich.--(BUSINESS WIRE)--May 16, 2002
Citizens First Bancorp
First BanCorp is a financial holding company located in San Juan, Puerto Rico, which offers a full range of financial services in Puerto Rico, US Virgin Islands, the British Virgin Islands, and , Inc. (the "Company")(Nasdaq:CTZN), the holding company for Citizens First Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. (the "Bank"), today announced that it earned $.32 per share, or $2,675,000, for the fourth fiscal quarter ended March 31, 2002, as compared to a net loss of $3,355,000 for the same period in 2001. Net income for the fiscal year ended March 31, 2002 was $10,548,000, an increase of $7,362,000, or 231.1%, from the prior period, resulting in net earnings of $1.23 per share. The increase in net income for the fiscal year was primarily due to the $7.1 million contribution expense and an accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. reduction to the tax provision of $2.4 million in the prior period due to the formation of Citizens First Foundation approved by shareholders at the time of the conversion from a mutual savings bank Mutual savings bank A state-chartered savings bank which is owned by its depositors and managed by a fiduciary board of trustees. to a stock savings bank. Excluding the contribution, net income for the fiscal year would have increased $2.7 million, or 34.5%, from $7,844,000 to $10,548,000. The increase in the fourth quarter and twelve-month period was primarily due to increased net interest income, which was offset in part by increased compensation and benefit costs primarily due to additional staff and to ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). expense, increased costs associated with becoming a public company, other public reporting expenses and additional costs related to compliance with recent regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. changes. The Company's book value per share at March 31, 2002, and March 31, 2001, was $16.73 and $15.72 respectively. Prior period per share comparisons are not applicable due to the Company's initial issuance of stock on March 7, 2001, in connection with the mutual to stock conversion of the Bank, which raised $85.1 million in net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). . Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. On March 28, 2002, the Company announced that its Board of Directors had authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. 476,338 shares of its common stock. As of March 31, 2002, the Company had 9,050,373 shares outstanding. As of this date, the Company has repurchased 27,500 shares under the current repurchase program. Dividends On April 25, 2002 the Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly cash dividend of $0.08 per share for a total cost of $667,100. The dividend is expected to be payable on May 20, 2002, to stockholders of record on May 6, 2002. New Branch Location To better serve its customers, the Bank purchased a bank branch office previously owned by Standard Federal Bank in Lexington, Michigan Lexington is a village in Sanilac County, Michigan, United States. The population was 1,104 at the 2000 census. The village is located within Lexington Township. Geography According to the United States Census Bureau, the village has a total area of 2.4 km² (0. . No other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. or deposits were acquired in the transaction. The grand opening for the office was April 8, 2002. Financial Condition Total assets increased $90.5 million, or 10.6%, from $855.9 million at March 31, 2001 to $946.4 million at March 31, 2002. Net loans increased $63.2 million, or 9.4%, to $735.6 million from $672.4 million at March 31, 2001. Combined net growth of $73.0 million in Commercial, Commercial Real Estate, Residential Construction loans, Home Equity Lines of Credit, and automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of and other consumer loans were offset by a $9.7 million decline in residential one- to four-family loans due to sales to third parties. Investment securities increased $22.5 million from $96.1 million at March 31, 2001 to $118.5 million at March 31, 2002. The increase in investment securities was primarily due to the investment of excess deposits and FHLB FHLB Federal Home Loan Bank borrowings in taxable municipal and corporate bonds. Total liabilities increased $88.8 million to $794.9 million. Total deposits increased $52.7 million from $581.3 million at March 31, 2001 to $634.0 million at March 31, 2002, primarily due to growth in Money Market Deposit accounts offset by a decrease in certificates of deposit due to lower rates. Over the twelve months, FHLB borrowings increased $36.5 million, or 31.7%, to $151.4 million to take advantage of the low rates being offered. Such funds were primarily invested in loans and investment securities. Non-accrual loans increased $177,000, or 9.8%, to $2.0 million at March 31, 2002 from $1.8 million at March 31, 2001. This was primarily due to an increase in non-accruing real estate loans as a result of the slow economy. Non-performing assets increased $700,000 to $2.9 million, or .21% of total assets, at March 31, 2002, as compared to $2.1 million, or .24%, at March 31, 2001, due to the increase in non-accruing loans and an increase in other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most . The allowance for loan losses was $11.0 million at March 31, 2002, or 1.47% of total loans and 554.6% of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. as compared to 1.58% of total loans and 598.4% of non-performing loans at March 31, 2001. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased $1.6 million from $149.72 million at March 31, 2001, to $151.4 million due to net income accompanied ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. by an increase in accumulated other comprehensive income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as from the unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on securities and offset by the effect of the 5% stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. . Results of Operations Net interest income, after provision for loan losses, increased $8.2 million, or 32.0%, to $33.8 million for the twelve months ended March 31, 2002, from $25.6 million for the twelve months ended March 31, 2001. Net interest income, after provision for loan losses, increased $1.5 million, or 22.1%, for the quarter to $8.5 million for the three months ended March 31, 2002. The provision for loan loss for the twelve months ended March 31, 2002, was $996,000 compared to $780,000 at March 31, 2001, reflecting the overall increase in non-performing loans and because of an increase in the total loan portfolio, particularly in higher risk commercial and automobile loans. Non-interest income increased $900,000 for the quarter and $1.5 million for the twelve months due to an increase in mortgage banking activities, primarily due to the increased volume of loan sales. Service charges and other fees increased for the three and twelve month periods due to additional fees charged to retail deposit accountholders as a result of a change in retail deposit products. Non-interest expense decreased $6.2 million for the three months and $2.2 million for the twelve months ended March 31, 2002 primarily due to the $7.1 million contribution expense in the prior period due to the formation of Citizens First Foundation at the time of the conversion from a mutual savings bank to a stock savings bank. Without the prior period contribution expense, non-interest expense would have increased $4.9 million, or 27.4% from $17.7 million for fiscal 2001 to $22.5 million for fiscal 2002. Compensation and benefit expense increased $244,000, or 9.2%, for the three months and $2.1 million, or 24.2%, for the twelve month period primarily due to an addition of staff in technology, finance and lending areas and the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of ESOP expense. Legal and audit fees increased $87,000 for the quarter and $498,000 for the twelve months due to the increased costs associated with becoming a public company, other public reporting expenses, and additional costs related to compliance with recent regulatory changes regarding consumer privacy and the Bank's change in retail deposit products. Other non-interest expenses increased $251,000 for the quarter and $1.0 million for the twelve months as a result of the engagement of consultants to perform compensation reviews, operational efficiency studies, a facilities review, and overall technology review. Citizens First Bancorp, Inc., through its subsidiary Citizens First Savings Bank, currently serves its customers from 15 full service-banking offices in St. Clair Clair , René Originally René Chomette. 1898-1981. French filmmaker. An early exponent of productions with sound, he directed the classics Sous les Toits de Paris (1929) and Le Million (1931). , Sanilac Sanilac can refer to:
Huron (hy r`än'), city (1990 pop. 12,448), seat of Beadle co., E central S.Dak., on the James River; inc. 1883. and Lapeer Lapeer may refer to:
Statements contained in this news release may be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements may be identified by the use of such words as "intend," "believe," "expect," "anticipate," "should," "planned," "estimated," and "potential." Such forward-looking statements are based on current expectations, but may differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The forward-looking statements are made as of the date of this release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
CITIZENS FIRST BANCORP, INC.
RESULTS OF OPERATIONS (IN THOUSANDS):
For Quarter Ended
March 31,
2002 2001
---- ----
Net Interest Income $ 8,729 $ 7,535
Provision for Loan Losses $ 249 $ 588
Net Interest Income after provision $ 8,480 $ 6,947
Noninterest Income
Service Charges and other fees $ 992 $ 389
Mortgage banking activities $ 366 $ 187
Other $ 102 $ (19)
Total Noninterest Income $ 1,057 $ 557
Noninterest Expense
Compensation and benefits $ 2,895 $ 2,651
Office occupancy $ 862 $ 911
Advertising $ 163 $ 107
Stationary, printing, supplies $ 351 $ 314
Data processing $ 120 $ 109
Deposit statement processing $ 196 $ 159
Professional expenses $ 283 $ 196
Appraisal fees $ 139 $ 157
Contributions $ 0 $ 7,057
Other $ 894 $ 643
Total Noninterest Expense $ 5,903 $ 12,304
Income before Income Taxes $ 4,037 ($ 4,800)
Income Tax Expense $ 1,362 ($ 1,445)
Net Income $ 2,675 ($ 3,355)
Net Interest Margin 3.83% 3.75%
ROA 1.17% (1.66)
ROE 7.03% (17.50)%
Basic Earnings Per share .32 N/A
For Twelve Months
March 31,
2002 2001
---- ----
Net Interest Income $34,776 $26,405
Provision for Loan Losses $ 996 $ 780
Net Interest Income after provision $33,780 $25,625
Noninterest Income
Service Charges and other fees $ 2,663 $ 1,622
Mortgage banking activities $ 1,546 $ 955
Gain on sale of securities -- $ 89
Other $ 512 $ 602
Total Noninterest Income $ 4,721 $ 3,268
Noninterest Expense
Compensation and benefits $10,847 $ 8,735
Office occupancy $ 3,529 $ 3,330
Advertising $ 613 $ 519
Stationary, printing, supplies $ 1,476 $ 1,147
Data processing $ 444 $ 448
Deposit statement processing $ 750 $ 595
Professional expenses $ 906 $ 408
Appraisal fees $ 842 $ 483
Contributions $ 60 $ 7,057
Other $ 3,068 $ 2,020
Total Noninterest Expense $22,535 $24,742
Income before Income Taxes $15,966 $ 4,151
Income Tax Expense $ 5,418 $ 965
Net Income $10,548 $ 3,186
Net Interest Margin 3.81% 3.28%
ROA 1.16 0.40
ROE 6.93% 4.15%
Basic Earnings Per share 1.23 N/A
CITIZENS FIRST BANCORP, INC.
CONSOLIDATED BALANCE SHEET
March 31, March 31,
2002 2001
---- ----
Balance Sheet (in thousands):
Total Cash and Cash Equivalents $ 57,926 $ 53,618
Securities Available for Sale $118,547 $ 96,053
Loans held for sale $ 126 $ 1,964
Loans, Net $735,564 $672,449
Federal Home Loan Bank Stock $ 7,505 $ 6,150
Accrued Interest and other assets $ 16,688 $ 16,240
Premises and Equipment, net $ 10,000 $ 9,392
Total Assets $946,356 $855,866
Deposits $634,014 $581,281
FHLB Advances $151,415 $114,931
Other $ 9,487 $ 9,933
Total Liabilities $794,916 $706,145
Stockholders Equity $151,440 $149,721
CITIZENS FIRST BANCORP, INC.
SUPPLEMENTAL INFORMATION
Loan Analysis
One- to four-family mortgage $385,765 $395,484
Commercial Real Estate $144,817 $113,715
Commercial Loans $ 42,137 $ 22,676
Construction $ 27,541 $ 18,479
Home Equity loans and Lines of Credit $ 71,266 $ 66,687
Automobile $ 61,661 $ 55,490
Other Consumer $ 15,015 $ 12,344
Less:
Allowance for loan losses $ 11,020 $ 10,831
Deferred loan origination and other fees $ 1,618 $ 1,595
Net Loans $735,564 $672,449
Deposit Analysis
Interest Bearing
Passbook and Savings deposits $ 79,527 $ 86,032
NOW Checking Accounts $ 76,735 $ 69,752
Money Market Accounts $158,085 $ 91,423
Certificates of Deposit $289,310 $314,808
Noninterest Bearing $ 30,357 $ 19,266
Nonperforming Assets $ 2,940 $ 2,092
Nonperforming Assets to Total Loans .39% .31%
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