Citizens Holding net income decreases
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This is $0.34 per share-basic and diluted, down from $2.122 million, or $0.41 per share-basic and diluted for the same quarter in 2013.
Net interest income for the fourth quarter of 2014, after the provision for loan losses for the quarter, was $6.737 million.
The decrease in the provision reflects management's estimate of inherent losses in the loan portfolio including the impact of current local and national economic conditions. The net interest margin decreased to 3.48% in the fourth quarter of 2014 from 3.65% in the same period in 2013 primarily because of the decrease in yields on earning assets was greater than the decline in rates paid on interest bearing deposits.
Non-interest income decreased in the fourth quarter of 2014 by $183 thousand, or 9.0%, while non-interest expenses increased $297 thousand, or 4.8%, compared to the same period in 2013.
The decrease in non-interest income was due primarily to the decrease in deposit account service charges, overdraft fees and income from bank owned life insurance during quarter. Non-interest expenses increased mainly due to an increase in occupancy expense caused by additional depreciation on new equipment and an increase in banking equipment related service costs.
Net income for the twelve months ended December 31, 2014 increased 4.2% to $7.450 million, or $1.53 per share-basic and diluted, from $7.150 million, or $1.47 per share-basic and diluted, for the twelve months ended December 31, 2013. Net interest income for the twelve months ended December 31, 2014, after the provision for loan losses, increased 6.2% to $27.439 million from $25.831 million for the same period in 2013.
Net interest margin for the twelve months ended December 31, 2014, increased to 3.65% in 2014 from 3.59% in the same period in 2013. The provision for loan losses for the twelve months ended December 31, 2014 was $923 thousand compared to the provision of $2.204 million in 2013. The decrease in the provision reflects management's assessment of inherent losses in the loan portfolio, including the impact caused by current local and national economic conditions.
Non-interest income increased by $347 thousand, or 4.4%, and non-interest expense increased by $1.597 million, or 6.5%, for the twelve months ended December 31, 2014 when compared to the same period in 2013. The increase in non-interest income was due primarily to death benefits from bank owned life insurance policies that were received as a result of the death of an insured bank officer and increased service charges and fees offset partially by a decrease in the gains on the sale of investment securities.
Non-interest expense increased primarily due to increased write-downs on other real estate, an increase in regulatory and compliance costs, an increase in banking equipment related service costs and an increase in office supply costs.
Total assets as of December 31, 2014 increased to $921.061 million, up $47.992 million, or 5.5%, when compared to December 31, 2013. Deposits increased by $41.464 million, or 6.3%, and loans, net of unearned income, decreased by $1.223 million, or 0.3%, when compared to December 31, 2013.
The decrease in loans, net of unearned income, was due to repayments in excess of new loans. Non-performing assets decreased by $3.088 million to $16.786 million at December 31, 2014 as compared to December 31, 2013, because of decreases in loans 90 days or more past due and still accruing interest, other real estate owned and in non-accrual loans.
During 2014, the company paid dividends totaling $0.89 per share. ■