Citizens Bancshares Corp. (CZBS)

[norweger1979]

CZBS $8.95

2014 annual 10k report highlights...

In 2014, the Company reported net income available to common shareholders of $1,572,000, a 41 percent increase over net income available to common shareholders of $1,112,000 reported in 2013, which represented a 109 percent increase over 2012 net income available to common shareholders. The year over year increase in 2014 net income available to common shareholders is attributed primarily to the successful implementation of the Company’s asset disposition plan started in 2012 which reduced the amount of nonperforming assets on the Company’s books and its negative impact on earnings. The provision for loan losses declined by 82 percent or $350,000 in 2014 due to continued improvement in credit quality. Also, other real estate owned related expenses decreased 20 percent or $227,000. (page 35)


At December 31, 2014, stockholders’ equity was $49,567,000, representing an increase of $3,259,000 over year-end 2013 primarily due to an increase of $1,752,000 in accumulated other comprehensive income (loss) as a result of the decreases in interest rates and their impact on the market value of the Company’s investments and the net income of $1,809,000 earned in 2014. As a result, book value per common share increased to $17.49 at December 31, 2014 compared to $16.06 at December 31, 2013. (page 39)


The U.S. economy continues to show signs of improvement which has had a positive impact on the Company’s nonperforming assets as nonperforming balances declined in all categories for the second consecutive year. At December 31, 2014, total nonperforming assets decreased by $5,661,000, or 39 percent to $8,863,000 compared to December 31, 2013, which declined by $4,466,000 or 24 percent compared to December 31, 2012. Nonperforming loans at December 31, 2014 were $4,195,000, a decrease of $2,925,000, or 41 percent, and OREO declined by $2,736,000, or 37 percent, from December 31, 2013. (page 43)


Stockholders’ equity increased by $3,259,000 or 7 percent during 2014, primarily due to an increase of $1,752,000 in accumulated other comprehensive income (loss), net of taxes and the net income of $1,809,000 earned in 2014. This increase in accumulated other comprehensive income (loss), net of taxes is attributed to the markets’ treasury interest rates and swings in credit spreads, and their impact on the Company’s available for sale securities portfolio. Retained earnings increased by $1,400,000 due to a net income of $1,809,000 offset by a $237,000 preferred dividend paid to the Treasury and a $172,000 dividend paid to common stockholders. Net income increased by $460,000 to $1,809,000 compared to $1,349,000 in prior year. (page 51)


At December 31, 2014, the Company’s ratio of total capital to risk-weighted assets was 19 percent, our ratio of Tier 1 Capital to risk-weighted assets was 19 percent, and our leverage ratio was 11 percent. The Company met all capital adequacy requirements to which it is subject and is considered to be “well capitalized” under regulatory standards. (page 52)

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