Citizens Bancshares Corp. (CZBS)

[norweger1979]

CZB 9/30/2016 10 q results

- 3rd qtr. 2016 EPS of $0.22 vs EPS of $0.16 3rd qtr. 2015

- first 9 months 2016 EPS of $0.66 vs. EPS of $0.46 first 9 months 2015

- At September 30, 2016, the Company had total assets of $406,754,000 compared to $388,620,000 at December 31, 2015.

- At September 30, 2016, OREO decreased by $1,610,000 to $2,853,000 compared to $4,463,000 reported at the year-end of 2015.

- During the nine months period ended September 30, 2016, nonperforming assets decreased by $2,359,000, or 31.5%, to $5,120,000 when compared to December 31, 2015.The year-to-date decrease is primarily attributed to declines in other real estate owned (OREO) and nonperforming loans of $1,610,000 and $749,000, respectively.

- At September 30, 2016, nonperforming assets represented 1.26% of total assets compared to 1.92% at December 31, 2015.

- For the three-month period ended September 30, 2016, net interest income decreased by $182,000 or 5.7% to $3,013,000 compared to $3,195,000 reported for the same period last year. Total interest income decreased by $181,000, or 5.4%, to $3,186,000 compared to $3,367,000 for the same three months period in 2015. Interest income on loans decreased by $199,000 due to a 71 bps decrease in yields earned on loans while the average loan balances increased by $10,241,000 compared to the same period last year. Interest income on investment securities decreased by $46,000 primarily due to a 10 bps decrease in investment yields and lower average balances compared to third quarter of 2015. This decline was offset by an increase in interest earned on federal funds sold and interest-bearing deposits of $64,000 compared to the same period last year. Total interest expense for the period increased by $1,000 compared to the same three months period in 2015 as the Company continues to manage the funding cost and deposit mix. At September 30, 2016, the Company’s cost of funds was approximately 0.18% compared to 0.20% for the same period last year.

- The allowance for loan losses was $1,883,000, $2,124,000, and $2,248,000 at September 30, 2016, December 31, 2015, and September 30, 2015, respectively. The allowance for loan losses was 83.06%, 70.42%, and 51.81% of nonperforming loans at September 30, 2016, December 31, 2015, and September 30, 2015, respectively.

- Stockholders’ equity increased by $2,464,000 during the nine months period ended September 30, 2016 due to multiple factors. Accumulated other comprehensive income, net of income taxes, increased by $1,088,000. This increase is attributed to the volatility in interest rates and swings in credit spreads, and their impact on the fair value of the Company’s available for sale securities portfolio. Retained earnings increased by $1,303,000 primarily due to a net income of $1,655,000; offset by $178,000 of preferred dividends paid to the U.S. Treasury and $174,000 in cash dividends paid to common stockholders. Additional paid-in-capital increased by $127,000 due to the increase in nonvested restricted stock; offset by the issuance of common stock associated with restricted stock.

link 10q filing
http://seekingalpha.com/filing/3291259?uprof=16