Citizens First Bancorp, Inc. Announces Earnings for Three and Six Months Ended September 30, 2002 and $0.08 Per Share Cash Dividend.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)--Oct. 28, 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 $3.0 million, or $.38 per share, for the quarter ended September September: see month. 30, 2002, as compared to net income of $2.3 million, or $0.27 per share, for the quarter ended September 30, 2001. Net income was $5.8 million, an increase of $779,000, or 15.4% from the prior period in 2001, resulting in earnings of $.73 per share for the six months ended September 30, 2002. The increase in net income for the three-months was primarily due to increased interest income due to earning asset Earning asset An asset that generates income, e.g., income from rental property. growth and noninterest income, mainly income from mortgage banking activities and increased service charges and other fees, which was offset by increased compensation and benefit costs and professional fees. The Company's book value per share at September 30, 2002, and March 31, 2002, was $17.03 and $16.73 respectively. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. On October October: see month. 1, 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. of up to 428,701 shares of its common stock. As of September 30, 2002, the Company had 8,574,035 shares outstanding. Dividends On October 24, 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. The dividend is expected to be paid on November November: see month. 20, 2002 to stockholders of record on November 12, 2002. Financial Condition Total assets increased $37.3 million, or 4.0%, from $946.4 million at March 31, 2002 to $983.7 million at September 30, 2002. Net loans increased $70.3 million, or 9.6%, to $805.8 million from $735.6 million at March 31, 2002. Combined net growth of $70.3 million consisted primarily of a $16.3 million increase in one- to four-family residential loans, a $30.3 million increase in commercial real estate loans and a $18.3 million increase in commercial loans, a $3.7 million increase in home equity loans and lines of credit and a $4.4 million increase in other consumer loans offset by a $3.3 million decline in residential construction loans. Investment securities decreased $14.6 million from $118.5 million at March 31, 2002 to $103.9 million at September 30, 2002, as the proceeds from maturing securities were used to fund loan growth. Cash and cash equivalents decreased $20.8 million, or 35.8% from $57.9 million at March 31, 2002 to $37.1 million at September 30, 2002. These funds were primarily used to fund loan growth. Total liabilities increased $42.8 million to $837.7 million. Total deposits increased $15.4 million from $634.0 million at March 31, 2002 to $649.4 million at September 30, 2002, primarily due to a $10.9 million increase in NOW checking accounts as a result of increased advertising and product promotion, a $17.9 million increase in money market accounts and a $5.7 million increase in passbook and savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. offset by a $8.1 million decrease in certificates of deposits and a $11.0 million decrease in noninterest bearing accounts. FHLB FHLB Federal Home Loan Bank borrowings increased $27.2 million, or 17.9%, to $178.6 million to take advantage of the low rates being offered. Such funds were primarily invested in loans. Non-accrual loans increased $1.4 million, or 76.0%, to $3.2 million at September 30, 2002 from $1.8 million at March 31, 2002. This was primarily due to an increase in non-accruing real estate loans as a result of the slow economy and a rise in personal bankruptcies Personal bankruptcy is a procedure which, in certain jurisdictions, allows an individual to declare bankruptcy. In other jurisdictions, bankruptcies are reserved for corporations. and an increase in non-accruing commercial loans. Non-performing assets increased $884,000 to $3.6 million, or .37% of total assets, at September 30, 2002, as compared to $2.7 million, or .29%, at March 31, 2002, due to the increase in non-accruing loans. The allowance for loan losses was $11.4 million at September 30, 2002, or 1.39% of total loans and 359.9% 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 $11.0 million, or 1.47% of total loans and 614.6% of non-performing loans at March 31, 2002. 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. decreased $5.4 million from $151.4 million at March 31, 2002, to $146.0 million due to the payment of dividends, the effect of the 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. and a decrease to unrealized gains 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 offset by net income. Results of Operations Net interest income increased $684,000, or 8.0%, to $9.2 million for the three months ended September 30, 2002, from $8.5 million for the three months ended September 30, 2001. Net interest income increased $674,000, or 3.9%, to $17.8 million for the six months ended September 30, 2002, from $17.2 million for the six months ended September 30, 2001 due primarily to lower overall interest rates on interest bearing liabilities. Total interest income decreased $1.2 million for the quarter and $2.8 million for the six-month period due to reduced rates on adjustable loans and lower rates on securities. Interest expense on deposits declined $1.9 million, or 29.8%, to $4.4 million for the three-months ended September 30, 2002 from $6.3 million at September 30, 2001. Interest expense on deposits for the six-month period declined $3.7 million, or 29.7%, to $8.9 million at September 30, 2002 from $12.6 million at September 30, 2001. The decline in deposit interest expense was offset by an increase of $18,000 and $216,000 on interest expense on FHLB advances for the three and six-month periods respectively. The provision for loan loss for the three months ended September 30, 2002 was $289,000 compared to $249,000 for the same period ended September 30, 2001. The provision for loan loss for the six months ended September 30, 2002 increased $65,000, or 13.1% to $563,000 compared to $498,000 at September 30, 2001, reflecting the overall increase in non-performing loans and an increase in the total loan portfolio, particularly in higher risk commercial 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 loans. Non-interest income increased $559,000 for the three months ended September 30, 2002 primarily due to a $542,000 increase in mortgage banking activities from a loss of $276,000 at September 30, 2001 to a profit of $266,000 for the three-month period ending September 30, 2002 due to an increase in the sale of fixed-rate residential loans to third parties and a $188,000, or 31.2%, increase in service charges and other fees, primarily as a result of the increase in the number of accounts and increased fees to deposit accountholders. Loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. fees declined $17,000, or 10.9%, from $156,000 for the three month period ended September 30, 2001 to $139,000 for the same period ended September 30, 2002. Non-interest income increased $1.3 million, or 89.6% for the six months ended September 30, 2002 primarily due to a $682,000, or 64.0%, increase in service charges and other fees, primarily as a result of the increase in the number of accounts and increased fees to deposit accountholders, a $354,000 increase in mortgage banking activities from a loss of $169,000 at September 30, 2001 to a profit of $185,000 for the six-month period ending September 30, 2002 due to an increase in the sale of fixed-rate residential loans to third parties, a $216,000 increase in other noninterest income and a $97,000 increase in gain on sale of securities. These increases were offset by a $42,000 decrease in loan servicing fees from $325,000 for the six month period ended September 30, 2001 to $283,000 for the same period ended September 30, 2002. Non-interest expense increased $78,000 for the three months ended September 30, 2002 primarily due to a $635,000 increase to compensation and benefit expense due to increases to wages, additions to staff, increased direct costs of benefits and fair market value adjustments to employee benefit programs. Professional fees increased $269,000 for the quarter due to the increased costs associated with being a public company including 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, advice sought on issues related to employee benefit programs and the work being done in the process of converting from our current data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a vendor to a new system. Advertising expenses increased $48,000, or 28.2%. These increases were offset by a $272,000, or 26.1%, decrease in office occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy primarily due to decreased equipment expenses from the three months ended September 30, 2001 and a $557,000 decrease in other non-interest expenses for the quarter as a result of decreased consulting expenses from the three months ended September 30, 2001. Non-interest expense increased $560,000 for the six months ended September 30, 2002 primarily due to a $1.2 million increase to compensation and benefit expense due to normal increases to wages, additions to staff and costs associated with employee benefit programs. Professional fees increased $434,000 for the six-months due to the increased costs associated with being a public company and additional advice sought for employee benefit programs, data processing system changes and a review of corporate structure. Advertising expenses increased $43,000, or 12.7%. These increases were offset by a $228,000, or 12.2%, decrease in office occupancy primarily due to decreased equipment expenses from the previous six month period ended September 30, 2001 and a $904,000 decrease in other non-interest expenses as a result of decreased consulting, appraisal and real estate expenses from the previous six months ended September 30, 2001. 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, which are incorporated into this press release by reference. Other factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, legislative and regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. and the Federal Reserve Board, the quality and composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. in the Bank's market area, changes in relevant accounting principles and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. and other factors over which management has no control. 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
September 30,
2002 2001
---- ----
Net Interest Income 9,221 8,537
Provision for Loan Losses 289 249
Net Interest income after provision 8,932 8,288
Noninterest Income
Service Charges and other fees 791 603
Loan Servicing fees 139 156
Mortgage Banking activities 266 (276)
Gain on sale of securities -- 11
Other (34) 109
Total Noninterest Income 1,162 603
Noninterest Expense
Compensation and benefits 2,813 2,178
Office occupancy 769 1,041
Advertising 218 170
Stationary, printing, supplies 400 460
Data processing 113 98
Deposit Statement processing 187 187
Professional expenses 353 84
Other 614 1,171
Total Noninterest Expense 5,467 5,389
Income before Income Taxes 4,627 3,502
Income Tax Expense 1,610 1,155
Net Income 3,017 2,347
Net Interest Margin 3.89% 3.79%
ROA 1.29 1.04
ROE 8.09% 6.10%
Basic Earnings Per Share 0.38 0.27
Diluted Earnings Per Share 0.38 0.27
CITIZENS FIRST BANCORP, INC.
RESULTS OF OPERATIONS (IN THOUSANDS):
For Six Months Ended
September 30,
2002 2001
---- ----
Net Interest Income 17,837 17,163
Provision for Loan Losses 563 498
Net Interest income after provision 17,274 16,665
Noninterest Income
Service Charges and other fees 1,748 1,066
Loan Servicing fees 283 325
Mortgage Banking activities 185 (169)
Gain on sale of securities 108 11
Other 441 225
Total Noninterest Income 2,765 1,458
Noninterest Expense
Compensation and benefits 5,732 4,556
Office occupancy 1,642 1,870
Advertising 381 338
Stationary, printing, supplies 753 751
Data processing 231 209
Deposit Statement processing 366 351
Professional expenses 615 181
Other 1,317 2,221
Total Noninterest Expense 11,037 10,477
Income before Income Taxes 9,002 7,646
Income Tax Expense 3,154 2,577
Net Income 5,848 5,069
Net Interest Margin 3.95% 3.81%
ROA 1.22 1.12
ROE 7.84% 6.59%
Basic Earnings Per Share 0.73 0.58
Diluted Earnings Per Share 0.73 0.58
CITIZENS FIRST BANCORP, INC.
CONSOLIDATED BALANCE SHEET
September 30, March 31,
2002 2002
---- ----
Balance Sheet (in thousands):
Total Cash and Cash Equivalents $ 37,173 $ 57,926
Securities Available for Sale $103,995 $118,547
Loans held for sale $ 1,514 $ 126
Loans, Net $805,833 $735,564
Federal Home Loan Bank Stock $ 9,179 $ 7,505
Accrued Interest and other assets $ 15,069 $ 16,688
Premises and Equipment, net $ 10,929 $ 10,000
Total Assets $983,692 $946,356
Deposits $649,363 $634,014
FHLB Advances $178,568 $151,415
Other $ 9,756 $ 9,487
Total Liabilities $837,687 $794,916
Stockholders Equity $146,005 $151,440
CITIZENS FIRST BANCORP, INC
SUPPLEMENTAL INFORMATION
Loan Analysis
One- to four-family mortgage $402,029 $385,765
Commercial Real Estate $175,080 $144,817
Commercial Loans $ 60,403 $ 42,137
Construction $ 24,194 $ 27,541
Home Equity loans and Lines of Credit $ 74,948 $ 71,266
Automobile $ 62,872 $ 61,661
Other Consumer $ 19,379 $ 15,015
Less:
Allowance for loan losses $ 11,356 $ 11,020
Deferred loan origination and other fees $ 1,716 $ 1,618
Net Loans $805,833 $735,564
Deposit Analysis
Interest Bearing
Passbook and Savings deposits $ 85,179 $ 79,527
NOW Checking Accounts $ 87,672 $ 76,735
Money Market Accounts $175,988 $158,085
Certificates of Deposit $281,192 $289,310
Noninterest Bearing $ 19,332 $ 30,357
Nonperforming Assets $ 3,630 $ 2,746
Nonperforming Assets to Total Loans 0.44% 0.37%
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