10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2013

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 001- 36192

First Citizens Banc Corp

(Exact name of registrant as specified in its charter)

Ohio	34-1558688
State or other jurisdiction of	(IRS Employer
incorporation or organization	Identification No.)
100 East Water Street, Sandusky, Ohio	44870
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (419) 625 - 4121

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Common shares, no par value	The NASDAQ Stock Market LLC (NASDAQ Capital Market)
Depositary Shares, each representing	The NASDAQ Stock Market LLC
1/40th of a 6.50% Noncumulative
Redeemable Convertible Perpetual
Preferred share, Series B, no par value

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this

Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

The aggregate market value of the voting and non-voting common equity stock held by non-affiliates of the registrant based upon the closing market price as of June 30, 2013 was $46,666,923. For this purpose, shares held by non-affiliates include all outstanding shares except those held by the directors and executive officers of the registrant.

As of February 28, 2014, there were 7,707,917 common shares, no par value, of the registrant issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Annual Report to Shareholders for the fiscal year ended December 31, 2013 (the “2013 Annual Report”) are incorporated by reference into Parts I and II of this Form 10-K. Portions of the registrant’s Proxy Statement for the registrant’s 2014 Annual Meeting of Shareholders to be held on April 15, 2014 (the “2014 Proxy Statement”) are incorporated by reference into Part III of this Form 10-K.

INDEX

Part I
Item 1.	Business	6
Item 1A.	Risk Factors	30
Item 1B.	Unresolved Staff Comments	39
Item 2.	Properties	40
Item 3.	Legal Proceedings	41
Item 4.	Mine Safety Disclosures	41
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	41
Item 6.	Selected Financial Data	41
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 8.	Financial Statements and Supplementary Data	42
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	43
Item 9A.	Controls and Procedures	43
Item 9B.	Other Information	44
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	45
Item 11.	Executive Compensation	45

Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	45
Item 13.	Certain Relationships and Related Transactions, and Director Independence	45
Item 14.	Principal Accountant Fees and Services	45
Part IV
Item 15.	Exhibits and Financial Statement Schedules	46
Signatures		53

PART I

Item 1. Business

(a) General Development of Business

FIRST CITIZENS BANC CORP (FCBC) was organized under the laws of the State of Ohio on February 19, 1987 and is a registered financial holding company under the Gramm-Leach-Bliley Act of 1999, as amended. FCBC’s office is located at 100 East Water Street, Sandusky, Ohio. FCBC and its subsidiaries are sometimes referred to together as the Company. The Company had total consolidated assets of $1,167,546 at December 31, 2013.

THE CITIZENS BANKING COMPANY (Citizens), owned by FCBC since 1987, opened for business in 1884 as The Citizens National Bank. In 1898, Citizens was reorganized under Ohio banking law and was known as The Citizens Bank and Trust Company. In 1908, Citizens surrendered its trust charter and began operation under its current name. Citizens is an insured bank under the Federal Deposit Insurance Act. Citizens maintains its main office at 100 East Water Street, Sandusky, Ohio and operates branch banking offices in the following Ohio communities: Sandusky (2), Norwalk (2), Berlin Heights, Huron, Port Clinton, Castalia, New Washington, Shelby (3), Willard, Chatfield, Tiro, Greenwich, Plymouth, Shiloh, Akron, Dublin, Hilliard, Plain City, Russells Point, Urbana (2), West Liberty and Quincy. Citizens accounted for 99.4% of the Company’s consolidated assets at December 31, 2013.

FIRST CITIZENS INSURANCE AGENCY, INC. (Insurance Agency) was formed in 2001 to allow the Company to participate in commission revenue generated through its third party insurance agreement. Assets of the Insurance Agency were not significant as of December 31, 2013.

WATER STREET PROPERTIES (Water St.) was formed in 2003 to hold properties repossessed by FCBC subsidiaries. Assets of Water St. were not significant as of December 31, 2013.

FC REFUND SOLUTIONS, INC. (FCRS) was formed in 2012 and remained inactive for the periods presented. Assets of FCRS were not significant as of December 31, 2013.

FIRST CITIZENS INVESTMENTS, INC. (FCI) was formed in the fourth quarter of 2007 as a wholly-owned subsidiary of Citizens to hold and manage its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

6

FIRST CITIZENS CAPITAL LLC (FCC) was also formed in the fourth quarter of 2007 as a wholly-owned subsidiary of Citizens to hold inter-company debt that is eliminated in consolidation. The operations of FCC are located in Wilmington, Delaware.

(b) Industry Segments

FCBC is a financial holding company. Through its subsidiary bank, the Company is primarily engaged in the business of community banking, which accounts for substantially all of its revenue, operating income and assets.

7

(c) Narrative Description of Business

General

The Company’s primary business is incidental to the subsidiary bank. Citizens, located in Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa and Richland Counties, Ohio, conducts a general banking business that involves collecting customer deposits, making loans, purchasing securities, and offering Trust services.

Interest and fees on loans accounted for 68% of total revenue for 2013, 69% of total revenue for 2012, and 70% of total revenue for 2011. The Company’s primary focus of lending continues to be real estate loans, both residential and commercial in nature. Residential real estate mortgages comprised 29% of the total loan portfolio in 2013, 31% of the total loan portfolio in 2012 and 35% of the total loan portfolio in 2011. Commercial real estate loans comprised 52% of the total loan portfolio in 2013, 53% in 2012, and 47% in 2011. Commercial and agricultural loans comprised 13% of the total loan portfolio in 2013, 12% in 2012, and 11% in 2011. Citizens’ loan portfolio does not include any foreign-based loans, loans to lesser-developed countries or loans to FCBC.

On a parent company only basis, FCBC’s primary source of funds is the receipt of dividends paid by its subsidiaries, principally Citizens. The ability of Citizens to pay dividends is subject to limitations under various laws and regulations and to prudent and sound banking principles. Generally, subject to certain minimum capital requirements, Citizens may declare a dividend without the approval of the State of Ohio Division of Financial Institutions unless the total of the dividends in a calendar year exceeds the total net profits of the bank for the year combined with the retained profits of the bank for the two preceding years. At December 31, 2013, Citizens was not restricted from paying dividends to the Company by regulation.

The Company’s business is not seasonal, nor is it dependent on a single or small group of customers.

In the opinion of management, the Company does not have exposure to material costs associated with environmental hazardous waste mitigation or cleanup.

Competition

The market area for Citizens is Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland Counties in Ohio. Traditional financial service competition for Citizens consists of large regional financial institutions, community banks, thrifts and credit unions operating within Citizens’ market area. Nontraditional sources of competition for loan and deposit dollars come from captive auto finance companies, mortgage banking companies, internet banks, brokerage companies, insurance companies and direct mutual funds.

8

Citizens experiences intense competition within several of its markets due to the presence of several national, regional and local financial institutions and other service providers. Citizens primarily competes based on client service, convenience and responsiveness to customer needs, availability and selection of products, and rates of interest on loans and deposits. However, some of Citizens’ competitors have greater resources and, as such, higher lending limits, which may adversely affect the ability of Citizens to compete.

9

Employees

FCBC has no employees. Citizens employs approximately 313 full-time equivalent employees to whom a variety of benefits are provided. FCBC and its subsidiaries are not parties to any collective bargaining agreements. Management considers its relationship with its employees to be good.

Supervision and Regulation

The Bank Holding Company Act: As a financial holding company, FCBC is subject to regulation under the Bank Holding Company Act of 1956, as amended (the BHCA) and the examination and reporting requirements of the Board of Governors of the Federal Reserve System (Federal Reserve Board). Under the BHCA, FCBC is subject to periodic examination by the Federal Reserve Board and is required to file periodic reports regarding its operations and any additional information that the Federal Reserve Board may require. The Federal Reserve Board also has extensive enforcement authority over financial and bank holding companies, including the ability to assess civil money penalties, issue cease and desist and removal orders, and require that a financial or bank holding company divest subsidiaries, including its subsidiary banks.

Under Federal Reserve Board policy, a financial or bank holding company is expected to act as a source of strength to each of its subsidiary banks. In accordance with this policy, the Federal Reserve Board may require a financial or bank holding company to contribute additional capital to an undercapitalized subsidiary bank and may disapprove of the payment of dividends to shareholders if the Federal Reserve Board believes the payment of such dividends would be an unsafe or unsound practice.

The BHCA generally limits the activities of a bank holding company to banking, managing or controlling banks, furnishing services to or performing services for its subsidiaries and engaging in any other activities that the Federal Reserve Board has determined to be so closely related to banking or to managing or controlling banks as to be a proper incident to those activities. In addition, the BHCA requires every bank holding company to obtain the approval of the Federal Reserve Board prior to acquiring all or substantially all of the assets of any bank or another financial or bank holding company, acquiring direct or indirect ownership or control of more than 5% of the voting shares of any bank not already majority-owned by it, or merging or consolidating with another financial or bank holding company.

Gramm-Leach-Bliley Act: The Gramm-Leach-Bliley Act of 1999 (GLBA) permits qualifying bank holding companies to become financial holding companies and thereby affiliate with securities firms and insurance companies and engage in other activities that are financial in nature. A bank holding company may become a financial holding company if each of its subsidiary banks is well capitalized under the FDIC’s Deposit Insurance Corporation Act of

10

1991 prompt corrective action provisions, is well managed, and has at least a satisfactory rating under the Community Reinvestment Act, by filing a declaration that the bank holding company wishes to become a financial holding company. In March, 2000, FCBC became a financial holding company. No regulatory approval is required for a financial holding company to acquire a company, other than a bank or a savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the Federal Reserve Board.

The GLBA defines “financial in nature” to include:

• securities underwriting, dealing and market making;

• sponsoring mutual funds and investment companies;

• insurance underwriting and agency;

• merchant banking; and

• activities that the Federal Reserve Board has determined to be closely related to banking.

Transactions with Affiliates, Directors, Executive Officers and Shareholders: Transactions between Citizens and its affiliates, including FCBC, are subject to Sections 23A and 23B of the Federal Reserve Act, and Federal Reserve Board Regulation W, which generally limit the extent to which Citizens may engage in “covered transactions” with affiliates and require that the terms of such transactions be the same, or at least as favorable, to Citizens as the terms provided in a similar transaction between Citizens and an unrelated party. The term “covered transaction” includes the making of loans to an affiliate, the purchase of assets from an affiliate, the issuance of a guarantee on behalf of an affiliate, the purchase of securities issued by an affiliate and other similar types of transactions.

A bank’s authority to extend credit to executive officers, directors and greater than 10% shareholders, as well as entities such persons control, is subject to Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder by the Federal Reserve Board. Among other things, these loans must be made on terms (including interest rates charged and collateral required) substantially the same as those offered to unaffiliated individuals or be made as part of a benefit or compensation program and on terms widely available to employees, and must not involve a greater than normal risk of repayment. In addition, the amount of loans a bank may make to these affiliated persons is based, in part, on the bank’s capital position, and specified approval procedures must be followed in making loans which exceed specified amounts.

Banking subsidiaries of financial and bank holding companies are also subject to federal regulation regarding such matters as reserves, limitations on the nature and amount of loans and investments, issuance or retirement of its own securities, limitations on the payment of dividends and other aspects of banking operations.

Privacy Provisions of Gramm-Leach-Bliley Act: Under the GLBA, federal banking regulators adopted rules that limit the ability of banks and other financial institutions to disclose non-public information about consumers to non-affiliated third parties. These rules contain extensive provisions on a customer’s right to privacy of non-public personal information. Except in certain cases, an institution may not provide personal information to unaffiliated

11

third parties unless the institution discloses that such information may be disclosed and the customer is given the opportunity to opt out of such disclosure. The privacy provisions of the GLBA affect how consumer information is conveyed to outside vendors. FCBC and its subsidiaries are also subject to certain state laws that deal with the use and distribution of non-public personal information.

Federal Deposit Insurance Corporation (FDIC): The FDIC is an independent federal agency which insures the deposits of federally-insured banks and savings associations up to certain prescribed limits and safeguards the safety and soundness of financial institutions. The deposits of Citizens are subject to the deposit insurance assessments of the FDIC. Under the FDIC’s deposit insurance assessment system, the assessment rate for any insured institution may vary according to regulatory capital levels of the institution and other factors such as supervisory evaluations.

The FDIC is authorized to prohibit any insured institution from engaging in any activity that poses a serious threat to the insurance fund and may initiate enforcement actions against a bank, after first giving the institution’s primary regulatory authority an opportunity to take such action. The FDIC may also terminate the deposit insurance of any institution that has engaged in or is engaging in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, order or condition imposed by the FDIC.

On February 7, 2011, the FDIC approved a final rule that changed the deposit insurance assessment base, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). As adopted, the final rule changed the deposit insurance assessment base from domestic deposits to average assets minus average tangible equity. In addition, the final rule also adopted a new large-bank pricing assessment scheme and established a target size for the Deposit Insurance Fund. The final rule went into effect beginning with the second quarter of 2011.

Consumer Financial Protection Bureau: The Dodd-Frank Act established the Consumer Financial Protection Bureau (the “CFPB”), which regulates consumer financial products and services and certain financial services providers. The CFPB is authorized to prevent unfair, deceptive and abusive acts or practices and seeks to ensure consistent enforcement of laws so that consumers have access to fair, transparent and competitive markets for consumer financial products and services. The CFPB has rulemaking and interpretive authority.

Community Reinvestment Act: The Community Reinvestment Act requires depository institutions to assist in meeting the credit needs of their market areas, including low- and moderate-income areas, consistent with safe and sound banking practice. Under this Act, each institution is required to adopt a statement for each of its market areas describing the depositary institution’s efforts to assist in its community’s credit needs. Depositary institutions are periodically examined for compliance and assigned ratings. Banking regulators consider these ratings when considering approval of a proposed transaction by an institution.

12

USA Patriot Act of 2001: The Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the USA Patriot Act) gives the United States Government greater powers over financial institutions to combat money laundering and terrorist access to the financial system in our country. The USA Patriot Act requires the Company to establish a program for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity.

Sarbanes-Oxley Act of 2002: As mandated by the Sarbanes-Oxley Act of 2002, the SEC has adopted rules and regulations governing, among other matters, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information. The NASDAQ Stock Market LLC (Nasdaq) has also adopted corporate governance rules. The Board of Directors of the Company has taken a series of actions to strengthen and improve the Company’s governance practices in light of the rules of the SEC and Nasdaq. The Board of Directors has adopted charters for the Audit Committee, the Compensation Committee and the Nominating Committee, as well as a Code of Conduct (Ethics) applicable to all directors, officers and employees of the Company. In addition, in accordance with Section 302(a) of the Sarbanes-Oxley Act, written certifications by FCBC’s Chief Executive Officer and Chief Financial Officer are required. These certifications attest that FCBC’s quarterly and annual reports filed with the SEC do not contain any untrue statement of a material fact. See Item 9A “Controls and Procedures” in Part II of this Form 10-K for FCBC’s evaluation of its disclosure controls and procedures.

Regulation of Bank Subsidiary: As an Ohio chartered bank, Citizens is subject to supervision and regulation by the State of Ohio Department of Commerce, Division of Financial Institutions (ODFI). In addition, Citizens is a member of the Federal Reserve System and, therefore, is subject to supervision and regulation by the Federal Reserve Board. Citizens is subject to periodic examinations by the ODFI, and Citizens is additionally subject to periodic examinations by the Federal Reserve Board. These examinations are designed primarily for the protection of the depositors of the bank and not shareholders.

Regulatory Capital Requirements: The FRB has adopted capital adequacy guidelines for bank holding companies, pursuant to which, on a consolidated basis, FCBC must maintain total capital of at least 8% of risk-weighted assets. Risk-weighted assets consist of all assets, plus credit equivalent amounts of certain off-balance sheet items, which are weighted at percentage levels ranging from 0% to 100%, based on the relative credit risk of the asset. At least half of the total capital to meet this risk-based requirement must consist of core or “Tier 1” capital, which includes common stockholders’ equity, qualifying perpetual preferred stock (up to 25% of Tier 1 capital) and minority interests in the equity accounts of consolidated subsidiaries, less goodwill, certain other intangibles, and portions of certain non-financial equity investments. The remainder of total capital may consist of supplementary or “Tier 2” capital. In addition to this risk-based capital requirement, the FRB requires bank holding companies to meet a leverage ratio of a minimum level of Tier 1 capital to average total consolidated assets of 3%, if they have the highest regulatory examination rating, well-diversified risk and minimal anticipated growth or expansion. All other bank holding companies are expected to maintain a leverage ratio of at least 4% of average total consolidated assets. Substantially similar capital requirements apply to state-chartered member banks, including Citizens.

13

At December 31, 2013, both FCBC and Citizens were in compliance with these capital requirements. For FCBC’s capital ratios, see Note 17 to the Company’s 2013 Consolidated Financial Statements.

The Federal Reserve Board has adopted regulations governing prompt corrective action to resolve the problems of capital deficient and otherwise troubled state-chartered member banks. At each successively lower defined capital category, a bank is subject to more restrictive and numerous mandatory or discretionary regulatory actions or limits, and the Federal Reserve Board has less flexibility in determining how to resolve the problems of the institution. In addition, the Federal Reserve Board generally can downgrade a bank’s capital category, notwithstanding its capital level, if, after notice and opportunity for hearings, the bank is deemed to be engaged in an unsafe or unsound practice, because it has not corrected deficiencies that resulted in it receiving a less than satisfactory examination rating on matters other than capital or it is deemed to be in an unsafe or unsound condition. Citizens’ capital at December 31, 2013, met the standards for the highest capital category, a “well-capitalized” bank.

In December 2010, the Basel Committee on Banking Supervision, an international forum for cooperation on banking supervisory matters, announced the “Basel III” capital standards, which proposed new capital requirements for banking organizations. On July 2, 2013, the Federal Reserve Board adopted a final rule implementing a revised capital framework based in part on the Basel III capital standards and, on July 9, 2013, the Office of the Comptroller of the Currency also adopted a final rule and the FDIC adopted an interim final rule implementing a revised capital framework based in part on the Basel III capital standards. The rule will not begin to phase in until January 1, 2014 for larger institutions and January 1, 2015 for smaller, less complex banking organizations such as FCBC. The rule will be fully phased in by January 1, 2019.

The implementation of the final rule will lead to higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. Specifically, the rule imposes the following minimum capital requirements on federally insured financial institutions: (1) a new minimum common equity tier 1 capital to risk-weighted assets ratio of 4.5%; (2) a leverage capital ratio of 4%; (3) a tier 1 risk-based capital ratio of 6%; and (4) a total risk-based capital ratio of 8%. Under the rule, common equity generally consists of common stock, retained earnings and limited amounts of minority interests in the form of common stock. In addition, in order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the rule requires insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above its minimum risk-based capital requirements. The capital conservation buffer will be phased in over time, becoming effective on January 1, 2019, and will consist of an additional amount of common equity equal to 2.5% of risk-weighted assets. The rule will also revise the regulatory agencies’ prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of common equity. Until the rule is fully phased in, we cannot predict the ultimate impact it will have upon the financial condition or results of operations of FCBC.

14

Federal Reserve Board regulations also limit the payment of dividends by Citizens to FCBC. Citizens may not pay a dividend if it would cause Citizens not to meet its capital requirements. In addition, the dividends that Citizens may pay to FCBC without prior approval of the Federal Reserve Board is limited to net income for the year plus its retained net income for the preceding two years.

TARP Capital Purchase Program: On January 23, 2009, the Corporation issued and sold to the U.S. Treasury of 23,184 of newly-issued non-voting preferred shares in conjunction with the Corporation’s participation in the Troubled Asset Relief Program (TARP). The Corporation and the U.S. Treasury entered into a Letter Agreement, dated January 23, 2009, including the Securities Purchase Agreement – Standard Terms attached thereto, pursuant to which the Corporation issued and sold to the U.S. Treasury (1) 23,184 Fixed Rate Cumulative Perpetual Preferred Shares, Series A (the “Series A Preferred Shares”), each without par value and having a liquidation preference of $1,000 per share (Preferred Shares), and (2) a Warrant to purchase 469,312 common shares of the Corporation, each without par value, at an exercise price of $7.41 per share. The Warrant had a ten-year term. Under the standardized terms of the preferred shares, cumulative dividends on the Preferred Shares accrued on the liquidation preference at a rate of 5% per annum for the first five years, and at a rate of 9% per annum thereafter. The Preferred Shares had no maturity date and ranked senior to the common shares with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Corporation. The Preferred Shares qualified as Tier 1 capital for regulatory purposes.

On July 3, 2012, the U.S. Treasury completed the sale of all 23,184 of the Series A Preferred Shares to various investors pursuant to a modified “Dutch auction” process. On September 5, 2012, the Corporation completed the repurchase of the Warrant for an aggregate purchase price of $563.

On December 19, 2013, the Company completed the sale of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company, with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering, resulting in gross proceeds to the Company of $25,000.

On January 17, 2014, the Company provided notice that it intends to redeem all 23,184 of the Series A Preferred Shares using proceeds from the sale of the depositary shares. The redemption of the Series A Preferred Shares was completed as of February 15, 2014.

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010: Federal regulators continue to implement many provisions of the Dodd-Frank Act, which was signed into law by President Obama on July 21, 2010. The Dodd-Frank Act created many new restrictions and an expanded framework of regulatory oversight for financial institutions, including depository institutions. Currently, federal regulators are still in the process of drafting the implementing regulations for many portions of the Dodd-Frank Act. FCBC is closely monitoring all relevant sections of the Dodd-Frank Act to ensure continued compliance with these regulatory requirements.

15

The Volcker Rule: In December 2013, five federal agencies adopted a final regulation implementing the Volcker Rule provision of the Dodd-Frank Act (the “Volcker Rule”). The Volcker Rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution, subject to certain exceptions. The trading activity includes a purchase or sale as principal of a security, derivative, commodity future or option on any such instrument in order to benefit from short-term price movements or to realize short-term profits. The Volcker Rule exempts specified U.S. Government, agency and/or municipal obligations, and it excepts trading conducted in certain capacities, including as a broker or other agent, through a deferred compensation or pension plan, as a fiduciary on behalf of customers, to satisfy a debt previously contracted, repurchase and securities lending agreements and risk-mitigating hedging activities.

The Volcker Rule also prohibits a banking entity from having an ownership interest in, or certain relationships with, a hedge fund or private equity fund, with a number of exceptions. The Company does not engage in any of the trading activities or have any ownership interest in or relationship with any of the types of funds regulated by the Volcker Rule.

Many aspects of the Dodd-Frank Act are still subject to rulemaking and will take effect over several years, making it difficult to anticipate the overall financial impact on FCBC, its subsidiaries, their respective customers or the financial services industry more generally.

16

Executive and Incentive Compensation

In June 2010, the Federal Reserve Board, the OCC and the FDIC issued joint interagency guidance on incentive compensation policies (Joint Guidance) intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. This principles-based guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (a) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (b) be compatible with effective internal controls and risk management and (c) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors.

Pursuant to the Joint Guidance, the Federal Reserve Board will review as part of a regular, risk-focused examination process, the incentive compensation arrangements of financial institutions such as FCBC. Such reviews will be tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. The findings of the supervisory initiatives will be included in reports of examination and deficiencies will be incorporated into the institution’s supervisory ratings, which can affect the institution’s ability to make acquisitions and take other actions. Enforcement actions may be taken against an institution if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and prompt and effective measures are not being taken to correct the deficiencies.

On February 7, 2011, federal banking regulatory agencies jointly issued proposed rules on incentive-based compensation arrangements under applicable provisions of the Dodd-Frank Act (Proposed Rules). The Proposed Rules generally apply to financial institutions with $1.0 billion or more in assets that maintain incentive-based compensation arrangements for certain covered employees. The Proposed Rules (i) prohibit covered financial institutions from maintaining incentive-based compensation arrangements that encourage covered persons to expose the institution to inappropriate risk by providing the covered person with “excessive” compensation, (ii) prohibit covered financial institutions from establishing or maintaining incentive-based compensation arrangements for covered persons that encourage inappropriate risks that could lead to a material financial loss, (iii) require covered financial institutions to maintain policies and procedures appropriate to their size, complexity and use of incentive-based compensation to help ensure compliance with the Proposed Rules and (iv) require covered financial institutions to provide enhanced disclosure to regulators regarding their incentive-based compensation arrangements for covered persons within 90 days following the end of the fiscal year.

Pursuant to rules adopted by the stock exchanges and approved by the SEC in January 2013 under the Dodd-Frank Act, public companies are required to implement “clawback” procedures for incentive compensation payments and to disclose the details of the procedures which allow recovery of incentive compensation that was paid on the basis of erroneous financial information necessitating a restatement due to material noncompliance with financial

17

reporting requirements. This clawback policy is intended to apply to compensation paid within a three-year look-back window of the restatement and would cover all executives who received incentive awards. Public company compensation committee members are also required to meet heightened independence requirements and to consider the independence of compensation consultants, legal counsel and other advisors to the compensation committee. The compensation committees must have the authority to hire advisors and to have the company fund reasonable compensation of such advisors.

Effects of Government Monetary Policy

The earnings of the Company are affected by general and local economic conditions and by the policies of various governmental regulatory authorities. In particular, the Federal Reserve Board regulates money and credit conditions and interest rates to influence general economic conditions, primarily through open market acquisitions or dispositions of United States Government securities, varying the discount rate on member bank borrowings and setting reserve requirements against member and nonmember bank deposits. Federal Reserve Board monetary policies have had a significant effect on the interest income and interest expense of commercial banks, including Citizens, and are expected to continue to do so in the future.

Available Information

FCBC’s maintains an Internet website at www.fcza.com (this uniform resource locator, or URL, is an inactive textual reference only and is not intended to incorporate FCBC’s website into this Annual Report on Form 10-K). FCBC makes available free of charge on or through its Internet website its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), as well as FCBC’s definitive proxy statements filed pursuant to Section 14 of the Exchange Act, as soon as reasonably practicable after FCBC electronically files such material with, or furnishes it to, the SEC.

Statistical Information

The following section contains certain financial disclosures related to the Company as required under the Securities and Exchange Commission’s Industry Guide 3, “Statistical Disclosures by Bank Holding Companies”, or a specific reference as to the location of the required disclosures in the Registrant’s 2013 Annual Report to Shareholders, portions of which are incorporated in this Form 10-K by reference.

18

I. Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential

Average balance sheet information and the related analysis of net interest income for the years ended December 31, 2013, 2012 and 2011 is included on pages 11 through 13 - “Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential” and “Changes in Interest Income and Interest Expense Resulting from Changes in Volume and Changes in Rates”, within Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s 2013 Annual Report to Shareholders and is incorporated into this Item I by reference.

19

II. Investment Portfolio

The following table sets forth the carrying amount of securities at December 31.

	2013		2012		2011
			(Dollars in thousands)
Available for sale (1)
U.S. Treasury securities and obligations of U.S. Government agencies	$	51,560	$	54,286	$	49,704
Obligations of states and political subdivisions		80,625		79,806		66,736
Mortgage-backed securities in government sponsored entities		66,979		69,435		87,518
Total debt securities		199,164		203,527		203,957
Equity securities in financial institutions		449		434		676
Total	$	199,613	$	203,961	$	204,633

(1) The Corporation had no securities of an “issuer” where the aggregate carrying value of such securities exceeded ten percent of shareholders’ equity.

The following tables set forth the maturities of securities at December 31, 2013 and the weighted average yields of such debt securities. Maturities are reported based on stated maturities and do not reflect principal prepayment assumptions.

						After one					After five but
	Within one year					but within five years					within ten years					After ten years
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
	(Dollars in thousands)
Available for Sale (2)
U.S. Treasury securities and obligations of U.S. government agencies	$	3,008		0.80	%	$	19,292		0.76	%	$	16,012		1.35	%	$	13,248		1.73	%
Obligations of states and political subdivisions (1)		301		3.97	%		2,042		2.02	%		18,391		3.48			59,891		4.41
Mortgage-backed securities in government sponsored entities		—		—			5,599		0.47	%		20,630		1.72			40,750		2.79
Total	$	3,309		1.09	%	$	26,933		0.82	%	$	55,033		2.20	%	$	113,889		3.52	%

(1) Weighted average yields on nontaxable obligations have been computed based on actual yields stated on the security.

(2) The weighted average yield has been computed using the historical amortized cost for available-for-sale securities.

20

III. Loan Portfolio

Types of Loans

The amounts of gross loans outstanding at December 31 are shown in the following table according to types of loans.

	2013		2012		2011		2010		2009
	(Dollars in thousands)
Commercial and agricultural	$	115,875	$	100,661	$	86,395	$	84,913	$	96,298
Commercial real estate		443,846		434,808		371,852		336,251		335,626
Residential real estate		250,691		250,598		274,995		295,038		314,552
Real estate construction		39,964		19,677		39,790		39,341		29,970
Consumer and other		10,865		9,809		12,236		11,780		14,372
	$	861,241	$	815,553	$	785,268	$	767,323	$	790,818

Commercial loans are those made for commercial, industrial and professional purposes to individuals, sole proprietorships, partnerships, corporations and other business enterprises. Agricultural loans are for financing agricultural production, including all costs associated with growing crops or raising livestock. Commercial and agricultural loans may be secured, other than by real estate, or unsecured, requiring one single repayment or on an installment repayment schedule. The loans involve certain risks relating to changes in local and national economic conditions and the resulting effect on the borrowing entities. Secured loans not collateralized by real estate mortgages maintain a loan-to-value ratio ranging from 50% in the case of certain stocks, to 100% in the case of savings or time deposit accounts. Unsecured credits rely on the financial strength and previous credit experience of the borrower and in many cases the financial strength of the principals when such credit is extended to a corporation.

Commercial real estate mortgage loans are made predicated on having a security interest in real property and are secured wholly or substantially by that lien on real property. Commercial real estate mortgage loans are generally underwritten with a maximum loan-to-value ratio of 80%.

Residential real estate mortgage loans and home equity lines of credit are made predicated on security interests in real property and secured wholly or substantially by those liens on real property. Such real estate mortgage loans are primarily loans secured by one-to-four family real estate. Residential real estate mortgage loans generally pose less risk to the Company due to the nature of the collateral being less susceptible to sudden changes in value.

21

Real estate construction loans are for the construction of residential homes, new buildings or additions to existing buildings. Generally, these loans are secured by one-to-four family real estate or commercial real estate. The Company controls disbursements in connection with construction loans.

Consumer loans are made to individuals for household, family and other personal expenditures. These expenditures include the purchase of vehicles or furniture, educational expenses, medical expenses, taxes or vacation expenses. Consumer loans may be secured, other than by real estate, or unsecured, generally requiring repayment on an installment repayment schedule. Consumer loans pose a relatively higher credit risk. This higher risk is moderated by the use of certain loan to value limits on secured credits and aggressive collection efforts. The collectability of consumer loans is influenced by local and national economic conditions.

Letters of credit represent extensions of credit granted in the normal course of business, which are not reflected in the Company’s consolidated financial statements. As of December 31, 2013 and 2012, the Company was contingently liable for $2,611 and $690, respectively, with respect to outstanding letters of credit. In addition, Citizens had issued lines of credit to customers. Borrowings under such lines of credit are usually for the working capital needs of the borrower. At December 31, 2013 and 2012, Citizens had commitments to extend credit in the aggregate amounts of approximately $184,300 and $147,337, respectively. Of these amounts, $163,198 and $127,560 represented lines of credit and construction loans, and $21,102 and $19,777 represented overdraft protection commitments at December 31, 2013 and 2012, respectively. Such amounts represent the portion of total commitments that had not been used by customers as of December 31, 2013 and 2012.

Maturities and Sensitivity of Loans to Changes in Interest Rates

The following table shows the amount of commercial and agricultural, commercial real estate, and real estate construction loans outstanding as of December 31, 2013, which, based on the contract terms for repayments of principal, are due in the periods indicated. In addition, the amounts due after one year are classified according to their sensitivity to changes in interest rates.

22

	Maturing
	Within one year		After one but within five years		After five years		Total
			(Dollars in thousands)
Commercial and agricultural	$	42,710	$	43,973	$	29,192	$	115,875
Commercial real estate		61,146		81,891		300,809		443,846
Real estate construction		7,683		11,470		20,811		39,964
	$	111,539	$	137,334	$	350,812	$	599,685

	Interest Sensitivity
	Fixed rate		Variable rate
	(Dollars in thousands)
Due after one but within five years	$	75,775	$	61,559
Due after five years		36,337		314,475
	$	112,112	$	376,034

The preceding maturity information is based on contract terms at December 31, 2013 and does not include any possible “rollover” at maturity date. In the normal course of business, Citizens considers and acts on the borrowers’ requests for renewal of loans at maturity. Evaluation of such requests includes a review of the borrower’s credit history, the collateral securing the loan and the purpose for such request.

23

Risk Elements

The following table presents information concerning the amount of loans at December 31 that contain certain risk elements.

	2013		2012		2011		2010		2009
	(Dollars in thousands)
Loans accounted for on a nonaccrual basis (1)	$	20,459	$	29,855	$	25,768	$	22,175	$	25,198
Loans contractually past due 90 days or more as to principal or interest payments (2)		—		80		1,301		2,241		514
Loans whose terms have been renegotiated to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower (3)		5,234		7,250		10,284		8,561		9,163
Total	$	25,693	$	37,185	$	37,353	$	32,977	$	34,875
Impaired loans included in above totals		12,458		19,302		15,472		8,784		13,989
Impaired loans not included in above totals		5,599		6,788		11,908		10,389		8,747
Total impaired loans	$	18,057	$	26,090	$	27,380	$	19,173	$	22,736

(1) A loan is placed on nonaccrual status when doubt exists as to the collectability of the loan, including any accrued interest. With a few immaterial exceptions, commercial and agricultural, commercial real estate, residential real estate and construction loans past due 90 days are placed on nonaccrual unless they are well collateralized and in the process of collection. Generally, consumer loans are charged-off within 30 days after becoming past due 90 days unless they are well collateralized and in the process of collection. Once a loan is placed on nonaccrual, interest is only recognized on a cash basis where future collections of principal is probable.

(2) Excludes loans accounted for on a nonaccrual basis.

(3) Excludes loans accounted for on a nonaccrual basis and loans contractually past due 90 days or more as to principal or interest payments.

There were no loans as of December 31, 2013, other than those disclosed above, where known information about probable credit problems of borrowers caused management to have serious doubts as to the ability of such borrowers to comply with the present loan repayment terms. There were no other interest-bearing assets that would be required to be disclosed in the table above, if such assets were loans as of December 31, 2013. The gross interest income that would have been recorded on nonaccrual loans and restructured loans in 2013 if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, was $628. The amount of interest income on such loans actually included in net income in 2013 was $1,396.

24

Interest income recognition associated with impaired loans was as follows.

	2013		2012		2011		2010		2009
	(Dollars in thousands)
Interest income on impaired loans, all of which was recognized on a cash basis	$	989	$	1,818	$	2,028	$	654	$	828

At December 31, 2013 and 2012, Citizens’ loan portfolio included industry concentrations for: Lessors of Real Estate; Agriculture; Accommodations & Restaurants; Construction Services; and Manufacturing. Management determines such concentrations using NAICS codes and regulatory standards that define significant concentrations as greater than 25 percent of Citizens’ capital, inclusive of the allowance for loan losses. In addition, management believes the Bank’s most significant loan portfolio concentration and exposure relates to loans secured by real estate. There were no foreign loans outstanding at December 31, 2013.

IV. Summary of Loan Loss Experience

Analysis of the Allowance for Loan Losses

The following table shows the daily average loan balances and changes in the allowance for loan losses for the years indicated.

25

	2013			2012			2011			2010			2009
	(Dollars in thousands)
Daily average amount of loans net of unearned income	$	819,152		$	780,786		$	763,918		$	784,263		$	789,347
Allowance for loan losses at beginning of year	$	19,742		$	21,257		$	21,768		$	15,271		$	8,862
Loan charge-offs:
Commercial and agricultural		483			841			2,447			2,710			3,013
Commercial real estate		1,804			3,440			4,561			4,653			1,493
Real estate mortgage		2,907			4,506			3,748			4,029			2,393
Real estate construction		136			446			981			799			497
Consumer and other		220			246			193			460			655
		5,550			9,479			11,930			12,651			8,051
Recoveries of loans previously charged-off:
Commercial and agricultural		141			353			307			303			204
Commercial real estate		449			612			390			650			364
Real estate mortgage		458			397			429			99			363
Real estate construction		108			131			387			—			—
Consumer and other		80			71			106			156			206
		1,236			1,564			1,619			1,208			1,137
Net charge-offs (1)		(4,314	)		(7,915	)		(10,311	)		(11,443	)		(6,914	)
Provision for loan losses (2)		1,100			6,400			9,800			17,940			13,323
Allowance for loan losses at year end	$	16,528		$	19,742		$	21,257		$	21,768		$	15,271
Allowance for loan losses as a percent of loans at year-end		1.92	%		2.42	%		2.71	%		2.84	%		1.93	%
Ratio of net charge-offs during the year to average loans outstanding		0.53	%		1.01	%		1.35	%		1.46	%		0.88	%

(1) The amount of net charge-offs fluctuates from year to year due to factors relating to the condition of the general economy, decline in market values of collateral and deteriorization of specific businesses.

(2) The determination of the balance of the allowance for loan losses is based on a detailed analysis of the loan portfolio and reflects an amount that, in management’s judgment, is adequate to provide for probable incurred loan losses. Such analysis is based on a review of specific loans, the character of the loan portfolio, current economic conditions, risk management practices and such other factors as management believes require current recognition in estimating probable incurred loan losses.

26

Allocation of Allowance for Loan Losses

The following table allocates the allowance for loan losses at December 31 to each loan category. The allowance has been allocated according to the amount deemed to be reasonably necessary to provide for the probable losses estimated to be incurred within the following categories of loans at the dates indicated.

27

	2013					2012
			Percentage					Percentage
			of loans to					of loans to
	Allowance		total loans			Allowance		total loans
	(Dollars in thousands)
Commercial and agriculture	$	2,841		13.4	%	$	2,811		12.3	%
Commercial real estate		7,559		51.5			10,139		53.3
Real estate mortgage		5,224		29.1			5,780		30.7
Real estate construction		184		4.6			349		2.4
Consumer and other		214		1.3			246		1.3
Unallocated		506		—			417		—
	$	16,528		100.0	%	$	19,742		100.0	%
	2011					2010
			Percentage					Percentage
			of loans to					of loans to
	Allowance		total loans			Allowance		total loans
	(Dollars in thousands)
Commercial and agriculture	$	2,876		11.0	%	$	3,639		11.1	%
Commercial real estate		10,571		47.4			9,827		43.8
Real estate mortgage		5,796		35.0			4,569		38.5
Real estate construction		974		5.1			2,139		5.1
Consumer and other		719		1.5			726		1.5
Unallocated		321		—			868		—
	$	21,257		100.0	%	$	21,768		100.0	%

	2009
			Percentage
			of loans to
	Allowance		total loans
	(Dollars in thousands)
Commercial and agriculture	$	2,957		12.2	%
Commercial real estate		6,042		42.4
Real estate mortgage		3,917		39.8
Real estate construction		1,109		3.8
Consumer and other		401		1.8
Unallocated		845		—
	$	15,271		100.0	%

28

Citizens measures the adequacy of the allowance for loan losses by using both specific and general components. The specific component relates to the evaluation of each loan identified as impaired. The general component consists of a pooling of commercial credits risk graded as special mention and substandard, based on portfolio experience, and general reserves, which are based on an eight quarter loss migration analysis, adjusted for current economic factors. Factors in the determination of the economic reserve include items such as changes in the economic and business conditions of its market, changes in lending policies and procedures, changes in loan concentrations, as well as a few others. The allowance for loan losses to total loans decreased from 2.42% in 2012 to 1.92% in 2013. The unallocated reserve of Citizens increased from $417 in 2012 to $506 in 2013. Management considers both the increase in unallocated and the end-of-period number to be insignificant and within the loan policy guidelines.

Deposits

The average daily amount of deposits (all in domestic offices) and average rates paid on such deposits is summarized for the years indicated.

	2013					2012					2011
	Average		Average			Average		Average			Average		Average
	balance		rate paid			balance		rate paid			balance		rate paid
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	233,592		N/A		$	194,418		N/A		$	176,435		N/A
Interest-bearing demand deposits		183,861		0.07	%		157,193		0.14	%		145,576		0.18	%
Savings, including Money Market deposit accounts		301,193		0.09	%		290,630		0.10	%		282,467		0.20	%
Certificates of deposit, including IRA’s		246,724		0.97	%		272,610		1.20	%		305,837		1.40	%
	$	965,370				$	914,851				$	910,315

Maturities of certificates of deposits and individual retirement accounts of $100,000 or more outstanding at December 31, 2013 are summarized as follows.

29

			Individual
	Certificates		Retirement
	of Deposits		Accounts		Total
	(Dollars in thousands)
3 months or less	$	12,286	$	1,248	$	13,534
Over 3 through 6 months		13,816		579		14,395
Over 6 through 12 months		24,760		2,065		26,825
Over 12 months		15,699		2,131		17,830
	$	66,561	$	6,023	$	72,584

Return on Equity and Assets

Information required by this section is incorporated herein by reference from the information appearing under the caption “Five-Year Selected Consolidated Financial Data” located on pages 1 and 2 of the 2013 Annual Report. The common share dividend payout ratio was 18.7% in 2013, 16.6% in 2012, 5.8% in 2011, 0% in 2010 and 119.0% in 2009.

Short-term Borrowings

See Note 10 to the consolidated financial statements (located on page 57 of the 2013 Annual Report) and “Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential” (located on pages 11 through 13 of the 2013 Annual Report) for the statistical disclosures for short-term borrowings for 2013 and 2012.

Item 1A. Risk Factors

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as financial condition, anticipated operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,”

30

“foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results, performance or achievements to differ from results discussed in the forward-looking statements include, but are not limited to, changes in financial markets or national or local economic conditions; sustained weakness or deterioration in the real estate market; volatility and direction of market interest rates; credit risks of lending activities; changes in the allowance for loan losses; legislation or regulatory changes or actions; increases in FDIC insurance premiums and assessments; changes in tax laws; failure of or breach in our information and data processing systems; unforeseen litigation; and other risks identified from time-to-time in the Company’s other public documents on file with the Securities and Exchange Commission, including those risks set forth under Item 1A of Part 1 of this Annual Report on Form 10-K.

The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements, and the purpose of this section is to secure the use of the safe harbor provisions.

OUR BUSINESS HAS BEEN AND MAY CONTINUE TO BE ADVERSELY AFFECTED BY CONDITIONS IN THE FINANCIAL MARKETS AND ECONOMIC CONDITIONS BOTH NATIONALLY AND IN OUR MARKET AREAS. OUR BUSINESS IS CONCENTRATED IN, AND DEPENDENT UPON THE PROSPERITY OF, NORTH AND NORTH CENTRAL OHIO, AND ANY CONTINUED WEAKNESS OR PROLONGED RECOVERY IN THE ECONOMIES OF THESE COMMUNITIES COULD RESULT IN DETERIORATION IN CREDIT QUALITY.

Our success depends to a significant extent upon local and national economic and political conditions, as well as governmental fiscal and monetary policies. Conditions such as inflation, recession, unemployment, changes in interest rates, money supply and other factors beyond our control can adversely affect our asset quality, deposit levels and loan demand and, therefore, our earnings and our capital. Moreover, our lending and deposit gathering activities are concentrated in Central and North Central Ohio, with approximately 73.3% of our loan portfolio and approximately 79.5% of our deposits as of December 31, 2013 concentrated in a six county region in North Central Ohio and approximately 26.7% of our loan portfolio and approximately 20.5% of our deposits as of December 31, 2013 concentrated in a four county region in Central Ohio. Our success depends on the general economic conditions of these areas, particularly given that a significant portion of our lending relates to real estate located in these regions. Real estate values in these Ohio communities have been negatively impacted by the recent economic crisis. During the last several years, the U.S. economy has been marked by sluggish labor market improvements, limited GDP growth, low inflation, and, only recently, upward movement in housing prices, as well as uncertainty related to U.S. and European fiscal issues, political climates and global economic conditions. Continued uncertainty, sustained high unemployment, volatility or disruptions of global financial markets, or prolonged deterioration in global, national or local business or

31

economic conditions could result in, among other things, a deterioration of credit quality, further impairment of real estate values, a decrease in the demand for our loans and other products and services, a further impairment of certain intangible assets, such as goodwill, and an increase in the number of clients who become delinquent, file for protection under bankruptcy laws or default on their loans or other obligations to us. An increase in the number of delinquencies, bankruptcies or defaults could result in a higher level of nonperforming assets, net charge-offs, an increase in our provision for loan losses, and valuation adjustments on loans held for sale, which could have a material adverse effect on our financial condition, results of operations and cash flows.

A SUBSTANTIAL AMOUNT OF OUR LOAN PORTFOLIO CONSISTS OF RESIDENTIAL AND COMMERCIAL REAL ESTATE LOANS. SUSTAINED WEAKNESS OR DETERIORATION IN THE REAL ESTATE MARKET COULD CAUSE INCREASES IN DELINQUENCIES AND NON-PERFORMING ASSETS, INCLUDING ADDITIONAL LOAN CHARGE-OFFS, AND COULD DEPRESS OUR INCOME, EARNINGS AND CAPITAL.

At December 31, 2013, approximately 29.1% and 51.5%, respectively, of our loan portfolio was comprised of residential and commercial real estate loans. The volume and credit quality of these loans has been volatile in the last several years. The commercial and residential real estate markets continue to experience challenges in our markets. Economic factors both nationally and in the communities we serve have and may continue to cause deterioration to the value of real estate Citizens uses to secure its loans. Continued weakness in the economy or a prolonged recovery, deterioration of our real estate portfolio, a decrease in real estate values, an increase in unemployment, decreased or nonexistent housing price appreciation or increases in interest rates could reduce our earnings and consequently our financial condition because borrowers may not be able to repay their loans. The value of the collateral securing our loans and the quality of our loan portfolio may decline and customers may not want or need our products and services.

Any of these scenarios could cause us to make fewer loans, increase delinquencies and non-performing assets, require us to charge off a higher percentage of our loans or result in additional increases to our provision for loan losses in future periods, which could adversely affect our business, financial condition and results of operations.

WE MAY BE UNABLE TO MANAGE INTEREST RATE RISKS, WHICH COULD REDUCE OUR NET INTEREST INCOME.

Our results of operations are affected principally by net interest income, which is the difference between interest earned on loans and investments and interest expense paid on deposits and other borrowings. The spread between the yield on our interest-earning assets and our overall cost of funds has been compressed in the recent low interest rate environment, and our net interest income may continue to be adversely impacted by an extended period of continued low rates. We cannot predict or control changes in interest rates. National, regional and local economic conditions and the policies of regulatory authorities, including monetary policies of the Board of Governors of the Federal Reserve System, affect the movement of interest rates and our interest income and interest expense. If the interest rates paid on deposits and other borrowed funds increase at a faster rate than the interest rates received on loans and other investments, our net interest income, and therefore earnings, could be adversely affected. Earnings could also be adversely affected if the interest rates received on loans and other investments fall more quickly than the interest rates paid on deposits and other borrowed funds.

32

In addition, certain assets and liabilities may react in different degrees to changes in market interest rates. For example, interest rates on some types of assets and liabilities may fluctuate prior to changes in broader market interest rates, while interest rates on other types may lag behind. Some of our assets, such as adjustable rate mortgages, have features that restrict changes in their interest rates, including rate caps.

Interest rates are highly sensitive to many factors that are beyond our control. Some of these factors include:

• inflation;

• recession;

• unemployment;

• money supply;

• international disorders; and

• instability in domestic and foreign financial markets.

Changes in interest rates may affect the level of voluntary prepayments on our loans and may also affect the level of financing or refinancing by customers. We believe that the impact on our cost of funds from a rise in interest rates will depend on a number of factors, including but not limited to, the competitive environment in the banking sector for deposit pricing, opportunities for clients to invest in other markets such as fixed income and equity markets, and the propensity of customers to invest in their businesses. The effect on our net interest income from an increase in interest rates will ultimately depend on the extent to which the aggregate impact of loan re-pricings exceeds the impact of increases in our cost of funds.

STRONG COMPETITION WITHIN OUR MARKET AREA MAY REDUCE OUR ABILITY TO ATTRACT AND RETAIN DEPOSITS AND ORIGINATE LOANS.

We face competition both in originating loans and in attracting deposits within our market area, which includes Central and North Central Ohio. We compete for clients by offering personal service and competitive rates on our loans and deposit products. The type of institutions we compete with include large regional financial institutions, community banks, thrifts and credit unions operating within our market areas. Nontraditional sources of competition for loan and deposit dollars come from captive auto finance companies, mortgage banking companies, internet banks, brokerage companies, insurance companies and direct mutual funds. As a result of their size and ability to achieve economies of scale, certain of our competitors offer a broader range of products and services than we offer. We expect competition to remain intense in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry. In addition, to stay competitive in our markets we may need to adjust the interest rates on our products to match the rates offered by our competitors, which could adversely affect our net interest margin. As a result, our profitability depends upon our continued ability to successfully compete in our market areas while achieving our investment objectives.

33

LEGISLATIVE OR REGULATORY CHANGES OR ACTIONS COULD ADVERSELY IMPACT OUR BUSINESS.

The financial services industry is extensively regulated. We are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of our operations. These laws and regulations are primarily intended for the protection of consumers, depositors, borrowers and the deposit insurance fund, not to benefit our shareholders. Changes to laws and regulations or other actions by regulatory agencies may negatively impact us, possibly limiting the services we provide, increasing the ability of non-banks to compete with us or requiring us to change the way we operate. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the ability to impose restrictions on the operation of an institution and the ability to determine the adequacy of an institution’s allowance for loan losses. Failure to comply with applicable laws, regulations and policies could result in sanctions being imposed by the regulatory agencies, including the imposition of civil money penalties, which could have a material adverse effect on our operations and financial condition.

In light of current conditions in the global financial markets and the global economy, regulators have increased their focus on the regulation of the financial services industry. In the last several years, Congress and the federal bank regulators have acted on an unprecedented scale in responding to the stresses experienced in the global financial markets. Some of the laws enacted by Congress and regulations promulgated by federal bank regulators subject us and other financial institutions to additional restrictions, oversight and costs that may have an adverse impact on our business and results of operations. In addition to laws, regulations and supervisory and enforcement actions directed at the operations of banks, proposals to reform the housing finance market contemplate winding down Fannie Mae and Freddie Mac, which could negatively affect our sales of loans.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-FranK Act”) was signed into law on July 21, 2010 and, although it became generally effective in July 2010, many of its provisions have extended implementation periods and delayed effective dates and have and will continue to require extensive rulemaking by regulatory authorities. In addition, we may be subjected to higher deposit insurance premiums to the FDIC. We may also be subject to additional regulations under the newly established Consumer Financial Protection Bureau, which was given broad authority to implement new consumer protection regulations. These and other provisions of the Dodd-Frank Act, including future rules implementing its provisions and the interpretation of those rules, may place significant additional costs on us, impede our growth opportunities and place us at a competitive disadvantage.

In July 2013, our primary federal regulator, the Federal Reserve, published final rules establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The implementation of the final rules will lead to higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. In addition, in order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the rules require insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above the minimum risk-based capital requirements. The capital conservation buffer will be phased in over time, becoming effective on January 1, 2019, and will consist of an additional amount of common equity equal to 2.5% of risk-weighted assets. The rules will also revise the regulatory agencies’ prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of common equity. The rules will not begin to phase in until January 1, 2014 for larger institutions and January 1, 2015 for smaller, less complex banking organizations such as the Company, and will be fully phased in by January 1, 2019. Until the rules are fully phased in, we cannot predict the ultimate impact it will have upon the financial condition or results of operations of the Company.

34

DEPOSIT INSURANCE PREMIUMS MAY INCREASE AND HAVE A NEGATIVE EFFECT ON THE COMPANY’S RESULTS OF OPERATIONS.

The Deposit Insurance Fund (the “DIF”) maintained by the FDIC to resolve bank failures is funded by fees assessed on insured depository institutions. The costs of resolving bank failures has increased during the last few years and decreased the DIF. The FDIC collected a special assessment in 2009 to replenish the DIF and also required a prepayment of an estimated amount of future deposit insurance premiums. If the costs of future bank failures increase, the deposit insurance premiums required to be paid by Citizens may also increase.

OUR ALLOWANCE FOR LOAN LOSSES MAY PROVE TO BE INSUFFICIENT TO ABSORB POTENTIAL LOSSES IN OUR LOAN PORTFOLIO.

We maintain an allowance for loan losses that we believe is a reasonable estimate of known and inherent losses within the loan portfolio. We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. Through a periodic review and consideration of the loan portfolio, management determines the amount of the allowance for loan losses by considering general market conditions, the credit quality of the loan portfolio, the collateral supporting the loans and the performance of customers relative to their financial obligations with us. However, every loan we make carries a risk of non-payment. This risk is affected by, among other things, cash flow of the borrower and/or the project being financed, changes and uncertainties as to the future value of the collateral securing such loan, the credit history of the particular borrower, changes in economic and industry conditions, and the duration of the loan.

The amount of future losses is also susceptible to changes in economic, operating and other conditions, including changes in interest rates, which may be beyond our control, and these losses may exceed current estimates. We cannot fully predict the amount or timing of losses or whether the allowance for loan losses will be adequate in the future. If our assumptions prove to be incorrect, our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to the allowance, which would adversely affect our earnings. Excessive loan losses and significant additions to our allowance for loan losses could have a material adverse impact on our financial condition and results of operations.

In addition, bank regulators periodically review our allowance for loan losses and may require us to increase our allowance for loan losses or recognize further loan charge-offs. Any increase in our allowance for loan losses or loan charge-offs as required by these regulatory authorities could have a material adverse effect on our financial condition and results of operations.

35

WE ARE A HOLDING COMPANY AND DEPEND ON OUR SUBSIDIARY BANK FOR DIVIDENDS.

As a financial holding company, we are a legal entity separate and distinct from our subsidiaries and affiliates. Our principal source of funds to support our operations, pay dividends on our common and preferred shares and service our debt is dividends from our subsidiary bank, Citizens. In the event that Citizens is unable to pay dividends to us, we may not be able to service our debt, pay our other obligations or pay dividends on our common or preferred shares. Accordingly, our inability to receive dividends from Citizens could also have a material adverse effect on our business, financial condition and results of operations.

Various federal and state statutory provisions and regulations limit the amount of dividends that Citizens may pay to us without regulatory approval. Generally, subject to certain minimum capital requirements, Citizens may declare a dividend without the approval of the State of Ohio Division of Financial Institutions so long as the total amount of the dividends in a calendar year does not exceed Citizens’ total net income for that year combined with its retained net income for the two preceding years. In addition, the Federal Reserve has issued policy statements that provide that insured banks and bank holding companies should generally only pay dividends out of current operating earnings. Thus, the ability of Citizens to pay dividends in the future is currently influenced, and could be further influenced, by bank regulatory policies and capital guidelines and may restrict our ability to declare and pay dividends on our common or preferred shares.

THE TRADING VOLUMES FOR OUR COMMON SHARES MAY NOT PROVIDE ADEQUATE LIQUIDITY FOR INVESTORS.

Our common shares and our depositary shares are both listed on the NASDAQ Capital Market; however, the average daily trading volume in our common shares and our depositary shares is less than that of many larger financial services companies. A public trading market having the desired characteristics of depth, liquidity, and orderliness depends on the presence in the marketplace of a sufficient number of willing buyers and sellers of our shares at any given time. This presence depends on the individual decisions of investors and general economic and market conditions over which we have no control. Given the current daily average trading volume of our common and of our depositary shares, significant sales of our those in a brief period of time, or the expectation of these sales, could cause a material decline in the price of those shares.

THE MARKET PRICE OF OUR COMMON SHARES MAY BE SUBJECT TO FLUCTUATIONS AND VOLATILITY.

The market price of our common shares may fluctuate significantly due to, among other things, changes in market sentiment regarding our operations or business prospects, the banking industry generally or the macroeconomic outlook. Factors that could impact our trading price include:

• our operating and financial results, including how those results vary from the expectations of management, securities analysts and investors;

• developments in our business or operations or in the financial sector generally;

• future offerings by us of debt or preferred shares, which would be senior to our common shares upon liquidation and for purposes of dividend distributions;

• legislative or regulatory changes affecting our industry generally or our business and operations specifically;

• the operating and stock price performance of companies that investors consider to be comparable to us;

• announcements of strategic developments, acquisitions and other material events by us or our competitors;

• actions by our current shareholders, including future sales of common shares by existing shareholders, including our directors and executive officers; and

• other changes in U.S. or global financial markets, global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity, credit or asset valuations or volatility.

36

Equity markets in general and our common shares in particular have experienced considerable volatility over the past few years. The market price of our common shares may continue to be subject to volatility unrelated to our operating performance or business prospects. Increased volatility could result in a decline in the market price of our common shares.

THE SALE OF SUBSTANTIAL AMOUNTS OF OUR COMMON SHARES OR SECURITIES CONVERTIBLE INTO OUR COMMON SHARES IN THE PUBLIC MARKET COULD DEPRESS THE PRICE OF OUR COMMON SHARES.

In recent years, the stock market has experienced a high level of price and volume volatility, and market prices for the stock of many companies have experienced wide fluctuations that have not necessarily been related to their operating performance. Therefore, our shareholders may not be able to sell their shares at the volumes, prices, or times that they desire. We cannot predict the effect, if any, that future sales of our common shares or securities convertible into our common shares in the market, or availability of shares of our common shares or securities convertible into our common shares for sale in the market, will have on the market price of our common shares. We can give no assurance that sales of substantial amounts of our common shares or securities convertible into our common shares in the market, or the potential for large amounts of sales in the market, would not cause the price of our securities to decline or impair our ability to raise capital through sales of our common shares.

CHANGES IN TAX LAWS COULD ADVERSELY AFFECT OUR PERFORMANCE

We are subject to extensive federal, state and local taxes, including income, excise, sales/use, payroll, franchise, withholding and ad valorem taxes. Changes to our taxes could have a material adverse effect on our results of operations. In addition, our customers are subject to a wide variety of federal, state and local taxes. Changes in taxes paid by our customers may adversely affect their ability to purchase homes or consumer products, which could adversely affect their demand for our loans and deposit products. In addition, such negative effects on our customers could result in defaults on the loans we have made and decrease the value of mortgage-backed securities in which we have invested.

WE RELY HEAVILY ON OUR MANAGEMENT TEAM, AND THE UNEXPECTED LOSS OF KEY MANAGEMENT MAY ADVERSELY AFFECT OUR OPERATIONS.

Our success to date has been strongly influenced by our ability to attract and to retain senior management experienced in banking in the markets we serve. Our ability to retain executive officers and the current management teams will continue to be important to successful implementation of our strategies. The unexpected loss of services of any key management personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on our business and financial results.

37

WE NEED TO CONSTANTLY UPDATE OUR TECHNOLOGY IN ORDER TO COMPETE AND MEET CUSTOMER DEMANDS.

The financial services market, including banking services, is undergoing rapid changes with frequent introductions of new technology-driven products and services. In addition to better serving customers, the effective use of technology increases efficiency and may enable us to reduce costs. Our future success will depend, in part, on our ability to use technology to provide products and services that provide convenience to customers and to create additional efficiencies in our operations. Some of our competitors have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers.

OUR INFORMATION SYSTEMS MAY EXPERIENCE AN INTERRUPTION OR SECURITY BREACH.

We rely heavily on communications and information systems to conduct our business. Any failure, interruption or breach in security of these systems could result in failures or disruptions in our customer relationship management, general ledger, deposit, loan and other systems. While we have policies and procedures designed to prevent or limit the effect of the possible failure, interruption or security breach of our information systems, there can be no assurance that any such failure, interruption or security breach will not occur or, if they do occur, that they will be adequately addressed. The occurrence of any failure, interruption or security breach of our information systems could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation and possible financial liability.

WE MAY ELECT OR NEED TO RAISE ADDITIONAL CAPITAL IN THE FUTURE, BUT CAPITAL MAY NOT BE AVAILABLE WHEN IT IS NEEDED.

We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. In addition, federal banking agencies have recently finalized extensive changes to their capital requirements, including the adoption of the final “Basel III” rules as discussed above, which will result in higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. The final impact on us is unknown at this time, but may require us to raise additional capital in the future. Our ability to raise additional capital, if needed, will depend on conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control, and are based on our financial performance. Accordingly, we cannot be assured of our ability to raise additional capital if needed or on terms acceptable to us. If we cannot raise additional capital when needed, it may have a material adverse effect on our financial condition, results of operations and prospects.

WE MAY BE THE SUBJECT OF LITIGATION WHICH COULD RESULT IN LEGAL LIABILITY AND DAMAGE TO OUR BUSINESS AND REPUTATION.

From time to time, we may be subject to claims or legal action from customers, employees or others. Financial institutions like FCBC and Citizens are facing a growing number of significant class actions, including those based on the manner of calculation of interest on loans and the assessment of overdraft fees. Future litigation could include claims

38

for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. We are also involved from time to time in other reviews, investigations and proceedings (both formal and informal) by governmental and other agencies regarding our business. These matters also could result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Like other large financial institutions, we are also subject to risk from potential employee misconduct, including non-compliance with policies and improper use or disclosure of confidential information. Substantial legal liability or significant regulatory action against us could materially adversely affect our business, financial condition or results of operations and/or cause significant reputational harm to our business.

WE DEPEND UPON THE ACCURACY AND COMPLETENESS OF INFORMATION ABOUT CUSTOMERS AND OTHER PARTIES.

In deciding whether to extend credit or enter into other transactions with customers and counterparties, we may rely on information provided to us by customers and other parties, including financial statements and other financial information. We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. For example, in deciding whether to extend credit to a business, we may assume that the customer’s audited financial statements conform with accounting principles generally accepted in the United States and present fairly, in all material respects, the financial condition, results of operations and cash flows of the customer. We may also rely on the audit report covering those financial statements. Our financial condition and results of operations could be negatively impacted to the extent we rely on financial statements that do not comply with generally accepted accounting principles or that are materially misleading, or on other financial information that is inaccurate or incomplete.

WE HAVE IMPLEMENTED ANTI-TAKEOVER DEVICES THAT COULD MAKE IT MORE DIFFICULT FOR ANOTHER COMPANY TO PURCHASE US, EVEN THOUGH SUCH A PURCHASE MAY INCREASE SHAREHOLDER VALUE.

In many cases, shareholders may receive a premium for their shares if we were purchased by another company. State law and our Articles and Amended and Restated Code of Regulations (“Code of Regulations”) make it difficult for anyone to purchase us without the approval of our board of directors. Consequently, a takeover attempt may prove difficult, and shareholders may not realize the highest possible price for their securities.

INVESTORS COULD BECOME SUBJECT TO REGULATORY RESTRICTIONS UPON OWNERSHIP OF OUR COMMON SHARES.

Under the federal Change in Bank Control Act, a person may be required to obtain prior approval from the Federal Reserve before acquiring the power to directly or indirectly control our management, operations, or policy or before acquiring 10% or more of our common shares.

Item 1B. Unresolved Staff Comments

None.

39

Item 2. Properties

FCBC neither owns nor leases any properties. Citizens owns its main office at 100 East Water Street, Sandusky, Ohio, which is also the office of FCBC. Citizens also owns branch banking offices in the following Ohio communities: Sandusky (2), Norwalk, Berlin Heights, Castalia, New Washington, Shelby (3), Chatfield, Tiro, Greenwich, Plymouth, Shiloh, Dublin, Hilliard, Plain City, Russells Point, Urbana (2), and Quincy. Citizens leases branch banking offices in the Ohio communities of Akron, Huron, Norwalk, West Liberty and Willard. Additionally, Citizens currently owns a loan production office in Port Clinton, Ohio.

40

Item 3. Legal Proceedings

There were no new material legal proceedings or material changes to existing legal proceedings during the current period.

Item 4. Mine Safety Disclosures

Not Applicable

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Information regarding the market in which FCBC’s common shares are traded, the prices at which such shares have traded and dividend information is incorporated herein by reference from the information appearing under the caption “Common Stock and Shareholder Matters” located on page 3 of the 2013 Annual Report.

As of February 18, 2014, there were approximately 1,348 shareholders of record (not including the number of persons or entities holding stock in nominee or street name through various brokerage firms) of the Company’s common shares.

Information regarding the restrictions on the Company’s payment of dividends is included under Item 1 of this Annual Report on Form 10-K and is incorporated herein by reference.

The Company did not repurchase any of its common shares during 2013.

Item 6. Selected Financial Data

Information required by this item is incorporated herein by reference from the information appearing under the caption “Five-Year Selected Consolidated Financial Data” located on pages 1 and 2 of the 2013 Annual Report.

41

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation

Information required by this item is incorporated herein by reference from the information appearing under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” located on pages 4 through 16 of the 2013 Annual Report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Information required by this item is incorporated herein by reference from the disclosures included under the caption “Quantitative and Qualitative Disclosures About Market Risk” on pages 17 through 18 of the 2013 Annual Report.

Item 8. Financial Statements and Supplementary Financial Data

First Citizens Banc Corp’s Report of Independent Auditors and Consolidated Financial Statements and accompanying notes are listed below and are incorporated herein by reference from pages 21 through 75 of the 2013 Annual Report (included as Exhibit 13.1 hereto). The supplementary financial information specified by Item 302 of Regulation S-K, is included in Note 20 - “Quarterly Financial Data (Unaudited)” to the consolidated financial statements found on page 74 of the 2013 Annual Report.

Report of Independent Registered Public Accounting Firm on Financial Statements

Consolidated Balance Sheets

December 31, 2013 and 2012

Consolidated Statements of Operations

For each of the two years in the period ended December 31, 2013 and 2012

Consolidated Comprehensive Income Statements

42

For each of the two years in the period ended December 31, 2013 and 2012

Consolidated Statements of Changes in Shareholders’ Equity

For each of the two years in the period ended December 31, 2013 and 2012

Consolidated Statements of Cash Flows

For each of the two years in the period ended December 31, 2013 and 2012

Notes to Consolidated Financial Statements

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

The Company has had no disagreements with its independent accountants on matters of accounting principles or financial statement disclosure required to be reported under this Item.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and our Principal Accounting Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15 under the Exchange Act, as of the end of the fiscal year covered by this Annual Report on Form 10-K. Based upon that evaluation, our Chief Executive Officer and Principal Accounting Officer concluded that our disclosure controls and procedures as of December 31, 2013, were effective.

43

Report on Internal Control over Financial Reporting

The “Management’s Report on Internal Control over Financial Reporting” and the “Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting” located on pages 20 through 22 of the 2013 Annual Report are incorporated herein by reference.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter ended December 31, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

There was no information the Company was required to disclose in a report on Form 8-K during the fourth quarter of 2013 that was not reported.

44

PART III

Item 10. Directors, Executive Officers, and Corporate Governance

The information contained under the captions “Proposal 1 - Election of Directors”, “Executive Officers of the Company”, “Beneficial Ownership of Common Shares of the Company - Section 16(a) Beneficial Ownership Reporting Compliance”, “Board of Director Meetings and Committees – Audit Committee”, “Corporate Governance - Code of Ethics” and “Corporate Governance – Nominating Procedure” in the 2014 Proxy Statement is incorporated herein by reference in response to this item.

Item 11. Executive Compensation.

The information contained under the captions “Executive Compensation” and “2013 Compensation of Directors” in the 2014 Proxy Statement is incorporated herein by reference in response to this Item.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information contained under the caption “Beneficial Ownership of Common Shares of the Company” in the 2014 Proxy Statement is incorporated herein by reference in response to this Item.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information contained under the caption “Corporate Governance - Transactions with Directors, Officers and Associates” in the 2014 Proxy Statement is incorporated herein by reference in response to this item.

Item 14. Principal Accountant Fees and Services.

The information contained under the caption “Audit Committee Matters” of the 2014 Proxy Statement is incorporated herein by reference in response to this item.

45

PART IV

Item 15. Exhibit and Financial Statement Schedules

(a) Documents filed as a Part of the Report

1 Financial Statements. First Citizens Banc Corp’s Report of Independent Auditors and Consolidated Financial Statements and accompanying notes are listed below and are incorporated herein by reference from pages 21 through 75 of the 2013 Annual Report (included as Exhibit 13.1 hereto).

Report of Independent Registered Public Accounting Firm on Financial Statements

Consolidated Balance Sheets

December 31, 2013 and 2012

Consolidated Statements of Operations

For each of the two years in the period ended December 31, 2013 and 2012

Consolidated Comprehensive Income Statements

For each of the two years in the period ended December 31, 2013 and 2012

Consolidated Statements of Changes in Shareholders’ Equity

For each of the two years in the period ended December 31, 2013 and 2012

Consolidated Statements of Cash Flows

For each of the two years in the period ended December 31, 2013 and 2012

46

Notes to Consolidated Financial Statements

2 Financial Statement Schedules. All schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

47

3 Exhibits

Exhibit	Description	Location
3.1(a)	Articles of Incorporation, as amended, of First Citizens Banc Corp.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)
3.1(b)	Certificate of Amendment by Shareholders or Members as filed with the Ohio Secretary of State on January 12, 2009, evidencing the adoption by the shareholders of First Citizens Banc Corp on January 5, 2009 of an amendment to Article FOURTH to authorize the issuance of up to 200,000 preferred shares, without par value.	Filed as Exhibit 3.1(B) to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 16, 2009 and incorporated herein by reference. (File No. 0-25980)
3.1(c)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on January 21, 2009, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the Fixed Rate Cumulative Perpetual Preferred Shares, Series A, of First Citizens Banc Corp.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference. (File No. 0-25980)
3.1(d)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on November 1, 2013, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp.	Filed as Exhibit 3.4 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement dated and filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
3.2	Amended and Restated Code of Regulations of First Citizens Banc Corp (adopted April 17, 2007).	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 16, 2009 and incorporated herein by reference. (File No. 0-25980)

48

4.1	Form of Certificate for Registrant’s Common Stock	Filed as Exhibit 4.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)
4.2	Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Shares, Series A	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Registration Statement on Form S-1 filed May 22, 2012, and incorporated herein by reference. (File No. 333-181579)
4.3	Letter Agreement, dated January 20, 2009, including the Securities Purchase Agreement — Standard Terms attached thereto as Exhibit A, between First Citizens Banc Corp and the U.S. Department of the Treasury.	Filed as Exhibit 10.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference (File No. 0-25980).

49

4.4	Form of Certificate for 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.5	Form of Depositary Receipt for Depositary Shares, each representing 1/40th of a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of First Citizens Banc Corp.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.6	Deposit Agreement dated December 1, 2013, among First Citizens Banc Corp, Illinois Stock Transfer Company, as Depositary, and the holders from time to time of Depositary Receipts thereunder.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.7	Agreement to furnish instrument and agreements defining rights of holders of long-term debt.	Included herewith.
10.1*	Change in Control Agreement - James O. Miller.	Filed as Exhibit 10.6 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.2*	Change in Control Agreement - Charles C. Riesterer.	Filed as Exhibit 10.7 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.3*	Change in Control Agreement - Todd A. Michel.	Filed as Exhibit 10.8 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.4*	Change in Control Agreement - Leroy C. Link.	Filed as Exhibit 10.9 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).

50

10.5	Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.12to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.6	Amendment to Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.13 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.7	Early Retirement, Severance and Release Agreement between Citizens Bank and Charles C. Riesterer	Included herewith

51

11.1	Statement regarding earnings per share	Included in Note 19 to the Consolidated Financial Statements filed as Exhibit 13.1 of this Annual Report on Form 10-K.
13.1	First Citizens Banc Corp 2013 Annual Report to Shareholders (not deemed filed except for portions which are specifically incorporated by reference in this Annual Report on Form 10-K)	Included herewith
21.1	Subsidiaries of FCBC	Included herewith
23.1	Consent of S.R. Snodgrass, P.C.	Included herewith
31.1	Rule 13a-14(a)/15-d-14(a) Certification of Chief Executive Officer	Included herewith
31.2	Rule 13a-14(a)/15-d-14(a) Certification of Principal Accounting Officer	Included herewith
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
32.2	Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
101	The following materials from First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2013, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 31, 2013 and 2012; (ii) Consolidated Statements of Operations for each of the two years ended December 31, 2013 and 2012; (iii) Consolidated Comprehensive Income Statements for each of the two years ended December 31, 2013 and 2012; (iv) Consolidated Statements of Changes in Shareholders’ Equity for each of the two years ended December 31, 2013 and 2012; (v) Consolidated Statement of Cash Flows for each of the two years ended December 31, 2013 and 2012; and (vi) Notes to Consolidated Financial Statements.

* Management contract or compensatory plan or arrangement

52

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) First Citizens Banc Corp

By	/s/ James O. Miller
	James O. Miller, President (Principal Executive Officer)
By	/s/ Todd A. Michel
	Todd A. Michel, Senior Vice President (Principal Financial Officer)

Date: March 14, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed on March 14, 2014 by the following persons (including a majority of the Board of Directors of the Registrant) in the capacities indicated:

/s/ Thomas A. Depler	/s/ Allen R. Nickles, CPA, CFE, FCPA, CFF, CICA
Thomas A. Depler, Director	Allen R. Nickles, CPA, CFE, FCPA, CFF, CICA, Director
/s/ Allen R. Maurice	/s/ David A. Voight
Allen R. Maurice, Director	David A. Voight, Chairman of the Board

53

/s/ James O. Miller	/s/ Daniel J. White
James O. Miller, President & CEO, Director	Daniel J. White, Director
/s/ W. Patrick Murray
W. Patrick Murray, Director

54

FIRST CITIZENS BANC CORP

ANNUAL REPORT ON FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2013

INDEX TO EXHIBITS

Exhibit	Description	Location
3.1(a)	Articles of Incorporation, as amended, of First Citizens Banc Corp.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)
3.1(b)	Certificate of Amendment by Shareholders or Members as filed with the Ohio Secretary of State on January 12, 2009, evidencing the adoption by the shareholders of First Citizens Banc Corp on January 5, 2009 of an amendment to Article FOURTH to authorize the issuance of up to 200,000 preferred shares, without par value.	Filed as Exhibit 3.1(B) to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 16, 2009 and incorporated herein by reference. (File No. 0-25980)
3.1(c)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on January 21, 2009, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the Fixed Rate Cumulative Perpetual Preferred Shares, Series A, of First Citizens.	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference. (File No. 0-25980)
3.1(d)	Certificate of Amendment by Directors or Incorporators to Articles, filed with the Ohio Secretary of State on November 1, 2013, evidencing adoption of an amendment by the Board of Directors of First Citizens Banc Corp to Article FOURTH to establish the express terms of the 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp.	Filed as Exhibit 3.4 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement dated and filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)

55

3.2	Amended and Restated Code of Regulations of First Citizens Banc Corp (adopted April 17, 2007).	Filed as Exhibit 3.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2008, filed on March 16, 2009 and incorporated herein by reference. (File No. 0-25980)
4.1	Form of Certificate for Registrant’s Common Stock	Filed as Exhibit 4.1 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 16, 2006 and incorporated herein by reference. (File No. 0-25980)
4.2	Form of Certificate for Fixed Rate Cumulative Perpetual Preferred Shares, Series A	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Registration Statement on Form S-1 filed May 22, 2012, and incorporated herein by reference. (File No. 333-181579)

56

4.3	Letter Agreement, dated January 20, 2009, including the Securities Purchase Agreement — Standard Terms attached thereto as Exhibit A, between First Citizens Banc Corp and the U.S. Department of the Treasury.	Filed as Exhibit 10.1 to First Citizens Banc Corp’s Current Report on Form 8-K dated and filed January 26, 2009, and incorporated herein by reference (File No. 0-25980).
4.4	Form of Certificate for 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Shares, Series B, of First Citizens Banc Corp	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.5	Form of Depositary Receipt for Depositary Shares, each representing 1/40th of a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of First Citizens Banc Corp.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.6	Deposit Agreement dated December 1, 2013, among First Citizens Banc Corp, Illinois Stock Transfer Company, as Depositary, and the holders from time to time of Depositary Receipts, thereunder.	Filed as Exhibit 4.2 to First Citizens Banc Corp’s Pre-Effective Amendment No.1 to Form S-1 Registration Statement filed November 1, 2013, and incorporated herein by reference. (File No. 333-191169)
4.7	Agreement to furnish instrument and agreements defining rights of holders of long-term debt.	Included herewith.
10.1*	Change in Control Agreement - James O. Miller.	Filed as Exhibit 10.6 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.2*	Change in Control Agreement - Charles C. Riesterer.	Filed as Exhibit 10.7 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.3*	Change in Control Agreement - Todd A. Michel.	Filed as Exhibit 10.8 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).

57

10.4*	Change in Control Agreement - Leroy C. Link.	Filed as Exhibit 10.9 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2004, filed on March 16, 2005 and incorporated herein by reference (File No. 0-25980).
10.5	Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.12to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).

58

10.6	Amendment to Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.13 to First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.7	Early Retirement, Severance and Release Agreement between Citizens Bank and Charles C. Riesterer	Included herewith
11.1	Statement regarding earnings per share	Included in Note 19 to the Consolidated Financial Statements filed as Exhibit 13.1 of this Annual Report on Form 10-K.
13.1	First Citizens Banc Corp 2013 Annual Report to Shareholders (not deemed filed except for portions which are specifically incorporated by reference in this Annual Report on Form 10-K)	Included herewith
21.1	Subsidiaries of FCBC	Included herewith
23.1	Consent of S.R. Snodgrass, P.C.	Included herewith
31.1	Rule 13a-14(a)/15-d-14(a) Certification of Chief Executive Officer	Included herewith
31.2	Rule 13a-14(a)/15-d-14(a) Certification of Principal Accounting Officer	Included herewith
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
32.2	Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
101	The following materials from First Citizens Banc Corp’s Annual Report on Form 10-K for the year ended December 31, 2013, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 31, 2013 and 2012; (ii) Consolidated Statements of Operations for each of the two years ended December 31, 2013 and 2012; (iii) Consolidated Comprehensive Income Statements for each of the two years ended December 31, 2013 and 2012; (iv) Consolidated Statements of Changes in Shareholders’ Equity for each of the two years ended December 31, 2013 and 2012; (v) Consolidated Statement of Cash Flows for each of the two years ended December 31, 2013 and 2012; and (vi) Notes to Consolidated Financial Statements.

* Management contract or compensatory plan or arrangement

59

EX-4.7

Exhibit 4.7

[FIRST CITIZENS BANC CORP. LETTERHEAD]

March 14, 2014                    

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Re: First Citizens Banc Corp. Form 10-K for the fiscal year ended December 31, 2013

Ladies and Gentlemen:

First Citizens Banc Corp., an Ohio corporation (FCBC), is today filing an Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the Form 10-K), as executed on March 14, 2014.

Pursuant to the instructions relating to the Exhibits in Item 601(b)(4)(iii) of Regulation S-K, FCBC hereby agrees to furnish the Commission, upon request, copies of instruments and agreements defining the rights of holders of its long-term debt and of the long-term debt of its consolidated subsidiaries, which are not being filed as exhibits to the Form 10-K. None of such long-term debt exceeds 10% of the total assets of FCBC and its subsidiaries on a consolidated basis.

Very truly yours,

/s/ James O. Miller

James O. Miller

President and Chief Executive Officer

EX-10.7

Exhibit 10.7

EARLY RETIREMENT, SEVERANCE AND RELEASE AGREEMENT

This Early Retirement, Severance and Release Agreement (“Agreement”) is entered into between The Citizens Banking Company (“Citizens”) and Charles C. Riesterer (“CCR”) and is intended to set forth all of the rights, duties, obligations and concessions of the parties; WITNESSETH:

WHEREAS, CCR is prepared to retire and terminate his employment with Citizens; and

WHEREAS, Citizens is prepared to offer, upon the terms and conditions stated herein, certain benefits that it does not, as a matter of policy, offer to retired or terminated employees; and

WHEREAS, Citizens and CCR desire to set forth in this Agreement their mutual understandings and agreements regarding CCR’s separation from employment; and

NOW, THEREFORE, in consideration of the promises contained in this Agreement and for other lawful and valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

1. Separation. CCR will voluntarily retire and his employment with Citizens will terminate effective December 13, 2013 (the “Retirement Date”).

2. Severance Payment. Subject to the terms of this Agreement, Citizens will pay to CCR a severance payment in the gross amount of Eighty-Seven Thousand Five Hundred Dollars ($87,500.00) (the “Severance Amount”) in one (1) lump sum payment. The Severance Amount will be paid by Citizens’ next regular payday following either (1) the end of the revocation period described in Section 21 herein, or (2) the Retirement Date, whichever occurs later, but in no event later than December 31, 2013 (the “Payment Date”).

3. Medical Insurance Payments. Subject to the terms of this Agreement, and if neither CCR nor his spouse, Susan L. Riesterer (“Spouse”), elects group health care plan continuation coverage under Citizens group health plan after the Retirement Date, then Citizens will make the following Independent Medical Insurance Premium payments to CCR (or, in the event of CCR’s death, to his Spouse):

(i) a lump sum amount of Twenty-Five Thousand Six Hundred Dollars ($25,600.00) payable on or before December 31, 2013.

(ii) a lump sum amount, payable between December 1, 2014 and December 31, 2014, equal to the sum of (a) Twenty-Five Thousand Six Hundred Dollars ($25,600.00) and (b) an amount determined by Citizens in 2014 as the increase above $25,600 of Independent Medical Insurance Premiums (as hereinafter defined) for calendar year 2015.

(iii) a lump sum amount, payable between December 1, 2015 and December 31, 2015, equal to the sum of (a) Twenty-Five Thousand Six Hundred Dollars ($25,600.00) and (b) an amount determined by Citizens in 2015 as the increase above $25,600 of Independent Medical Insurance Premiums for calendar year 2016.

(iv) a lump sum amount, payable between December 1, 2016 and December 31, 2016, equal to the sum of (a) Twenty-Five Thousand Six Hundred Dollars ($25,600.00) and (b) an amount determined by Citizens in 2016 as the increase above $25,600 of Independent Medical Insurance Premiums for calendar year 2017.

(v) a lump sum amount, payable between December 1, 2017 and December 31, 2017, equal to the sum of (a) Twenty-Five Thousand Six Hundred Dollars ($25,600.00) and (b) an amount determined by Citizens in 2017 as the increase above $25,600 of Independent Medical Insurance Premiums for calendar year 2018.

(vi) a lump sum amount, payable between December 1, 2018 and December 31, 2018, equal to the sum of (a) Twenty-Five Thousand Six Hundred Dollars ($25,600.00) and (b) an amount determined by Citizens in 2018 as the increase above $25,600 of Independent Medical Insurance Premiums for calendar year 2019.

Each of the foregoing separately identified amounts in clauses (i) – (vi) above is, and shall be treated as, a separate payment. As used in this Agreement, “Independent Medical Insurance Premiums” mean the cost necessary to purchase medical insurance for CCR and Susan L. Riesterer, or the survivor of them, which has coverage, limits and terms substantially similar to the medical insurance then provided by Citizens to the executive officers of Citizens, but in no case shall such coverage ever be less than the level of coverage provided by Citizens to the executive officers of Citizens on CCR’s Retirement Date.

4. Vacation Payment. Citizens will pay to CCR a lump sum payment in the amount of Twenty-Six Thousand Nine Hundred Twenty-Five Dollars ($26,925.00) for CCR’s accrued unused vacation time (the “Vacation Payment”). The Vacation Payment will be paid by Citizens on the Payment Date.

5. Bonus Payment. Citizens will pay to CCR a lump sum payment in the amount of Twenty-Four Thousand Five Hundred Seventy-Five Dollars ($24,575.00) in lieu of any bonus for services rendered by CCR until the Retirement Date (the “Bonus Payment”). The Bonus Payment will be paid by Citizens on the Payment Date.

6. Deductions. All payments paid to CCR will be reduced by all appropriate withholding deductions to the extent that Citizens determines that it is required to withhold such amounts.

7. Release. CCR releases and forever discharges Citizens, First Citizens Banc Corp, any of their affiliates or related businesses and all officers, directors, employees, agents and representatives of them (collectively called the “Released Parties”) from any and all claims, causes of action, demands, damages, costs and expenses which CCR now has, whether known or unknown, relating in any way to CCR’s employment with any of the Released Parties. This release includes (but is not limited to) any claim of breach of contract, implied contract, promissory estoppel, tortious conduct, claims for advance notice of termination or claims under any federal, state or local employment statute, law, order or ordinance, including any claims for discrimination or rights under the Age Discrimination in Employment Act or the Americans with Disabilities Act, any claims under the Employee Retirement and Income Security Act of 1974 as amended (ERISA) and any other claim or issue that may relate to CCR’s employment and/or his separation from such employment, provided that CCR shall retain his right to collect his accrued pension benefits. CCR shall not present a claim for unemployment benefits. Excluded from this release are vested benefits of CCR under employee benefit plans of Citizens and its affiliates that are governed by ERISA.

8. Acknowledgements of Employee. CCR acknowledges that Citizens’ agreement to pay the Severance Amount, the payments for medical insurance and the Bonus Payments is solely in exchange for CCR’s commitments and releases in this Agreement and is not otherwise available to CCR under the policies of Citizens. CCR also acknowledges that Citizens’ payments hereunder do not constitute an admission of any possible liability or of any violation of any applicable law, order, rule or regulation. Citizens denies any liability or violation and states that its payments hereunder are intended to lessen the impact of job loss as a result of the retirement of CCR.

9. Contingency. The obligations of each of the parties is conditioned upon the approval of this Agreement by the Compensation Committee of First Citizens Banc Corp (the “Committee”). In the event that the Committee fails to approve the terms of this Agreement, then each party is released from any obligation under its terms.

10. Citizens’ Property. CCR shall upon the Retirement Date deliver to Citizens any property of Citizens, including (but not limited to) keys, documents, computer disks or tapes, credit cards, written information or other items, which CCR presently possesses.

11 Employment Verification. Citizens will respond to all inquiries from prospective employers of CCR as follows:

Charles C. Riesterer was employed by The Citizens Banking Company as an Executive Vice President/Lending until December 13, 2013. It is the policy of The Citizens Banking Company to not respond further to reference requests.

12. No Reemployment Rights. CCR releases any right or claim to reemployment by Citizens.

13. Breach/Indemnification. If CCR breaches this Agreement or attempts to void the release contained herein or files a claim regarding any matter that is intended to be released in this Agreement, CCR shall lose any right to any unpaid Severance Amount, payments for medical insurance and/or Bonus Payment from Citizens and shall repay to Citizens any of such payments previously paid to CCR, regardless of whether or not the release contained herein is found to be valid or enforceable. Repayment of any or all of the consideration for this Agreement to Citizens does not void the releases contained herein. Nothing in this paragraph or elsewhere in the Agreement shall be construed as discouraging, prohibiting or limiting CCR from enforcing this Agreement, pursuing any available remedy at law or in equity in the event of a breach by Citizens, or filing a claim related to any matter not expressly released in this Agreement. Each party, as the indemnifying party, agrees to indemnify and hold the other harmless from all liability, costs and expenses, including attorneys’ fees and litigation expenses, that the other may incur as a result of a breach of this Agreement by the indemnifying party, an unsuccessful action to enforce this Agreement against the other by the indemnifying party or the attempt by the indemnifying party to maintain any claim, cause of action or demand expressly released in this Agreement, including those described in Section 7 of this Agreement.

14. Non-Competition/Non-Solicitation/Confidentiality. CCR acknowledges that, in his position with Citizens, he has been exposed to confidential information about products, business and customers of Citizens. In view of the compensation that he has received and the payments that Citizens will make to him in accordance with this Agreement, it would be unfair for him to compete with Citizens or engage in the activities described in this Section 14 of the Agreement. CCR further acknowledges that the restrictions are necessary to protect the legitimate business interests of Citizens. Therefore, during the period beginning on the Retirement Date and ending on December 31, 2019 with respect to which he will receive the payments specified in Section 3 hereof, CCR agrees that:

(a) CCR will not, within fifty (50) miles of any business location of Citizens, directly or indirectly, own, manage, operate, control, be employed by, participate in, or be connected in any manner with the ownership, management, operation, or control of any business similar to, or in competition with, the activities of Citizens in offering loans, other financial services, investment products, or trust services;

(b) CCR will not, directly or indirectly, solicit, encourage, entice or induce any of the employees of Citizens to terminate his or her employment relationship with Citizens; and

(c) CCR will not, directly or indirectly, solicit, attempt to solicit, or call on any customer of Citizens, or induce or attempt to induce any such customer to curtail, divest or cancel any potential business with Citizens.

CCR agrees that the names of all persons having business dealings with Citizens, all knowledge or information concerning Citizens’ business operations, business plans, finances, products, customers, sales and pricing policies, and all knowledge or information that relates in any way to the marketing or management of Citizens’ products or services, except information which is now or hereafter becomes part of the public domain through no fault of CCR, constitutes “Confidential Information” of Citizens. CCR agrees that he shall not divulge or disclose any Confidential Information of Citizens and shall not use Confidential Information of Citizens for his benefit or to the detriment of Citizens.

15. Severability. Whenever possible, each provision of this Agreement will be interpreted in a manner that is effective and valid under applicable law, but, if any provision of this Agreement is held to be invalid, illegal or unenforceable under any applicable law or rule in any jurisdiction, such provision will be ineffective only to the extent of the invalidity, illegality, or unenforceability in that jurisdiction. The remainder of this Agreement, and the application of the provision to other persons and circumstances or in other jurisdictions, shall not be affected thereby, and the intent of the parties as set forth herein shall be enforced to the fullest extent permitted by law. The parties shall attempt to replace any invalid provision with a legally valid provision which follows the original intent of the parties as closely as possible.

16. Titles and Captions. All titles and captions are for convenience only, and do not form a substantive part of this Agreement, and shall not restrict or enlarge any substantive provisions of this Agreement.

17. Pronouns. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons may require.

18. Entire Agreement. This Agreement contains the entire understanding among the parties and supersedes any prior understanding and agreements between them respecting the within subject matter. There are no representations, agreements or understandings, oral or written, between or among the parties hereto relating to the subject matter of this Agreement which are not fully expressed herein.

19. Binding Effect. This Agreement shall be binding upon the parties hereto, their respective representatives, successors and assigns.

20. Execution. CCR is aware that he has at least twenty-one (21) days after receiving a copy of this Agreement to consider it. Citizens has advised CCR to consult with an attorney before signing this Agreement. CCR is responsible for his own attorneys’ fees and costs.

21. REVOCATION RIGHTS. CCR MAY REVOKE AND CANCEL THIS AGREEMENT AT ANY TIME WITHIN SEVEN (7) DAYS AFTER BOTH PARTIES HAVE SIGNED THIS AGREEMENT. (The day upon which the last party signs will not be counted toward the period for revocation.) IN ORDER TO REVOKE, CCR MUST GIVE WRITTEN NOTICE OF REVOCATION TO THE ATTENTION OF RICHARD J. DUTTON, THE CITIZENS BANKING COMPANY, 100 EAST WATER STREET, SANDUSKY, OHIO 44870, SO THAT IT IS RECEIVED WITHIN THE SEVEN (7) DAY PERIOD. IF

CCR REVOKES, THIS AGREEMENT WILL BE NULL AND VOID, AND CITIZENS SHALL NOT BE OBLIGATED TO MAKE ANY PAYMENTS OR TO GIVE ANY OTHER CONSIDERATION DESCRIBED IN THIS AGREEMENT. THIS AGREEMENT SHALL NOT BECOME EFFECTIVE AND ENFORCEABLE UNTIL AFTER THE EXPIRATION OF THE SEVEN (7) DAY REVOCATION PERIOD. AFTER THAT PERIOD, IF THERE HAS BEEN NO REVOCATION, THE AGREEMENT SHALL BE FULLY EFFECTIVE AND ENFORCEABLE.

CCR HAS CAREFULLY READ THE ABOVE AGREEMENT AND KNOWS ITS CONTENTS. CCR HAS SIGNED THE AGREEMENT VOLUNTARILY WITH FULL UNDERSTANDING OF IT AND INTENDS TO BE BOUND BY ITS TERMS.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the below stated date.

SIGNED AND ACKNOWLEDGED		CITIZENS:
IN THE PRESENCE OF:		The Citizens Banking Company
/s/ James E. McGookey	By:	/s/ James O. Miller
Witness		James O. Miller, President and CEO
/s/ Amy L. Grant		November 27, 2013
Witness	Date
		CCR:
/s/ Amy L. Grant		/s/ Charles C. Riesterer
Witness		Charles C. Riesterer
/s/ James E. McGookey		November 26, 2013
Witness	Date

TERMINATION PAYMENT SELECTION

I wish any outstanding United Way pledges that I have made to be handled in the following manner:

                     Deduct the amount pledged from my severance pay.

                     Do not deduct the amount pledged from my severance pay.

NOTE: If this document is returned without an election regarding a United Way pledge, any             pledge will not be deducted from severance pay.

Print Name Signature

EX-13.1

Exhibit 13.1

Dear Shareholder:

2013 was a good year. Net income for the year was $6,179,000, an improvement of $600,000 or 11% over the income of $5,579,000 in 2012. We successfully completed the issuance of $25,000,000 of convertible preferred stock to replace the CPP preferred stock. This transaction seems to have had a positive impact in the market for our stock. During the year, we also had the opportunity to add a mortgage lending group at our Dublin, Ohio location. We believe this will generate additional mortgage-related revenue for the company. The commercial lending teams that we have assembled in our urban locations are generating solid loan growth. 2013 saw loan growth of 5.6%. As you can see in the chart below, total loans at year-end 2013 were $861,241,000 an almost $100,000,000 increase since year-end 2010, which was the depth of the recession for us. This growth has been a direct result of the investment we made in seasoned lenders in our more vibrant markets.

(In thousands)	2013		2012		2011		2010		2009
Gross Loans	$	861,241	$	815,553	$	785,268	$	767,323	$	790,818

As with loans, we continue to enjoy growth in deposits. Our focus has been on noninterest-bearing deposits (checking accounts), which have increased nicely. The percentage of total deposits represented by noninterest-bearing deposits has increased from 16% in 2009 to approximately 25% at year-end 2013. These low-cost funds have a direct bearing on our above peer interest margin.

(In thousands)	2013		2012		2011		2010		2009
Noninterest Bearing Deposits	$	234,976	$	202,416	$	189,382	$	157,529	$	140,659
Interest Bearing Deposits		707,499		723,973		711,864		734,934		715,393
Total	$	942,475	$	926,389	$	901,246	$	892,463	$	856,052

Net Interest Income

Our net interest income, shown below as a per share amount, is the amount that we generate by taking deposits and making loans and investments. This has diminished approximately 3.5% from $5.38 in 2010 to $5.19 per share in 2013. As noted in earlier letters, this reduction is a direct result of the current low interest rate environment. The negative impact of low rates was damped by our increased loan volume. We did see our fourth quarter 2013 interest margin (expressed as a percent) come in at 3.85% compared to the fourth quarter of 2012 at 3.80%. It appears that the impact of the low rates may be stabilizing.

	2013		2012		2011		2010		2009
Net Interest Income per share (basic)	$	5.19	$	5.26	$	5.37	$	5.38	$	5.22

There are actions we could take to increase our margin and our net interest income. They would involve making longer term loans and loosening credit standards. We don’t believe these actions would be prudent. We will accept a slightly lower margin (though its remains higher than our peers) rather than change our standards. Rates, at some point, will increase. We continue to sell the long-term fixed-rate mortgages that we generate, and we encourage variable rate or shorter term commercial lending. This should give us an income generating advantage when rates increase.

Noninterest Income

For 2013, we enjoyed a 7.7% increase in our noninterest income. We believe that we provide quality products and should be compensated accordingly. We regularly compare our pricing with competitors and consider new products and services that will benefit our customers and generate revenue for the company. Our wealth management department continues to be a success. It contributed revenue of $2,627,000 in 2013, an increase of 21.5% over 2012.

	2013		2012		2011		2010		2009
Noninterest Income per share (basic)	$	1.56	$	1.45	$	1.29	$	1.26	$	1.25

Noninterest Expense

Noninterest expenses increased approximately 14% from 2012. Driving the increase were personnel costs. Personnel costs are slightly more than one half of our noninterest expenses. Some of the increase relates to the lending teams that have been assembled over the last two years. For the company to grow, we need loan producers in our more active markets, along with the staff to support them. We have seen the results of these efforts in our loan growth. Most of the increase relates to benefits. In spite of active efforts to contain costs, health care expenses have increased from $1,991,000 in 2012 to $2,623,000 in 2013. In 2013 we also recognized a non-cash entry related to an unrealized pension liability of $2,251,000, or about $.19 per share. We are examining several initiatives to provide a competitive benefits package with reasonable costs to the company.

	2013		2012		2011		2010		2009
Noninterest Expense per share (basic)	$	5.63	$	4.94	$	4.76	$	4.64	$	4.56

Provision for Loan Loss

We have seen a steady decline in the provision needed for the Reserve for Loan Loss. This is a result of an improving economy and improvement in the finances of our customers. In the fourth quarter we sold approximately $4,800,000 in non-performing loans. This was not typical for us, but it was time for us to redirect our resources from these long-term problems.

	2013		2012		2011		2010		2009
Provision for Loan Losses (basic)	$	0.14	$	0.83	$	1.27	$	2.33	$	1.73

Earnings Per Share

Looking at our earnings per share before the preferred dividend, we have enjoyed steady improvement since the depth of the recession. Much of the improvement is a result of decreases in the provision, but it also reflects our ability to generate consistent core earnings.

	2013		2012		2011		2010			2009
Net Earnings Per Share (basic)	$	0.80	$	0.72	$	0.51	$	(0.16	)	$	0.21

Looking Ahead

In addition to the expanded mortgage operation discussed earlier, there were a number of products and services introduced in 2013. Recognizing the growing customer preference for online and mobile banking, we have added the ability to make Person to Person Payments and Bank to Bank Payments using one’s smart phone. The technology world is evolving rapidly, and we will continue to adapt the delivery of our products to provide alternatives that today’s customers expect.

In the commercial loan arena we have increased the selective use of interest rate swaps, which provide a commercial customer the option of getting a longer term fixed rate on their loans. The use of swaps also protects the bank from the risk of an increase in rates and generates fee income.

Our chassis is built to provide a 360-degree focus on serving the financial needs of our business and personal customers, with business lending, cash management, personal banking, mortgage lending, and wealth management delivering services seamlessly and all contributing to the generation of core earnings for the company.

While there is opportunity to grow in our existing markets, we continue to investigate other vibrant areas where we could assemble teams of lenders to selectively generate business for us. We also believe that we are in a good position to take advantage of the acquisition opportunities that we expect over the next few years as the banking industry evolves and consolidates. The key to evaluating acquisition opportunities is to remain disciplined in our approach and pricing. This will translate into an outcome that is in the best interest of our shareholders.

You will find that your proxy will contain a request for your vote to approve a stock incentive plan. Many companies have performance incentive programs, and we have several incentive plans for producers and senior management which are tied to a number of company performance goals. Our programs, which are competitive in the marketplace, are distributed in cash. We believe distributions that include a stock-based component offer advantages. Having a stock-based program with awards that vest over a period of time will, we believe, strongly align the participant’s interests with shareholder’s interests. Since the participant will not receive parts of his or her award for several years, we believe that it can also discourage valuable employees from leaving the company. The proxy will contain more information on this and other issues. Please take the time to review the material and vote your proxy.

Finally, I would like to reflect on the untimely passing of director John Pheiffer in December. John had a strong interest in the company, and he was proud of his family ties to the company going back to its founding in 1884. His contributions to the board and its committees will be missed.

Very truly yours,

James O. Miller

President & C.E.O.

This page left blank intentionally.

ANNUAL REPORT

CONTENTS

Five –Year Selected Consolidated Financial Data	1
Common Stock and Shareholder Matters	3
General Development of Business	3
Management’s Discussion and Analysis of Financial Condition and Results of Operations	4
Quantitative and Qualitative Disclosures about Market Risk	17
Financial Statements
Management’s Report on Internal Control over Financial Reporting	20
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Statements	21
Report of Independent Registered Public Accounting Firm on Financial Statements	22
Consolidated Balance Sheets	23
Consolidated Statements of Operations	24
Consolidated Comprehensive Income Statements	25
Consolidated Statements of Changes in Shareholders’ Equity	26
Consolidated Statements of Cash Flow	28
Notes to Consolidated Financial Statements	30

Five-Year Selected Consolidated Financial Data

(Amounts in thousands, except per share data)

	Year ended December 31,
	2013		2012		2011			2010			2009
Statements of income:
Total interest and dividend income	$	44,881	$	46,762	$	48,861		$	51,925		$	55,191
Total interest expense		4,907		6,184		7,500			10,464			14,918
Net interest income		39,974		40,578		41,361			41,461			40,273
Provision for loan losses		1,100		6,400		9,800			17,940			13,323
Net interest income after provision for loan losses		38,874		34,178		31,561			23,521			26,950
Security gains/(losses)		204		40		(8	)		212			75
Other noninterest income		11,858		11,160		9,979			8,942			9,558
Total noninterest income		12,062		11,200		9,971			9,154			9,633
Other noninterest expense		43,384		38,074		36,727			35,774			35,165
Total noninterest expense		43,384		38,074		36,727			35,774			35,165
Income (loss) before federal income taxes		7,552		7,304		4,805			(3,099	)		1,418
Federal income tax expense (benefit)		1,373		1,725		847			(1,831	)		(237	)
Net income (loss)	$	6,179	$	5,579	$	3,958		$	(1,268	)	$	1,655
Preferred stock dividends and discount accretion		1,159		1,193		1,176			1,176			955
Net income (loss) available to common shareholders	$	5,020	$	4,386	$	2,782		$	(2,444	)	$	700
Per share of common stock:
Earnings (basic)	$	0.80	$	0.72	$	0.51		$	(0.16	)	$	0.21
Earnings (diluted)		0.79		0.72		0.51			(0.16	)		0.21
Earnings available to common shareholders (basic)		0.65		0.57		0.36			(0.32	)		0.09
Earnings available to common shareholders (diluted)		0.64		0.57		0.36			(0.32	)		0.09
Dividends		0.15		0.12		0.03			—			0.25
Book value		10.65		10.48		10.30			9.58			9.82
Average common shares outstanding:
Basic		7,707,917		7,707,917		7,707,917			7,707,917			7,707,917
Diluted		7,821,780		7,707,917		7,707,917			7,707,917			7,707,917
Year-end balances:
Loans, net	$	844,713	$	795,811	$	764,011		$	745,555		$	775,547
Securities		215,037		219,528		220,021			200,296			222,674
Total assets		1,167,546		1,136,971		1,112,977			1,100,622			1,102,812
Deposits		942,475		926,389		901,246			892,463			856,052
Borrowings		87,206		92,907		98,751			103,604			139,105
Shareholders’ equity		128,376		103,980		102,528			96,950			98,797
Average balances:
Loans, net	$	800,063	$	759,105	$	741,383		$	765,821		$	777,825
Securities		216,848		224,566		216,549			212,038			197,826
Total assets		1,172,819		1,127,989		1,124,553			1,121,105			1,102,779
Deposits		965,370		914,851		910,315			892,773			863,488
Borrowings		89,496		95,973		105,071			117,280			127,793
Shareholders’ equity		103,563		104,114		99,848			99,648			98,454

1

Five-Year Selected Ratios

	Year ended December 31,
	2013			2012			2011			2010			2009
Net interest margin		3.79	%		3.98	%		4.00	%		3.94	%		3.91	%
Return on average total assets		0.53			0.49			0.35			(0.11	)		0.15
Return on average shareholders’ equity		5.97			5.36			3.96			(1.27	)		1.68
Average shareholders’ equity as a percent of average total assets		8.83			9.23			8.88			8.89			8.97
Net loan charge-offs as a percent of average total loans		0.53			1.01			1.35			1.46			0.87
Allowance for loan losses as a percent of loans at year-end		1.92			2.42			2.71			2.84			1.93
Shareholders’ equity as a percent of total year-end assets		11.00			9.15			9.21			8.81			8.96

A copy of the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, will be furnished, free of charge, to shareholders, upon written request to the Secretary of First Citizens Banc Corp, 100 East Water Street, Sandusky, Ohio 44870.

2

Common Stock and Shareholder

Matters The common shares of First Citizens Banc Corp (FCBC) trade on The NASDAQ Stock Market under the symbol “FCZA”. As of February 19, 2014, there were 7,707,917 shares outstanding held by approximately 1,348 shareholders of record (not including the number of persons or entities holding stock in nominee or street name through various brokerage firms). Information below is the range of sales prices of our common shares for each quarter for the last two years.

2013

First Quarter	Second Quarter	Third Quarter	Fourth Quarter
$5.15 to $7.00	$6.84 to $7.71	$6.37 to $7.44	$5.94 to $6.99

2012

First Quarter	Second Quarter	Third Quarter	Fourth Quarter
$3.82 to $5.73	$5.39 to $7.10	$5.04 to $6.81	$4.91 to $6.10

Dividends per share declared on common shares by FCBC were as follows:

	2013		2012
First quarter	$	0.03	$	0.03
Second quarter		0.04		0.03
Third quarter		0.04		0.03
Fourth quarter		0.04		0.03
	$	0.15	$	0.12

Information regarding potential restrictions on dividends paid can be found in Note 17 to the Consolidated Financial Statements.

On December 19, 2013, FCBC completed a public offering of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B (the “Series B Preferred Shares”), of FCBC. The depositary shares trade on The NASDAQ Stock market under the symbol “FCZAP.” The terms of the Series B Preferred Shares provide for the payment of quarterly dividends on the Series B Preferred Shares (and, therefore, the depositary shares) at the rate of 6.50% per annum of the liquidation preference of $1,000 per Series B Preferred Share (or $25.00 per depositary share. Dividends are noncumulative and are payable if, when and as declared by the board of directors. However, no dividends may be declared or paid on the common shares of FCBC during any calendar quarter unless full dividends on the Series B Preferred Shares (and, therefore, the depositary shares) have been declared for that quarter and all dividends previously declared on the Series B Preferred Shares (and, therefore, the depositary shares) have been paid in full.

General Development of Business

(Amounts in thousands)

FIRST CITIZENS BANC CORP (FCBC) was organized under the laws of the State of Ohio on February 19, 1987 and is a registered financial holding company under the Gramm-Leach-Bliley Financial Modernization Act of 1999, as amended. FCBC and its subsidiaries are sometimes referred to together as the Company. The Company’s office is located at 100 East Water Street, Sandusky, Ohio. The Company had total consolidated assets of $1,167,546 at December 31, 2013.

3

THE CITIZENS BANKING COMPANY (Citizens), owned by the Company since 1987, opened for business in 1884 as The Citizens National Bank. In 1898, Citizens was reorganized under Ohio banking law and was known as The Citizens Bank and Trust Company. In 1908, Citizens surrendered its trust charter and began operation under its current name. Citizens maintains its main office at 100 East Water Street, Sandusky, Ohio and operates branch banking offices in the following Ohio communities: Sandusky (2), Norwalk (2), Berlin Heights, Huron, Port Clinton, Castalia, New Washington, Shelby (3), Willard, Chatfield, Tiro, Greenwich, Plymouth, Shiloh, Akron, Dublin, Hilliard, Plain City, Russells Point, Urbana (2), West Liberty and Quincy. Citizens accounted for 99.5% of the Company’s consolidated assets at December 31, 2013.

FIRST CITIZENS INSURANCE AGENCY INC. (Insurance Agency) was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Assets of the Insurance Agency were less than one percent of the Company’s consolidated assets as of December 31, 2013.

WATER STREET PROPERTIES (Water St.) was formed to hold properties repossessed by FCBC subsidiaries. Water St. accounted for less than one percent of the Company’s consolidated assets as of December 31, 2013.

FC REFUND SOLUTIONS, INC. (FCRS) was formed during 2012 and remained inactive for the periods presented.

FIRST CITIZENS INVESTMENTS, INC. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

FIRST CITIZENS CAPITAL LLC (FCC) is wholly-owned by Citizens and holds inter-company debt that is eliminated in consolidation. The operations of FCC are located in Wilmington, Delaware.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—As of December 31, 2013 and December 31, 2012 and for the Years Ended December 31, 2013 and 2012

(Amounts in thousands, except per share data)

General

The following paragraphs more fully discuss the significant highlights, changes and trends as they relate to the Company’s financial condition, results of operations, liquidity and capital resources as of December 31, 2013 and 2012, and during the two-year period ended December 31, 2013. This discussion should be read in conjunction with the Consolidated Financial Statements and notes to the Consolidated Financial Statements, which are included elsewhere in this report.

Forward-Looking Statements

This report may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as financial condition, anticipated operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees of performance and

4

are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results, performance or achievements to differ from results discussed in the forward-looking statements include, but are not limited to, changes in financial markets or national or local economic conditions; sustained weakness or deterioration in the real estate market; volatility and direction of market interest rates; credit risks of lending activities; changes in the allowance for loan losses; legislation or regulatory changes or actions; increases in FDIC insurance premiums and assessments; changes in tax laws; failure of or breach in our information and data processing systems; unforeseen litigation; and other risks identified from time-to-time in the Company’s other public documents on file with the Securities and Exchange Commission.

The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements, and the purpose of this section is to secure the use of the safe harbor provisions.

Financial Condition

At December 31, 2013, total assets were $1,167,546, compared to $1,136,971 at December 31, 2012. The increase in assets is primarily the result of an increase in the loan portfolio. Other factors contributing to the change in assets are discussed in the following sections.

At $844,713, net loans have increased from December 31, 2012 by 6.1%. The increases were primarily in commercial and agricultural, commercial real estate and real estate construction loans. Commercial and agricultural loans increased by $15,214 to $115,875 at December 31, 2013 from $100,661 at December 31, 2012. Commercial real estate loans increased by $9,038 to $443,846 at December 31, 2013 from $434,808 at December 31, 2012. Real estate construction loans increased by $20,287 to $39,964 at December 31, 2013 from $19,677 at December 31, 2012.

Securities available for sale decreased by $4,348, or 2.1%, from $203,961 at December 31, 2012 to $199,613 at December 31, 2013. U.S. Treasury securities and obligations of U.S. government agencies decreased $2,726, from $54,286 at December 31, 2012 to $51,560 at December 31, 2013. Obligations of states and political subdivisions available for sale increased $819 from 2012 to 2013. Mortgage-backed securities decreased by $2,456 to total $66,979 at December 31, 2013. The Company continues to utilize letters of credit from the Federal Home Loan Bank (FHLB) to replace maturing securities that were pledged for public entities. As of December 31, 2013, the Company was in compliance with all pledging requirements.

Mortgage-backed securities totaled $66,979 at December 31, 2013 and none were considered unusual or “high risk” securities as defined by regulatory authorities. Of this total, $41,866 was pass-through securities issued by the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Government National Mortgage Association (GNMA), and $25,113 was collateralized by mortgage-backed securities issued or guaranteed by FNMA, FHLMC, or GNMA. The average interest rate of the mortgage-backed portfolio at December 31, 2013 was 3.5%. The average maturity at December 31, 2013 was approximately 3.7 years. The Company has not invested in any derivative securities.

Securities available for sale had a fair value at December 31, 2013 of $199,613. This fair value includes unrealized gains of approximately $3,549 and unrealized losses of approximately $3,030. Net unrealized gains totaled $519 on December 31, 2013 compared to net unrealized gains of $8,863 on December 31, 2012. The change in unrealized gains is primarily due to changes in market interest rates. Note 2 to the Consolidated Financial Statements provides additional information on unrealized gains and losses.

5

Premises and equipment, net of accumulated depreciation, decreased $239 from December 31, 2012 to December 31, 2013. The decrease in office premises and equipment is attributed to new purchases of $1,281, depreciation of $1,509 and disposals of $11.

Year-end deposit balances totaled $942,475 in 2013 compared to $926,389 in 2012, an increase of $16,086, or 1.7%. Overall, the increase in deposits at December 31, 2013 compared to December 31, 2012 included increases in noninterest bearing demand deposits of $32,560, or 16.1%, statement and passbook savings accounts of $13,256, or 4.6%, offset in part by declines in interest bearing demand accounts of $2,077, or 1.2%, individual retirement accounts of $2,696, or 8.2%, and certificate of deposit accounts of $24,957, or 10.8%. A primary factor of the increase in deposits, especially savings and money market deposits, can be attributed to the prolonged, dampened state of the economy and low interest rates on time deposits. Customers seem to be staying out of the market, spending less, saving more and shifting their investments to more liquid accounts while waiting for interest rates to begin climbing. Average deposit balances for 2013 were $965,370 compared to $914,851 for 2012, an increase of 5.5%. Noninterest bearing deposits averaged $233,592 for 2013, compared to $194,418 for 2012, increasing $39,174, or 20.1%. Savings, NOW, and MMDA accounts averaged $485,054 for 2013 compared to $447,823 for 2012. Average certificates of deposit decreased $25,886 to total an average balance of $246,724 for 2013.

Borrowings from the Federal Home Loan Bank (FHLB) of Cincinnati were $37,726 at December 31, 2013. The detail of these borrowings can be found in Note 9 to the Consolidated Financial Statements. The balance decreased $2,535 from $40,261 at year-end 2012. The change in balance is the result of an advance paid off and not replaced.

Citizens offers repurchase agreements in the form of sweep accounts to commercial checking account customers. These repurchase agreements totaled $20,053 at December 31, 2013 compared to $23,219 at December 31, 2012. Obligations of U.S. government agencies maintained under Citizens’ control are pledged as collateral for the repurchase agreements.

Other liabilities decreased $4,206 from December 31, 2012 to December 31, 2013. The decrease is primarily the result of a decrease in the Company’s accrued pension liability.

Total shareholders’ equity increased $24,396, or 23.5% during 2013 to $128,376. The change in shareholders’ equity resulted from net income of $6,179, offset by preferred dividends and common dividends of $1,159 and $1,156, respectively, decreased market value of securities available for sale, net of tax, of $5,508 and the change in the Company’s pension liability, net of tax of $2,908. For further explanation of these items, see Note 1 and Note 13 to the Consolidated Financial Statements. In addition, on December 19, 2013, the Company completed a public offering of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company. The Company sold the maximum of 1,000,000 depositary shares in the offering at $25.00 per depositary share, resulting in net proceeds to the Company of $23,132. The proceeds of the Series B issuance will be used to redeem the Series A preferred shares. For further explanation, see Note 21 to the Consolidated Financial Statements. The Company paid $0.15 per common share in dividends in 2013 compared to $0.12 per common share in dividends in 2012. Total outstanding shares at December 31, 2013 and 2012 were 7,707,917. The ratio of total shareholders’ equity to total assets was 11.0% and 9.2%, respectively, at December 31, 2013 and December 31, 2012.

6

Results of Operations

The operating results of the Company are affected by general economic conditions, the monetary and fiscal policies of federal agencies and the regulatory policies of agencies that regulate financial institutions. The Company’s cost of funds is influenced by interest rates on competing investments and general market rates of interest. Lending activities are influenced by the demand for real estate loans and other types of loans, which in turn is affected by the interest rates at which such loans are made, general economic conditions and the availability of funds for lending activities.

The Company’s net income primarily depends on its net interest income, which is the difference between the interest income earned on interest-earning assets, such as loans and securities, and interest expense incurred on interest-bearing liabilities, such as deposits and borrowings. The level of net interest income is dependent on the interest rate environment and the volume and composition of interest-earning assets and interest-bearing liabilities. Net income is also affected by provisions for loan losses, service charges, gains on the sale of assets, other income, noninterest expense and income taxes.

Comparison of Results of Operations for the Years Ended December 31, 2013 and December 31, 2012

Net Income

The Company’s net income for the year ended December 31, 2013 was $6,179, compared to $5,579 for the year ended December 31, 2012. The change in net income was the result of the items discussed in the following sections.

Net Interest Income

Net interest income for 2013 was $39,974, a decrease of $604, or 1.5%, from 2012. Although average earning assets increased 3.7% from 2012, market rates in 2013 led to a $1,881 decline in interest income, related to both loan portfolio and the taxable securities portfolio. This decrease was offset by a decrease in interest expense on interest-bearing liabilities of $1,277, a 20.7% decline. The Company continually examines its rate structure to ensure that its interest rates are competitive and reflective of the current rate environment in which it competes. A change in the mix of deposits from certificates of deposit to non-maturing deposits also contributed to the decline in interest expense.

Total interest income decreased $1,881, or 4.0%, from 2012. The decrease was mainly a result of a decrease in the yield on earning assets. Average loans increased $38,366 from 2012 to 2013. Interest earned on the Company’s loan portfolio declined due to a 39 basis point decline in yield. While the average balance of the securities portfolio for 2013 compared to 2012 decreased $7,718, this was primarily due to the change in market value. Interest earned on the security portfolio, including bank stocks, decreased mainly due to decreases in yield. Average balances in interest-bearing deposits in other banks increased in 2013 by $8,629.

Total interest expense decreased $1,277, or 20.7%, for 2013 compared to 2012. The decrease in interest expense can be attributed to declines in market rates and the corresponding repricing of deposits and other sources of funding. The total average balance of interest-bearing liabilities increased $4,868 while the average rate decreased 16 basis points in 2013. Average interest-bearing deposits increased $11,345 from 2012 to 2013. The increase in average interest-bearing deposits, mainly in lower cost interest-bearing demand and savings accounts, coupled by a decline in rate of approximately 15 basis points, caused interest expense on deposits to decrease by $1,012. Interest expense on FHLB borrowings decreased $172 due to a decrease in average balance of $8,336. The average balance in subordinated debentures did not change from 2012 to 2013, but the rate on these securities decreased 32 basis points, resulting in a decrease in interest expense of $93. Other borrowings increased $1,837 in average balance from 2012 to 2013. The increase in other borrowings is mainly the result of an increase in repurchase agreements.

7

Refer to “Distribution of Assets, Liabilities and Shareholders’ Equity, Interest Rates and Interest Differential” and “Changes in Interest Income and Interest Expense Resulting from Changes in Volume and Changes in Rate” on pages 11 through 13 for further analysis of the impact of changes in interest-bearing assets and liabilities on the Company’s net interest income.

Provision and Allowance for Loan Losses

The following table contains information relating to the provision for loan losses, activity in and analysis of the allowance for loan losses as of and for each of the two years in the period ended December 31.

	As of and for year ended December 31,
	2013			2012
Net loan charge-offs	$	4,314		$	7,915
Provision for loan losses charged to expense		1,100			6,400
Net loan charge-offs as a percent of average outstanding loans		0.53	%		1.01	%
Allowance for loan losses	$	16,528		$	19,742
Allowance for loan losses as a percent of year-end outstanding loans		1.92	%		2.42	%
Impaired loans	$	18,057		$	26,090
Impaired loans as a percent of gross year-end loans (1)		2.10	%		3.20	%
Nonaccrual and 90 days or more past due loans	$	20,459		$	29,935
Nonaccrual and 90 days or more past due loans as a percent of gross year-end loans (1)		2.38	%		3.67	%

(1) Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. A loan is considered nonaccrual if it is maintained on a cash basis because of deterioration in the borrower’s financial condition, where payment in full of principal or interest is not expected and where the principal and interest have been in default for 90 days, unless the asset is both well-secured and in process of collection. A loan is considered impaired when it is probable that all of the interest and principal due will not be collected according to the terms of the original contractual agreement.

The Company’s policy is to maintain the allowance for loan losses at a level sufficient to provide for probable losses incurred in the current portfolio. The Company provides for loan losses through regular provisions to the allowance for loan losses. The amount of the provision is affected by loan charge-offs, recoveries and changes in specific and general allocations required for the allowance for loan losses. Provisions for loan losses totaled $1,100 and $6,400 in 2013 and 2012, respectively. Management believes the analysis of the allowance for loan losses supported a reserve of $16,528 at December 31, 2013.

The Company’s provision for loan losses decreased during 2013 due to reductions in problem loans, but remained significant due to the continuing challenging economic conditions and depressed collateral values in our market. As we have continued to strengthen our collection and loan workout process, we have written down the value of problem loans to reflect current conditions. In addition, the Company reclassified a group of $6,548 nonperforming loans as held for sale, wrote them down by $1,792 and subsequently sold them at a loss of $36. The sale of this group of loans was a last resort as all other attempts to work these loans had been exhausted. We have also enhanced our review process to assure

8

that loan problems are identified. A number of factors impact the provisions for loan losses, such as the level of higher risk loans in the portfolio, changes in practices related to loans, changes in collateral values and other factors. We continue to actively manage this process and have provided to maintain the reserve at a level that assures adequate coverage ratios.

Efforts are continually made to analyze each segment of the loan portfolio and quantify risk to assure that reserves are appropriate for each segment and the overall portfolio. Management specifically evaluates loans that are impaired, which includes restructured loans, to estimate potential loss. This analysis includes a review of the loss migration calculation for all loan categories as well as fluctuations and trends in various risk factors that have occurred within the portfolios’ economic life cycle. The analysis also includes assessment of qualitative factors such as credit trends, unemployment trends, vacancy trends and loan growth. The composition and overall level of the loan portfolio and charge-off activity are also factors used to determine the amount of the allowance for loan losses.

Management analyzes each commercial and commercial real estate loan, with a balance of $350 or larger, on an individual basis and designates a loan as impaired when it is in nonaccrual status or when an analysis of the borrower’s operating results and financial condition indicates that underlying cash flows are not adequate to meet its debt service requirements. In addition, loans held for sale and leases are excluded from consideration as impaired. Loans are generally moved to nonaccrual status when 90 days or more past due. Impaired loans or portions thereof, are charged-off when deemed uncollectible.

Noninterest Income

Noninterest income increased $862, or 7.7%, to $12,062 for the year ended December 31, 2013, from $11,200 for the comparable 2012 period. The increase was primarily due to increases in earnings on gain on sale of securities of $164, ATM fees of $128, Trust fees of $464 and other income of $478 which were partially offset by decreases in service charge income of $128, gain on sale of loans of $163 and income on Bank Owned Life Insurance (BOLI) of $72.

Gain on securities increased primarily from the recovery of a security previously written off. ATM fees increased due to increased transaction volumes and the implementation of transaction charges in markets that were previously incurring no charges. Trust fees increased due to an increase in assets under management. Other income increased primarily due to the recognition of fees related to our customer derivative program and gain on sale of fixed assets. The decrease in service charges was the result of a decrease in overdraft fees. The decrease in gain on sale of loans was partially due to a loss on the sale of impaired loans. The decrease in BOLI income is due to lower yields received in the current year.

Sales of other real estate owned resulted in recognized gains of $120 on the sale of 25 properties in 2013 compared to gains of $118 on the sale of 33 properties in 2012.

Noninterest Expense

Noninterest expense increased $5,310, or 13.9%, to $43,384 for the year ended December 31, 2013, from $38,074 for the comparable 2012 period. The increase was primarily due to increases in salaries, wages and benefits of $4,271, contracted data processing of $112, FDIC assessment of $161, professional services of $172 and other operating expenses of $744 which were partially offset by declines in amortization of intangible assets of $128 and repossession expenses of $222.

Salaries, wages and benefits increased primarily due to an increase in staffing, higher health insurance costs and higher pension costs. The number of full-time equivalent employees increased during 2013 to 312.5, up 5.7, compared to the same period of 2012. In addition, as a result of retirements the Company recognized a pre-tax non-cash charge of approximately $2,251 associated with our defined benefit pension plan. Contracted data processing increased due to increases in cost of technology services. FDIC

9

assessments continued to increase due to a change in the methodology used to calculate the assessment charged to banks, including changes to both the assessment base and the assessment rate. Professional services increased primarily due to the Company’s review of communication infrastructures and investment advisory fees. Other operating expenses increased as a result of increased SBA loan expenses, increased revenue sharing expenses related to trust, amortization of low income housing investments and a write off of monies related to our tax refund program. The decrease in amortization of intangible assets is the result of a decline in scheduled amortization of intangible assets associated with mergers. The decrease in repossession expense is the result of a general decrease in legal fees and appraisal services.

Income Tax Expense

Federal income tax expense was $1,373 in 2013 compared to $1,725 in 2012. Federal income tax expense as a percentage of income was 18.2% in 2013 compared to 23.6% in 2012. A lower federal effective tax rate than the statutory rate of 34% is primarily due to tax-exempt interest income from state and municipal investments, municipal loans and income from BOLI. Federal income tax expense decreased in 2013 primarily due to an increase in tax-exempt interest income from state and municipal investments, municipal loans and low income housing tax credits.

10

Distribution of Assets, Liabilities and Shareholders’ Equity,

Interest Rates and Interest Differential

The following table sets forth, for the years ended December 31, 2013, 2012 and 2011, the distribution of assets, including interest amounts and average rates of major categories of interest-earning assets and interest-bearing liabilities (Amounts in thousands):

	2013								2012								2011
	Average balance			Interest		Yield/ rate			Average balance			Interest		Yield/ rate			Average balance			Interest		Yield/ rate
Assets
Interest-earning assets:
Loans (1)(2)(3)(5)	$	819,152		$	38,776		4.74	%	$	780,786		$	40,048		5.13	%	$	763,918		$	41,604		5.45	%
Taxable securities (4)		157,930			3,763		2.42	%		172,560			4,710		2.81	%		174,366			5,490		3.22	%
Non-taxable securities (4)(5)		58,918			2,211		5.90	%		52,006			1,895		6.01	%		42,183			1,675		6.22	%
Federal funds sold		—			—		0.00	%		—			—		0.00	%		31,838			19		0.06	%
Interest-bearing deposits in other banks		55,609			131		0.24	%		46,980			109		0.23	%		47,893			73		0.15	%
Total interest income assets		1,091,609			44,881		4.24	%		1,052,332			46,762		4.58	%		1,060,198			48,861		4.71	%
Noninterest-earning assets:
Cash and due from financial institutions		25,203								21,934								9,242
Premises and equipment, net		16,862								17,588								18,055
Accrued interest receivable		4,288								4,456								4,933
Intangible assets		24,464								25,363								26,453
Other assets		10,626								9,737								11,253
Bank owned life insurance		18,856								18,260								16,954
Less allowance for loan losses		(19,089	)							(21,681	)							(22,535	)
Total	$	1,172,819							$	1,127,989							$	1,124,553

(1) For purposes of these computations, the daily average loan amounts outstanding are net of unearned income and include loans held for sale.

(2) Included in loan interest income are loan fees of $368 in 2013, $325 in 2012 and $516 in 2011.

(3) Non-accrual loans are included in loan totals and do not have a material impact on the analysis presented.

(4) Average balance is computed using the carrying value of securities. The average yield has been computed using the historical amortized cost average balance for available-for-sale securities.

(5) Interest yield is calculated using the tax-equivalent adjustment.

11

Distribution of Assets, Liabilities and Shareholders’ Equity,

Interest Rates and Interest Differential (Continued)

The following table sets forth, for the years ended December 31, 2013, 2012 and 2011, the distribution of liabilities and shareholders’ equity, including interest amounts and average rates of major categories of interest-earning assets and interest-bearing liabilities (Amounts in thousands):

	2013							2012							2011
	Average balance		Interest		Yield/ rate			Average balance		Interest		Yield/ rate			Average balance		Interest		Yield/ rate
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Savings and interest- bearing demand accounts	$	485,054	$	401		0.08	%	$	447,823	$	520		0.12	%	$	428,043	$	824		0.19	%
Certificates of deposit		246,724		2,387		0.97	%		272,610		3,280		1.20	%		305,837		4,267		1.40	%
Federal Home Loan
Bank advances		39,293		1,358		3.46	%		47,629		1,530		3.21	%		54,038		1,606		2.97	%
Securities sold under repurchase agreements		20,749		21		0.10	%		18,912		21		0.11	%		20,241		33		0.16	%
Federal funds purchased		27		—		0.00	%		5		—		0.00	%		18		—		0.00	%
Subordinated debentures		29,427		740		2.51	%		29,427		833		2.83	%		29,427		770		2.62	%
U.S. Treasury demand notes payable		—		—		0.00	%		—		—		0.00	%		1,347		—		0.00	%
Total interest- bearing liabilities		821,274		4,907		0.60	%		816,406		6,184		0.76	%		838,951		7,500		0.89	%
Noninterest-bearing liabilities:
Demand deposits		233,592							194,418							176,435
Other liabilities		14,390							13,051							9,319
		247,982							207,469							185,754
Shareholders’ equity		103,563							104,114							99,848
Total	$	1,172,819						$	1,127,989						$	1,124,553
Net interest income and interest rate spread (1)			$	39,974		3.64	%			$	40,578		3.82	%			$	41,361		3.82	%
Net interest margin (2)						3.79	%						3.98	%						4.00	%

(1) Interest rate spread is calculated by subtracting the rate on average interest-bearing liabilities from the yield on average interest-earning assets.

(2) Net interest margin is calculated by dividing tax-equivalent adjusted net interest income by average interest-earning assets.

12

Changes in Interest Income and Interest Expense

Resulting from Changes in Volume and Changes in Rate

The following table sets forth, for the periods indicated, a summary of the changes in interest income and interest expense resulting from changes in volume and changes in rate. (Amounts in thousands)

	2013 compared to 2012 Increase (decrease) due to:
	Volume(1)			Rate(1)			Net
Interest income:
Loans	$	1,909		$	(3,181	)	$	(1,272	)
Taxable securities		(390	)		(557	)		(947	)
Nontaxable securities		270			46			316
Interest-bearing deposits in other banks		20			2			22
Total interest income	$	1,809		$	(3,690	)	$	(1,881	)
Interest expense:
Savings and interest-bearing demand accounts		40			(159	)		(119	)
Certificates of deposit		(292	)		(601	)		(893	)
Federal Home Loan Bank advances		(282	)		110			(172	)
Securities sold under repurchase agreements		2			(2	)		—
Subordinated debentures		—			(93	)		(93	)
Total interest expense	$	(532	)	$	(745	)	$	(1,277	)
Net interest income	$	2,341		$	(2,945	)	$	(604	)

(1) The change in interest income and interest expense due to changes in both volume and rate, which cannot be segregated, has been allocated proportionately to the change due to volume and the change due to rate.

13

Liquidity and Capital Resources

Citizens maintains a conservative liquidity position. All securities are classified as available for sale. At December 31, 2013, securities with maturities of one year or less, totaled $3,309, or 1.7%, of the total security portfolio. The available for sale portfolio helps to provide Citizens with the ability to meet its funding needs. The Consolidated Statements of Cash Flows contained in the Consolidated Financial Statements detail the Company’s cash flows from operating activities resulting from net earnings.

Cash from operations for 2013 was $12,466. The primary additions to cash from operating activities are from changes in amortization of intangible assets, amortization of securities net of accretion, the provision for loan losses, depreciation, prepaid FDIC insurance and proceeds from sale of loans. The primary use of cash from operating activities is from loans originated for sale. Cash used for investing activities was $55,916 in 2013. Security and property and equipment purchases along with loans to customers were offset by security maturities and sales and proceeds from the sale of Other Real Estate Owned (“OREO”) properties. Cash from financing activities in 2013 totaled $31,202. A major source of cash for financing activities is the net change in deposits. Cash provided by the net change in deposits was $16,086 in 2013. The large increase in deposits was primarily due to increases in noninterest-bearing deposits and statement and passbook savings accounts, which added $32,560 and $13,256, respectively, in deposits during 2013. These increases were offset by decreases in individual retirement accounts and certificate of deposits of $2,696 and $24,957, respectively. In addition, the Company completed a public offering of Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, resulting in net proceeds to the Company of $23,132. The primary uses of cash in financing activities include payment of dividends and repayment of a FHLB advance. Cash and cash equivalents decreased from $46,131 at December 31, 2012 to $33,883 at December 31, 2013.

Future loan demand of Citizens can be funded by increases in deposit accounts, proceeds from payments on existing loans, the maturity of securities, the issuances of trust preferred obligations, and the sale of securities classified as available for sale. Additional sources of funds may also come from borrowing in the Federal Funds market and/or borrowing from the FHLB. As of December 31, 2013, Citizens had total credit availability with the FHLB of $130,450 of which $37,726 was outstanding.

On a separate entity basis, FCBC’s primary source of funds is dividends paid primarily by Citizens. Generally, subject to applicable minimum capital requirements, Citizens may declare a dividend without the approval of the Federal Reserve Bank of Cleveland and the State of Ohio Department of Commerce, Division of Financial Institutions, provided the total dividends in a calendar year do not exceed the total of its profits for that year combined with its retained profits for the two preceding years. At December 31, 2012, Citizens was able to pay dividends to FCBC without obtaining regulatory approval. During 2013, Citizens paid dividends totaling $7,888 to FCBC. This represented approximately eighty percent of the Citizens’ earnings for the year, thereby accumulating cash at FCBC for general corporate purposes, while also preserving capital at Citizens.

In addition to the restrictions placed on dividends by banking regulations, the Company is subject to restrictions on the payment of dividends as a result of the Company’s issuance of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, of the Company on December 19, 2013. Under the terms of the Series B Preferred Shares, no dividends may be declared or paid on the common shares of the Company during any calendar quarter unless full dividends on the Series B Preferred Shares (and, therefore, the depositary shares) have been declared for that quarter and all dividends previously declared on the Series B Preferred Shares (and, therefore, the depositary shares) have been paid in full.

14

The Company manages its liquidity and capital through quarterly Asset/Liability Committee (ALCO) meetings. The ALCO discusses issues like those in the above paragraphs as well as others that will affect the future liquidity and capital position of the Company. The ALCO also examines interest rate risk and the effect that changes in rates will have on the Company. For more information about interest rate risk, please refer to the “Quantitative and Qualitative Disclosures about Market Risk” section.

Capital Adequacy

The Company’s policy is, and always has been, to maintain its capital levels above the well capitalized regulatory standards. Under the regulatory capital standards, total capital has been defined as Tier I (core) capital and Tier II (supplementary) capital. The Company’s Tier I capital includes shareholders’ equity (net of unrealized security gains and losses) and subordinated debentures (subject to certain limits) while Tier II capital also includes the allowance for loan losses. The definition of risk-adjusted assets has also been modified to include items both on and off the balance sheet. Each item is then assigned a risk weight or risk adjustment factor to determine ratios of capital to risk adjusted assets. The standards require that total capital (Tier I plus Tier II) be a minimum of 8.0% of risk-adjusted assets, with at least 4.0% being in Tier I capital. To be well capitalized, a company must have a minimum of 10.0% of risk adjusted assets, with at least 6.0% being Tier I capital. The Company’s total risk-based capital ratios were 17.1% and 14.8% as of December 31, 2013 and 2012, respectively. Tier I risk-based capital ratios were 15.8% and 13.3% for December 31, 2013 and 2012, respectively.

Additionally, the Federal Reserve Board has adopted minimum leverage-capital ratios. These standards were established to supplement the previously issued risk based capital standards. The leverage ratio standards use the existing Tier I capital definition, but the ratio is applied to average total assets instead of risk-adjusted assets. The standards require that Tier I capital be a minimum of 4.0% of total average assets for high rated entities such as the Company and a minimum of 5.0% of total average assets to be well capitalized. The Company’s leverage ratio was 11.6% and 9.3% for December 31, 2013 and 2012, respectively.

In July 2013, our primary federal regulator, the Federal Reserve, published final rules establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The implementation of the final rules will lead to higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. In addition, in order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the rules require insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above the minimum risk-based capital requirements. The capital conservation buffer will be phased in over time, becoming effective on January 1, 2019, and will consist of an additional amount of common equity equal to 2.5% of risk-weighted assets. The rules will also revise the regulatory agencies’ prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of common equity. The rules will not begin to phase in until January 1, 2014 for larger institutions and January 1, 2015 for smaller, less complex banking organizations such as the Company, and will be fully phased in by January 1, 2019. Until the rules are fully phased in, we cannot predict the ultimate impact it will have upon the financial condition or results of operations of the Company.

Effects of Inflation

The Company’s balance sheet is typical of financial institutions and reflects a net positive monetary position whereby monetary assets exceed monetary liabilities. Monetary assets and liabilities are those which can be converted to a fixed number of dollars and include cash assets, securities, loans, money market instruments, deposits and borrowed funds.

15

During periods of inflation, a net positive monetary position may result in an overall decline in purchasing power of an entity. No clear evidence exists of a relationship between the purchasing power of an entity’s net positive monetary position and its future earnings. Moreover, the Company’s ability to preserve the purchasing power of its net positive monetary position will be partly influenced by the effectiveness of its asset/liability management program. As part of the asset/liability management process, management reviews and monitors information and projections on inflation as published by the Federal Reserve Board and other sources. This information speaks to inflation as determined by its impact on consumer prices and also the correlation of inflation and interest rates. This information is but one component in an asset liability process designed to limit the impact of inflation on the Company. Management does not believe that the effect of inflation on its nonmonetary assets (primarily bank premises and equipment) is material as such assets are not held for resale and significant disposals are not anticipated.

Fair Value of Financial Instruments

The Company has disclosed the fair value of its financial instruments at December 31, 2013 and 2012 in Note 15 to the Consolidated Financial Statements. The fair value of loans at December 31, 2013 was 102.0% of the carrying value compared to 102.2% at December 31, 2012. The fair value of deposits at December 31, 2013 was 100.2% of the carrying value compared to 100.2% at December 31, 2012.

Contractual Obligations

The following table represents significant fixed and determinable contractual obligations of the Company as of December 31, 2013.

Contractual Obligations	One year or less		One to three years		Three to five years		Over five years		Total
Deposits without a stated maturity	$	706,126	$	—	$	—	$	—	$	706,126
Certificates of deposit		156,593		56,624		13,630		9,502		236,349
FHLB advances, securities sold under agreements to repurchase and U.S. Treasury interest- bearing demand note		50,279		5,000		2,500		—		57,779
Subordinated debentures (1)		—		—		—		29,427		29,427
Operating leases		359		505		330		87		1,281

(1) The subordinated debentures consist of $2,000, $2,500, $5,000, $7,500, and $12,500 debentures.

The Company has retail repurchase agreements with clients within its local market areas. These borrowings are collateralized with securities owned by the Company. See Note 10 to the Consolidated Financial Statements for further detail. The Company also has a cash management advance line of credit and outstanding letters of credit with the FHLB. For further discussion, refer to Note 9 to the Consolidated Financial Statements.

16

Quantitative and Qualitative Disclosures about Market Risk

The Company’s primary market risk exposure is interest-rate risk and, to a lesser extent, liquidity risk. All of the Company’s transactions are denominated in U.S. dollars with no specific foreign exchange exposure.

Interest-rate risk is the exposure of a banking organization’s financial condition to adverse movements in interest rates. Accepting this risk can be an important source of profitability and shareholder value. However, excessive levels of interest-rate risk can pose a significant threat to the Company’s earnings and capital base. Accordingly, effective risk management that maintains interest-rate risk at prudent levels is essential to the Company’s safety and soundness.

Evaluating a financial institution’s exposure to changes in interest rates includes assessing both the adequacy of the management process used to control interest-rate risk and the organization’s quantitative level of exposure. When assessing the interest-rate risk management process, the Company seeks to ensure that appropriate policies, procedures, management information systems and internal controls are in place to maintain interest-rate risk at prudent levels with consistency and continuity. Evaluating the quantitative level of interest rate risk exposure requires the Company to assess the existing and potential future effects of changes in interest rates on its consolidated financial condition, including capital adequacy, earnings, liquidity and, where appropriate, asset quality.

The Federal Reserve Board, together with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, adopted a Joint Agency Policy Statement on interest-rate risk, effective June 26, 1996. The policy statement provides guidance to examiners and bankers on sound practices for managing interest-rate risk, which will form the basis for ongoing evaluation of the adequacy of interest-rate risk management at supervised institutions. The policy statement also outlines fundamental elements of sound management that have been identified in prior Federal Reserve guidance and discusses the importance of these elements in the context of managing interest-rate risk. Specifically, the guidance emphasizes the need for active board of director and senior management oversight and a comprehensive risk-management process that effectively identifies, measures, and controls interest-rate risk. Financial institutions derive their income primarily from the excess of interest collected over interest paid. The rates of interest an institution earns on its assets and owes on its liabilities generally are established contractually for a period of time. Since market interest rates change over time, an institution is exposed to lower profit margins (or losses) if it cannot adapt to interest-rate changes. For example, assume that an institution’s assets carry intermediate- or long-term fixed rates and that those assets were funded with short-term liabilities. If market interest rates rise by the time the short-term liabilities must be refinanced, the increase in the institution’s interest expense on its liabilities may not be sufficiently offset if assets continue to earn at the long-term fixed rates. Accordingly, an institution’s profits could decrease on existing assets because the institution will have either lower net interest income or, possibly, net interest expense. Similar risks exist when assets are subject to contractual interest-rate ceilings, or rate sensitive assets are funded by longer-term, fixed-rate liabilities in a decreasing-rate environment.

Several techniques may be used by an institution to minimize interest-rate risk. One approach used by the Company is to periodically analyze its assets and liabilities and make future financing and investment decisions based on payment streams, interest rates, contractual maturities, and estimated sensitivity to actual or potential changes in market interest rates. Such activities fall under the broad definition of asset/liability management. The Company’s primary asset/liability management technique is the measurement of the Company’s asset/liability gap, that is, the difference between the cash flow amounts of interest sensitive assets and liabilities that will be refinanced (or repriced) during a given period. For example, if the asset amount to be repriced exceeds the corresponding liability amount for a certain day, month, year, or longer period, the institution is in an asset sensitive gap position. In this situation, net interest income would increase if market interest rates rose or decrease if market interest rates fell. If,

17

alternatively, more liabilities than assets will reprice, the institution is in a liability sensitive position. Accordingly, net interest income would decline when rates rose and increase when rates fell. Also, these examples assume that interest rate changes for assets and liabilities are of the same magnitude, whereas actual interest rate changes generally differ in magnitude for assets and liabilities.

Several ways an institution can manage interest-rate risk include selling existing assets or repaying certain liabilities; matching repricing periods for new assets and liabilities, for example, by shortening terms of new loans or securities. Financial institutions are also subject to prepayment risk in falling rate

environments. For example, mortgage loans and other financial assets may be prepaid by a debtor so that the debtor may refund its obligations at new, lower rates. The Company does not have significant derivative financial instruments and does not intend to purchase a significant amount of such instruments in the near future. Prepayments of assets carrying higher rates reduce the Company’s interest income and overall asset yields. A large portion of an institution’s liabilities may be short term or due on demand, while most of its assets may be invested in long term loans or securities. Accordingly, the Company seeks to have in place sources of cash to meet short-term demands. These funds can be obtained by increasing deposits, borrowing, or selling assets. Also, FHLB advances and wholesale borrowings may be used as important sources of liquidity for the Company.

The following table provides information about the Company’s financial instruments that are sensitive to changes in interest rates as of December 31, 2013 and 2012, based on certain prepayment and account decay assumptions that management believes are reasonable. The Company had no significant derivative financial instruments or trading portfolio as of December 31, 2013 or 2012. Expected maturity date values for interest-bearing core deposits were calculated based on estimates of the period over which the deposits would be outstanding. The Company’s borrowings were tabulated by contractual maturity dates and without regard to any conversion or repricing dates.

	Net Portfolio Value
	December 31, 2013							December 31, 2012
Change in Rates	Dollar Amount		Dollar Change		Percent Change			Dollar Amount		Dollar Change		Percent Change
+200bp	$	154,501	$	8,613		6	%	$	134,494	$	3,367		3	%
+100bp		151,871		5,983		4	%		131,217		90		0	%
Base		145,888		—		—			131,127		—		—
-100bp		160,141		14,253		10	%		152,511		21,384		16	%

The change in net portfolio value from December 31, 2012 to December 31, 2013, can be attributed to two factors. The yield curve has seen an upward shift since the end of the year, with the shorter end of the curve steepening. Additionally, both the mix and/or market value of assets and funding sources have changed. While the market value of assets increased, the mix has shifted toward loans and away from securities and cash. The market value of funding sources have increased slightly while the funding mix shifted from CDs and borrowed money to deposits. The shifts in mixes led to the increase in the base. Beyond the change in the base level of net portfolio value, projected movements in rates, up or down, would also lead to changes in market values. The change in the rates up scenarios for both the 100 and 200 basis point movements would lead to a faster decrease in the fair value of liabilities, compared to assets. Accordingly we would see an increase in the net portfolio value. A downward change in rates would lead to an increase in the net portfolio value as the fair value of assets would increase much more quickly than the fair value of liabilities.

18

Critical Accounting Policies

Allowance for Loan Losses

The allowance for loan losses is regularly reviewed by management to determine that the amount is considered adequate to absorb probable losses in the loan portfolio. If not, an additional provision is made to increase the allowance. This evaluation includes specific loss estimates on certain individually reviewed impaired loans, the pooling of commercial credits risk graded as special mention and substandard that are not individually analyzed, and general loss estimates that are based upon the size, quality, and concentration characteristics of the various loan portfolios, adverse situations that may affect a borrower’s ability to repay, and current economic and industry conditions, among other items.

Those judgments and assumptions that are most critical to the application of this accounting policy are assessing the initial and on-going credit-worthiness of the borrower, the amount and timing of future cash flows of the borrower that are available for repayment of the loan, the sufficiency of underlying collateral, the enforceability of third-party guarantees, the frequency and subjectivity of loan reviews and risk ratings, emerging or changing trends that might not be fully captured in the historical loss experience, and charges against the allowance for actual losses that are greater than previously estimated. These judgments and assumptions are dependent upon or can be influenced by a variety of factors, including the breadth and depth of experience of lending officers, credit administration and the corporate loan review staff that periodically review the status of the loan, changing economic and industry conditions, changes in the financial condition of the borrower and changes in the value and availability of the underlying collateral and guarantees.

Note 1 and Note 4 to the Consolidated Financial Statements provide additional information regarding Allowance for Loan Losses.

Goodwill

The Company performs an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2013. In performing its evaluation, management obtained several commonly used financial ratios from pending and completed purchase transactions for banks based in the Midwest. Management used these ratios to determine an implied fair value for the Company. The implied fair value exceeded the carrying value including goodwill. Therefore management concluded that goodwill was not impaired and made no adjustment in 2013.

Other-Than-Temporary Impairment of Investment Securities

The Company performs a quarterly valuation to determine if a decline in the value of an investment security is other than temporary. Although the term “other than temporary” is not intended to indicate that the decline is permanent, it does indicate that the prospects for a near-term recovery of value are not necessarily favorable, or that there is lack of evidence to support fair values equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding charge to earnings is recognized. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary.

19

Management’s Report on Internal Control over Financial Reporting

We, as management of First Citizens Banc Corp, are responsible for establishing and maintaining effective internal control over financial reporting that is designed to produce reliable financial statements in conformity with United States generally accepted accounting principles. The system of internal control over financial reporting as it relates to the financial statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits. Actions are taken to correct potential deficiencies as they are identified. Any system of internal control, no matter how well designed, has inherent limitations, including the possibility that a control can be circumvented or overridden and misstatements due to error or fraud may occur and not be detected. Also, because of changes in conditions, internal control effectiveness may vary over time. Accordingly, even an effective system of internal control will provide only reasonable assurance with respect to financial statement preparation.

Management assessed the Company’s system of internal control over financial reporting as of December 31, 2013, in relation to criteria for effective internal control over financial reporting as described in “1992 Internal Control – Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concludes that, as of December 31, 2013, its system of internal control over financial reporting is effective and meets the criteria of the “1992 Internal Control – Integrated Framework”. S.R. Snodgrass, P.C., independent registered public accounting firm, has issued an audit report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2013.

Management is responsible for compliance with the federal and state laws and regulations concerning dividend restrictions and federal laws and regulations concerning loans to insiders designated by the FDIC as safety and soundness laws and regulations.

Management has assessed compliance by the Company with the designated laws and regulations relating to safety and soundness. Based on the assessment, management believes that the Company complied, in all significant respects, with the designated laws and regulations related to safety and soundness for the year ended December 31, 2013.

James O. Miller	Todd A. Michel
President, Chief Executive Officer	Senior Vice President, Controller

Sandusky, Ohio

March 14, 2014

20

Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting

Board of Directors and Stockholders

First Citizens Banc Corp

Sandusky, Ohio

We have audited First Citizens Banc Corp and subsidiaries’ (the “Company”) internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 1992. First Citizens Banc Corp’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Report on Management’s Assessment of Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (a) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (b) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (c) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, First Citizens Banc Corp maintained, in all material respects, effective internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 1992.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of First Citizens Banc Corp and subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows for the years then ended, and our report date March 14, 2014, expressed an unqualified opinion.

Wexford, Pennsylvania

March 14, 2014

21

Report of Independent Registered Public Accounting Firm on Financial Statements

Board of Directors and Stockholders

First Citizens Banc Corp

Sandusky, Ohio

We have audited the accompanying consolidated balance sheets of First Citizens Banc Corp and subsidiaries’ (the “Company”) as of December 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows for the years then ended. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of First Citizens Banc Corp and subsidiaries as of December 31, 2013 and 2012, and the consolidated results of their operations and their cash flows for each of the two years in the period ended December 31, 2012, in conformity with U.S. generally accepted accounting principles.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), First Citizens Banc Corp and subsidiaries’ internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in 1992, and our report dated March 14, 2014, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Wexford, Pennsylvania

March 14, 2014

22

FIRST CITIZENS BANC CORP

CONSOLIDATED BALANCE SHEETS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

	2013			2012
ASSETS
Cash and due from financial institutions	$	33,883		$	46,131
Securities available for sale		199,613			203,961
Loans held for sale		438			1,873
Loans, net of allowance of $16,528 and $19,742		844,713			795,811
Other securities		15,424			15,567
Premises and equipment, net		16,927			17,166
Accrued interest receivable		3,881			3,709
Goodwill		21,720			21,720
Other intangible assets		2,293			3,139
Bank owned life insurance		19,145			18,590
Other assets		9,509			9,304
Total assets	$	1,167,546		$	1,136,971
LIABILITIES
Deposits
Noninterest-bearing	$	234,976		$	202,416
Interest-bearing		707,499			723,973
Total deposits		942,475			926,389
Federal Home Loan Bank advances		37,726			40,261
Securities sold under agreements to repurchase		20,053			23,219
Subordinated debentures		29,427			29,427
Accrued expenses and other liabilities		9,489			13,695
Total liabilities		1,039,170			1,032,991
SHAREHOLDERS’ EQUITY
Preferred stock, 200,000 shares authorized
Series A Preferred stock, $1,000 liquidation preference, 23,184 shares issued		23,184			23,184
Series B Preferred stock, $1,000 liquidation preference, 25,000 shares issued		23,132			—
Common stock, no par value, 20,000,000 shares authorized, 8,455,881 shares issued		114,365			114,365
Accumulated deficit		(10,823	)		(14,687	)
Treasury stock, 747,964 shares at cost		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(4,247	)		(1,647	)
Total shareholders’ equity		128,376			103,980
Total liabilities and shareholders’ equity	$	1,167,546		$	1,136,971

23

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF OPERATIONS

Years ended December 31, 2013 and 2012

(Amounts in thousands, except per share data)

	2013		2012
Interest and dividend income
Loans, including fees	$	38,776	$	40,048
Taxable securities		3,763		4,710
Tax-exempt securities		2,211		1,895
Federal funds sold and other		131		109
Total interest and dividend income		44,881		46,762
Interest expense
Deposits		2,788		3,800
Federal Home Loan Bank advances		1,358		1,530
Subordinated debentures		740		833
Securities sold under agreements to repurchase		21		21
Total interest expense		4,907		6,184
Net interest income		39,974		40,578
Provision for loan losses		1,100		6,400
Net interest income after provision for loan losses		38,874		34,178
Noninterest income
Service charges		4,201		4,329
Net gain on sale of securities		204		40
Net gain on sale of loans		461		624
ATM fees		1,996		1,868
Trust fees		2,627		2,163
Bank owned life insurance		555		627
Computer center item processing fees		248		259
Net gain on sale of other real estate owned		120		118
Other		1,650		1,172
Total noninterest income		12,062		11,200
Noninterest expense
Salaries, wages and benefits		24,758		20,487
Net occupancy expense		2,209		2,159
Equipment expense		1,273		1,223
Contracted data processing		1,074		962
FDIC Assessment		1,008		847
State franchise tax		1,130		1,059
Professional services		1,677		1,505
Amortization of intangible assets		846		974
ATM expense		650		630
Marketing expense		634		625
Repossession expense		964		1,186
Other operating expenses		7,161		6,417
Total noninterest expense		43,384		38,074
Income before income taxes		7,552		7,304
Income taxes		1,373		1,725
Net income		6,179		5,579
Preferred stock dividends and discount accretion		1,159		1,193
Net income available to common shareholders	$	5,020	$	4,386
Earnings per common share, basic	$	0.65	$	0.57
Earnings per common share, diluted	$	0.64	$	0.57

24

FIRST CITIZENS BANC CORP

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

Years ended December 31, 2013 and 2012

(Amounts in thousands, except per share data)

	2013			2012
Net income	$	6,179		$	5,579
Other comprehensive loss:
Unrealized holding gains (loss) on available for sale securities		(8,140	)		628
Tax effect of unrealized holdings gains (loss) on available for sale securities		2,767			(214	)
Reclassification adjustment for security gains recognized in income		(204	)		(40	)
Tax effect of reclassification adjustment for security gains recognized in income		69			14
Change in unrecognized pension cost		4,406			(2,829	)
Tax effect of change in unrecognized pension cost		(1,498	)		962
Total other comprehensive loss		(2,600	)		(1,479	)
Comprehensive income	$	3,579		$	4,100

25

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Years ended December 31, 2013 and 2012

(Amounts in thousands, except share data)

	Preferred Stock				Common Stock					Accumulated			Treasury			Accumulated Other Comprehensive			Total Shareholders’
	Shares		Amount		Shares		Amount			deficit			Stock			Loss			Equity
Balance, December 31, 2011		23,184	$	23,151		7,707,917	$	114,447		$	(17,667	)	$	(17,235	)	$	(168	)	$	102,528
Net income											5,579									5,579
Other Comprehensive Loss																	(1,479	)		(1,479	)
Amortization of discount on preferred stock				33							(33	)								—
Common stock warrant redeemed								(82	)		(482	)								(564	)
Cash dividends ($0.12 per share)											(925	)								(925	)
Preferred stock dividends											(1,159	)								(1,159	)
Balance, December 31, 2012		23,184	$	23,184		7,707,917	$	114,365		$	(14,687	)	$	(17,235	)	$	(1,647	)	$	103,980

26

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Continued)

Years ended December 31, 2013 and 2012

(Amounts in thousands, except share data)

	Preferred Stock				Common Stock				Accumulated			Treasury			Accumulated Other Comprehensive			Total Shareholders’
	Shares		Amount		Shares		Amount		deficit			Stock			Loss			Equity
Balance, December 31, 2012		23,184	$	23,184		7,707,917	$	114,365	$	(14,687	)	$	(17,235	)	$	(1,647	)	$	103,980
Net income										6,179									6,179
Other Comprehensive Loss																(2,600	)		(2,600	)
Issuance of Series B preferred shares, net of issuance costs		25,000		23,132															23,132
Cash dividends ($0.15 per share)										(1,156	)								(1,156	)
Preferred stock dividends										(1,159	)								(1,159	)
Balance, December 31, 2013		48,184	$	46,316		7,707,917	$	114,365	$	(10,823	)	$	(17,235	)	$	(4,247	)	$	128,376

27

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31, 2013 and 2012

(Amounts in thousands)

	2013			2012
Cash flows from operating activities:
Net income	$	6,179		$	5,579
Adjustments to reconcile net income to net cash from operating activities
Security amortization, net		1,633			1,987
Depreciation		1,509			1,493
Amortization of intangible assets		846			974
Amortization of net deferred loan fees		(112	)		332
Net realized gain on sale of securities		(204	)		(40	)
Provision for loan losses		1,100			6,400
Loans originated for sale		(49,978	)		(46,894	)
Proceeds from sale of loans		51,874			46,243
Gain on sale of loans		(461	)		(624	)
Gain on sale of OREO properties		(120	)		(118	)
Gain on sale of fixed assets		(107	)		—
Bank owned life insurance		(555	)		(627	)
Deferred income taxes		1,362			330
Prepaid FDIC Premium		1,775			780
Change in
Accrued interest payable		(29	)		(73	)
Accrued interest receivable		(172	)		78
Other, net		(2,074	)		1,073
Net cash from operating activities		12,466			16,893
Cash flows used for investing activities:
Securities available for sale
Maturities, prepayments and calls		50,184			63,421
Sales		8,686			12,982
Purchases		(64,295	)		(77,090	)
Redemption of Federal Reserve stock		143			6
Purchases of Federal Reserve stock		—			(185	)
Net loan originations		(50,170	)		(39,138	)
Proceeds from sale of OREO properties		699			1,349
Property and equipment purchases		(1,281	)		(905	)
Proceeds from sale of property and equipment		118			20
Net cash used for investing activities		(55,916	)		(39,540	)

28

FIRST CITIZENS BANC CORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

Years ended December 31, 2013 and 2012

(Amounts in thousands)

	2013			2012
Cash flows from financing activities:
Increase in deposits		16,086			25,143
Repayment of long-term FHLB advances		(2,535	)		(10,034	)
(Decrease) increase in securities sold under repurchase agreements		(3,166	)		4,190
Repurchase of common stock warrant from US Treasury		—			(564	)
Cash dividends paid		(2,315	)		(2,084	)
Net proceeds from issuance of preferred stock		23,132			—
Net cash provided by financing activities		31,202			16,651
Decrease in cash and due from financial institutions		(12,248	)		(5,996	)
Cash and due from financial institutions at beginning of year		46,131			52,127
Cash and due from financial institutions at end of year	$	33,883		$	46,131
Supplemental cash flow information:
Interest paid	$	4,936		$	6,257
Income taxes paid	$	1,010		$	400
Supplemental non-cash disclosures:
Transfer of loans from portfolio to other real estate owned	$	281		$	606
Transfer of loans from portfolio to held for sale	$	4,756		$	—

See accompanying notes to consolidated financial statements.

29

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the accounting policies adopted by First Citizens Banc Corp, which have a significant effect on the financial statements.

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of First Citizens Banc Corp (FCBC) and its wholly-owned subsidiaries: The Citizens Banking Company (Citizens), First Citizens Insurance Agency, Inc., Water Street Properties, Inc. (Water St.) and FC Refund Solutions, Inc. (FCRS). First Citizens Capital LLC (FCC) is wholly-owned by Citizens and holds inter-company debt. First Citizens Investments, Inc. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI and FCC are located in Wilmington, Delaware. The above companies together are sometimes referred to as the Company. Intercompany balances and transactions are eliminated in consolidation.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customer’s ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions and Federal Funds sold.

First Citizens Insurance Agency Inc. was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for the years ended December 31, 2013 and 2012. Water St. was formed to hold repossessed assets of FCBC’s subsidiaries. Water St. revenue was less than 1% of total revenue for the years ended December 31, 2013 and 2012. FCRS was formed in 2012 and remained inactive for the periods presented.

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, impairment of goodwill, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased or sold and repurchase agreements.

(Continued)

30

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Securities: Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are also classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

The recent guidance specifies that if (a) a company does not have the intent to sell a debt security prior to recovery and (b) it is more-likely-than-not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more-likely-than-not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.

The Company’s Consolidated Statement of Operations as of December 31, 2013 reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell and believes that it more-likely-than-not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the non-credit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections.

Other securities which include Federal Home Loan Bank (FHLB) stock, Federal Reserve Bank (FRB) stock, Farmer Mac stock (FMS), Bankers’ Bancshares Inc. (BB) stock, and Norwalk Community Development Corp (NCDC) stock are carried at cost.

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or market, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

(Continued)

31

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, it is recognized as part of future interest income.

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers four principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, (iii) allocations on all other loans based principally on a two-year historical loan loss experience and loan loss trends. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company also maintains an unallocated allowance to account for any factors or conditions that may cause a potential loss but are not specifically addressed in the process described above. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

(Continued)

32

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

All commercial loans and commercial real estate loans are monitored on a regular basis with a detailed review completed for all loans greater than $500. All commercial loans and commercial real estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Citizens’ loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate; (iii) Residential Real Estate loans; (iv) Real Estate Construction loans; and (v) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies: All unsecured open-and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open-and closed-ended loans secured by residential real estate, a current assessment of value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when the loan is 90 days past due.

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Other real estate owned included in other assets totaled approximately $173 at December 31, 2013 and $471 at December 31, 2012.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

(Continued)

33

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Federal Home Loan Bank (FHLB) Stock: Citizens is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013 or 2012.

Federal Reserve Bank (FRB) Stock: Citizens is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.

Bank Owned Life Insurance (BOLI): Citizens has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets: Goodwill results from prior business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Servicing Rights: Servicing rights are recognized as assets for the allocated value of retained servicing rights on loans sold. Servicing rights are initially recorded at fair value at the date of transfer. The valuation technique used is the present value of estimated future cash flows using current market discount rates. Servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-term Assets: Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

(Continued)

34

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share: Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

(Continued)

35

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. These balances do not earn interest.

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Citizens to FCBC or by FCBC to shareholders. Additional information related to dividend restrictions can be found in Note 17.

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this Update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this Update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangements on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

(Continued)

36

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. The amendments in this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. Entities that use the liquidation basis of accounting as of the effective date in accordance with other Topics (for example, terminating employee benefit plans) are not required to apply the amendments. Instead, those entities should continue to apply the guidance in those other Topics until they have completed liquidation. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In June 2013, the FASB issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update affect the scope, measurement, and disclosure requirements for investment companies under U.S. GAAP. The amendments do all of the following: 1. Change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment Company. 2. Require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. 3. Require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this Update are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a

(Continued)

37

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Management is currently investigating the potential impact of this Update to the Company’s financial statements.

In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements.

(Continued)

38

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 2—SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2013
U.S. Treasury securities and obligations of U.S. government agencies	$	52,229	$	95	$	(764	)	$	51,560
Obligations of states and political subdivisions		79,975		2,327		(1,677	)		80,625
Mortgage-back securities in government sponsored entities		66,409		1,127		(557	)		66,979
Total debt securities		198,613		3,549		(2,998	)		199,164
Equity securities in financial institutions		481		—		(32	)		449
Total	$	199,094	$	3,549	$	(3,030	)	$	199,613
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2012
U.S. Treasury securities and obligations of U.S. government agencies	$	53,919	$	375	$	(8	)	$	54,286
Obligations of states and political subdivisions		72,884		6,946		(24	)		79,806
Mortgage-back securities in government sponsored entities		67,814		1,854		(233	)		69,435
Total debt securities		194,617		9,175		(265	)		203,527
Equity securities in financial institutions		481		—		(47	)		434
Total	$	195,098	$	9,175	$	(312	)	$	203,961

(Continued)

39

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 2—SECURITIES (Continued)

The amortized cost and fair value of securities at year end 2013 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	3,296	$	3,309
Due from one to five years		21,451		21,334
Due from five to ten years		34,288		34,403
Due after ten years		73,169		73,139
Mortgage-backed securities in government sponsored entities		66,409		66,979
Equity securities in financial institutions		481		449
Total	$	199,094	$	199,613

Securities with a carrying value of $147,625 and $147,204 were pledged as of December 31, 2013 and 2012, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.

	2013			2012
Sale proceeds	$	8,686		$	12,982
Gross realized gains		144			99
Gross realized losses		(89	)		(59	)
Gains from securities called or settled by the issuer		149			—

(Continued)

40

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 2—SECURITIES (Continued)

Debt securities with unrealized losses at year end 2013 and 2012 not recognized in income are as follows.

2013	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	30,800	$	(764	)	$	—	$	—		$	30,800	$	(764	)
Obligations of states and political subdivisions		28,428		(1,556	)		968		(121	)		29,396		(1,677	)
Mortgage-backed securities in gov’t sponsored entities		32,557		(553	)		279		(4	)		32,836		(557	)
Equity securities in financial institutions		449		(32	)		—		—			449		(32	)
Total temporarily impaired	$	92,234	$	(2,905	)	$	1,247	$	(125	)	$	93,481	$	(3,030	)
2012	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	6,184	$	(8	)	$	—	$	—		$	6,184	$	(8	)
Obligations of states and political subdivisions		1,440		(22	)		465		(2	)		1,905		(24	)
Mortgage-backed securities in gov’t sponsored entities		7,907		(215	)		2,122		(18	)		10,029		(233	)
Equity securities in financial institutions		434		(47	)		—		—			434		(47	)
Total temporarily impaired	$	15,965	$	(292	)	$	2,587	$	(20	)	$	18,552	$	(312	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income.

(Continued)

41

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 2—SECURITIES (Continued)

The Company has assessed each available-for-sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

• The length of time and the extent to which fair value has been below cost;

• The severity of impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer;

• If the Company intends to sell the investment;

• If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

• If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

• Identification and evaluation of investments that have indications of impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time investment has been in unrealized loss position and the expected recovery period;

• Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

• Documentation of these analyses, as required by policy.

At December 31, 2013, the Company owned ninety-one securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

NOTE 3—LOANS

Loans at year-end were as follows.

	2013			2012
Commercial and agricultural	$	115,875		$	100,661
Commercial real estate		443,846			434,808
Residential real estate		250,691			250,598
Real estate construction		39,964			19,677
Consumer and other		10,865			9,809
Total Loans		861,241			815,553
Allowance for loan losses		(16,528	)		(19,742	)
Net loans	$	844,713		$	795,811

(Continued)

42

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 3—LOANS (Continued)

Loans to principal officers, directors, and their affiliates at year-end 2013 and 2012 were as follows.

	2013			2012
Balance—Beginning of year	$	9,997		$	10,922
New loans and advances		3,262			5,713
Repayments		(3,157	)		(6,788	)
Effect of changes to related parties		(808	)		150
Balance—End of year	$	9,294		$	9,997

NOTE 4—ALLOWANCE FOR LOAN LOSSES

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: Commercial and Agricultural loans, Commercial Real Estate loans, Residential Real Estate loans, Real Estate Construction loans and Consumer loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over a three year period for all portfolio segments. Certain economic factors are also considered for trends which management uses to establish the directionality of changes to the unallocated portion of the reserve. The following economic factors are analyzed:

• Changes in lending policies and procedures

• Changes in experience and depth of lending and management staff

• Changes in quality of Citizens’ credit review system

• Changes in the nature and volume of the loan portfolio

• Changes in past due, classified and nonaccrual loans and TDRs

• Changes in economic and business conditions

• Changes in competition or legal and regulatory requirements

• Changes in concentrations within the loan portfolio

• Changes in the underlying collateral for collateral dependent loans

(Continued)

43

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the balance sheet date. The Company considers the allowance for loan losses of $16,528 adequate to cover loan losses inherent in the loan portfolio, at December 31, 2013. The following tables present by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the period ended December 31, 2013 and December 31, 2012. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2013
Allowance for loan losses:
Beginning balance	$	2,811		$	10,139		$	5,780		$	349		$	246		$	417	$	19,742
Charge-offs		(483	)		(1,804	)		(2,907	)		(136	)		(220	)		—		(5,550	)
Recoveries		141			449			458			108			80			—		1,236
Provision		372			(1,225	)		1,893			(137	)		108			89		1,100
Ending Balance	$	2,841		$	7,559		$	5,224		$	184		$	214		$	506	$	16,528

For the year ended December 31, 2013, the allowance for Commercial Real Estate loans was reduced not only by charge-offs, but also due to the specific reserve required for impaired loans within this segment. The net result of these changes was represented as a decrease in the provision. The allowance for Real Estate Construction loans was reduced as a result of changes to specific reserves required for impaired loans and a reduction in the historical charge-offs for this segment. The result of these changes was represented as a decrease in the provision. The ending reserve balance for Residential Real Estate loans declined from the end of the previous year due to charge-offs during the period. Since these charged-off loans already had specific reserves assigned to them, we no longer need to carry as large a reserve for this segment. While we have seen improvement in asset quality, given the uncertainty in the economy, management determined that it was appropriate to maintain unallocated reserves at a higher level at this time.

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2012
Allowance for loan losses:
Beginning balance	$	2,876		$	10,571		$	5,796		$	974		$	719		$	321	$	21,257
Charge-offs		(841	)		(3,440	)		(4,506	)		(446	)		(246	)		—		(9,479	)
Recoveries		353			612			397			131			71			—		1,564
Provision		423			2,396			4,093			(310	)		(298	)		96		6,400
Ending Balance	$	2,811		$	10,139		$	5,780		$	349		$	246		$	417	$	19,742

For the year ended December 31, 2012, the allowance for both Real Estate Construction and Consumer loans was a negative provision made based on volume changes in the underlying loan portfolio. Total loans for these segments declined from the end of last year, leading to a smaller calculated required reserve. This is represented as a decrease in the provision. The allowance related to the unallocated segment increased, but remained at a level management feels is generally consistent with prior periods.

(Continued)

44

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,262	$	445	$	802	$	—	$	—	$	—	$	2,509
Ending balance:
Collectively evaluated for impairment	$	1,579	$	7,114	$	4,422	$	184	$	214	$	506	$	14,019
Ending balance	$	2,841	$	7,559	$	5,224	$	184	$	214	$	506	$	16,528
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,869	$	10,175	$	4,005	$	—	$	8			$	18,057
Ending balance:
Collectively evaluated for impairment	$	112,006	$	433,671	$	246,686	$	39,964	$	10,857			$	843,184
Ending balance	$	115,875	$	443,846	$	250,691	$	39,964	$	10,865			$	861,241

(Continued)

45

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2012
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	286	$	2,354	$	1,199	$	107	$	60	$	—	$	4,006
Ending balance:
Collectively evaluated for impairment	$	2,525	$	7,785	$	4,581	$	242	$	186	$	417	$	15,736
Ending balance	$	2,811	$	10,139	$	5,780	$	349	$	246	$	417	$	19,742
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	5,420	$	13,941	$	6,127	$	541	$	61			$	26,090
Ending balance:
Collectively evaluated for impairment	$	95,241	$	420,867	$	244,471	$	19,136	$	9,748			$	789,463
Ending balance	$	100,661	$	434,808	$	250,598	$	19,677	$	9,809			$	815,553

(Continued)

46

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

The following table represents credit exposures by internally assigned risk ratings for the periods ended December 31, 2013 and December 31, 2012. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk rating system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

• Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Citizens will sustain some loss if the deficiencies are not corrected.

• Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

• Unrated – Generally, consumer loans are not risk-graded, except when collateral is used for a business purpose.

December 31, 2013	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,923	$	415,938	$	98,700	$	35,495	$	2,252	$	660,308
Special Mention		2,038		9,145		986		21		—		12,190
Substandard		5,914		18,763		8,175		—		70		32,922
Doubtful		—		—		2,349		—		—		2,349
Ending Balance	$	115,875	$	443,846	$	110,210	$	35,516	$	2,322	$	707,769
December 31, 2012	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	90,159	$	397,657	$	89,896	$	16,594	$	994	$	595,300
Special Mention		1,653		6,371		1,944		352		—		10,320
Substandard		8,849		30,780		12,873		1,001		106		53,609
Doubtful		—		—		—		—		—		—
Ending Balance	$	100,661	$	434,808	$	104,713	$	17,947	$	1,100	$	659,229

(Continued)

47

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

The following tables present performing and nonperforming loans based solely on payment activity for the periods ended December 31, 2013 and December 31, 2012 that have not been assigned an internal risk grade. These types of loans presented here are not assigned a risk grade unless there is evidence of a problem. Payment activity is reviewed by management on a monthly basis to evaluate performance. Loans are considered to be nonperforming when they become 90 days past due or if management thinks that we may not collect all of our principal and interest. Nonperforming loans also include certain loans that have been modified in Troubled Debt Restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions due to economic status. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2013
Performing	$	140,481	$	4,448	$	8,543	$	153,472
Nonperforming		—		—		—		—
Total	$	140,481	$	4,448	$	8,543	$	153,472
	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2012
Performing	$	145,879	$	1,730	$	8,696	$	156,305
Nonperforming		6		—		13		19
Total	$	145,885	$	1,730	$	8,709	$	156,324

(Continued)

48

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

Following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2013 and December 31, 2012.

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	105	$	—	$	443	$	548	$	115,327	$	115,875	$	—
Commercial Real Estate		655		201		2,098		2,954		440,892		443,846		—
Residential Real Estate		3,140		1,084		5,531		9,755		240,936		250,691		—
Real Estate Construction		—		—		—		—		39,964		39,964		—
Consumer and Other		170		20		—		190		10,675		10,865		—
Total	$	4,070	$	1,305	$	8,072	$	13,447	$	847,794	$	861,241	$	—
December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	31	$	72	$	553	$	656	$	100,005	$	100,661	$	—
Commercial Real Estate		1,000		533		6,794		8,327		426,481		434,808		80
Residential Real Estate		2,843		1,214		8,527		12,584		238,014		250,598		—
Real Estate Construction		43		—		416		459		19,218		19,677		—
Consumer and Other		127		20		29		176		9,633		9,809		—
Total	$	4,044	$	1,839	$	16,319	$	22,202	$	793,351	$	815,553	$	80

The following table presents loans on nonaccrual status as of December 31, 2013 and December 31, 2012.

	2013		2012
Commericial & Agriculture	$	1,590	$	2,869
Commercial Real Estate		9,609		16,250
Residential Real Estate		9,210		9,701
Real Estate Construction		—		958
Consumer and Other		50		77
Total	$	20,459	$	29,855

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on

(Continued)

49

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.

Loan modifications that are considered TDRs completed during the quarters and twelve month periods ended December 31, 2013 and December 31, 2012 were as follows:

	For the Twelve Month Period Ended December 31, 2013						For the Twelve Month Period Ended December 31, 2012
	Number of Contracts		Pre- Modification Outstanding Recorded Investment-		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commericial & Agriculture		—	$	—	$	—		6	$	984	$	976
Commercial Real Estate		2		547		547		3		1,205		1,205
Residential Real Estate		—		—		—		25		1,740		1,662
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		5		66		66
Total Loan Modifications		2	$	547	$	547		39	$	3,995	$	3,909

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new originations loans, so modified loans present a higher risk of loss than do new origination loans.

During both the twelve month period ended December 31, 2013 and December 31, 2012, there were no defaults on loans that were modified and considered TDRs during the respective twelve previous months.

(Continued)

50

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

Impaired Loans: Larger (greater than $500) commercial loans and commercial real estate loans, all TDRs and residential real estate and consumer loans that are part of a larger relationship are tested for impairment. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.

The following tables include the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable as of December 31, 2013 and December 31, 2012.

	December 31, 2013						December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commericial & Agriculture	$	1,525	$	1,657	$	—	$	5,053	$	5,226	$	—
Commercial Real Estate		5,983		6,214		—		5,446		8,114		—
Residential Real Estate		1,202		2,263		—		2,566		5,346		—
Real Estate Construction		—		—		—		—		521		—
Consumer and Other		8		8		—		1		1		—
Total		8,718		10,142		—		13,066		19,208		—
With an allowance recorded:
Commericial & Agriculture		2,344		2,437		1,262		367		385		286
Commercial Real Estate		4,192		4,496		445		8,495		8,681		2,354
Residential Real Estate		2,803		4,021		802		3,561		4,554		1,199
Real Estate Construction		—		—		—		541		547		107
Consumer and Other		—		—		—		60		60		60
Total		9,339		10,954		2,509		13,024		14,227		4,006
Total:
Commericial & Agriculture		3,869		4,094		1,262		5,420		5,611		286
Commercial Real Estate		10,175		10,710		445		13,941		16,795		2,354
Residential Real Estate		4,005		6,284		802		6,127		9,900		1,199
Real Estate Construction		—		—		—		541		1,068		107
Consumer and Other		8		8		—		61		61		60
Total	$	18,057	$	21,096	$	2,509	$	26,090	$	33,435	$	4,006

(Continued)

51

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 4—ALLOWANCE FOR LOAN LOSSES (Continued)

	December 31, 2013				December 31, 2012
For the year ended:	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commericial & Agriculture	$	4,761	$	186	$	4,762	$	276
Commercial Real Estate		11,919		521		16,482		958
Residential Real Estate		5,038		282		4,909		557
Real Estate Construction		302		—		533		25
Consumer and Other		31		—		34		2
Total	$	22,051	$	989	$	26,720	$	1,818

NOTE 5—OTHER COMPREHENSIVE INCOME

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, as of December 31, 2013 and December 31, 2012.

	For the Year Ended December 31, 2013									For the Year Ended December 31, 2012
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	5,849		$	(7,496	)	$	(1,647	)	$	5,461		$	(5,629	)	$	(168	)
Other comprehensive income (loss) before reclassifications		(5,373	)		—			(5,373	)		414			—			414
Amounts reclassified from accumulated other comprehensive income (loss)		(135	)		2,908			2,773			(26	)		(1,867	)		(1,893	)
Net current-period other comprehensive income (loss)		(5,508	)		2,908			(2,600	)		388			(1,867	)		(1,479	)
Ending balance	$	341		$	(4,588	)	$	(4,247	)	$	5,849		$	(7,496	)	$	(1,647	)

Amounts in parentheses indicate debits.

(Continued)

52

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 5—OTHER COMPREHENSIVE INCOME (Continued)

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2013 and December 31, 2012:

	Amout Reclassified from Accumulated Other Comprehensive Loss (a)
Details about Accumulated Other Comprehensive Loss Components	For the year ended December 31, 2013			For the year ended December 31, 2012			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	204		$	40		Net gain on sale of securities
Tax effect		(69	)		(14	)	Income tax expense
		135			26		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses)		(4,406	)(b)		2,829	(b)	Salaries, wages and benefits
Tax effect		1,498			(962	)	Income tax expense
		(2,908	)		1,867		Net of tax
Total reclassifications for the period	$	(2,773	)	$	1,893		Net of tax

^(a)  Amounts in parentheses indicate debits to profit/loss.

^(b)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

(Continued)

53

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 6—PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows.

	2013			2012
Land and improvements	$	4,083		$	4,094
Buildings and improvements		19,681			19,482
Furniture and equipment		20,153			19,180
Total		43,917			42,756
Accumulated depreciation		(26,990	)		(25,590	)
Premises and equipment, net	$	16,927		$	17,166

Depreciation expense was $1,509 and $1,493 for 2013 and 2012, respectively.

Rent expense was $367 and $344 for 2013 and 2012, respectively. Rent commitments under non-cancelable operating leases at December 31, 2013 were as follows, before considering renewal options that generally are present.

2014	$	359
2015		274
2016		231
2017		213
2018		117
Thereafter		87
Total	$	1,281

The rent commitments listed above are primarily for the leasing of five financial services branches.

NOTE 7—GOODWILL AND INTANGIBLE ASSETS

There has been no change in the carrying amount of goodwill of $21,720 for the years ended December 31, 2013 and December 31, 2012.

Management performs an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2013. In performing its evaluation, management obtained several commonly used financial ratios from pending and completed purchase transactions for banks based in the Midwest. Management used these ratios to determine an implied market value for the Company. The implied market value was then used to determine whether or not additional testing was required. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2013.

(Continued)

54

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 7—GOODWILL AND INTANGIBLE ASSETS (Continued)

Acquired Intangible Assets

Acquired intangible assets were as follows as of year end.

	2013				2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit and other intangibles	$	11,619	$	9,326	$	11,619	$	8,480

Aggregate amortization expense was $846 and $974 for 2013 and 2012.

Estimated amortization expense for each of the next five years and thereafter is as follows.

2014	$	769
2015		555
2016		522
2017		447
Thereafter		—
	$	2,293

NOTE 8—INTEREST-BEARING DEPOSITS

Interest-bearing deposits as of December 31, 2013 and 2012 were as follows.

	2013		2012
Demand	$	168,113	$	170,190
Statement and Passbook Savings		303,037		289,781
Certificates of Deposit:
In excess of $100		66,561		76,261
Other		139,586		154,843
Individual Retirement Accounts		30,202		32,898
Total	$	707,499	$	723,973

(Continued)

55

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 8—INTEREST-BEARING DEPOSITS (Continued)

Scheduled maturities of certificates of deposit, including IRA’s at December 31, 2013 were as follows.

2014	$	156,593
2015		43,240
2016		13,384
2017		9,635
2018		3,995
Thereafter		9,502
Total	$	236,349

Deposits from principal officers, directors, and their affiliates at year-end 2013 and 2012 were $8,606 and $8,493, respectively.

NOTE 9—FEDERAL HOME LOAN BANK ADVANCES

The Company has a $40,000 cash management advance line of credit with the FHLB. The Company had no outstanding balance on this line as of December 31, 2013 and December 31, 2012. The Company also has an $80,000 repo advance line with the FHLB with no outstanding balances as of December 31, 2013 and December 31, 2012.

Advances from the FHLB were $37,726 at December 31, 2013 and $40,261 at December 31, 2012. Outstanding balances have maturity dates ranging June 2014 to January 2017 and fixed rates ranging from 2.06% to 4.85%. The average rate on outstanding advances was 2.56%.

Scheduled principal reductions of FHLB advances at December 31, 2013 were as follows.

2014	$	30,226
2015		5,000
2017		2,500
Total	$	37,726

In addition to the borrowings, the Company has outstanding letters of credit with the FHLB totaling $23,300 at year-end 2013 and $23,600 at year-end 2012 used for pledging to secure public funds. FHLB borrowings and the letters of credit are collateralized by FHLB stock and by $91,540 and $95,792 of residential mortgage loans under a blanket lien arrangement at year-end 2013 and 2012, respectively.

The Company had a FHLB maximum borrowing capacity of $130,450 as of December 31, 2013, with remaining borrowing capacity of approximately $69,423. The borrowing arrangement with the FHLB is subject to annual renewal. The maximum borrowing capacity is recalculated at least quarterly.

(Continued)

56

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 10—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Information concerning securities sold under agreements to repurchase and treasury tax and loan deposits were as follows.

	2013			2012			2011
Average balance during the year	$	20,749		$	18,912		$	21,588
Average interest rate during the year		0.10	%		0.11	%		0.15	%
Maximum month-end balance during the year	$	24,257		$	23,328		$	25,246
Weighted average interest rate at year end		0.10	%		0.11	%		0.16	%

Securities underlying repurchase agreements had a fair value of $20,053 at December 31, 2013 and $23,219 at December 31, 2012.

NOTE 11—SUBORDINATED DEBENTURES

Trusts formed by the Company issued floating rate trust preferred securities, in the amounts of $5,000 and $7,500, through special purpose entities as part of pooled offerings of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures, in whole but not in part, at face value. In April 2007, the Company elected to redeem and refinance the $5,000 floating rate subordinated debenture. The refinancing was done at face value and resulted in a 2.00% reduction in the rate. The new subordinated debenture has a 30 year maturity and is redeemable, in whole or in part, anytime without penalty. The replacement subordinated debenture does not have any deferred issuance cost associated with it. The interest rate at December 31, 2013 on the $7,500 debenture is 3.40% and the $5,000 debenture is 1.84%.

Additionally, the Company formed an additional trust that issued $12,500 of 6.05% fixed rate trust preferred securities for five years, then becoming floating rate trust preferred securities, through a special purpose entity as part of a pooled offering of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures at face value without penalty. The current rate on the $12,500 subordinated debenture is 2.50%.

Finally, the Company acquired two additional trust preferred securities as part of its acquisition of Futura Banc Corp (Futura) in December 2007. Futura TPF Trust I and Futura TPF Trust II were formed in June of 2005 in the amounts of $2,500 and $1,927, respectively. Futura had issued subordinated debentures to the trusts in exchange for ownership of all of the common security of the trusts and the proceeds of the preferred securities sold by the trusts. The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, on or after June 15, 2010 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on June 15, 2035. The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. The current rate on the $2,500 subordinated debenture is variable at 1.90%. In June 2010, the rate on the $1,927 subordinated debenture switched from a fixed rate to a floating rate. The current rate on the $1,927 subordinated debenture is 1.90%.

(Continued)

57

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 12—INCOME TAXES

Income tax expense was as follows.

	2013		2012
Current	$	11	$	1,395
Deferred		1,362		330
Income tax expense	$	1,373	$	1,725

Effective tax rates differ from the statutory federal income tax rate of 34% due to the following.

	2013			2012
Income taxes computed at the statutory federal tax rate	$	2,568		$	2,483
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(781	)		(630	)
Low income housing tax credit		(280	)		—
Cash surrender value of BOLI		(189	)		(213	)
Other		55			85
Income tax expense	$	1,373		$	1,725

There were no tax benefits attributable to security losses in 2013 and 2012.

(Continued)

58

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 12—INCOME TAXES (Continued)

Year-end deferred tax assets and liabilities were due to the following.

	2013			2012
Deferred tax assets
Allowance for loan losses	$	5,620		$	6,712
Deferred compensation		1,223			1,057
Intangible assets		50			182
Pension costs		996			2,775
Impairment losses		146			195
Other		133			171
Deferred tax asset		8,168			11,092
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(466	)		(295	)
Discount accretion on securities		(77	)		(73	)
Purchase accounting adjustments		(1,465	)		(1,774	)
FHLB stock dividends		(2,249	)		(2,249	)
Unrealized gain on securities available for sale		(176	)		(3,013	)
Other		(174	)		(105	)
Deferred tax liability		(4,607	)		(7,509	)
Net deferred tax asset	$	3,561		$	3,583

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State of Ohio for all affiliates other than Citizens. Citizens is subject to tax in Ohio based upon its net worth.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal tax returns for taxable years through 2009 have been closed for purposes of examination by the Internal Revenue Service.

NOTE 13—RETIREMENT PLANS

The Company sponsors a savings and retirement 401(k) plan, which covers all employees who meet certain eligibility requirements and who choose to participate in the plan. The matching contribution to the 401(k) plan was $204 in 2013 and $190 in 2012.

The Company also sponsors a pension plan which is a noncontributory defined benefit retirement plan for all employees who have attained the age of 20 ¹⁄₂, completed six months of service and work 1,000 or more hours per year. Annual payments, subject to the maximum amount deductible for federal income tax purposes, are made to a pension trust fund. In 2006, the Company amended the pension plan to provide that no employee could be added as a participant to the pension plan after December 31, 2006.

(Continued)

59

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 13—RETIREMENT PLANS (Continued)

Information about the pension plan is as follows.

	2013			2012
Change in benefit obligation:
Beginning benefit obligation	$	21,604		$	16,934
Service cost		1,204			939
Interest cost		884			915
Settlement loss		821			—
Actuarial (gain)/loss		(1,272	)		3,474
Benefits paid		(4,785	)		(658	)
Ending benefit obligation		18,456			21,604
Change in plan assets, at fair value:
Beginning plan assets		13,441			11,445
Actual return		1,943			1,181
Employer contribution		4,900			1,510
Benefits paid		(4,785	)		(658	)
Administrative expenses		(33	)		(37	)
Ending plan assets		15,466			13,441
Funded status at end of year	$	(2,990	)	$	(8,163	)

Amounts recognized in accumulated other comprehensive income at December 31, consist of:

	2013		2012
Unrecognized actuarial loss (net of tax, of $2,364 in 2013 and $3,862 in 2012)	$	4,588	$	7,496

The accumulated benefit obligation for the defined benefit pension plan was $14,537 at December 31, 2013 and $17,379 at December 31, 2012.

The components of net periodic pension expense were as follows.

	2013			2012
Service cost	$	1,204		$	939
Interest cost		884			915
Expected return on plan assets		(965	)		(858	)
Net amortization and deferral		698			359
Net periodic benefit cost	$	1,821		$	1,355
Net loss (gain) recognized in other comprehensive income		(4,406	)		2,829
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$	(2,585	)	$	4,184

(Continued)

60

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 13—RETIREMENT PLANS (Continued)

The estimated net loss and prior service costs for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $352.

The weighted average assumptions used to determine benefit obligations at year-end were as follows.

	2013			2012
Discount rate on benefit obligation		4.38	%		3.72	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

The weighted average assumptions used to determine net periodic pension cost were as follows.

	2013			2012
Discount rate on benefit obligation		3.72	%		4.60	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

The Company uses long-term market rates to determine the discount rate on the benefit obligation. Declines in the discount rate lead to increases in the actuarial loss related to the benefit obligation.

The expectation for long-term rate of return on the pension assets and the expected rate of compensation increases are reviewed periodically by management in consultation with outside actuaries and primary investment consultants. Factors considered in setting and adjusting these rates are historic and projected rates of return on the portfolio and historic and estimated rates of increases of compensation.

The Company’s pension plan asset allocation at year-end 2012, and 2013 and target allocation for 2014 by asset category are as follows.

	Target Allocation			Percentage of Plan Assets at Year-end
Asset Category	2014			2013			2012
Equity securities		20-50	%		46.5	%		45.5	%
Debt securities		30-60			53.0			53.9
Money market funds		20-30			0.5			0.6
Total					100.0	%		100.0	%

The Company developed the pension plan investment policies and strategies for plan assets with its pension management firm. The assets are currently invested in five diversified investment funds, which include three equity funds, one money market fund and one bond fund. The long-term guidelines from

(Continued)

61

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 13—RETIREMENT PLANS (Continued)

above were created to maximize the return on portfolio assets while reducing the risk of the portfolio. The management firm may allocate assets among the separate accounts within the established long-term guidelines. Transfers among these accounts will be at the management firm’s discretion based on their investment outlook and the investment strategies that are outlined at periodic meetings with the Company. The expected long-term rate of return on the plan assets was 7.00% in 2013 and 2012. This return is based on the expected return for each of the asset categories, weighted based on the target allocation for each class.

The Company expects to contribute $1,275 to its pension plan in 2014. Employer contributions totaled $4,900 in 2013. The decrease in the benefit obligation, contributions and the increase in plan assets led to a change in funded status from $(8,163) to $(2,990).

The following tables set forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2013 and 2012:

	December 31, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	79	$	—	$	—	$	79
Bond mutual funds		48		—		—		48
Common/collective trust:
Bonds		8,140		—		—		8,140
Equities		5,439		—		—		5,439
Equity market funds:
Commodity mutual funds		21		—		—		21
International		337		—		—		337
Large cap		1,093		—		—		1,093
Mid cap		181		—		—		181
Small cap		128		—		—		128
Total assets at fair value	$	15,466	$	—	$	—	$	15,466

(Continued)

62

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 13—RETIREMENT PLANS (Continued)

	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	76	$	—	$	—	$	76
Bond mutual funds		86		—		—		86
Common/collective trust:
Bonds		7,158		—		—		7,158
Equities		4,772		—		—		4,772
Equity market funds:
Commodity mutual funds		23		—		—		23
International		240		—		—		240
Large cap		808		—		—		808
Mid cap		177		—		—		177
Small cap		101		—		—		101
Total assets at fair value	$	13,441	$	—	$	—	$	13,441

Investment in equity securities, debt securities, and money market funds are valued at the closing price reported on the active market on which the individual securities are traded.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Expected benefit payments, which reflect expected future service, are as follows.

2014	$	396
2015		512
2016		637
2017		842
2018		900
2019 through 2023		6,951
Total	$	10,238

Supplemental Retirement Plan

Citizens established a supplemental retirement plan (“SERP”) which covers key members of management in 2013. Participants will receive annually a percentage of their base compensations at the time of their retirement for a maximum of ten years. The liability recorded at December 31, 2013, was $1,111, compared to $700 at December 31, 2012. The expense related to the plan was $412 for 2013 and $369 for 2012. No distributions to participants were made in either 2013 or 2012.

(Continued)

63

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 14—STOCK OPTIONS

Options to buy stock were previously granted to directors, officers and employees under the Company’s stock option plan, which was approved by shareholders on April 18, 2000 and authorized the Company to issue up to 225,000 options. The exercise price of the stock options was the market price at date of grant. The maximum option term was ten years, and options vested after three years. The Company’s stock option plan expired in 2010, and no further stock options may be granted under the plan. There were no outstanding stock options at December 31, 2013.

A summary of the activity in the stock option plan is as follows.

	2013					2012
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		10,000		$	35.00		29,500		$	25.42
Granted		—			—		—			—
Exercised		—			—		—			—
Forfeited		—			—		—			—
Expired		(10,000	)		35.00		(19,500	)		20.50
Outstanding at end of year		—		$	—		10,000		$	35.00
Options exercisable at year-end		—		$	—		10,000		$	35.00

The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the common stock as of the reporting date. As of December 31, 2012, there were no options that had intrinsic value.

NOTE 15—FAIR VALUE MEASUREMENT

U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1: Quoted prices for identical assets in active markets that are identifiable on the measurement date; Level 2: Significant other observable inputs, such as quoted prices for similar assets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data; Level 3: Significant unobservable inputs that reflect the Company’s own view about the assumptions that market participants would use in pricing an asset.

(Continued)

64

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 15—FAIR VALUE MEASUREMENT (Continued)

Securities: The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). At December 31, 2012, management used significant unobservable inputs to determine the fair value of one security (Level 3 inputs). These inputs include appraised values of the underlying collateral and estimated costs to sell the collateral. The value of the collateral has been discounted to represent the value in a distressed sale situation.

Equity securities: The Company’s equity securities are not actively traded in an open market. The fair values of these equity securities available for sale are determined by using market data inputs for similar securities that are observable. (Level 2 inputs).

Impaired loans: The fair values of impaired loans are determined using the fair values of collateral for collateral dependent loans, or discounted cash flows. The Company uses independent appraisals, discounted cash flow models and other available data to estimate the fair value of collateral (Level 3 inputs).

Other real estate owned: The fair value of other real estate owned is determined using the fair value of collateral. The Company uses appraisals and other available data to estimate the fair value of collateral (Level 3 inputs). The appraised values are discounted to represent an estimated value in a distressed sale. Additionally, estimated costs to sell the property are used to further adjust the value.

Assets measured at fair value are summarized below.

	Fair Value Measurements at December 31, 2013 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	51,560	$	—
Obligations of states and political subdivisions		—		80,625		—
Mortgage-backed securities in government sponsored entities		—		66,979		—
Equity securities in financial institutions		—		449		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	15,548
Other Real Estate Owned		—		—		173

(Continued)

65

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 15—FAIR VALUE MEASUREMENT (Continued)

	Fair Value Measurements at December 31, 2012 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	54,286	$	—
Obligations of states and political subdivisions		—		79,338		468
Mortgage-backed securities in government sponsored entities		—		69,435		—
Equity securities in financial institutions		—		434		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	22,084
Other Real Estate Owned		—		—		471

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2013 and 2012.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2013	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	15,548	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%
				Holding period		0 - 30 months
			Discounted cash flows	Discount rates		2% - 8.5	%
Other real estate owned	$	173	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%

(Continued)

66

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 15—FAIR VALUE MEASUREMENT (Continued)

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2012	Fair Value		Valuation Technique	Unobservable Input	Range
Investments	$	468	Appraisal of collateral	Appraisal adjustments		20% - 30	%
				Liquidation expense		8% - 12	%
Impaired loans	$	22,084	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%
				Holding period		0 -30 months
			Discounted cash flows	Discount rates		2% - 8.5	%
Other real estate owned	$	471	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%

The following table presents the changes in the Level 3 fair value category for the fiscal periods ended December 31, 2013 and 2012. The Company classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to the unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly.

Securities available for sale
	2013			2012
Beginning balance January 1,	$	468		$	517
Principal payments		(468	)		(49	)
Ending balance December 31,	$	—		$	468

(Continued)

67

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 15—FAIR VALUE MEASUREMENT (Continued)

The carrying amount and fair value of financial instruments were as follows.

December 31, 2013	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	33,883	$	33,883	$	33,883	$	—	$	—
Securities available for sale		199,613		199,613		—		199,613		—
Other securities		15,424		15,424		15,424		—		—
Loans, available for sale		438		438		438		—		—
Loans, net of allowance for loan losses		844,713		861,252		—		—		861,252
Bank owned life insurance		19,145		19,145		19,145		—		—
Accrued interest receivable		3,881		3,881		3,881		—		—
Financial Liabilities:
Nonmaturing deposits		706,126		706,126		706,126		—		—
Time deposits		236,349		237,837		—		—		237,837
Federal Home Loan Bank advances		37,726		38,767		—		—		38,767
Securities sold under agreement to repurchase		20,053		20,053		20,053		—		—
Subordinated debentures		29,427		20,605		—		—		20,605
Accrued interest payable		156		156		156		—		—

(Continued)

68

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 15—FAIR VALUE MEASUREMENT (Continued)

December 31, 2012	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	46,131	$	46,131	$	46,131	$	—	$	—
Securities available for sale		203,961		203,961		—		203,493		468
Other securities		15,567		15,567		15,567		—		—
Loans, available for sale		1,873		1,873		1,873		—		—
Loans, net of allowance for loan losses		795,811		812,950		—		—		812,950
Bank owned life insurance		18,590		18,590		18,590		—		—
Accrued interest receivable		3,709		3,709		3,709		—		—
Financial Liabilities:
Nonmaturing deposits		662,387		662,387		662,387		—		—
Time deposits		264,002		265,974		—		—		265,974
Federal Home Loan Bank advances		40,261		41,658		—		—		41,658
Securities sold under agreement to repurchase		23,219		23,219		23,219		—		—
Subordinated debentures		29,427		26,855		—		—		26,855
Accrued interest payable		185		185		185		—		—

The estimated fair value approximates carrying amount for all items except those described below. Estimated fair value for securities is based on quoted market values for the individual securities or for equivalent securities. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of off-balance-sheet items is based on the current fees or cost that would be charged to enter into or terminate such arrangements and are considered nominal.

For certain homogeneous categories of loans, such as some residential mortgages, credit card receivables, and other consumer loans, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

NOTE 16—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

(Continued)

69

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 16—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK (Continued)

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2013				2012
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	11,866	$	151,332	$	9,378	$	118,182
Overdraft protection		18		21,084		51		19,726
Letters of credit		200		2,411		294		396
	$	12,084	$	174,827	$	9,723	$	138,304

Commitments to make loans are generally made for a period of one year or less. Fixed-rate loan commitments included above had interest rates ranging from 3.05% to 13.75% at December 31, 2013 and December 31, 2012. Maturities extend up to 30 years.

Citizens is required to maintain certain reserve balances on hand in accordance with the Federal Reserve Board requirements. The average reserve balance maintained in accordance with such requirements was $2,959 on December 31, 2013 and $1,217 on December 31, 2012.

NOTE 17—CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS

The Company and Citizens are subject to regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators. Failure to meet capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2013 and 2012, the most recent regulatory notifications categorized Citizens as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

(Continued)

70

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 17—CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS (Continued)

The Company’s and Citizens’ actual capital levels and minimum required levels at December 31, 2013 and 2012 were as follows.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total Capital to risk-weighted assets
Consolidated	$	143,628		17.1	%	$	67,194		8.0	%		n/a		n/a
Citizens		104,884		12.5			67,126		8.0		$	83,907		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		133,041		15.8			33,681		4.0			n/a		n/a
Citizens		94,302		11.2			33,679		4.0			50,519		6.0
Tier I (Core) Capital to average assets
Consolidated		133,041		11.6			45,876		4.0			n/a		n/a
Citizens		94,302		8.3			45,447		4.0			56,808		5.0
2012
Total Capital to risk-weighted assets
Consolidated	$	116,423		14.8	%	$	62,931		8.0	%		n/a		n/a
Citizens		104,948		13.4			62,656		8.0		$	78,319		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		103,979		13.3			31,272		4.0			n/a		n/a
Citizens		95,022		12.1			31,335		4.0			47,002		6.0
Tier I (Core) Capital to average assets
Consolidated		103,979		9.3			44,722		4.0			n/a		n/a
Citizens		95,022		8.5			44,559		4.0			55,699		5.0

The Company’s primary source of funds for paying dividends to its shareholders and for operating expense is the cash accumulated from dividends received from Citizens. Payment of dividends by Citizens to the Company is subject to restrictions by Citizens’ regulatory agencies. These restrictions generally limit dividends to the current and prior two years retained earnings as defined by the regulations. In addition, dividends may not reduce capital levels below minimum regulatory requirements.

(Continued)

71

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 18—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of FCBC follows.

	December 31,
	2013			2012
Condensed Balance Sheets
Assets:
Cash	$	32,572		$	9,291
Securities available for sale		449			434
Investment in bank subsidiary		111,121			115,426
Investment in nonbank subsidiaries		12,595			12,585
Other assets		5,210			4,015
Total assets	$	161,947		$	141,751
Liabilities and Shareholders’ Equity:
Deferred income taxes and other liabilities	$	4,144		$	8,344
Subordinated debentures		29,427			29,427
Preferred stock		46,316			23,184
Common stock		114,365			114,365
Accumulated deficit		(10,823	)		(14,687	)
Treasury Stock		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(4,247	)		(1,647	)
Total liabilities and shareholders’ equity	$	161,947		$	141,751
	For the years ended December 31,
	2013			2012
Condensed Statements of Operations
Dividends from bank subsidiaries	$	7,888		$	4,747
Interest expense		(740	)		(833	)
Pension expense		(4,072	)		(1,257	)
Other expense, net		(952	)		(854	)
Income before equity in undistributed net earnings of subsidiaries		2,124			1,803
Income tax benefit		1,960			1,001
Equity in undistributed net earnings of subsidiaries		2,095			2,775
Net income	$	6,179		$	5,579
Comprehensive income	$	3,579		$	4,100

(Continued)

72

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 18—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Continued)

	For the years ended December 31,
	2013			2012
Condensed Statements of Cash Flows
Operating activities:
Net income	$	6,179		$	5,579
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities		(1,620	)		959
Equity in undistributed net earnings of subsidiaries		(2,095	)		(2,775	)
Net cash from operating activities		2,464			3,763
Financing activities:
Proceeds from issuance of preferred stock		23,132			—
Cash dividends paid		(2,315	)		(2,084	)
Net cash provided by (used for) financing activities		20,817			(2,084	)
Net change in cash and cash equivalents		23,281			1,679
Cash and cash equivalents at beginning of year		9,291			7,612
Cash and cash equivalents at end of year	$	32,572		$	9,291

NOTE 19—EARNINGS PER SHARE

The factors used in the earnings per share computation follow.

	2013		2012
Basic
Net income available to common shareholders	$	5,020	$	4,386
Weighted average common shares outstanding		7,707,917		7,707,917
Basic earnings per share	$	0.65	$	0.57
Diluted
Net income available to common shareholders	$	5,020	$	4,386
Weighted average common shares outstanding for basic earnings per common share		7,707,917		7,707,917
Add: dilutive effects of convertible preferred shares		113,863		—
Average shares and dilutive potential common shares outstanding		7,821,780		7,707,917
Diluted earnings per share	$	0.64	$	0.57

(Continued)

73

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 19—EARNINGS PER SHARE (Continued)

Basic earnings per common share are calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share takes into consideration the pro forma dilution of unexercised stock option awards, computed using the treasury stock method.

Stock options for 10,000 shares in 2012 were not considered in computing diluted earnings per common share because they were anti-dilutive. There were no stock options outstanding as of December 31, 2013.

NOTE 20—QUARTERLY FINANCIAL DATA (UNAUDITED)

	Interest Income		Net Interest Income		Net Income		Basic Earnings per Common Share		Diluted Earnings per Common Share
2013
First quarter (1)(2)(5)	$	11,287	$	9,988	$	1,913	$	0.21	$	0.21
Second quarter (1)(2)(3)		11,025		9,781		1,657		0.18		0.18
Third quarter (1)(2)		11,127		9,917		1,566		0.17		0.17
Fourth quarter (1)(2)(4)(6)		11,443		10,290		1,043		0.09		0.08
2012
First quarter (6)(7)(8)	$	12,118	$	10,445	$	1,293	$	0.13	$	0.13
Second quarter (6)(7)(10)		11,757		10,146		936		0.08		0.08
Third quarter (6)(7)(8)		11,529		10,028		1,384		0.14		0.14
Fourth quarter (6)(7)(8)(9)		11,357		9,959		1,966		0.22		0.22

⁽¹⁾  Interest income decreased as loans repriced downward.

⁽²⁾  Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

⁽³⁾  Net interest income and net income decreased due to reversed late charges.

⁽⁴⁾  Net interest income and net income increased due to increased loan volume.

⁽⁵⁾  Net income increased due to fees on tax refund program.

⁽⁶⁾  Net income decreased due to non cash charge to pension plan.

⁽⁶⁾  Interest income decreased as loans repriced downward.

⁽⁷⁾  Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

⁽⁸⁾  Net income increased due to a reduction in provision for loan losses.

⁽⁹⁾  Interest income decreased due to reversed income related to nonaccrual loans.

⁽¹⁰⁾  Net income decreased due to reserves for unfunded commitments.

(Continued)

74

FIRST CITIZENS BANC CORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2013 and 2012

(Amounts in thousands, except share data)

NOTE 21—PARTICIPATION IN THE TREASURY CAPITAL PURCHASE PROGRAM

On January 23, 2009, the Company completed the sale to the U.S. Treasury of $23,184 of newly-issued non-voting preferred shares as part of the Capital Purchase Program (CPP) enacted by the U.S. Treasury as part of the Troubled Assets Relief Program (TARP) under the Emergency Economic Stabilization Act of 2008 (EESA). To finalize the Company’s participation in the CPP, the Company and the Treasury entered into a Letter Agreement, dated January 23, 2009, including the Securities Purchase Agreement – Standard Terms attached thereto. Pursuant to the terms of the Securities Purchase Agreement, the Company issued and sold to Treasury (1) 23,184 shares of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value and having a liquidation preference of $1,000 per share (Series A Preferred Shares), and (2) a Warrant to purchase 469,312 common shares of the Company, each without par value, at an exercise price of $7.41 per share. The Warrant had a ten-year term. All of the proceeds from the sale of the Series A Preferred Shares and the Warrant by the Company to the U.S. Treasury under the CPP qualified as Tier 1 capital for regulatory purposes. Under the standardized CPP terms, cumulative dividends on the Series A Preferred Shares accrued on the liquidation preference at a rate of 5% per annum for the first five years, and at a rate of 9% per annum thereafter. The Series A Preferred Shares had no maturity date and ranked senior to the common shares with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company.

On July 3, 2012, the U.S. Treasury completed the sale of all 23,184 of the Preferred Shares to various investors pursuant to a modified “Dutch auction” process. On September 5, 2012, the Company completed the repurchase of the Warrant from the U.S. Treasury in accordance with the terms of the Securities Purchase Agreement for an aggregate purchase price of $563,174.

On December 19, 2013, the Company announced the completion of its public offering of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering at $25.00 per depositary share, resulting in proceeds, net of $1,868 issuance costs, to the Company of $23,132.

On January 17, 2014, the Company provided notice that it intends to redeem all 23,184 of the Series A Preferred Shares (CUSIP No. 319459 30 1), which were originally sold to the United States Department of the Treasury, as part of TARP. The redemption of the Series A Preferred Shares was effective as of February 15, 2014.

(Continued)

75

EX-21.1

Exhibit 21.1

SUBSIDIARIES OF REGISTRANT

Subsidiary	Jurisdiction of Organization
The Citizens Banking Company		Ohio
First Citizens Insurance Agency, Inc.		Ohio
Water Street Properties, Inc.		Ohio
FC Refund Solutions, Inc.		Ohio
First Citizens Investments, Inc.		Delaware
First Citizens Capital LLC		Delaware
First Citizens Statutory Trust II		Connecticut
First Citizens Statutory Trust III		Delaware
First Citizens Statutory Trust IV		Delaware
Futura TPF Trust I		Delaware
Futura TPF Trust II		Delaware

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of First Citizens Banc Corp

We consent to the incorporation by reference in Registration Statement No. 333-99089 on Form S-8 of First Citizens Banc Corp of our report dated March 14, 2014, relating to our audit of the consolidated financial statements and the effectiveness of internal control over financial reporting, which is incorporated by reference in the Annual Report on Form 10-K of First Citizens Banc Corp for the year ended December 31, 2013.

/s/ S.R. Snodgrass, P.C.

Wexford, Pennsylvania

March 14, 2014

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

CERTIFICATIONS FOR ANNUAL REPORT ON FORM 10-K

I, James O. Miller, certify that:

1. I have reviewed this Annual Report on Form 10-K of First Citizens Banc Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Signature and Title: /s/ James O. Miller, President, Chief Executive Officer Date: March 14, 2014

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

CERTIFICATIONS FOR ANNUAL REPORT ON FORM 10-K

I, Todd A. Michel, certify that:

1. I have reviewed this Annual Report on Form 10-K of First Citizens Banc Corp;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Signature and Title: /s/ Todd A. Michel, Senior Vice President, Controller Date: March 14, 2014

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of First Citizens Banc Corp (the “Company”) on Form 10-K for the period ending December 31, 2013, as filed with the Securities and Exchange Commission on the date of this certification (the Report), I, James O. Miller, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James O. Miller

James O. Miller

Chief Executive Officer

March 14, 2014

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of First Citizens Banc Corp (the “Company”) on Form 10-K for the period ending December 31, 2013, as filed with the Securities and Exchange Commission on the date of this certification (the Report), I, Todd A. Michel, Senior Vice President and Controller of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Todd A. Michel

Todd A. Michel

Senior Vice President, Controller

March 14, 2014

XML

Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Schedule of Securities Sold Under Agreements to Repurchase and Treasury Tax and Loan Deposits

Information concerning securities sold under agreements to repurchase and treasury tax and loan deposits were as follows.

	2013			2012			2011
Average balance during the year	$	20,749		$	18,912		$	21,588
Average interest rate during the year		0.10	%		0.11	%		0.15	%
Maximum month-end balance during the year	$	24,257		$	23,328		$	25,246
Weighted average interest rate at year end		0.10	%		0.11	%		0.16	%

XML

Securities - Securities with Unrealized Losses not Recognized in Income (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	$ 92,234	$ 15,965
12 Months or less, Unrealized Loss	(2,905)	(292)
More than 12 months, Fair Value	1,247	2,587
More than 12 months, Unrealized Loss	(125)	(20)
Total Fair Value	93,481	18,552
Total Unrealized Loss	(3,030)	(312)
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	30,800	6,184
12 Months or less, Unrealized Loss	(764)	(8)
More than 12 months, Fair Value
More than 12 months, Unrealized Loss
Total Fair Value	30,800	6,184
Total Unrealized Loss	(764)	(8)
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	28,428	1,440
12 Months or less, Unrealized Loss	(1,556)	(22)
More than 12 months, Fair Value	968	465
More than 12 months, Unrealized Loss	(121)	(2)
Total Fair Value	29,396	1,905
Total Unrealized Loss	(1,677)	(24)
Mortgage-backed Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	32,557	7,907
12 Months or less, Unrealized Loss	(553)	(215)
More than 12 months, Fair Value	279	2,122
More than 12 months, Unrealized Loss	(4)	(18)
Total Fair Value	32,836	10,029
Total Unrealized Loss	(557)	(233)
Equity Securities in Financial Institutions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	449	434
12 Months or less, Unrealized Loss	(32)	(47)
More than 12 months, Fair Value
More than 12 months, Unrealized Loss
Total Fair Value	449	434
Total Unrealized Loss	$ (32)	$ (47)

XML

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Data

	Interest Income		Net Interest Income		Net Income		Basic Earnings per Common Share		Diluted Earnings per Common Share
2013
First quarter (1)(2)(5)	$	11,287	$	9,988	$	1,913	$	0.21	$	0.21
Second quarter (1)(2)(3)		11,025		9,781		1,657		0.18		0.18
Third quarter (1)(2)		11,127		9,917		1,566		0.17		0.17
Fourth quarter (1)(2)(4)(6)		11,443		10,290		1,043		0.09		0.08
2012
First quarter (6)(7)(8)	$	12,118	$	10,445	$	1,293	$	0.13	$	0.13
Second quarter (6)(7)(10)		11,757		10,146		936		0.08		0.08
Third quarter (6)(7)(8)		11,529		10,028		1,384		0.14		0.14
Fourth quarter (6)(7)(8)(9)		11,357		9,959		1,966		0.22		0.22

⁽¹⁾  Interest income decreased as loans repriced downward.

⁽²⁾  Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

⁽³⁾  Net interest income and net income decreased due to reversed late charges.

⁽⁴⁾  Net interest income and net income increased due to increased loan volume.

⁽⁵⁾  Net income increased due to fees on tax refund program.

⁽⁶⁾  Net income decreased due to non cash charge to pension plan.

⁽⁶⁾  Interest income decreased as loans repriced downward.

⁽⁷⁾  Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

⁽⁸⁾  Net income increased due to a reduction in provision for loan losses.

⁽⁹⁾  Interest income decreased due to reversed income related to nonaccrual loans.

⁽¹⁰⁾  Net income decreased due to reserves for unfunded commitments.

XML

Goodwill and Intangible Assets - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 21,720	$ 21,720
Amortization of intangible assets	$ 846	$ 974

XML

Loans - Summary of Loan Balances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 861,241	$ 815,553
Allowance for loan losses	(16,528)	(19,742)
Net loans	844,713	795,811
Commercial and Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	115,875	100,661
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	443,846	434,808
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	250,691	250,598
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	39,964	19,677
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 10,865	$ 9,809

XML

Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold Under Agreements to Repurchase and Treasury Tax and Loan Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debt Disclosure [Abstract]
Average balance during the year	$ 20,749	$ 18,912	$ 21,588
Average interest rate during the year	0.10%	0.11%	0.15%
Maximum month-end balance during the year	$ 24,257	$ 23,328	$ 25,246
Weighted average interest rate at year end	0.10%	0.11%	0.16%

XML

Parent Company Only Condensed Financial Information - Schedule of Condensed Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Condensed Financial Statements, Captions [Line Items]
Interest expense									$ (4,907)	$ (6,184)
Income before equity in undistributed net earnings of subsidiaries									7,552	7,304
Income tax benefit									1,373	1,725
Net income	1,043	1,566	1,657	1,913	1,966	1,384	936	1,293	6,179	5,579
Comprehensive income									3,579	4,100
FCBC [Member]
Condensed Financial Statements, Captions [Line Items]
Dividends from bank subsidiaries									7,888	4,747
Interest expense									(740)	(833)
Pension expense									(4,072)	(1,257)
Other expense, net									(952)	(854)
Income before equity in undistributed net earnings of subsidiaries									2,124	1,803
Income tax benefit									1,960	1,001
Equity in undistributed net earnings of subsidiaries									2,095	2,775
Net income									$ 6,179	$ 5,579

XML

Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Schedule of Condensed Balance Sheets

	December 31,
	2013			2012
Condensed Balance Sheets
Assets:
Cash	$	32,572		$	9,291
Securities available for sale		449			434
Investment in bank subsidiary		111,121			115,426
Investment in nonbank subsidiaries		12,595			12,585
Other assets		5,210			4,015
Total assets	$	161,947		$	141,751
Liabilities and Shareholders’ Equity:
Deferred income taxes and other liabilities	$	4,144		$	8,344
Subordinated debentures		29,427			29,427
Preferred stock		46,316			23,184
Common stock		114,365			114,365
Accumulated deficit		(10,823	)		(14,687	)
Treasury Stock		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(4,247	)		(1,647	)
Total liabilities and shareholders’ equity	$	161,947		$	141,751

Schedule of Condensed Statements of Operations

For the years ended December 31,
	2013			2012
Condensed Statements of Operations
Dividends from bank subsidiaries	$	7,888		$	4,747
Interest expense		(740	)		(833	)
Pension expense		(4,072	)		(1,257	)
Other expense, net		(952	)		(854	)
Income before equity in undistributed net earnings of subsidiaries		2,124			1,803
Income tax benefit		1,960			1,001
Equity in undistributed net earnings of subsidiaries		2,095			2,775
Net income	$	6,179		$	5,579
Comprehensive income	$	3,579		$	4,100

Schedule of Condensed Statements of Cash Flows

	For the years ended December 31,
	2013			2012
Condensed Statements of Cash Flows
Operating activities:
Net income	$	6,179		$	5,579
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities		(1,620	)		959
Equity in undistributed net earnings of subsidiaries		(2,095	)		(2,775	)
Net cash from operating activities		2,464			3,763
Financing activities:
Proceeds from issuance of preferred stock		23,132			—
Cash dividends paid		(2,315	)		(2,084	)
Net cash provided by (used for) financing activities		20,817			(2,084	)
Net change in cash and cash equivalents		23,281			1,679
Cash and cash equivalents at beginning of year		9,291			7,612
Cash and cash equivalents at end of year	$	32,572		$	9,291

XML

Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Allowance Related to Unallocated Segment

The following tables present by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the period ended December 31, 2013 and December 31, 2012. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2013
Allowance for loan losses:
Beginning balance	$	2,811		$	10,139		$	5,780		$	349		$	246		$	417	$	19,742
Charge-offs		(483	)		(1,804	)		(2,907	)		(136	)		(220	)		—		(5,550	)
Recoveries		141			449			458			108			80			—		1,236
Provision		372			(1,225	)		1,893			(137	)		108			89		1,100
Ending Balance	$	2,841		$	7,559		$	5,224		$	184		$	214		$	506	$	16,528

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2012
Allowance for loan losses:
Beginning balance	$	2,876		$	10,571		$	5,796		$	974		$	719		$	321	$	21,257
Charge-offs		(841	)		(3,440	)		(4,506	)		(446	)		(246	)		—		(9,479	)
Recoveries		353			612			397			131			71			—		1,564
Provision		423			2,396			4,093			(310	)		(298	)		96		6,400
Ending Balance	$	2,811		$	10,139		$	5,780		$	349		$	246		$	417	$	19,742

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,262	$	445	$	802	$	—	$	—	$	—	$	2,509
Ending balance:
Collectively evaluated for impairment	$	1,579	$	7,114	$	4,422	$	184	$	214	$	506	$	14,019
Ending balance	$	2,841	$	7,559	$	5,224	$	184	$	214	$	506	$	16,528
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,869	$	10,175	$	4,005	$	—	$	8			$	18,057
Ending balance:
Collectively evaluated for impairment	$	112,006	$	433,671	$	246,686	$	39,964	$	10,857			$	843,184
Ending balance	$	115,875	$	443,846	$	250,691	$	39,964	$	10,865			$	861,241

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2012
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	286	$	2,354	$	1,199	$	107	$	60	$	—	$	4,006
Ending balance:
Collectively evaluated for impairment	$	2,525	$	7,785	$	4,581	$	242	$	186	$	417	$	15,736
Ending balance	$	2,811	$	10,139	$	5,780	$	349	$	246	$	417	$	19,742
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	5,420	$	13,941	$	6,127	$	541	$	61			$	26,090
Ending balance:
Collectively evaluated for impairment	$	95,241	$	420,867	$	244,471	$	19,136	$	9,748			$	789,463
Ending balance	$	100,661	$	434,808	$	250,598	$	19,677	$	9,809			$	815,553

Credit Exposures by Internally Assigned Grades

December 31, 2013	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,923	$	415,938	$	98,700	$	35,495	$	2,252	$	660,308
Special Mention		2,038		9,145		986		21		—		12,190
Substandard		5,914		18,763		8,175		—		70		32,922
Doubtful		—		—		2,349		—		—		2,349
Ending Balance	$	115,875	$	443,846	$	110,210	$	35,516	$	2,322	$	707,769
December 31, 2012	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	90,159	$	397,657	$	89,896	$	16,594	$	994	$	595,300
Special Mention		1,653		6,371		1,944		352		—		10,320
Substandard		8,849		30,780		12,873		1,001		106		53,609
Doubtful		—		—		—		—		—		—
Ending Balance	$	100,661	$	434,808	$	104,713	$	17,947	$	1,100	$	659,229

Performing and Nonperforming Loans

Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2013
Performing	$	140,481	$	4,448	$	8,543	$	153,472
Nonperforming		—		—		—		—
Total	$	140,481	$	4,448	$	8,543	$	153,472
	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2012
Performing	$	145,879	$	1,730	$	8,696	$	156,305
Nonperforming		6		—		13		19
Total	$	145,885	$	1,730	$	8,709	$	156,324

Aging Analysis of Past Due Loans

Following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2013 and December 31, 2012.

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	105	$	—	$	443	$	548	$	115,327	$	115,875	$	—
Commercial Real Estate		655		201		2,098		2,954		440,892		443,846		—
Residential Real Estate		3,140		1,084		5,531		9,755		240,936		250,691		—
Real Estate Construction		—		—		—		—		39,964		39,964		—
Consumer and Other		170		20		—		190		10,675		10,865		—
Total	$	4,070	$	1,305	$	8,072	$	13,447	$	847,794	$	861,241	$	—
December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	31	$	72	$	553	$	656	$	100,005	$	100,661	$	—
Commercial Real Estate		1,000		533		6,794		8,327		426,481		434,808		80
Residential Real Estate		2,843		1,214		8,527		12,584		238,014		250,598		—
Real Estate Construction		43		—		416		459		19,218		19,677		—
Consumer and Other		127		20		29		176		9,633		9,809		—
Total	$	4,044	$	1,839	$	16,319	$	22,202	$	793,351	$	815,553	$	80

Summary of Nonaccrual Loans

The following table presents loans on nonaccrual status as of December 31, 2013 and December 31, 2012.

	2013		2012
Commericial & Agriculture	$	1,590	$	2,869
Commercial Real Estate		9,609		16,250
Residential Real Estate		9,210		9,701
Real Estate Construction		—		958
Consumer and Other		50		77
Total	$	20,459	$	29,855

Schedule of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the quarters and twelve month periods ended December 31, 2013 and December 31, 2012 were as follows:

	For the Twelve Month Period Ended December 31, 2013						For the Twelve Month Period Ended December 31, 2012
	Number of Contracts		Pre- Modification Outstanding Recorded Investment-		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commericial & Agriculture		—	$	—	$	—		6	$	984	$	976
Commercial Real Estate		2		547		547		3		1,205		1,205
Residential Real Estate		—		—		—		25		1,740		1,662
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		5		66		66
Total Loan Modifications		2	$	547	$	547		39	$	3,995	$	3,909

Impaired Financing Receivables

The following tables include the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable as of December 31, 2013 and December 31, 2012.

	December 31, 2013						December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commericial & Agriculture	$	1,525	$	1,657	$	—	$	5,053	$	5,226	$	—
Commercial Real Estate		5,983		6,214		—		5,446		8,114		—
Residential Real Estate		1,202		2,263		—		2,566		5,346		—
Real Estate Construction		—		—		—		—		521		—
Consumer and Other		8		8		—		1		1		—
Total		8,718		10,142		—		13,066		19,208		—
With an allowance recorded:
Commericial & Agriculture		2,344		2,437		1,262		367		385		286
Commercial Real Estate		4,192		4,496		445		8,495		8,681		2,354
Residential Real Estate		2,803		4,021		802		3,561		4,554		1,199
Real Estate Construction		—		—		—		541		547		107
Consumer and Other		—		—		—		60		60		60
Total		9,339		10,954		2,509		13,024		14,227		4,006
Total:
Commericial & Agriculture		3,869		4,094		1,262		5,420		5,611		286
Commercial Real Estate		10,175		10,710		445		13,941		16,795		2,354
Residential Real Estate		4,005		6,284		802		6,127		9,900		1,199
Real Estate Construction		—		—		—		541		1,068		107
Consumer and Other		8		8		—		61		61		60
Total	$	18,057	$	21,096	$	2,509	$	26,090	$	33,435	$	4,006

	December 31, 2013				December 31, 2012
For the year ended:	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commericial & Agriculture	$	4,761	$	186	$	4,762	$	276
Commercial Real Estate		11,919		521		16,482		958
Residential Real Estate		5,038		282		4,909		557
Real Estate Construction		302		—		533		25
Consumer and Other		31		—		34		2
Total	$	22,051	$	989	$	26,720	$	1,818

XML

Securities Sold Under Agreements to Repurchase - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Securities underlying repurchase agreements	$ 20,053	$ 23,219

XML

Interest - Bearing Deposits - Summary of Interest- Bearing Deposits (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Banking And Thrift [Abstract]
Demand	$ 168,113	$ 170,190
Statement and Passbook Savings	303,037	289,781
Certificates of Deposit: In excess of $100	66,561	76,261
Certificates of Deposit : Other	139,586	154,843
Individual Retirement Accounts	30,202	32,898
Total	$ 707,499	$ 723,973

XML

Retirement Plans - Components of Net Periodic Pension Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Compensation And Retirement Disclosure [Abstract]
Service cost	$ 1,204	$ 939
Interest cost	884	915
Expected return on plan assets	(965)	(858)
Net amortization and deferral	698	359
Net periodic benefit cost	1,821	1,355
Net loss (gain) recognized in other comprehensive income	(4,406)	2,829
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$ (2,585)	$ 4,184

XML

Allowance for Loan Losses - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013 SecurityLoan	Dec. 31, 2012 SecurityLoan
Receivables [Abstract]
Historical loss percentage period for portfolio segments	3 years
Adequate allowance for loan losses	$ 16,528,000	$ 19,742,000
Number of days past due for loans to be considered as nonperforming	90 days
Reasonable period for nonperforming TDRs to be returned to performing status	6 months
Number of days reaching where loans are considered for nonaccrual status	90 days
Conditions where loans are considered for nonaccrual status	A loan may be returned to accruing status only if one of three conditions are met the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.
Loans	$ 0	$ 0
Defaulted loans	0	0
Impaired loans	Greater than $500

XML

Participation in the U.S. Treasury Troubled Asset Relief Program - Additional Information (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended		12 Months Ended		0 Months Ended
	Jul. 03, 2012	Jan. 23, 2009	Dec. 31, 2013	Sep. 05, 2012	Dec. 19, 2013 Depositary Shares [Member]	Jan. 17, 2014 Series A Preferred Stock [Member] Subsequent Event [Member]
Equity, Class of Treasury Stock [Line Items]
Newly issued shares		23,184			1,000,000
Number of shares issued and sold to Treasury		23,184
Liquidation preference as per securities purchase agreement		$ 1,000			$ 1,000
Warrant sold to purchase common shares as per securities purchase agreement		469,312
Warrant exercise price per common share		7.41
Term of Warrant			10 years
Cumulative dividend rate per annum on liquidation preference, first five years			5.00%
Cumulative dividend rate per annum on liquidation preference, after five years			9.00%
Sale of Preferred Shares to investors	23,184
Aggregate purchase price of warrant				$ 563,174
Percentage of ownership interest					2.50%
Share issued price per share					$ 25.00
Cost of Issuance, Public offering					1,868
Net proceeds from public offering			$ 7,500		$ 23,132
Numbers of shares to redeem						23,184
Preferred stock redemption date						Feb. 15, 2014

XML

Federal Home Loan Bank Advances - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Banking And Thrift [Abstract]
Cash management advance line of credit	$ 40,000,000
Outstanding balance on line of credit	0	0
Repo advance line	80,000,000
Outstanding balances on Repo advance line	0
Advances from FHLB	37,726,000	40,261,000
Maturities from June 2014through January 2017, fixed rates, minimum	2.06%
Maturities from June 2014through January 2017, fixed rates, maximum	4.85%
Maturities from June 2014through January 2017, fixed rates, averaging	2.56%
Maturities, year from	2014
Maturities, year to	2017
Outstanding letters of credit with FHLB	23,300,000	23,600,000
FHLB borrowings collateralized by residential mortgage loans	91,540,000	95,792,000
FHLB maximum borrowing capacity	130,450,000
FHLB remaining borrowing capacity	$ 69,423,000

XML

Retirement Plans - Information about Pension Plan (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Change in benefit obligation:
Beginning benefit obligation	$ 21,604	$ 16,934
Service cost	1,204	939
Interest cost	884	915
Settlement loss	821
Actuarial (gain)/loss	(1,272)	3,474
Benefits paid	(4,785)	(658)
Ending benefit obligation	18,456	21,604
Change in plan assets, at fair value:
Beginning plan assets	13,441	11,445
Actual return	1,943	1,181
Employer contribution	4,900	1,510
Benefits paid	(4,785)	(658)
Administrative expenses	(33)	(37)
Ending plan assets	15,466	13,441
Funded status at end of year	$ (2,990)	$ (8,163)

XML

Income Taxes - Schedule of Income Tax Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Current	$ 11	$ 1,395
Deferred	1,362	330
Income tax expense	$ 1,373	$ 1,725

XML

Retirement Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Compensation And Retirement Disclosure [Abstract]
Unrecognized actuarial loss (net of tax, of $2,364 in 2013 and $3,862 in 2012)	$ 4,588	$ 7,496

XML

Federal Home Loan Bank Advances - Scheduled Principal Reductions of Federal Home Loan Bank Advances (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Banking And Thrift [Abstract]
2014	$ 30,226
2015	5,000
2017	2,500
Total	$ 37,726

XML

Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Detail) (Core deposit and other intangibles [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Core deposit and other intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 11,619	$ 11,619
Accumulated Amortization	$ 9,326	$ 8,480

XML

Capital Requirements and Restriction on Retained Earnings

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Capital Requirements and Restriction on Retained Earnings

NOTE 17—CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS

The Company and Citizens are subject to regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators. Failure to meet capital requirements can initiate regulatory action.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year-end 2013 and 2012, the most recent regulatory notifications categorized Citizens as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

The Company’s and Citizens’ actual capital levels and minimum required levels at December 31, 2013 and 2012 were as follows.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total Capital to risk-weighted assets
Consolidated	$	143,628		17.1	%	$	67,194		8.0	%		n/a		n/a
Citizens		104,884		12.5			67,126		8.0		$	83,907		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		133,041		15.8			33,681		4.0			n/a		n/a
Citizens		94,302		11.2			33,679		4.0			50,519		6.0
Tier I (Core) Capital to average assets
Consolidated		133,041		11.6			45,876		4.0			n/a		n/a
Citizens		94,302		8.3			45,447		4.0			56,808		5.0
2012
Total Capital to risk-weighted assets
Consolidated	$	116,423		14.8	%	$	62,931		8.0	%		n/a		n/a
Citizens		104,948		13.4			62,656		8.0		$	78,319		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		103,979		13.3			31,272		4.0			n/a		n/a
Citizens		95,022		12.1			31,335		4.0			47,002		6.0
Tier I (Core) Capital to average assets
Consolidated		103,979		9.3			44,722		4.0			n/a		n/a
Citizens		95,022		8.5			44,559		4.0			55,699		5.0

The Company’s primary source of funds for paying dividends to its shareholders and for operating expense is the cash accumulated from dividends received from Citizens. Payment of dividends by Citizens to the Company is subject to restrictions by Citizens’ regulatory agencies. These restrictions generally limit dividends to the current and prior two years retained earnings as defined by the regulations. In addition, dividends may not reduce capital levels below minimum regulatory requirements.

XML

Securities - Available for Sale Securities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 199,094	$ 195,098
Gross Unrealized Gains	3,549	9,175
Gross Unrealized Losses	(3,030)	(312)
Total securities available for sale, Fair Value	199,613	203,961
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	52,229	53,919
Gross Unrealized Gains	95	375
Gross Unrealized Losses	(764)	(8)
Total securities available for sale, Fair Value	51,560	54,286
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	79,975	72,884
Gross Unrealized Gains	2,327	6,946
Gross Unrealized Losses	(1,677)	(24)
Total securities available for sale, Fair Value	80,625	79,806
Mortgage-backed Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	66,409	67,814
Gross Unrealized Gains	1,127	1,854
Gross Unrealized Losses	(557)	(233)
Total securities available for sale, Fair Value	66,979	69,435
Total Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	198,613	194,617
Gross Unrealized Gains	3,549	9,175
Gross Unrealized Losses	(2,998)	(265)
Total securities available for sale, Fair Value	199,164	203,527
Equity Securities in Financial Institutions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	481	481
Gross Unrealized Gains
Gross Unrealized Losses	(32)	(47)
Total securities available for sale, Fair Value	$ 449	$ 434

XML

Stock Options (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Activity in Stock Option Plan

A summary of the activity in the stock option plan is as follows.

	2013					2012
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		10,000		$	35.00		29,500		$	25.42
Granted		—			—		—			—
Exercised		—			—		—			—
Forfeited		—			—		—			—
Expired		(10,000	)		35.00		(19,500	)		20.50
Outstanding at end of year		—		$	—		10,000		$	35.00
Options exercisable at year-end		—		$	—		10,000		$	35.00

XML

Interest - Bearing Deposits - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deposits [Line Items]
Deposits from principal officers, directors, and their affiliates	$ 942,475	$ 926,389
Principal officers, directors, and their affiliates [Member]
Deposits [Line Items]
Deposits from principal officers, directors, and their affiliates	$ 8,606	$ 8,493

XML

Fair Value Measurement - Quantitative Information about Level 3 Fair Value Measurements (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Impaired Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Estimate	$ 15,548	$ 22,084
Impaired Loans [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Impaired Loans [Member] | Discounted Cash Flows [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Technique	Discounted cash flows
Fair Value Measurements, Valuation Technique	Discounted cash flows
Investments [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Estimate		468
Investments [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Other Real Estate Owned [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Estimate	$ 173	$ 471
Other Real Estate Owned [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Fair Value Measurements, Valuation Technique	Appraisal of collateral
Maximum [Member] | Impaired Loans [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	30.00%	30.00%
Fair Value Assumptions, Liquidation expense	10.00%	10.00%
Fair Value Assumptions, Holding period	30 months	30 months
Maximum [Member] | Impaired Loans [Member] | Discounted Cash Flows [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Discount rates	8.50%	8.50%
Maximum [Member] | Other Real Estate Owned [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	30.00%	30.00%
Fair Value Assumptions, Liquidation expense	10.00%	10.00%
Maximum [Member] | Investments [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments		30.00%
Fair Value Assumptions, Liquidation expense		12.00%
Minimum [Member] | Impaired Loans [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	10.00%	10.00%
Fair Value Assumptions, Liquidation expense	0.00%	0.00%
Fair Value Assumptions, Holding period	0 months	0 months
Minimum [Member] | Impaired Loans [Member] | Discounted Cash Flows [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Discount rates	2.00%	2.00%
Minimum [Member] | Other Real Estate Owned [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	10.00%	10.00%
Fair Value Assumptions, Liquidation expense	0.00%	0.00%
Minimum [Member] | Investments [Member] | Appraisal of Collateral [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments		20.00%
Fair Value Assumptions, Liquidation expense		8.00%

XML

Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Summary of Interest-Bearing Deposits

Interest-bearing deposits as of December 31, 2013 and 2012 were as follows.

	2013		2012
Demand	$	168,113	$	170,190
Statement and Passbook Savings		303,037		289,781
Certificates of Deposit:
In excess of $100		66,561		76,261
Other		139,586		154,843
Individual Retirement Accounts		30,202		32,898
Total	$	707,499	$	723,973

Scheduled Maturities of Certificates of Deposit

Scheduled maturities of certificates of deposit, including IRA’s at December 31, 2013 were as follows.

2014	$	156,593
2015		43,240
2016		13,384
2017		9,635
2018		3,995
Thereafter		9,502
Total	$	236,349

XML

Securities - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013 Security	Dec. 31, 2012
Amortized Cost And Fair Value Debt Securities [Abstract]
Carrying value of pledged securities	$ 147,625	$ 147,204
Number of securities in portfolio with unrealized losses	91

XML

Premises and Equipment - Year-End Premises and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 43,917	$ 42,756
Accumulated depreciation	(26,990)	(25,590)
Premises and equipment, net	16,927	17,166
Land and improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	4,083	4,094
Buildings and improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	19,681	19,482
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 20,153	$ 19,180

XML

Allowance for Loan Losses - Aging Analysis of Past Due Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	$ 4,070	$ 4,044
60-89 Days Past Due	1,305	1,839
90 Days or Greater	8,072	16,319
Total Past Due	13,447	22,202
Current	847,794	793,351
Total Loans	861,241	815,553
Past Due 90 Days and Accruing		80
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	105	31
60-89 Days Past Due		72
90 Days or Greater	443	553
Total Past Due	548	656
Current	115,327	100,005
Total Loans	115,875	100,661
Past Due 90 Days and Accruing
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	655	1,000
60-89 Days Past Due	201	533
90 Days or Greater	2,098	6,794
Total Past Due	2,954	8,327
Current	440,892	426,481
Total Loans	443,846	434,808
Past Due 90 Days and Accruing		80
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	3,140	2,843
60-89 Days Past Due	1,084	1,214
90 Days or Greater	5,531	8,527
Total Past Due	9,755	12,584
Current	240,936	238,014
Total Loans	250,691	250,598
Past Due 90 Days and Accruing
Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due		43
60-89 Days Past Due
90 Days or Greater		416
Total Past Due		459
Current	39,964	19,218
Total Loans	39,964	19,677
Past Due 90 Days and Accruing
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
30-59 Days Past Due	170	127
60-89 Days Past Due	20	20
90 Days or Greater		29
Total Past Due	190	176
Current	10,675	9,633
Total Loans	10,865	9,809
Past Due 90 Days and Accruing

XML

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Factors Used in Earnings Per Share Computation

The factors used in the earnings per share computation follow.

	2013		2012
Basic
Net income available to common shareholders	$	5,020	$	4,386
Weighted average common shares outstanding		7,707,917		7,707,917
Basic earnings per share	$	0.65	$	0.57
Diluted
Net income available to common shareholders	$	5,020	$	4,386
Weighted average common shares outstanding for basic earnings per common share		7,707,917		7,707,917
Add: dilutive effects of convertible preferred shares		113,863		—
Average shares and dilutive potential common shares outstanding		7,821,780		7,707,917
Diluted earnings per share	$	0.64	$	0.57

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the accounting policies adopted by First Citizens Banc Corp, which have a significant effect on the financial statements.

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of First Citizens Banc Corp (FCBC) and its wholly-owned subsidiaries: The Citizens Banking Company (Citizens), First Citizens Insurance Agency, Inc., Water Street Properties, Inc. (Water St.) and FC Refund Solutions, Inc. (FCRS). First Citizens Capital LLC (FCC) is wholly-owned by Citizens and holds inter-company debt. First Citizens Investments, Inc. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI and FCC are located in Wilmington, Delaware. The above companies together are sometimes referred to as the Company. Intercompany balances and transactions are eliminated in consolidation.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customer’s ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions and Federal Funds sold.

First Citizens Insurance Agency Inc. was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for the years ended December 31, 2013 and 2012. Water St. was formed to hold repossessed assets of FCBC’s subsidiaries. Water St. revenue was less than 1% of total revenue for the years ended December 31, 2013 and 2012. FCRS was formed in 2012 and remained inactive for the periods presented.

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, impairment of goodwill, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased or sold and repurchase agreements.

Securities: Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are also classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

The recent guidance specifies that if (a) a company does not have the intent to sell a debt security prior to recovery and (b) it is more-likely-than-not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more-likely-than-not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.

The Company’s Consolidated Statement of Operations as of December 31, 2013 reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell and believes that it more-likely-than-not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the non-credit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections.

Other securities which include Federal Home Loan Bank (FHLB) stock, Federal Reserve Bank (FRB) stock, Farmer Mac stock (FMS), Bankers’ Bancshares Inc. (BB) stock, and Norwalk Community Development Corp (NCDC) stock are carried at cost.

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or market, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, it is recognized as part of future interest income.

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers four principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, (iii) allocations on all other loans based principally on a two-year historical loan loss experience and loan loss trends. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company also maintains an unallocated allowance to account for any factors or conditions that may cause a potential loss but are not specifically addressed in the process described above. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

All commercial loans and commercial real estate loans are monitored on a regular basis with a detailed review completed for all loans greater than $500. All commercial loans and commercial real estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Citizens’ loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate; (iii) Residential Real Estate loans; (iv) Real Estate Construction loans; and (v) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies: All unsecured open-and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open-and closed-ended loans secured by residential real estate, a current assessment of value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when the loan is 90 days past due.

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Other real estate owned included in other assets totaled approximately $173 at December 31, 2013 and $471 at December 31, 2012.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock: Citizens is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013 or 2012.

Federal Reserve Bank (FRB) Stock: Citizens is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.

Bank Owned Life Insurance (BOLI): Citizens has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets: Goodwill results from prior business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Servicing Rights: Servicing rights are recognized as assets for the allocated value of retained servicing rights on loans sold. Servicing rights are initially recorded at fair value at the date of transfer. The valuation technique used is the present value of estimated future cash flows using current market discount rates. Servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-term Assets: Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share: Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements.

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. These balances do not earn interest.

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Citizens to FCBC or by FCBC to shareholders. Additional information related to dividend restrictions can be found in Note 17.

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this Update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this Update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangements on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. The amendments in this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. Entities that use the liquidation basis of accounting as of the effective date in accordance with other Topics (for example, terminating employee benefit plans) are not required to apply the amendments. Instead, those entities should continue to apply the guidance in those other Topics until they have completed liquidation. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In June 2013, the FASB issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update affect the scope, measurement, and disclosure requirements for investment companies under U.S. GAAP. The amendments do all of the following: 1. Change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment Company. 2. Require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. 3. Require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this Update are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Management is currently investigating the potential impact of this Update to the Company’s financial statements.

In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements.

XML

Allowance for Loan Losses - Summary of Nonaccrual Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 20,459	$ 29,855
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	1,590	2,869
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	9,609	16,250
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	9,210	9,701
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status		958
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 50	$ 77

XML

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value

Assets measured at fair value are summarized below.

	Fair Value Measurements at December 31, 2013 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	51,560	$	—
Obligations of states and political subdivisions		—		80,625		—
Mortgage-backed securities in government sponsored entities		—		66,979		—
Equity securities in financial institutions		—		449		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	15,548
Other Real Estate Owned		—		—		173

	Fair Value Measurements at December 31, 2012 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	54,286	$	—
Obligations of states and political subdivisions		—		79,338		468
Mortgage-backed securities in government sponsored entities		—		69,435		—
Equity securities in financial institutions		—		434		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	22,084
Other Real Estate Owned		—		—		471

Quantitative Information about Level 3 Fair Value Measurements

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2013 and 2012.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2013	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	15,548	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%
				Holding period		0 - 30 months
			Discounted cash flows	Discount rates		2% - 8.5	%
Other real estate owned	$	173	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2012	Fair Value		Valuation Technique	Unobservable Input	Range
Investments	$	468	Appraisal of collateral	Appraisal adjustments		20% - 30	%
				Liquidation expense		8% - 12	%
Impaired loans	$	22,084	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%
				Holding period		0 -30 months
			Discounted cash flows	Discount rates		2% - 8.5	%
Other real estate owned	$	471	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%

Summary of Changes in Level 3 Fair-Value Category in Securities Available for Sale

The following table presents the changes in the Level 3 fair value category for the fiscal periods ended December 31, 2013 and 2012. The Company classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to the unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly.

Securities available for sale
	2013			2012
Beginning balance January 1,	$	468		$	517
Principal payments		(468	)		(49	)
Ending balance December 31,	$	—		$	468

Carrying Amount and Fair Values of Financial Instruments

The carrying amount and fair value of financial instruments were as follows.

December 31, 2013	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	33,883	$	33,883	$	33,883	$	—	$	—
Securities available for sale		199,613		199,613		—		199,613		—
Other securities		15,424		15,424		15,424		—		—
Loans, available for sale		438		438		438		—		—
Loans, net of allowance for loan losses		844,713		861,252		—		—		861,252
Bank owned life insurance		19,145		19,145		19,145		—		—
Accrued interest receivable		3,881		3,881		3,881		—		—
Financial Liabilities:
Nonmaturing deposits		706,126		706,126		706,126		—		—
Time deposits		236,349		237,837		—		—		237,837
Federal Home Loan Bank advances		37,726		38,767		—		—		38,767
Securities sold under agreement to repurchase		20,053		20,053		20,053		—		—
Subordinated debentures		29,427		20,605		—		—		20,605
Accrued interest payable		156		156		156		—		—

December 31, 2012	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	46,131	$	46,131	$	46,131	$	—	$	—
Securities available for sale		203,961		203,961		—		203,493		468
Other securities		15,567		15,567		15,567		—		—
Loans, available for sale		1,873		1,873		1,873		—		—
Loans, net of allowance for loan losses		795,811		812,950		—		—		812,950
Bank owned life insurance		18,590		18,590		18,590		—		—
Accrued interest receivable		3,709		3,709		3,709		—		—
Financial Liabilities:
Nonmaturing deposits		662,387		662,387		662,387		—		—
Time deposits		264,002		265,974		—		—		265,974
Federal Home Loan Bank advances		40,261		41,658		—		—		41,658
Securities sold under agreement to repurchase		23,219		23,219		23,219		—		—
Subordinated debentures		29,427		26,855		—		—		26,855
Accrued interest payable		185		185		185		—		—

XML

Participation in the Treasury Capital Purchase Program

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Participation in the Treasury Capital Purchase Program

NOTE 21—PARTICIPATION IN THE TREASURY CAPITAL PURCHASE PROGRAM

On January 23, 2009, the Company completed the sale to the U.S. Treasury of $23,184 of newly-issued non-voting preferred shares as part of the Capital Purchase Program (CPP) enacted by the U.S. Treasury as part of the Troubled Assets Relief Program (TARP) under the Emergency Economic Stabilization Act of 2008 (EESA). To finalize the Company’s participation in the CPP, the Company and the Treasury entered into a Letter Agreement, dated January 23, 2009, including the Securities Purchase Agreement – Standard Terms attached thereto. Pursuant to the terms of the Securities Purchase Agreement, the Company issued and sold to Treasury (1) 23,184 shares of Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value and having a liquidation preference of $1,000 per share (Series A Preferred Shares), and (2) a Warrant to purchase 469,312 common shares of the Company, each without par value, at an exercise price of $7.41 per share. The Warrant had a ten-year term. All of the proceeds from the sale of the Series A Preferred Shares and the Warrant by the Company to the U.S. Treasury under the CPP qualified as Tier 1 capital for regulatory purposes. Under the standardized CPP terms, cumulative dividends on the Series A Preferred Shares accrued on the liquidation preference at a rate of 5% per annum for the first five years, and at a rate of 9% per annum thereafter. The Series A Preferred Shares had no maturity date and ranked senior to the common shares with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution and winding up of the Company.

On July 3, 2012, the U.S. Treasury completed the sale of all 23,184 of the Preferred Shares to various investors pursuant to a modified “Dutch auction” process. On September 5, 2012, the Company completed the repurchase of the Warrant from the U.S. Treasury in accordance with the terms of the Securities Purchase Agreement for an aggregate purchase price of $563,174.

On December 19, 2013, the Company announced the completion of its public offering of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering at $25.00 per depositary share, resulting in proceeds, net of $1,868 issuance costs, to the Company of $23,132.

On January 17, 2014, the Company provided notice that it intends to redeem all 23,184 of the Series A Preferred Shares (CUSIP No. 319459 30 1), which were originally sold to the United States Department of the Treasury, as part of TARP. The redemption of the Series A Preferred Shares was effective as of February 15, 2014.

XML

Quarterly Financial Data

12 Months Ended

Dec. 31, 2013

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data

NOTE 20—QUARTERLY FINANCIAL DATA (UNAUDITED)

	Interest Income		Net Interest Income		Net Income		Basic Earnings per Common Share		Diluted Earnings per Common Share
2013
First quarter (1)(2)(5)	$	11,287	$	9,988	$	1,913	$	0.21	$	0.21
Second quarter (1)(2)(3)		11,025		9,781		1,657		0.18		0.18
Third quarter (1)(2)		11,127		9,917		1,566		0.17		0.17
Fourth quarter (1)(2)(4)(6)		11,443		10,290		1,043		0.09		0.08
2012
First quarter (6)(7)(8)	$	12,118	$	10,445	$	1,293	$	0.13	$	0.13
Second quarter (6)(7)(10)		11,757		10,146		936		0.08		0.08
Third quarter (6)(7)(8)		11,529		10,028		1,384		0.14		0.14
Fourth quarter (6)(7)(8)(9)		11,357		9,959		1,966		0.22		0.22

⁽¹⁾  Interest income decreased as loans repriced downward.

⁽²⁾  Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

⁽³⁾  Net interest income and net income decreased due to reversed late charges.

⁽⁴⁾  Net interest income and net income increased due to increased loan volume.

⁽⁵⁾  Net income increased due to fees on tax refund program.

⁽⁶⁾  Net income decreased due to non cash charge to pension plan.

⁽⁶⁾  Interest income decreased as loans repriced downward.

⁽⁷⁾  Interest expense decreased as deposits repriced downward and the deposit mix shifted toward cheaper funding sources.

⁽⁸⁾  Net income increased due to a reduction in provision for loan losses.

⁽⁹⁾  Interest income decreased due to reversed income related to nonaccrual loans.

⁽¹⁰⁾  Net income decreased due to reserves for unfunded commitments.

XML

Commitments, Contingencies and Off-Balance-Sheet Risk - Contractual Amount of Financial Instruments with Off-Balance-Sheet Risk (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	$ 12,084	$ 9,723
Variable Rate	174,827	138,304
Lines of Credit and Construction Loans [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	11,866	9,378
Variable Rate	151,332	118,182
Overdraft Protection [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	18	51
Variable Rate	21,084	19,726
Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	200	294
Variable Rate	$ 2,411	$ 396

XML

Loans - Loans to Directors and Executive Officers Including Immediate Families and Companies (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Receivables [Abstract]
Balance-Beginning of year	$ 9,997	$ 10,922
New loans and advances	3,262	5,713
Repayments	(3,157)	(6,788)
Effect of changes to related parties	(808)	150
Balance-End of year	$ 9,294	$ 9,997

XML

Commitments, Contingencies and Off-Balance-Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Contractual Amount of Financial Instruments with Off-Balance-Sheet Risk

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2013				2012
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	11,866	$	151,332	$	9,378	$	118,182
Overdraft protection		18		21,084		51		19,726
Letters of credit		200		2,411		294		396
	$	12,084	$	174,827	$	9,723	$	138,304

XML

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Nature of Operations and Principles of Consolidation

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of First Citizens Banc Corp (FCBC) and its wholly-owned subsidiaries: The Citizens Banking Company (Citizens), First Citizens Insurance Agency, Inc., Water Street Properties, Inc. (Water St.) and FC Refund Solutions, Inc. (FCRS). First Citizens Capital LLC (FCC) is wholly-owned by Citizens and holds inter-company debt. First Citizens Investments, Inc. (FCI) is wholly-owned by Citizens and holds and manages its securities portfolio. The operations of FCI and FCC are located in Wilmington, Delaware. The above companies together are sometimes referred to as the Company. Intercompany balances and transactions are eliminated in consolidation.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Summit, Huron, Ottawa, Madison and Richland. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, the customer’s ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions and Federal Funds sold.

First Citizens Insurance Agency Inc. was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for the years ended December 31, 2013 and 2012. Water St. was formed to hold repossessed assets of FCBC’s subsidiaries. Water St. revenue was less than 1% of total revenue for the years ended December 31, 2013 and 2012. FCRS was formed in 2012 and remained inactive for the periods presented.

Use of Estimates

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, impairment of goodwill, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities fewer than 90 days. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions, and federal funds purchased or sold and repurchase agreements.

Securities

Securities: Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are also classified as available for sale. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

The recent guidance specifies that if (a) a company does not have the intent to sell a debt security prior to recovery and (b) it is more-likely-than-not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more-likely-than-not the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security.

The Company’s Consolidated Statement of Operations as of December 31, 2013 reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more-likely-than-not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell and believes that it more-likely-than-not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the non-credit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections.

Other securities which include Federal Home Loan Bank (FHLB) stock, Federal Reserve Bank (FRB) stock, Farmer Mac stock (FMS), Bankers’ Bancshares Inc. (BB) stock, and Norwalk Community Development Corp (NCDC) stock are carried at cost.

Loans Held for Sale

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or market, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, it is recognized as part of future interest income.

Allowance for Loan Losses

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers four principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the

Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, (iii) allocations on all other loans based principally on a two-year historical loan loss experience and loan loss trends. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company also maintains an unallocated allowance to account for any factors or conditions that may cause a potential loss but are not specifically addressed in the process described above. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

All commercial loans and commercial real estate loans are monitored on a regular basis with a detailed review completed for all loans greater than $500. All commercial loans and commercial real estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Citizens’ loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate; (iii) Residential Real Estate loans; (iv) Real Estate Construction loans; and (v) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies

Loan Charge-off Policies: All unsecured open- and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open- and closed-ended loans secured by residential real estate, a current assessment of value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when the loan is 90 days past due.

Troubled Debt Restructurings

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Other real estate owned included in other assets totaled approximately $173 at December 31, 2013 and $471 at December 31, 2012.

Premises and Equipment

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock

Federal Home Loan Bank (FHLB) Stock: Citizens is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) the impact of legislative and regulatory changes on the customer base of the FHLB and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the stock was not impaired at December 31, 2013 or 2012.

Federal Reserve Bank (FRB) Stock

Federal Reserve Bank (FRB) Stock: Citizens is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value.

Bank Owned Life Insurance (BOLI)

Bank Owned Life Insurance (BOLI): Citizens has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets: Goodwill results from prior business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Servicing Rights

Servicing Rights: Servicing rights are recognized as assets for the allocated value of retained servicing rights on loans sold. Servicing rights are initially recorded at fair value at the date of transfer. The valuation technique used is the present value of estimated future cash flows using current market discount rates. Servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-term Assets

Long-term Assets: Premises and equipment, core deposit and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Retirement Plans

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share

Earnings per Common Share: Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Effect of Newly Issued but Not Yet Effective Accounting Standards

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In February 2013, the FASB issued ASU 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. The objective of the amendments in this Update is to provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. generally accepted accounting principles (GAAP). Examples of obligations within the scope of this Update include debt arrangements, other contractual obligations, and settled litigation and judicial rulings. U.S. GAAP does not include specific guidance on accounting for such obligations with joint and several liability, which has resulted in diversity in practice. Some entities record the entire amount under the joint and several liability arrangements on the basis of the concept of a liability and the guidance that must be met to extinguish a liability. Other entities record less than the total amount of the obligation, such as an amount allocated, an amount corresponding to the proceeds received, or the portion of the amount the entity agreed to pay among its co-obligors, on the basis of the guidance for contingent liabilities. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In April 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. The amendments in this Update are being issued to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. Entities that use the liquidation basis of accounting as of the effective date in accordance with other Topics (for example, terminating employee benefit plans) are not required to apply the amendments. Instead, those entities should continue to apply the guidance in those other Topics until they have completed liquidation. Adoption of this Update is not expected to have a significant impact on the Company’s financial statements.

In June 2013, the FASB issued ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update affect the scope, measurement, and disclosure requirements for investment companies under U.S. GAAP. The amendments do all of the following: 1. Change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment Company. 2. Require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting. 3. Require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this Update are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Management is currently investigating the potential impact of this Update to the Company’s financial statements.

In January 2014, FASB issued ASU 2014-01, Investments – Equity Method and Join Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company’s financial statements.

XML

Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Available for Sale Securities

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2013
U.S. Treasury securities and obligations of U.S. government agencies	$	52,229	$	95	$	(764	)	$	51,560
Obligations of states and political subdivisions		79,975		2,327		(1,677	)		80,625
Mortgage-back securities in government sponsored entities		66,409		1,127		(557	)		66,979
Total debt securities		198,613		3,549		(2,998	)		199,164
Equity securities in financial institutions		481		—		(32	)		449
Total	$	199,094	$	3,549	$	(3,030	)	$	199,613
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2012
U.S. Treasury securities and obligations of U.S. government agencies	$	53,919	$	375	$	(8	)	$	54,286
Obligations of states and political subdivisions		72,884		6,946		(24	)		79,806
Mortgage-back securities in government sponsored entities		67,814		1,854		(233	)		69,435
Total debt securities		194,617		9,175		(265	)		203,527
Equity securities in financial institutions		481		—		(47	)		434
Total	$	195,098	$	9,175	$	(312	)	$	203,961

Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities at year end 2013 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	3,296	$	3,309
Due from one to five years		21,451		21,334
Due from five to ten years		34,288		34,403
Due after ten years		73,169		73,139
Mortgage-backed securities in government sponsored entities		66,409		66,979
Equity securities in financial institutions		481		449
Total	$	199,094	$	199,613

Proceeds from Sales of Securities, Gross Realized Gains and Losses

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.

	2013			2012
Sale proceeds	$	8,686		$	12,982
Gross realized gains		144			99
Gross realized losses		(89	)		(59	)
Gains from securities called or settled by the issuer		149			—

Securities with Unrealized Losses Not Recognized in Income

Debt securities with unrealized losses at year end 2013 and 2012 not recognized in income are as follows.

2013	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	30,800	$	(764	)	$	—	$	—		$	30,800	$	(764	)
Obligations of states and political subdivisions		28,428		(1,556	)		968		(121	)		29,396		(1,677	)
Mortgage-backed securities in gov’t sponsored entities		32,557		(553	)		279		(4	)		32,836		(557	)
Equity securities in financial institutions		449		(32	)		—		—			449		(32	)
Total temporarily impaired	$	92,234	$	(2,905	)	$	1,247	$	(125	)	$	93,481	$	(3,030	)
2012	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	6,184	$	(8	)	$	—	$	—		$	6,184	$	(8	)
Obligations of states and political subdivisions		1,440		(22	)		465		(2	)		1,905		(24	)
Mortgage-backed securities in gov’t sponsored entities		7,907		(215	)		2,122		(18	)		10,029		(233	)
Equity securities in financial institutions		434		(47	)		—		—			434		(47	)
Total temporarily impaired	$	15,965	$	(292	)	$	2,587	$	(20	)	$	18,552	$	(312	)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net income	$ 6,179	$ 5,579
Adjustments to reconcile net income to net cash from operating activities
Security amortization, net	1,633	1,987
Depreciation	1,509	1,493
Amortization of intangible assets	846	974
Amortization of net deferred loan fees	(112)	332
Net realized gain on sale of securities	(204)	(40)
Provision for loan losses	1,100	6,400
Loans originated for sale	(49,978)	(46,894)
Proceeds from sale of loans	51,874	46,243
Gain on sale of loans	(461)	(624)
Gain on sale of OREO properties	(120)	(118)
Gain on sale of fixed assets	(107)
Bank owned life insurance	(555)	(627)
Deferred income taxes	1,362	330
Prepaid FDIC Premium	1,775	780
Change in Accrued interest payable	(29)	(73)
Accrued interest receivable	(172)	78
Other, net	(2,074)	1,073
Net cash from operating activities	12,466	16,893
Securities available for sale
Maturities, prepayments and calls	50,184	63,421
Sales	8,686	12,982
Purchases	(64,295)	(77,090)
Redemption of Federal Reserve stock	143	6
Purchases of Federal Reserve stock		(185)
Net loan originations	(50,170)	(39,138)
Proceeds from sale of OREO properties	699	1,349
Property and equipment purchases	(1,281)	(905)
Proceeds from sale of property and equipment	118	20
Net cash used for investing activities	(55,916)	(39,540)
Cash flows from financing activities:
Increase in deposits	16,086	25,143
Repayment of long-term FHLB advances	(2,535)	(10,034)
(Decrease) increase in securities sold under repurchase agreements	(3,166)	4,190
Repurchase of common stock warrant from US Treasury		(564)
Cash dividends paid	(2,315)	(2,084)
Net proceeds from issuance of preferred stock	23,132
Net cash provided by financing activities	31,202	16,651
Decrease in cash and due from financial institutions	(12,248)	(5,996)
Cash and due from financial institutions at beginning of year	46,131	52,127
Cash and due from financial institutions at end of year	33,883	46,131
Supplemental cash flow information:
Interest paid	4,936	6,257
Income taxes paid	1,010	400
Supplemental non-cash disclosures:
Transfer of loans from portfolio to other real estate owned	281	606
Transfer of loans from portfolio to held for sale	$ 4,756

XML

Loans (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans at Year-End

Loans at year-end were as follows.

	2013			2012
Commercial and agricultural	$	115,875		$	100,661
Commercial real estate		443,846			434,808
Residential real estate		250,691			250,598
Real estate construction		39,964			19,677
Consumer and other		10,865			9,809
Total Loans		861,241			815,553
Allowance for loan losses		(16,528	)		(19,742	)
Net loans	$	844,713		$	795,811

Loans to Directors and Executive Officers Including Immediate Families

Loans to principal officers, directors, and their affiliates at year-end 2013 and 2012 were as follows.

	2013			2012
Balance—Beginning of year	$	9,997		$	10,922
New loans and advances		3,262			5,713
Repayments		(3,157	)		(6,788	)
Effect of changes to related parties		(808	)		150
Balance—End of year	$	9,294		$	9,997

XML

Income Taxes - Effective Tax Rates Differ from Statutory Federal Income Tax Rate (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Income taxes computed at the statutory federal tax rate	$ 2,568	$ 2,483
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense	(781)	(630)
Low income housing tax credit	(280)
Cash surrender value of BOLI	(189)	(213)
Other	55	85
Income tax expense	$ 1,373	$ 1,725

XML

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Income Tax Expense

Income tax expense was as follows.

	2013		2012
Current	$	11	$	1,395
Deferred		1,362		330
Income tax expense	$	1,373	$	1,725

Effective Tax Rates Differ from Statutory Federal Income Tax Rate

Effective tax rates differ from the statutory federal income tax rate of 34% due to the following.

	2013			2012
Income taxes computed at the statutory federal tax rate	$	2,568		$	2,483
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(781	)		(630	)
Low income housing tax credit		(280	)		—
Cash surrender value of BOLI		(189	)		(213	)
Other		55			85
Income tax expense	$	1,373		$	1,725

Summary of Deferred Tax Assets and Liabilities

Year-end deferred tax assets and liabilities were due to the following.

	2013			2012
Deferred tax assets
Allowance for loan losses	$	5,620		$	6,712
Deferred compensation		1,223			1,057
Intangible assets		50			182
Pension costs		996			2,775
Impairment losses		146			195
Other		133			171
Deferred tax asset		8,168			11,092
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(466	)		(295	)
Discount accretion on securities		(77	)		(73	)
Purchase accounting adjustments		(1,465	)		(1,774	)
FHLB stock dividends		(2,249	)		(2,249	)
Unrealized gain on securities available for sale		(176	)		(3,013	)
Other		(174	)		(105	)
Deferred tax liability		(4,607	)		(7,509	)
Net deferred tax asset	$	3,561		$	3,583

XML

Securities - Proceeds from Sales of Securities, Gross Realized Gains and Losses (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Amortized Cost And Fair Value Debt Securities [Abstract]
Sale proceeds	$ 8,686	$ 12,982
Gross realized gains	144	99
Gross realized losses	(89)	(59)
Gains from securities called or settled by the issuer	$ 149

XML

Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Goodwill And Intangible Assets Disclosure [Abstract]
2014	$ 769
2015	555
2016	522
2017	447
Thereafter
Estimated amortization expense	$ 2,293

XML

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and due from financial institutions	$ 33,883	$ 46,131
Securities available for sale	199,613	203,961
Loans held for sale	438	1,873
Loans, net of allowance of $16,528 and $19,742	844,713	795,811
Other securities	15,424	15,567
Premises and equipment, net	16,927	17,166
Accrued interest receivable	3,881	3,709
Goodwill	21,720	21,720
Other intangible assets	2,293	3,139
Bank owned life insurance	19,145	18,590
Other assets	9,509	9,304
Total assets	1,167,546	1,136,971
Deposits
Noninterest-bearing	234,976	202,416
Interest-bearing	707,499	723,973
Total deposits	942,475	926,389
Federal Home Loan Bank advances	37,726	40,261
Securities sold under agreements to repurchase	20,053	23,219
Subordinated debentures	29,427	29,427
Accrued expenses and other liabilities	9,489	13,695
Total liabilities	1,039,170	1,032,991
SHAREHOLDERS' EQUITY
Common stock, no par value, 20,000,000 shares authorized, 8,455,881 shares issued	114,365	114,365
Accumulated deficit	(10,823)	(14,687)
Treasury stock, 747,964 shares at cost	(17,235)	(17,235)
Accumulated other comprehensive loss	(4,247)	(1,647)
Total shareholders' equity	128,376	103,980
Total liabilities and shareholders' equity	1,167,546	1,136,971
Series A Preferred Stock [Member]
SHAREHOLDERS' EQUITY
Preferred stock	23,184	23,184
Series B Preferred Stock [Member]
SHAREHOLDERS' EQUITY
Preferred stock	$ 23,132

XML

Capital Requirements and Restriction on Retained Earnings (Tables)

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Actual Capital Levels and Minimum Required Levels

The Company’s and Citizens’ actual capital levels and minimum required levels at December 31, 2013 and 2012 were as follows.

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2013
Total Capital to risk-weighted assets
Consolidated	$	143,628		17.1	%	$	67,194		8.0	%		n/a		n/a
Citizens		104,884		12.5			67,126		8.0		$	83,907		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		133,041		15.8			33,681		4.0			n/a		n/a
Citizens		94,302		11.2			33,679		4.0			50,519		6.0
Tier I (Core) Capital to average assets
Consolidated		133,041		11.6			45,876		4.0			n/a		n/a
Citizens		94,302		8.3			45,447		4.0			56,808		5.0
2012
Total Capital to risk-weighted assets
Consolidated	$	116,423		14.8	%	$	62,931		8.0	%		n/a		n/a
Citizens		104,948		13.4			62,656		8.0		$	78,319		10.0	%
Tier I (Core) Capital to risk-weighted assets
Consolidated		103,979		13.3			31,272		4.0			n/a		n/a
Citizens		95,022		12.1			31,335		4.0			47,002		6.0
Tier I (Core) Capital to average assets
Consolidated		103,979		9.3			44,722		4.0			n/a		n/a
Citizens		95,022		8.5			44,559		4.0			55,699		5.0

XML

Fair Value Measurement - Assets Measured at Fair Value (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 15,548	$ 22,084
(Level 1) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 1) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 1) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Mortgage-backed Securities in Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 1) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Equity Securities in Financial Institutions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 1) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 1) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	51,560	54,286
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	80,625	79,338
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Mortgage-backed Securities in Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	66,979	69,435
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Equity Securities in Financial Institutions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	449	434
(Level 2) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 2) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 3) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 3) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		468
(Level 3) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Mortgage-backed Securities in Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 3) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Equity Securities in Financial Institutions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	15,548	22,084
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 173	$ 471

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (USD $) In Thousands, except Share data	Total	Preferred Shares [Member]	Common Shares [Member]	Accumulated Deficit [Member]	Treasury Shares [Member]	Accumulated Other Comprehensive Loss [Member]
Balance at Dec. 31, 2011	$ 102,528	$ 23,151	$ 114,447	$ (17,667)	$ (17,235)	$ (168)
Balance, shares at Dec. 31, 2011		23,184	7,707,917
Net income	5,579			5,579
Other Comprehensive Loss	(1,479)					(1,479)
Amortization of discount on preferred stock		33		(33)
Common stock warrant redeemed	(564)		(82)	(482)
Cash dividends ($0.12 per share)	(925)			(925)
Preferred stock dividends	(1,159)			(1,159)
Balance at Dec. 31, 2012	103,980	23,184	114,365	(14,687)	(17,235)	(1,647)
Balance, shares at Dec. 31, 2012		23,184	7,707,917
Net income	6,179			6,179
Other Comprehensive Loss	(2,600)					(2,600)
Issuance of Series B preferred shares, net of issuance costs	23,132	23,132
Issuance of Series B preferred shares, net of issuance costs, shares		25,000
Cash dividends ($0.12 per share)	(1,156)			(1,156)
Preferred stock dividends	(1,159)			(1,159)
Balance at Dec. 31, 2013	$ 128,376	$ 46,316	$ 114,365	$ (10,823)	$ (17,235)	$ (4,247)
Balance, shares at Dec. 31, 2013		48,184	7,707,917

XML

Stock Options - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option term maximum period	10 years
Option term minimum period	3 years
Shares, Outstanding at end of year		10,000	29,500
Corporation's Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares under stock option plan authorized for issuance	225,000

XML

Allowance for Loan Losses - Credit Exposures by Internally Assigned Grades (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	$ 707,769	$ 659,229
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	660,308	595,300
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	12,190	10,320
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	32,922	53,609
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	2,349
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	115,875	100,661
Commercial and Agriculture [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	107,923	90,159
Commercial and Agriculture [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	2,038	1,653
Commercial and Agriculture [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	5,914	8,849
Commercial and Agriculture [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	443,846	434,808
Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	415,938	397,657
Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	9,145	6,371
Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	18,763	30,780
Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	110,210	104,713
Residential Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	98,700	89,896
Residential Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	986	1,944
Residential Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	8,175	12,873
Residential Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	2,349
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	35,516	17,947
Real Estate Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	35,495	16,594
Real Estate Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	21	352
Real Estate Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades		1,001
Real Estate Construction [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	2,322	1,100
Consumer [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	2,252	994
Consumer [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades
Consumer [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades	70	106
Consumer [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Credit exposures by internally assigned grades

XML

Fair Value Measurement - Carrying Amount and Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financial Assets:
Securities available for sale	$ 199,613	$ 203,961
Carrying Amount [Member]
Financial Assets:
Cash and due from financial institutions	33,883	46,131
Securities available for sale	199,613	203,961
Other securities	15,424	15,567
Loans, available for sale	438	1,873
Loans, net of allowance for loan losses	844,713	795,811
Bank owned life insurance	19,145	18,590
Accrued interest receivable	3,881	3,709
Financial Liabilities:
Nonmaturing deposits	706,126	662,387
Time deposits	236,349	264,002
Federal Home Loan Bank advances	37,726	40,261
Securities sold under agreement to repurchase	20,053	23,219
Subordinated debentures	29,427	29,427
Accrued interest payable	156	185
Total Fair Value [Member]
Financial Assets:
Cash and due from financial institutions	33,883	46,131
Securities available for sale	199,613	203,961
Other securities	15,424	15,567
Loans, available for sale	438	1,873
Loans, net of allowance for loan losses	861,252	812,950
Bank owned life insurance	19,145	18,590
Accrued interest receivable	3,881	3,709
Financial Liabilities:
Nonmaturing deposits	706,126	662,387
Time deposits	237,837	265,974
Federal Home Loan Bank advances	38,767	41,658
Securities sold under agreement to repurchase	20,053	23,219
Subordinated debentures	20,605	26,855
Accrued interest payable	156	185
(Level 1) [Member]
Financial Assets:
Cash and due from financial institutions	33,883	46,131
Securities available for sale
Other securities	15,424	15,567
Loans, available for sale	438	1,873
Loans, net of allowance for loan losses
Bank owned life insurance	19,145	18,590
Accrued interest receivable	3,881	3,709
Financial Liabilities:
Nonmaturing deposits	706,126	662,387
Time deposits
Federal Home Loan Bank advances
Securities sold under agreement to repurchase	20,053	23,219
Subordinated debentures
Accrued interest payable	156	185
(Level 2) [Member]
Financial Assets:
Cash and due from financial institutions
Securities available for sale	199,613	203,493
Other securities
Loans, available for sale
Loans, net of allowance for loan losses
Bank owned life insurance
Accrued interest receivable
Financial Liabilities:
Nonmaturing deposits
Time deposits
Federal Home Loan Bank advances
Securities sold under agreement to repurchase
Subordinated debentures
Accrued interest payable
(Level 3) [Member]
Financial Assets:
Cash and due from financial institutions
Securities available for sale		468
Other securities
Loans, available for sale
Loans, net of allowance for loan losses	861,252	812,950
Bank owned life insurance
Accrued interest receivable
Financial Liabilities:
Nonmaturing deposits
Time deposits	237,837	265,974
Federal Home Loan Bank advances	38,767	41,658
Securities sold under agreement to repurchase
Subordinated debentures	20,605	26,855
Accrued interest payable

XML

Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Year-End Premises and Equipment

Year-end premises and equipment were as follows.

	2013			2012
Land and improvements	$	4,083		$	4,094
Buildings and improvements		19,681			19,482
Furniture and equipment		20,153			19,180
Total		43,917			42,756
Accumulated depreciation		(26,990	)		(25,590	)
Premises and equipment, net	$	16,927		$	17,166

Rent Commitments Under Non-Cancelable Operating Leases

Rent expense was $367 and $344 for 2013 and 2012, respectively. Rent commitments under non-cancelable operating leases at December 31, 2013 were as follows, before considering renewal options that generally are present.

2014	$	359
2015		274
2016		231
2017		213
2018		117
Thereafter		87
Total	$	1,281

XML

Other Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive Loss, Net of Tax (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (1,647)	$ (168)
Other comprehensive income (loss) before reclassifications	(5,373)	414
Amounts reclassified from accumulated other comprehensive income (loss)	2,773	(1,893)
Net current-period other comprehensive income (loss)	(2,600)	(1,479)
Ending balance	(4,247)	(1,647)
Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	5,849	5,461
Other comprehensive income (loss) before reclassifications	(5,373)	414
Amounts reclassified from accumulated other comprehensive income (loss)	(135)	(26)
Net current-period other comprehensive income (loss)	(5,508)	388
Ending balance	341	5,849
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(7,496)	(5,629)
Other comprehensive income (loss) before reclassifications
Amounts reclassified from accumulated other comprehensive income (loss)	2,908	(1,867)
Net current-period other comprehensive income (loss)	2,908	(1,867)
Ending balance	$ (4,588)	$ (7,496)

XML

Stock Options

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Options

NOTE 14—STOCK OPTIONS

Options to buy stock were previously granted to directors, officers and employees under the Company’s stock option plan, which was approved by shareholders on April 18, 2000 and authorized the Company to issue up to 225,000 options. The exercise price of the stock options was the market price at date of grant. The maximum option term was ten years, and options vested after three years. The Company’s stock option plan expired in 2010, and no further stock options may be granted under the plan. There were no outstanding stock options at December 31, 2013.

A summary of the activity in the stock option plan is as follows.

	2013					2012
	Shares			Weighted Average Exercise Price		Shares			Weighted Average Exercise Price
Outstanding at beginning of year		10,000		$	35.00		29,500		$	25.42
Granted		—			—		—			—
Exercised		—			—		—			—
Forfeited		—			—		—			—
Expired		(10,000	)		35.00		(19,500	)		20.50
Outstanding at end of year		—		$	—		10,000		$	35.00
Options exercisable at year-end		—		$	—		10,000		$	35.00

The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the common stock as of the reporting date. As of December 31, 2012, there were no options that had intrinsic value.

XML

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

Acquired Intangible Assets

Acquired intangible assets were as follows as of year end.

	2013				2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit and other intangibles	$	11,619	$	9,326	$	11,619	$	8,480

Schedule of Estimated Amortization Expense

Estimated amortization expense for each of the next five years and thereafter is as follows.

2014	$	769
2015		555
2016		522
2017		447
Thereafter		—
	$	2,293

XML

Fair Value Measurement - Summary of Changes in Level 3 Fair-Value Category in Securities Available for Sale (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Securities available for sale
Beginning balance	$ 468	$ 517
Principal payments	(468)	(49)
Ending balance		$ 468

XML

Commitments, Contingencies and Off-Balance-Sheet Risk

12 Months Ended

Dec. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments, Contingencies and Off-Balance-Sheet Risk

NOTE 16—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2013				2012
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	11,866	$	151,332	$	9,378	$	118,182
Overdraft protection		18		21,084		51		19,726
Letters of credit		200		2,411		294		396
	$	12,084	$	174,827	$	9,723	$	138,304

Commitments to make loans are generally made for a period of one year or less. Fixed-rate loan commitments included above had interest rates ranging from 3.05% to 13.75% at December 31, 2013 and December 31, 2012. Maturities extend up to 30 years.

Citizens is required to maintain certain reserve balances on hand in accordance with the Federal Reserve Board requirements. The average reserve balance maintained in accordance with such requirements was $2,959 on December 31, 2013 and $1,217 on December 31, 2012.

XML

Premises and Equipment - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Property Plant And Equipment [Abstract]
Depreciation	$ 1,509	$ 1,493
Rent expense	$ 367	$ 344

XML

Quarterly Financial Data - Schedule of Quarterly Financial Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Interest Income	$ 11,443	$ 11,127	$ 11,025	$ 11,287	$ 11,357	$ 11,529	$ 11,757	$ 12,118	$ 44,881	$ 46,762
Net Interest Income	10,290	9,917	9,781	9,988	9,959	10,028	10,146	10,445	39,974	40,578
Net Income / (Loss)	$ 1,043	$ 1,566	$ 1,657	$ 1,913	$ 1,966	$ 1,384	$ 936	$ 1,293	$ 6,179	$ 5,579
Basic Earnings per Common Share	$ 0.09	$ 0.17	$ 0.18	$ 0.21	$ 0.22	$ 0.14	$ 0.08	$ 0.13	$ 0.65	$ 0.57
Diluted Earnings per Common Share	$ 0.08	$ 0.17	$ 0.18	$ 0.21	$ 0.22	$ 0.14	$ 0.08	$ 0.13	$ 0.64	$ 0.57

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash dividends per share	$ 0.15	$ 0.12
Accumulated Deficit [Member]
Cash dividends per share	$ 0.15	$ 0.12

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Allowance, loans	$ 16,528	$ 19,742
Preferred shares, shares authorized	200,000	200,000
Common shares, par value
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,455,881	8,455,881
Treasury stock, shares	747,964	747,964
Series A Preferred Stock [Member]
Preferred shares, liquidation preference	$ 1,000	$ 1,000
Preferred shares, shares issued	23,184	23,184
Series B Preferred Stock [Member]
Preferred shares, liquidation preference	$ 1,000	$ 1,000
Preferred shares, shares issued	25,000	25,000

XML

Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Federal Home Loan Bank Advances

NOTE 9—FEDERAL HOME LOAN BANK ADVANCES

The Company has a $40,000 cash management advance line of credit with the FHLB. The Company had no outstanding balance on this line as of December 31, 2013 and December 31, 2012. The Company also has an $80,000 repo advance line with the FHLB with no outstanding balances as of December 31, 2013 and December 31, 2012.

Advances from the FHLB were $37,726 at December 31, 2013 and $40,261 at December 31, 2012. Outstanding balances have maturity dates ranging June 2014 to January 2017 and fixed rates ranging from 2.06% to 4.85%. The average rate on outstanding advances was 2.56%.

Scheduled principal reductions of FHLB advances at December 31, 2013 were as follows.

2014	$	30,226
2015		5,000
2017		2,500
Total	$	37,726

In addition to the borrowings, the Company has outstanding letters of credit with the FHLB totaling $23,300 at year-end 2013 and $23,600 at year-end 2012 used for pledging to secure public funds. FHLB borrowings and the letters of credit are collateralized by FHLB stock and by $91,540 and $95,792 of residential mortgage loans under a blanket lien arrangement at year-end 2013 and 2012, respectively.

The Company had a FHLB maximum borrowing capacity of $130,450 as of December 31, 2013, with remaining borrowing capacity of approximately $69,423. The borrowing arrangement with the FHLB is subject to annual renewal. The maximum borrowing capacity is recalculated at least quarterly.

XML

Parent Company Only Condensed Financial Information - Schedule of Condensed Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified				12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013 FCBC [Member]	Dec. 31, 2012 FCBC [Member]
Assets:
Cash				$ 32,572	$ 9,291
Securities available for sale	199,613	203,961		449	434
Investment in bank subsidiary				111,121	115,426
Investment in nonbank subsidiaries				12,595	12,585
Other assets	9,509	9,304		5,210	4,015
Total assets	1,167,546	1,136,971		161,947	141,751
Liabilities and Shareholders' Equity:
Deferred income taxes and other liabilities				4,144	8,344
Subordinated debentures	29,427	29,427		29,427	29,427
Preferred stock				46,316	23,184
Common stock	114,365	114,365		114,365	114,365
Accumulated deficit	10,823	14,687		(10,823)	(14,687)
Treasury Stock	(17,235)	(17,235)		(17,235)	(17,235)
Accumulated other comprehensive loss	4,247	1,647	168	(4,247)	(1,647)
Total liabilities and shareholders' equity	$ 1,167,546	$ 1,136,971		$ 161,947	$ 141,751

XML

Retirement Plans - Summary of Expected Benefit Payments (Detail) (Supplemental Retirement Plan [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2014	$ 396
2015	512
2016	637
2017	842
2018	900
2019 through 2023	6,951
Total	$ 10,238

XML

Retirement Plans - Schedule of Target Allocation and Expected Long-Term Rate of Return by Asset Category (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year-end	100.00%	100.00%
Equity Securities in Financial Institutions [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation, minimum	20.00%
Target Allocation, maximum	50.00%
Percentage of Plan Assets at Year-end	46.50%	45.50%
Total Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation, minimum	30.00%
Target Allocation, maximum	60.00%
Percentage of Plan Assets at Year-end	53.00%	53.90%
Money market funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation, minimum	20.00%
Target Allocation, maximum	30.00%
Percentage of Plan Assets at Year-end	0.50%	0.60%

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 28, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Trading Symbol	FCZA
Entity Registrant Name	FIRST CITIZENS BANC CORP /OH
Entity Central Index Key	0000944745
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		7,707,917
Entity Public Float			$ 46,666,923

XML

Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Securities Sold Under Agreements to Repurchase

NOTE 10—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Information concerning securities sold under agreements to repurchase and treasury tax and loan deposits were as follows.

	2013			2012			2011
Average balance during the year	$	20,749		$	18,912		$	21,588
Average interest rate during the year		0.10	%		0.11	%		0.15	%
Maximum month-end balance during the year	$	24,257		$	23,328		$	25,246
Weighted average interest rate at year end		0.10	%		0.11	%		0.16	%

Securities underlying repurchase agreements had a fair value of $20,053 at December 31, 2013 and $23,219 at December 31, 2012.

XML

Subordinated Debentures - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	1 Months Ended	12 Months Ended								12 Months Ended
	Apr. 30, 2007	Dec. 31, 2013	Dec. 31, 2013 Minimum [Member]	Dec. 31, 2013 Futura TPF Trust I [Member]	Dec. 31, 2013 Futura TPF Trust II [Member]	Dec. 31, 2013 2.56% debenture [Member]	Dec. 31, 2013 Subordinated debentures [Member]	Dec. 31, 2013 3.46% debenture [Member]	Dec. 31, 2013 1.91% debenture [Member]	Dec. 31, 2013 6.05% fixed rate trust preferred securities [Member]	Dec. 31, 2013 1.97% debenture [Member] Futura TPF Trust I [Member]	Dec. 31, 2011 1.97% debenture [Member] Futura TPF Trust II [Member]
Subordinated Borrowing [Line Items]
Floating rate trust preferred securities issued		$ 5,000
Proceeds from pooled offerings of securities		7,500
Redeem and refinance of floating rate subordinated debenture	5,000
Refinancing at face value, reduction rate		2.00%
Subordinated debenture, maturity period		30 years								5 years
Debt, face amount						12,500		7,500	5,000	12,500	2,500	1,927
Debt, interest rate						2.50%		3.40%	1.84%	6.05%
Acquired trust preferred securities				2,500	1,927
Subordinated debentures may redeem part of principal amount			$ 1,000
Subordinated debentures, principal amount percentage		100.00%
Subordinated debenture, maturity date							Jun. 15, 2035
Redemption of subordinated debentures description						The Corporation may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, on or after June 15, 2010 at 100% of the principal amount, plus accrued and unpaid interest.
Debt instrument, variable interest rate percentage											1.90%	1.90%

XML

Retirement Plans - Weighted Average Assumptions Used to Determine Benefit Obligations (Detail)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Long-term rate of return on plan assets	7.00%	7.00%
Benefit obligations [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate on benefit obligation	4.38%	3.72%
Long-term rate of return on plan assets	7.00%	7.00%
Rate of compensation increase	3.00%	3.00%
Net periodic pension cost [Member]
Defined Benefit Plan Disclosure [Line Items]
Discount rate on benefit obligation	3.72%	4.60%
Long-term rate of return on plan assets	7.00%	7.00%
Rate of compensation increase	3.00%	3.00%

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Interest and dividend income
Loans, including fees	$ 38,776	$ 40,048
Taxable securities	3,763	4,710
Tax-exempt securities	2,211	1,895
Federal funds sold and other	131	109
Total interest and dividend income	44,881	46,762
Interest expense
Deposits	2,788	3,800
Federal Home Loan Bank advances	1,358	1,530
Subordinated debentures	740	833
Securities sold under agreements to repurchase	21	21
Total interest expense	4,907	6,184
Net interest income	39,974	40,578
Provision for loan losses	1,100	6,400
Net interest income after provision for loan losses	38,874	34,178
Noninterest income
Service charges	4,201	4,329
Net gain on sale of securities	204	40
Net gain on sale of loans	461	624
ATM fees	1,996	1,868
Trust fees	2,627	2,163
Bank owned life insurance	555	627
Computer center item processing fees	248	259
Net gain on sale of other real estate owned	120	118
Other	1,650	1,172
Total noninterest income	12,062	11,200
Noninterest expense
Salaries, wages and benefits	24,758	20,487
Net occupancy expense	2,209	2,159
Equipment expense	1,273	1,223
Contracted data processing	1,074	962
FDIC Assessment	1,008	847
State franchise tax	1,130	1,059
Professional services	1,677	1,505
Amortization of intangible assets	846	974
ATM expense	650	630
Marketing expense	634	625
Repossession expense	964	1,186
Other operating expenses	7,161	6,417
Total noninterest expense	43,384	38,074
Income before income taxes	7,552	7,304
Income taxes	1,373	1,725
Net income	6,179	5,579
Preferred stock dividends and discount accretion	1,159	1,193
Net income available to common shareholders	$ 5,020	$ 4,386
Earnings per common share, basic	$ 0.65	$ 0.57
Earnings per common share, diluted	$ 0.64	$ 0.57

XML

Allowance for Loan Losses

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Allowance for Loan Losses

NOTE 4—ALLOWANCE FOR LOAN LOSSES

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: Commercial and Agricultural loans, Commercial Real Estate loans, Residential Real Estate loans, Real Estate Construction loans and Consumer loans. Historical loss percentages for each risk category are calculated and used as the basis for calculating allowance allocations. These historical loss percentages are calculated over a three year period for all portfolio segments. Certain economic factors are also considered for trends which management uses to establish the directionality of changes to the unallocated portion of the reserve. The following economic factors are analyzed:

• Changes in lending policies and procedures

• Changes in experience and depth of lending and management staff

• Changes in quality of Citizens’ credit review system

• Changes in the nature and volume of the loan portfolio

• Changes in past due, classified and nonaccrual loans and TDRs

• Changes in economic and business conditions

• Changes in competition or legal and regulatory requirements

• Changes in concentrations within the loan portfolio

• Changes in the underlying collateral for collateral dependent loans

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the balance sheet date. The Company considers the allowance for loan losses of $16,528 adequate to cover loan losses inherent in the loan portfolio, at December 31, 2013. The following tables present by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the period ended December 31, 2013 and December 31, 2012. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2013
Allowance for loan losses:
Beginning balance	$	2,811		$	10,139		$	5,780		$	349		$	246		$	417	$	19,742
Charge-offs		(483	)		(1,804	)		(2,907	)		(136	)		(220	)		—		(5,550	)
Recoveries		141			449			458			108			80			—		1,236
Provision		372			(1,225	)		1,893			(137	)		108			89		1,100
Ending Balance	$	2,841		$	7,559		$	5,224		$	184		$	214		$	506	$	16,528

For the year ended December 31, 2013, the allowance for Commercial Real Estate loans was reduced not only by charge-offs, but also due to the specific reserve required for impaired loans within this segment. The net result of these changes was represented as a decrease in the provision. The allowance for Real Estate Construction loans was reduced as a result of changes to specific reserves required for impaired loans and a reduction in the historical charge-offs for this segment. The result of these changes was represented as a decrease in the provision. The ending reserve balance for Residential Real Estate loans declined from the end of the previous year due to charge-offs during the period. Since these charged-off loans already had specific reserves assigned to them, we no longer need to carry as large a reserve for this segment. While we have seen improvement in asset quality, given the uncertainty in the economy, management determined that it was appropriate to maintain unallocated reserves at a higher level at this time.

	Commercial & Agriculture			Commercial Real Estate			Residential Real Estate			Real Estate Construction			Consumer and Other			Unallocated		Total
December 31, 2012
Allowance for loan losses:
Beginning balance	$	2,876		$	10,571		$	5,796		$	974		$	719		$	321	$	21,257
Charge-offs		(841	)		(3,440	)		(4,506	)		(446	)		(246	)		—		(9,479	)
Recoveries		353			612			397			131			71			—		1,564
Provision		423			2,396			4,093			(310	)		(298	)		96		6,400
Ending Balance	$	2,811		$	10,139		$	5,780		$	349		$	246		$	417	$	19,742

For the year ended December 31, 2012, the allowance for both Real Estate Construction and Consumer loans was a negative provision made based on volume changes in the underlying loan portfolio. Total loans for these segments declined from the end of last year, leading to a smaller calculated required reserve. This is represented as a decrease in the provision. The allowance related to the unallocated segment increased, but remained at a level management feels is generally consistent with prior periods.

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2013
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	1,262	$	445	$	802	$	—	$	—	$	—	$	2,509
Ending balance:
Collectively evaluated for impairment	$	1,579	$	7,114	$	4,422	$	184	$	214	$	506	$	14,019
Ending balance	$	2,841	$	7,559	$	5,224	$	184	$	214	$	506	$	16,528
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	3,869	$	10,175	$	4,005	$	—	$	8			$	18,057
Ending balance:
Collectively evaluated for impairment	$	112,006	$	433,671	$	246,686	$	39,964	$	10,857			$	843,184
Ending balance	$	115,875	$	443,846	$	250,691	$	39,964	$	10,865			$	861,241

	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Unallocated		Total
December 31, 2012
Allowance for loan losses:
Ending balance:
Individually evaluated for impairment	$	286	$	2,354	$	1,199	$	107	$	60	$	—	$	4,006
Ending balance:
Collectively evaluated for impairment	$	2,525	$	7,785	$	4,581	$	242	$	186	$	417	$	15,736
Ending balance	$	2,811	$	10,139	$	5,780	$	349	$	246	$	417	$	19,742
Loan balances outstanding:
Ending balance:
Individually evaluated for impairment	$	5,420	$	13,941	$	6,127	$	541	$	61			$	26,090
Ending balance:
Collectively evaluated for impairment	$	95,241	$	420,867	$	244,471	$	19,136	$	9,748			$	789,463
Ending balance	$	100,661	$	434,808	$	250,598	$	19,677	$	9,809			$	815,553

The following table represents credit exposures by internally assigned risk ratings for the periods ended December 31, 2013 and December 31, 2012. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk rating system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

• Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Citizens will sustain some loss if the deficiencies are not corrected.

• Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

• Unrated – Generally, consumer loans are not risk-graded, except when collateral is used for a business purpose.

December 31, 2013	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	107,923	$	415,938	$	98,700	$	35,495	$	2,252	$	660,308
Special Mention		2,038		9,145		986		21		—		12,190
Substandard		5,914		18,763		8,175		—		70		32,922
Doubtful		—		—		2,349		—		—		2,349
Ending Balance	$	115,875	$	443,846	$	110,210	$	35,516	$	2,322	$	707,769
December 31, 2012	Commercial & Agriculture		Commercial Real Estate		Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Pass	$	90,159	$	397,657	$	89,896	$	16,594	$	994	$	595,300
Special Mention		1,653		6,371		1,944		352		—		10,320
Substandard		8,849		30,780		12,873		1,001		106		53,609
Doubtful		—		—		—		—		—		—
Ending Balance	$	100,661	$	434,808	$	104,713	$	17,947	$	1,100	$	659,229

The following tables present performing and nonperforming loans based solely on payment activity for the periods ended December 31, 2013 and December 31, 2012 that have not been assigned an internal risk grade. These types of loans presented here are not assigned a risk grade unless there is evidence of a problem. Payment activity is reviewed by management on a monthly basis to evaluate performance. Loans are considered to be nonperforming when they become 90 days past due or if management thinks that we may not collect all of our principal and interest. Nonperforming loans also include certain loans that have been modified in Troubled Debt Restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions due to economic status. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2013
Performing	$	140,481	$	4,448	$	8,543	$	153,472
Nonperforming		—		—		—		—
Total	$	140,481	$	4,448	$	8,543	$	153,472
	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
December 31, 2012
Performing	$	145,879	$	1,730	$	8,696	$	156,305
Nonperforming		6		—		13		19
Total	$	145,885	$	1,730	$	8,709	$	156,324

Following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2013 and December 31, 2012.

December 31, 2013	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	105	$	—	$	443	$	548	$	115,327	$	115,875	$	—
Commercial Real Estate		655		201		2,098		2,954		440,892		443,846		—
Residential Real Estate		3,140		1,084		5,531		9,755		240,936		250,691		—
Real Estate Construction		—		—		—		—		39,964		39,964		—
Consumer and Other		170		20		—		190		10,675		10,865		—
Total	$	4,070	$	1,305	$	8,072	$	13,447	$	847,794	$	861,241	$	—
December 31, 2012	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Loans		Past Due 90 Days and Accruing
Commericial & Agriculture	$	31	$	72	$	553	$	656	$	100,005	$	100,661	$	—
Commercial Real Estate		1,000		533		6,794		8,327		426,481		434,808		80
Residential Real Estate		2,843		1,214		8,527		12,584		238,014		250,598		—
Real Estate Construction		43		—		416		459		19,218		19,677		—
Consumer and Other		127		20		29		176		9,633		9,809		—
Total	$	4,044	$	1,839	$	16,319	$	22,202	$	793,351	$	815,553	$	80

The following table presents loans on nonaccrual status as of December 31, 2013 and December 31, 2012.

	2013		2012
Commericial & Agriculture	$	1,590	$	2,869
Commercial Real Estate		9,609		16,250
Residential Real Estate		9,210		9,701
Real Estate Construction		—		958
Consumer and Other		50		77
Total	$	20,459	$	29,855

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although the Company may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.

Loan modifications that are considered TDRs completed during the quarters and twelve month periods ended December 31, 2013 and December 31, 2012 were as follows:

	For the Twelve Month Period Ended December 31, 2013						For the Twelve Month Period Ended December 31, 2012
	Number of Contracts		Pre- Modification Outstanding Recorded Investment-		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commericial & Agriculture		—	$	—	$	—		6	$	984	$	976
Commercial Real Estate		2		547		547		3		1,205		1,205
Residential Real Estate		—		—		—		25		1,740		1,662
Real Estate Construction		—		—		—		—		—		—
Consumer and Other		—		—		—		5		66		66
Total Loan Modifications		2	$	547	$	547		39	$	3,995	$	3,909

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new originations loans, so modified loans present a higher risk of loss than do new origination loans.

During both the twelve month period ended December 31, 2013 and December 31, 2012, there were no defaults on loans that were modified and considered TDRs during the respective twelve previous months.

Impaired Loans: Larger (greater than $500) commercial loans and commercial real estate loans, all TDRs and residential real estate and consumer loans that are part of a larger relationship are tested for impairment. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.

The following tables include the recorded investment and unpaid principal balances for impaired financing receivables with the associated allowance amount, if applicable as of December 31, 2013 and December 31, 2012.

	December 31, 2013						December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commericial & Agriculture	$	1,525	$	1,657	$	—	$	5,053	$	5,226	$	—
Commercial Real Estate		5,983		6,214		—		5,446		8,114		—
Residential Real Estate		1,202		2,263		—		2,566		5,346		—
Real Estate Construction		—		—		—		—		521		—
Consumer and Other		8		8		—		1		1		—
Total		8,718		10,142		—		13,066		19,208		—
With an allowance recorded:
Commericial & Agriculture		2,344		2,437		1,262		367		385		286
Commercial Real Estate		4,192		4,496		445		8,495		8,681		2,354
Residential Real Estate		2,803		4,021		802		3,561		4,554		1,199
Real Estate Construction		—		—		—		541		547		107
Consumer and Other		—		—		—		60		60		60
Total		9,339		10,954		2,509		13,024		14,227		4,006
Total:
Commericial & Agriculture		3,869		4,094		1,262		5,420		5,611		286
Commercial Real Estate		10,175		10,710		445		13,941		16,795		2,354
Residential Real Estate		4,005		6,284		802		6,127		9,900		1,199
Real Estate Construction		—		—		—		541		1,068		107
Consumer and Other		8		8		—		61		61		60
Total	$	18,057	$	21,096	$	2,509	$	26,090	$	33,435	$	4,006

	December 31, 2013				December 31, 2012
For the year ended:	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commericial & Agriculture	$	4,761	$	186	$	4,762	$	276
Commercial Real Estate		11,919		521		16,482		958
Residential Real Estate		5,038		282		4,909		557
Real Estate Construction		302		—		533		25
Consumer and Other		31		—		34		2
Total	$	22,051	$	989	$	26,720	$	1,818

XML

Loans

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Loans

NOTE 3—LOANS

Loans at year-end were as follows.

	2013			2012
Commercial and agricultural	$	115,875		$	100,661
Commercial real estate		443,846			434,808
Residential real estate		250,691			250,598
Real estate construction		39,964			19,677
Consumer and other		10,865			9,809
Total Loans		861,241			815,553
Allowance for loan losses		(16,528	)		(19,742	)
Net loans	$	844,713		$	795,811

Loans to principal officers, directors, and their affiliates at year-end 2013 and 2012 were as follows.

	2013			2012
Balance—Beginning of year	$	9,997		$	10,922
New loans and advances		3,262			5,713
Repayments		(3,157	)		(6,788	)
Effect of changes to related parties		(808	)		150
Balance—End of year	$	9,294		$	9,997

XML

Fair Value Measurement

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurement

NOTE 15—FAIR VALUE MEASUREMENT

U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1: Quoted prices for identical assets in active markets that are identifiable on the measurement date; Level 2: Significant other observable inputs, such as quoted prices for similar assets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data; Level 3: Significant unobservable inputs that reflect the Company’s own view about the assumptions that market participants would use in pricing an asset.

Securities: The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). At December 31, 2012, management used significant unobservable inputs to determine the fair value of one security (Level 3 inputs). These inputs include appraised values of the underlying collateral and estimated costs to sell the collateral. The value of the collateral has been discounted to represent the value in a distressed sale situation.

Equity securities: The Company’s equity securities are not actively traded in an open market. The fair values of these equity securities available for sale are determined by using market data inputs for similar securities that are observable. (Level 2 inputs).

Impaired loans: The fair values of impaired loans are determined using the fair values of collateral for collateral dependent loans, or discounted cash flows. The Company uses independent appraisals, discounted cash flow models and other available data to estimate the fair value of collateral (Level 3 inputs).

Other real estate owned: The fair value of other real estate owned is determined using the fair value of collateral. The Company uses appraisals and other available data to estimate the fair value of collateral (Level 3 inputs). The appraised values are discounted to represent an estimated value in a distressed sale. Additionally, estimated costs to sell the property are used to further adjust the value.

Assets measured at fair value are summarized below.

	Fair Value Measurements at December 31, 2013 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	51,560	$	—
Obligations of states and political subdivisions		—		80,625		—
Mortgage-backed securities in government sponsored entities		—		66,979		—
Equity securities in financial institutions		—		449		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	15,548
Other Real Estate Owned		—		—		173

	Fair Value Measurements at December 31, 2012 Using:
	(Level 1)		(Level 2)		(Level 3)
Assets:
Assets measured at fair value on a recurring basis:
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	54,286	$	—
Obligations of states and political subdivisions		—		79,338		468
Mortgage-backed securities in government sponsored entities		—		69,435		—
Equity securities in financial institutions		—		434		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	22,084
Other Real Estate Owned		—		—		471

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2013 and 2012.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2013	Fair Value		Valuation Technique	Unobservable Input	Range
Impaired loans	$	15,548	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%
				Holding period		0 - 30 months
			Discounted cash flows	Discount rates		2% - 8.5	%
Other real estate owned	$	173	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2012	Fair Value		Valuation Technique	Unobservable Input	Range
Investments	$	468	Appraisal of collateral	Appraisal adjustments		20% - 30	%
				Liquidation expense		8% - 12	%
Impaired loans	$	22,084	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%
				Holding period		0 -30 months
			Discounted cash flows	Discount rates		2% - 8.5	%
Other real estate owned	$	471	Appraisal of collateral	Appraisal adjustments		10% - 30	%
				Liquidation expense		0% - 10	%

The following table presents the changes in the Level 3 fair value category for the fiscal periods ended December 31, 2013 and 2012. The Company classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to the unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly.

Securities available for sale
	2013			2012
Beginning balance January 1,	$	468		$	517
Principal payments		(468	)		(49	)
Ending balance December 31,	$	—		$	468

The carrying amount and fair value of financial instruments were as follows.

December 31, 2013	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	33,883	$	33,883	$	33,883	$	—	$	—
Securities available for sale		199,613		199,613		—		199,613		—
Other securities		15,424		15,424		15,424		—		—
Loans, available for sale		438		438		438		—		—
Loans, net of allowance for loan losses		844,713		861,252		—		—		861,252
Bank owned life insurance		19,145		19,145		19,145		—		—
Accrued interest receivable		3,881		3,881		3,881		—		—
Financial Liabilities:
Nonmaturing deposits		706,126		706,126		706,126		—		—
Time deposits		236,349		237,837		—		—		237,837
Federal Home Loan Bank advances		37,726		38,767		—		—		38,767
Securities sold under agreement to repurchase		20,053		20,053		20,053		—		—
Subordinated debentures		29,427		20,605		—		—		20,605
Accrued interest payable		156		156		156		—		—

December 31, 2012	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	46,131	$	46,131	$	46,131	$	—	$	—
Securities available for sale		203,961		203,961		—		203,493		468
Other securities		15,567		15,567		15,567		—		—
Loans, available for sale		1,873		1,873		1,873		—		—
Loans, net of allowance for loan losses		795,811		812,950		—		—		812,950
Bank owned life insurance		18,590		18,590		18,590		—		—
Accrued interest receivable		3,709		3,709		3,709		—		—
Financial Liabilities:
Nonmaturing deposits		662,387		662,387		662,387		—		—
Time deposits		264,002		265,974		—		—		265,974
Federal Home Loan Bank advances		40,261		41,658		—		—		41,658
Securities sold under agreement to repurchase		23,219		23,219		23,219		—		—
Subordinated debentures		29,427		26,855		—		—		26,855
Accrued interest payable		185		185		185		—		—

The estimated fair value approximates carrying amount for all items except those described below. Estimated fair value for securities is based on quoted market values for the individual securities or for equivalent securities. For fixed rate loans or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the cash flow analysis or underlying collateral values. Fair value of debt is based on current rates for similar financing. The fair value of off-balance-sheet items is based on the current fees or cost that would be charged to enter into or terminate such arrangements and are considered nominal.

For certain homogeneous categories of loans, such as some residential mortgages, credit card receivables, and other consumer loans, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

XML

Subordinated Debentures

12 Months Ended

Dec. 31, 2013

Brokers And Dealers [Abstract]

Subordinated Debentures

NOTE 11—SUBORDINATED DEBENTURES

Trusts formed by the Company issued floating rate trust preferred securities, in the amounts of $5,000 and $7,500, through special purpose entities as part of pooled offerings of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures, in whole but not in part, at face value. In April 2007, the Company elected to redeem and refinance the $5,000 floating rate subordinated debenture. The refinancing was done at face value and resulted in a 2.00% reduction in the rate. The new subordinated debenture has a 30 year maturity and is redeemable, in whole or in part, anytime without penalty. The replacement subordinated debenture does not have any deferred issuance cost associated with it. The interest rate at December 31, 2013 on the $7,500 debenture is 3.40% and the $5,000 debenture is 1.84%.

Additionally, the Company formed an additional trust that issued $12,500 of 6.05% fixed rate trust preferred securities for five years, then becoming floating rate trust preferred securities, through a special purpose entity as part of a pooled offering of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures at face value without penalty. The current rate on the $12,500 subordinated debenture is 2.50%.

Finally, the Company acquired two additional trust preferred securities as part of its acquisition of Futura Banc Corp (Futura) in December 2007. Futura TPF Trust I and Futura TPF Trust II were formed in June of 2005 in the amounts of $2,500 and $1,927, respectively. Futura had issued subordinated debentures to the trusts in exchange for ownership of all of the common security of the trusts and the proceeds of the preferred securities sold by the trusts. The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, on or after June 15, 2010 at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on June 15, 2035. The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. The current rate on the $2,500 subordinated debenture is variable at 1.90%. In June 2010, the rate on the $1,927 subordinated debenture switched from a fixed rate to a floating rate. The current rate on the $1,927 subordinated debenture is 1.90%.

XML

Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets
Allowance for loan losses	$ 5,620	$ 6,712
Deferred compensation	1,223	1,057
Intangible assets	50	182
Pension costs	996	2,775
Impairment losses	146	195
Other	133	171
Deferred tax asset	8,168	11,092
Deferred tax liabilities
Tax depreciation in excess of book depreciation	(466)	(295)
Discount accretion on securities	(77)	(73)
Purchase accounting adjustments	(1,465)	(1,774)
FHLB stock dividends	(2,249)	(2,249)
Unrealized gain on securities available for sale	(176)	(3,013)
Other	(174)	(105)
Deferred tax liability	(4,607)	(7,509)
Net deferred tax asset	$ 3,561	$ 3,583

XML

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 7—GOODWILL AND INTANGIBLE ASSETS

There has been no change in the carrying amount of goodwill of $21,720 for the years ended December 31, 2013 and December 31, 2012.

Management performs an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2013. In performing its evaluation, management obtained several commonly used financial ratios from pending and completed purchase transactions for banks based in the Midwest. Management used these ratios to determine an implied market value for the Company. The implied market value was then used to determine whether or not additional testing was required. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2013.

Acquired Intangible Assets

Acquired intangible assets were as follows as of year end.

	2013				2012
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit and other intangibles	$	11,619	$	9,326	$	11,619	$	8,480

Aggregate amortization expense was $846 and $974 for 2013 and 2012.

Estimated amortization expense for each of the next five years and thereafter is as follows.

2014	$	769
2015		555
2016		522
2017		447
Thereafter		—
	$	2,293

XML

Allowance for Loan Losses - Performing and Nonperforming Loans (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Performing	$ 153,472	$ 156,305
Nonperforming		19
Total	153,472	156,324
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	140,481	145,879
Nonperforming		6
Total	140,481	145,885
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	4,448	1,730
Nonperforming
Total	4,448	1,730
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	8,543	8,696
Nonperforming		13
Total	$ 8,543	$ 8,709

XML

Other Comprehensive Income

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Other Comprehensive Income

NOTE 5—OTHER COMPREHENSIVE INCOME

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, as of December 31, 2013 and December 31, 2012.

	For the Year Ended December 31, 2013									For the Year Ended December 31, 2012
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	5,849		$	(7,496	)	$	(1,647	)	$	5,461		$	(5,629	)	$	(168	)
Other comprehensive income (loss) before reclassifications		(5,373	)		—			(5,373	)		414			—			414
Amounts reclassified from accumulated other comprehensive income (loss)		(135	)		2,908			2,773			(26	)		(1,867	)		(1,893	)
Net current-period other comprehensive income (loss)		(5,508	)		2,908			(2,600	)		388			(1,867	)		(1,479	)
Ending balance	$	341		$	(4,588	)	$	(4,247	)	$	5,849		$	(7,496	)	$	(1,647	)

Amounts in parentheses indicate debits.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2013 and December 31, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
Details about Accumulated Other Comprehensive Loss Components	For the year ended December 31, 2013			For the year ended December 31, 2012			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	204		$	40		Net gain on sale of securities
Tax effect		(69	)		(14	)	Income tax expense
		135			26		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses)		(4,406	)(b)		2,829	(b)	Salaries, wages and benefits
Tax effect		1,498			(962	)	Income tax expense
		(2,908	)		1,867		Net of tax
Total reclassifications for the period	$	(2,773	)	$	1,893		Net of tax

^(a)  Amounts in parentheses indicate debits to profit/loss.

^(b)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

XML

Premises and Equipment

12 Months Ended

Dec. 31, 2013

Property Plant And Equipment [Abstract]

Premises and Equipment

NOTE 6—PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows.

	2013			2012
Land and improvements	$	4,083		$	4,094
Buildings and improvements		19,681			19,482
Furniture and equipment		20,153			19,180
Total		43,917			42,756
Accumulated depreciation		(26,990	)		(25,590	)
Premises and equipment, net	$	16,927		$	17,166

Depreciation expense was $1,509 and $1,493 for 2013 and 2012, respectively.

Rent expense was $367 and $344 for 2013 and 2012, respectively. Rent commitments under non-cancelable operating leases at December 31, 2013 were as follows, before considering renewal options that generally are present.

2014	$	359
2015		274
2016		231
2017		213
2018		117
Thereafter		87
Total	$	1,281

The rent commitments listed above are primarily for the leasing of five financial services branches.

XML

Interest-Bearing Deposits

12 Months Ended

Dec. 31, 2013

Text Block [Abstract]

Interest-Bearing Deposits

NOTE 8—INTEREST-BEARING DEPOSITS

Interest-bearing deposits as of December 31, 2013 and 2012 were as follows.

	2013		2012
Demand	$	168,113	$	170,190
Statement and Passbook Savings		303,037		289,781
Certificates of Deposit:
In excess of $100		66,561		76,261
Other		139,586		154,843
Individual Retirement Accounts		30,202		32,898
Total	$	707,499	$	723,973

Scheduled maturities of certificates of deposit, including IRA’s at December 31, 2013 were as follows.

2014	$	156,593
2015		43,240
2016		13,384
2017		9,635
2018		3,995
Thereafter		9,502
Total	$	236,349

Deposits from principal officers, directors, and their affiliates at year-end 2013 and 2012 were $8,606 and $8,493, respectively.

XML

Allowance for Loan Losses - Impaired Financing Receivables (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	$ 8,718	$ 13,066
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	10,142	19,208
Impaired financing receivables, with no related allowance recorded, Related Allowance
Impaired financing receivables, with an allowance recorded, Recorded Investment	9,339	13,024
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	10,954	14,227
Impaired financing receivables, with an allowance recorded, Related Allowance	2,509	4,006
Impaired financing receivables, Recorded Investment, Total	18,057	26,090
Impaired financing receivables, Unpaid Principal Balance, Total	21,096	33,435
Impaired financing receivables, Related Allowance, Total	2,509	4,006
Impaired financing receivables, Average Recorded Investment, Total	22,051	26,720
Impaired financing receivables, Interest Income Recognized, Total	989	1,818
Commercial and Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	1,525	5,053
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	1,657	5,226
Impaired financing receivables, with no related allowance recorded, Related Allowance
Impaired financing receivables, with an allowance recorded, Recorded Investment	2,344	367
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	2,437	385
Impaired financing receivables, with an allowance recorded, Related Allowance	1,262	286
Impaired financing receivables, Recorded Investment, Total	3,869	5,420
Impaired financing receivables, Unpaid Principal Balance, Total	4,094	5,611
Impaired financing receivables, Related Allowance, Total	1,262	286
Impaired financing receivables, Average Recorded Investment, Total	4,761	4,762
Impaired financing receivables, Interest Income Recognized, Total	186	276
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	5,983	5,446
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	6,214	8,114
Impaired financing receivables, with no related allowance recorded, Related Allowance
Impaired financing receivables, with an allowance recorded, Recorded Investment	4,192	8,495
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	4,496	8,681
Impaired financing receivables, with an allowance recorded, Related Allowance	445	2,354
Impaired financing receivables, Recorded Investment, Total	10,175	13,941
Impaired financing receivables, Unpaid Principal Balance, Total	10,710	16,795
Impaired financing receivables, Related Allowance, Total	445	2,354
Impaired financing receivables, Average Recorded Investment, Total	11,919	16,482
Impaired financing receivables, Interest Income Recognized, Total	521	958
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	1,202	2,566
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	2,263	5,346
Impaired financing receivables, with no related allowance recorded, Related Allowance
Impaired financing receivables, with an allowance recorded, Recorded Investment	2,803	3,561
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	4,021	4,554
Impaired financing receivables, with an allowance recorded, Related Allowance	802	1,199
Impaired financing receivables, Recorded Investment, Total	4,005	6,127
Impaired financing receivables, Unpaid Principal Balance, Total	6,284	9,900
Impaired financing receivables, Related Allowance, Total	802	1,199
Impaired financing receivables, Average Recorded Investment, Total	5,038	4,909
Impaired financing receivables, Interest Income Recognized, Total	282	557
Real Estate Construction [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance		521
Impaired financing receivables, with no related allowance recorded, Related Allowance
Impaired financing receivables, with an allowance recorded, Recorded Investment		541
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance		547
Impaired financing receivables, with an allowance recorded, Related Allowance		107
Impaired financing receivables, Recorded Investment, Total		541
Impaired financing receivables, Unpaid Principal Balance, Total		1,068
Impaired financing receivables, Related Allowance, Total		107
Impaired financing receivables, Average Recorded Investment, Total	302	533
Impaired financing receivables, Interest Income Recognized, Total		25
Consumer and Other [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	8	1
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	8	1
Impaired financing receivables, with no related allowance recorded, Related Allowance
Impaired financing receivables, with an allowance recorded, Recorded Investment		60
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance		60
Impaired financing receivables, with an allowance recorded, Related Allowance		60
Impaired financing receivables, Recorded Investment, Total	8	61
Impaired financing receivables, Unpaid Principal Balance, Total	8	61
Impaired financing receivables, Related Allowance, Total		60
Impaired financing receivables, Average Recorded Investment, Total	31	34
Impaired financing receivables, Interest Income Recognized, Total		$ 2

XML

Retirement Plans - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Matching contribution to 401(k) plan	$ 204	$ 190
Pension plan eligibility age of employees	20 years 6 months
Pension plan eligibility service period of employees	6 months
Pension plan eligibility service hours of employees	1000 hours
Accumulated benefit obligation for defined benefit pension plan	14,537	17,379
Net periodic benefit cost over the next fiscal year	352
Long-term rate of return on plan assets	7.00%	7.00%
Expected future employer contribution	1,275
Employer contribution	4,900	1,510
Fund status	(2,990)	(8,163)
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Maximum retirement year for participants	10 years
Liability recorded for supplemental retirement plan	1,111	700
Expenses recorded for supplemental retirement plan	$ 412	$ 369

XML

Other Comprehensive Income - Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Loss (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income tax expense	$ 1,373	$ 1,725
Tax effect	5,020	4,386
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax effect	(2,773)	1,893
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains and losses on available-for-sale securities	204	40
Income tax expense	(69)	(14)
Tax effect	135	26
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Actuarial gains/(losses)	(4,406)	2,829
Income tax expense	1,498	(962)
Tax effect	$ (2,908)	$ 1,867

XML

Capital Requirements and Restriction on Retained Earnings - Actual Capital Levels and Minimum Required Levels (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Consolidated [Member]
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Total Capital to risk-weighted assets, Actual, Amount	$ 143,628	$ 116,423
Tier I (Core) Capital to risk-weighted assets, Actual, Amount	133,041	103,979
Tier I (Core) Capital to average assets, Actual, Amount	133,041	103,979
Total Capital to risk-weighted assets, Actual, Ratio	17.10%	14.80%
Tier I (Core) Capital to risk-weighted assets, Actual, Ratio	15.80%	13.30%
Tier I (Core) Capital to average assets, Actual, Ratio	11.60%	9.30%
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	67,194	62,931
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	33,681	31,272
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Amount	45,876	44,722
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Citizens [Member]
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items]
Total Capital to risk-weighted assets, Actual, Amount	104,884	104,948
Tier I (Core) Capital to risk-weighted assets, Actual, Amount	94,302	95,022
Tier I (Core) Capital to average assets, Actual, Amount	94,302	95,022
Total Capital to risk-weighted assets, Actual, Ratio	12.50%	13.40%
Tier I (Core) Capital to risk-weighted assets, Actual, Ratio	11.20%	12.10%
Tier I (Core) Capital to average assets, Actual, Ratio	8.30%	8.50%
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	67,126	62,656
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Amount	33,679	31,335
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Amount	45,447	44,559
Total Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	8.00%	8.00%
Tier I (Core) Capital to risk-weighted assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Tier I (Core) Capital to average assets, For Capital Adequacy Purposes, Ratio	4.00%	4.00%
Total Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	83,907	78,319
Tier I (Core) Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	50,519	47,002
Tier I (Core) Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	$ 56,808	$ 55,699
Total Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	10.00%	10.00%
Tier I (Core) Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	6.00%	6.00%
Tier I (Core) Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	5.00%	5.00%

XML

Allowance for Loan Losses - Schedule of Troubled Debt Restructurings (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 Contract	Dec. 31, 2012 Contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts	2	39
Pre-Modification Outstanding Recorded Investment	$ 547	$ 3,995
Post-Modification Outstanding Recorded Investment	547	3,909
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts		6
Pre-Modification Outstanding Recorded Investment		984
Post-Modification Outstanding Recorded Investment		976
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts	2	3
Pre-Modification Outstanding Recorded Investment	547	1,205
Post-Modification Outstanding Recorded Investment	547	1,205
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts		25
Pre-Modification Outstanding Recorded Investment		1,740
Post-Modification Outstanding Recorded Investment		1,662
Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment
Consumer and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts		5
Pre-Modification Outstanding Recorded Investment		66
Post-Modification Outstanding Recorded Investment		$ 66

XML

Retirement Plans - Plan's Assets at Fair Value Hierarchy (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	$ 15,466	$ 13,441	$ 11,445
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	15,466	13,441
Supplemental Retirement Plan [Member] | Money market funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	79	76
Supplemental Retirement Plan [Member] | Bond mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	48	86
Supplemental Retirement Plan [Member] | Common/collective trust, Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	8,140	7,158
Supplemental Retirement Plan [Member] | Common/collective trust, Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	5,439	4,772
Supplemental Retirement Plan [Member] | Equity market funds, Commodity mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	21	23
Supplemental Retirement Plan [Member] | Equity market funds, International [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	337	240
Supplemental Retirement Plan [Member] | Equity market funds, Large cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	1,093	808
Supplemental Retirement Plan [Member] | Equity market funds, Mid cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	181	177
Supplemental Retirement Plan [Member] | Equity market funds, Small cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	128	101
(Level 1) [Member] | Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	15,466	13,441
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Money market funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	79	76
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Bond mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	48	86
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Common/collective trust, Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	8,140	7,158
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Common/collective trust, Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	5,439	4,772
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Commodity mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	21	23
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, International [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	337	240
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Large cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	1,093	808
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Mid cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	181	177
(Level 1) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Small cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value	128	101
(Level 2) [Member] | Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Money market funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Bond mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Common/collective trust, Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Common/collective trust, Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Commodity mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, International [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Large cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Mid cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 2) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Small cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Money market funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Bond mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Common/collective trust, Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Common/collective trust, Equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Commodity mutual funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, International [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Large cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Mid cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value
(Level 3) [Member] | Supplemental Retirement Plan [Member] | Equity market funds, Small cap [Member]
Defined Benefit Plan Disclosure [Line Items]
Total assets at fair value

XML

Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Changes in Each Component of Accumulated Other Comprehensive Loss, Net of Tax

The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, as of December 31, 2013 and December 31, 2012.

	For the Year Ended December 31, 2013									For the Year Ended December 31, 2012
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	5,849		$	(7,496	)	$	(1,647	)	$	5,461		$	(5,629	)	$	(168	)
Other comprehensive income (loss) before reclassifications		(5,373	)		—			(5,373	)		414			—			414
Amounts reclassified from accumulated other comprehensive income (loss)		(135	)		2,908			2,773			(26	)		(1,867	)		(1,893	)
Net current-period other comprehensive income (loss)		(5,508	)		2,908			(2,600	)		388			(1,867	)		(1,479	)
Ending balance	$	341		$	(4,588	)	$	(4,247	)	$	5,849		$	(7,496	)	$	(1,647	)

Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Loss

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2013 and December 31, 2012:

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
Details about Accumulated Other Comprehensive Loss Components	For the year ended December 31, 2013			For the year ended December 31, 2012			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	204		$	40		Net gain on sale of securities
Tax effect		(69	)		(14	)	Income tax expense
		135			26		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses)		(4,406	)(b)		2,829	(b)	Salaries, wages and benefits
Tax effect		1,498			(962	)	Income tax expense
		(2,908	)		1,867		Net of tax
Total reclassifications for the period	$	(2,773	)	$	1,893		Net of tax

^(a)  Amounts in parentheses indicate debits to profit/loss.

^(b)  These accumulated other comprehensive income components are included in the computation of net periodic pension cost.

XML

Securities - Fair Value of Securities Available for Sale by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Investments Debt And Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 3,296
Due from one to five years, Amortized Cost	21,451
Due from five to ten years, Amortized Cost	34,288
Due after ten years, Amortized Cost	73,169
Mortgage-backed securities in government sponsored entities, Amortized Cost	66,409
Equity securities in financial institutions, Amortized Cost	481
Total securities available for sale, Amortized Cost	199,094	195,098
Due in one year or less, Fair Value	3,309
Due from one to five years, Fair Value	21,334
Due from five to ten years, Fair Value	34,403
Due after ten years, Fair Value	73,139
Mortgage-backed securities in government sponsored entities, Fair Value	66,979
Equity securities in financial institutions, Fair Value	449
Total securities available for sale, Fair Value	$ 199,613	$ 203,961

XML

Retirement Plans

12 Months Ended

Dec. 31, 2013

Compensation And Retirement Disclosure [Abstract]

Retirement Plans

NOTE 13—RETIREMENT PLANS

The Company sponsors a savings and retirement 401(k) plan, which covers all employees who meet certain eligibility requirements and who choose to participate in the plan. The matching contribution to the 401(k) plan was $204 in 2013 and $190 in 2012.

The Company also sponsors a pension plan which is a noncontributory defined benefit retirement plan for all employees who have attained the age of 20 ¹⁄₂, completed six months of service and work 1,000 or more hours per year. Annual payments, subject to the maximum amount deductible for federal income tax purposes, are made to a pension trust fund. In 2006, the Company amended the pension plan to provide that no employee could be added as a participant to the pension plan after December 31, 2006.

Information about the pension plan is as follows.

	2013			2012
Change in benefit obligation:
Beginning benefit obligation	$	21,604		$	16,934
Service cost		1,204			939
Interest cost		884			915
Settlement loss		821			—
Actuarial (gain)/loss		(1,272	)		3,474
Benefits paid		(4,785	)		(658	)
Ending benefit obligation		18,456			21,604
Change in plan assets, at fair value:
Beginning plan assets		13,441			11,445
Actual return		1,943			1,181
Employer contribution		4,900			1,510
Benefits paid		(4,785	)		(658	)
Administrative expenses		(33	)		(37	)
Ending plan assets		15,466			13,441
Funded status at end of year	$	(2,990	)	$	(8,163	)

Amounts recognized in accumulated other comprehensive income at December 31, consist of:

	2013		2012
Unrecognized actuarial loss (net of tax, of $2,364 in 2013 and $3,862 in 2012)	$	4,588	$	7,496

The accumulated benefit obligation for the defined benefit pension plan was $14,537 at December 31, 2013 and $17,379 at December 31, 2012.

The components of net periodic pension expense were as follows.

	2013			2012
Service cost	$	1,204		$	939
Interest cost		884			915
Expected return on plan assets		(965	)		(858	)
Net amortization and deferral		698			359
Net periodic benefit cost	$	1,821		$	1,355
Net loss (gain) recognized in other comprehensive income		(4,406	)		2,829
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$	(2,585	)	$	4,184

The estimated net loss and prior service costs for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $352.

The weighted average assumptions used to determine benefit obligations at year-end were as follows.

	2013			2012
Discount rate on benefit obligation		4.38	%		3.72	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

The weighted average assumptions used to determine net periodic pension cost were as follows.

	2013			2012
Discount rate on benefit obligation		3.72	%		4.60	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

The Company uses long-term market rates to determine the discount rate on the benefit obligation. Declines in the discount rate lead to increases in the actuarial loss related to the benefit obligation.

The expectation for long-term rate of return on the pension assets and the expected rate of compensation increases are reviewed periodically by management in consultation with outside actuaries and primary investment consultants. Factors considered in setting and adjusting these rates are historic and projected rates of return on the portfolio and historic and estimated rates of increases of compensation.

The Company’s pension plan asset allocation at year-end 2012, and 2013 and target allocation for 2014 by asset category are as follows.

	Target Allocation			Percentage of Plan Assets at Year-end
Asset Category	2014			2013			2012
Equity securities		20-50	%		46.5	%		45.5	%
Debt securities		30-60			53.0			53.9
Money market funds		20-30			0.5			0.6
Total					100.0	%		100.0	%

The Company developed the pension plan investment policies and strategies for plan assets with its pension management firm. The assets are currently invested in five diversified investment funds, which include three equity funds, one money market fund and one bond fund. The long-term guidelines from above were created to maximize the return on portfolio assets while reducing the risk of the portfolio. The management firm may allocate assets among the separate accounts within the established long-term guidelines. Transfers among these accounts will be at the management firm’s discretion based on their investment outlook and the investment strategies that are outlined at periodic meetings with the Company. The expected long-term rate of return on the plan assets was 7.00% in 2013 and 2012. This return is based on the expected return for each of the asset categories, weighted based on the target allocation for each class.

The Company expects to contribute $1,275 to its pension plan in 2014. Employer contributions totaled $4,900 in 2013. The decrease in the benefit obligation, contributions and the increase in plan assets led to a change in funded status from $(8,163) to $(2,990).

The following tables set forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2013 and 2012:

	December 31, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	79	$	—	$	—	$	79
Bond mutual funds		48		—		—		48
Common/collective trust:
Bonds		8,140		—		—		8,140
Equities		5,439		—		—		5,439
Equity market funds:
Commodity mutual funds		21		—		—		21
International		337		—		—		337
Large cap		1,093		—		—		1,093
Mid cap		181		—		—		181
Small cap		128		—		—		128
Total assets at fair value	$	15,466	$	—	$	—	$	15,466

	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	76	$	—	$	—	$	76
Bond mutual funds		86		—		—		86
Common/collective trust:
Bonds		7,158		—		—		7,158
Equities		4,772		—		—		4,772
Equity market funds:
Commodity mutual funds		23		—		—		23
International		240		—		—		240
Large cap		808		—		—		808
Mid cap		177		—		—		177
Small cap		101		—		—		101
Total assets at fair value	$	13,441	$	—	$	—	$	13,441

Investment in equity securities, debt securities, and money market funds are valued at the closing price reported on the active market on which the individual securities are traded.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Expected benefit payments, which reflect expected future service, are as follows.

2014	$	396
2015		512
2016		637
2017		842
2018		900
2019 through 2023		6,951
Total	$	10,238

Supplemental Retirement Plan

Citizens established a supplemental retirement plan (“SERP”) which covers key members of management in 2013. Participants will receive annually a percentage of their base compensations at the time of their retirement for a maximum of ten years. The liability recorded at December 31, 2013, was $1,111, compared to $700 at December 31, 2012. The expense related to the plan was $412 for 2013 and $369 for 2012. No distributions to participants were made in either 2013 or 2012.

XML

Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2013

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Parent Company Only Condensed Financial Information

NOTE 18—PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of FCBC follows.

	December 31,
	2013			2012
Condensed Balance Sheets
Assets:
Cash	$	32,572		$	9,291
Securities available for sale		449			434
Investment in bank subsidiary		111,121			115,426
Investment in nonbank subsidiaries		12,595			12,585
Other assets		5,210			4,015
Total assets	$	161,947		$	141,751
Liabilities and Shareholders’ Equity:
Deferred income taxes and other liabilities	$	4,144		$	8,344
Subordinated debentures		29,427			29,427
Preferred stock		46,316			23,184
Common stock		114,365			114,365
Accumulated deficit		(10,823	)		(14,687	)
Treasury Stock		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(4,247	)		(1,647	)
Total liabilities and shareholders’ equity	$	161,947		$	141,751
	For the years ended December 31,
	2013			2012
Condensed Statements of Operations
Dividends from bank subsidiaries	$	7,888		$	4,747
Interest expense		(740	)		(833	)
Pension expense		(4,072	)		(1,257	)
Other expense, net		(952	)		(854	)
Income before equity in undistributed net earnings of subsidiaries		2,124			1,803
Income tax benefit		1,960			1,001
Equity in undistributed net earnings of subsidiaries		2,095			2,775
Net income	$	6,179		$	5,579
Comprehensive income	$	3,579		$	4,100

	For the years ended December 31,
	2013			2012
Condensed Statements of Cash Flows
Operating activities:
Net income	$	6,179		$	5,579
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities		(1,620	)		959
Equity in undistributed net earnings of subsidiaries		(2,095	)		(2,775	)
Net cash from operating activities		2,464			3,763
Financing activities:
Proceeds from issuance of preferred stock		23,132			—
Cash dividends paid		(2,315	)		(2,084	)
Net cash provided by (used for) financing activities		20,817			(2,084	)
Net change in cash and cash equivalents		23,281			1,679
Cash and cash equivalents at beginning of year		9,291			7,612
Cash and cash equivalents at end of year	$	32,572		$	9,291

XML

Stock Options - Summary of Activity in Stock Option Plan (Detail) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares, Outstanding at beginning of year	10,000	29,500
Shares, Granted
Shares, Exercised
Shares, Forfeited
Shares, Expired	(10,000)	(19,500)
Shares, Outstanding at end of year		10,000
Shares, Options exercisable at year-end		10,000
Weighted Average Exercise Price, Outstanding at beginning of year	$ 35.00	$ 25.42
Weighted Average Exercise Price, Granted
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Forfeited
Weighted Average Exercise Price, Expired	$ 35.00	$ 20.50
Weighted Average Exercise Price, Outstanding at end of year		$ 35.00
Weighted Average Exercise Price, Options exercisable at year-end		$ 35.00

XML

Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	Less than 1.0%
Allowance for loan losses related to commercial loans and real estate loans	$ 500
Number of days reaching which loans are considered for nonaccrual status	90 days
Other assets	9,509	9,304
Federal Home Loan Bank par value	$ 100
Tax position realized upon ultimate settlement	50.00%
Number of operating segments	1
Other Real Estate Owned [Member]
Significant Accounting Policies [Line Items]
Other assets	$ 173	$ 471
Unsecured Debt [Member]
Significant Accounting Policies [Line Items]
Retail loans past due charge off period	90 days
Secured Debt [Member]
Significant Accounting Policies [Line Items]
Residential real estate loans past due assessment of value period	180 days
Other Debt [Member]
Significant Accounting Policies [Line Items]
Loans past due charged down to the net realizable value period	90 days
Maximum [Member]
Significant Accounting Policies [Line Items]
Original maturities for cash and cash equivalents	90 days
Estimated useful life of intangible assets		12 years
Maximum [Member] | Furniture and equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset		7 years
Maximum [Member] | Buildings and improvements [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset		50 years
Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of intangible assets	5 years
Minimum [Member] | Furniture and equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	3 years
Minimum [Member] | Buildings and improvements [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	7 years
Water St. [Member]
Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	Less than 1%

XML

Parent Company Only Condensed Financial Information - Schedule of Condensed Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Operating activities:
Net income	$ 6,179	$ 5,579
Adjustment to reconcile net income to net cash provided by operating activities:
Net cash from operating activities	12,466	16,893
Financing activities:
Cash dividends paid	(2,315)	(2,084)
Net cash provided by financing activities	31,202	16,651
Decrease in cash and due from financial institutions	(12,248)	(5,996)
FCBC [Member]
Operating activities:
Net income	6,179	5,579
Adjustment to reconcile net income to net cash provided by operating activities:
Change in other assets and other liabilities	(1,620)	959
Equity in undistributed net earnings of subsidiaries	(2,095)	(2,775)
Net cash from operating activities	2,464	3,763
Financing activities:
Proceeds from issuance of preferred stock	23,132
Cash dividends paid	(2,315)	(2,084)
Net cash provided by financing activities	20,817	(2,084)
Decrease in cash and due from financial institutions	23,281	1,679
Cash and cash equivalents at beginning of year	9,291	7,612
Cash and cash equivalents at end of year	$ 32,572	$ 9,291

XML

Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2013

Information about Pension Plan

Information about the pension plan is as follows.

	2013			2012
Change in benefit obligation:
Beginning benefit obligation	$	21,604		$	16,934
Service cost		1,204			939
Interest cost		884			915
Settlement loss		821			—
Actuarial (gain)/loss		(1,272	)		3,474
Benefits paid		(4,785	)		(658	)
Ending benefit obligation		18,456			21,604
Change in plan assets, at fair value:
Beginning plan assets		13,441			11,445
Actual return		1,943			1,181
Employer contribution		4,900			1,510
Benefits paid		(4,785	)		(658	)
Administrative expenses		(33	)		(37	)
Ending plan assets		15,466			13,441
Funded status at end of year	$	(2,990	)	$	(8,163	)

Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income at December 31, consist of:

	2013		2012
Unrecognized actuarial loss (net of tax, of $2,364 in 2013 and $3,862 in 2012)	$	4,588	$	7,496

Components of Net Periodic Pension Expense

The components of net periodic pension expense were as follows.

	2013			2012
Service cost	$	1,204		$	939
Interest cost		884			915
Expected return on plan assets		(965	)		(858	)
Net amortization and deferral		698			359
Net periodic benefit cost	$	1,821		$	1,355
Net loss (gain) recognized in other comprehensive income		(4,406	)		2,829
Total recognized in net periodic benefit cost and other comprehensive income (before tax)	$	(2,585	)	$	4,184

Schedule of Target Allocation and Expected Long-Term Rate of Return by Asset Category

The Company’s pension plan asset allocation at year-end 2012, and 2013 and target allocation for 2014 by asset category are as follows.

	Target Allocation			Percentage of Plan Assets at Year-end
Asset Category	2014			2013			2012
Equity securities		20-50	%		46.5	%		45.5	%
Debt securities		30-60			53.0			53.9
Money market funds		20-30			0.5			0.6
Total					100.0	%		100.0	%

Plan's Assets at Fair Value Hierarchy

The following tables set forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2013 and 2012:

	December 31, 2013
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	79	$	—	$	—	$	79
Bond mutual funds		48		—		—		48
Common/collective trust:
Bonds		8,140		—		—		8,140
Equities		5,439		—		—		5,439
Equity market funds:
Commodity mutual funds		21		—		—		21
International		337		—		—		337
Large cap		1,093		—		—		1,093
Mid cap		181		—		—		181
Small cap		128		—		—		128
Total assets at fair value	$	15,466	$	—	$	—	$	15,466

	December 31, 2012
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	76	$	—	$	—	$	76
Bond mutual funds		86		—		—		86
Common/collective trust:
Bonds		7,158		—		—		7,158
Equities		4,772		—		—		4,772
Equity market funds:
Commodity mutual funds		23		—		—		23
International		240		—		—		240
Large cap		808		—		—		808
Mid cap		177		—		—		177
Small cap		101		—		—		101
Total assets at fair value	$	13,441	$	—	$	—	$	13,441

Summary of Expected Benefit Payments

Expected benefit payments, which reflect expected future service, are as follows.

2014	$	396
2015		512
2016		637
2017		842
2018		900
2019 through 2023		6,951
Total	$	10,238

Benefit obligations [Member]

Weighted Average Assumptions Used to Determine Benefit Obligations

The weighted average assumptions used to determine benefit obligations at year-end were as follows.

	2013			2012
Discount rate on benefit obligation		4.38	%		3.72	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

Net periodic pension cost [Member]

Weighted Average Assumptions Used to Determine Benefit Obligations

The weighted average assumptions used to determine net periodic pension cost were as follows.

	2013			2012
Discount rate on benefit obligation		3.72	%		4.60	%
Long-term rate of return on plan assets		7.00	%		7.00	%
Rate of compensation increase		3.00	%		3.00	%

XML

Earnings Per Share - Additional Information (Detail) (Stock Options [Member])	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share, amount	0	10,000

XML

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 6,179	$ 5,579
Other comprehensive loss:
Unrealized holding gains (loss) on available for sale securities	(8,140)	628
Tax effect of unrealized holdings gains (loss) on available for sale securities	2,767	(214)
Reclassification adjustment for security gains recognized in income	(204)	(40)
Tax effect of reclassification adjustment for security gains recognized in income	69	14
Change in unrecognized pension cost	4,406	(2,829)
Tax effect of change in unrecognized pension cost	(1,498)	962
Net current-period other comprehensive income (loss)	(2,600)	(1,479)
Comprehensive income	$ 3,579	$ 4,100

XML

Retirement Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Compensation And Retirement Disclosure [Abstract]
Unrecognized actuarial loss, net of tax	$ 2,364	$ 3,862

XML

Securities

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

Securities

NOTE 2—SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2013
U.S. Treasury securities and obligations of U.S. government agencies	$	52,229	$	95	$	(764	)	$	51,560
Obligations of states and political subdivisions		79,975		2,327		(1,677	)		80,625
Mortgage-back securities in government sponsored entities		66,409		1,127		(557	)		66,979
Total debt securities		198,613		3,549		(2,998	)		199,164
Equity securities in financial institutions		481		—		(32	)		449
Total	$	199,094	$	3,549	$	(3,030	)	$	199,613
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2012
U.S. Treasury securities and obligations of U.S. government agencies	$	53,919	$	375	$	(8	)	$	54,286
Obligations of states and political subdivisions		72,884		6,946		(24	)		79,806
Mortgage-back securities in government sponsored entities		67,814		1,854		(233	)		69,435
Total debt securities		194,617		9,175		(265	)		203,527
Equity securities in financial institutions		481		—		(47	)		434
Total	$	195,098	$	9,175	$	(312	)	$	203,961

The amortized cost and fair value of securities at year end 2013 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	3,296	$	3,309
Due from one to five years		21,451		21,334
Due from five to ten years		34,288		34,403
Due after ten years		73,169		73,139
Mortgage-backed securities in government sponsored entities		66,409		66,979
Equity securities in financial institutions		481		449
Total	$	199,094	$	199,613

Securities with a carrying value of $147,625 and $147,204 were pledged as of December 31, 2013 and 2012, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows.

	2013			2012
Sale proceeds	$	8,686		$	12,982
Gross realized gains		144			99
Gross realized losses		(89	)		(59	)
Gains from securities called or settled by the issuer		149			—

Debt securities with unrealized losses at year end 2013 and 2012 not recognized in income are as follows.

2013	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	30,800	$	(764	)	$	—	$	—		$	30,800	$	(764	)
Obligations of states and political subdivisions		28,428		(1,556	)		968		(121	)		29,396		(1,677	)
Mortgage-backed securities in gov’t sponsored entities		32,557		(553	)		279		(4	)		32,836		(557	)
Equity securities in financial institutions		449		(32	)		—		—			449		(32	)
Total temporarily impaired	$	92,234	$	(2,905	)	$	1,247	$	(125	)	$	93,481	$	(3,030	)
2012	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	6,184	$	(8	)	$	—	$	—		$	6,184	$	(8	)
Obligations of states and political subdivisions		1,440		(22	)		465		(2	)		1,905		(24	)
Mortgage-backed securities in gov’t sponsored entities		7,907		(215	)		2,122		(18	)		10,029		(233	)
Equity securities in financial institutions		434		(47	)		—		—			434		(47	)
Total temporarily impaired	$	15,965	$	(292	)	$	2,587	$	(20	)	$	18,552	$	(312	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive income.

The Company has assessed each available-for-sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

• The length of time and the extent to which fair value has been below cost;

• The severity of impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer;

• If the Company intends to sell the investment;

• If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

• If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

• Identification and evaluation of investments that have indications of impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time investment has been in unrealized loss position and the expected recovery period;

• Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

• Documentation of these analyses, as required by policy.

At December 31, 2013, the Company owned ninety-one securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality, management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

XML

Allowance for Loan Losses - Allowance Related to Unallocated Segment (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Allowance for loan losses:
Beginning balance	$ 19,742	$ 21,257
Individually evaluated for impairment	2,509	4,006
Charge-offs	(5,550)	(9,479)
Collectively evaluated for impairment	14,019	15,736
Recoveries	1,236	1,564
Ending balance	16,528	19,742
Provision	1,100	6,400
Ending Balance	16,528	19,742
Loan balances outstanding:
Individually evaluated for impairment	2,509	4,006
Collectively evaluated for impairment	14,019	15,736
Ending balance	16,528	19,742
Individually evaluated for impairment	18,057	26,090
Collectively evaluated for impairment	843,184	789,463
Ending balance	861,241	815,553
Commercial and Agriculture [Member]
Allowance for loan losses:
Beginning balance	2,811	2,876
Individually evaluated for impairment	1,262	286
Charge-offs	(483)	(841)
Collectively evaluated for impairment	1,579	2,525
Recoveries	141	353
Ending balance	2,841	2,811
Provision	372	423
Ending Balance	2,841	2,811
Loan balances outstanding:
Individually evaluated for impairment	1,262	286
Collectively evaluated for impairment	1,579	2,525
Ending balance	2,841	2,811
Individually evaluated for impairment	3,869	5,420
Collectively evaluated for impairment	112,006	95,241
Ending balance	115,875	100,661
Commercial Real Estate [Member]
Allowance for loan losses:
Beginning balance	10,139	10,571
Individually evaluated for impairment	445	2,354
Charge-offs	(1,804)	(3,440)
Collectively evaluated for impairment	7,114	7,785
Recoveries	449	612
Ending balance	7,559	10,139
Provision	(1,225)	2,396
Ending Balance	7,559	10,139
Loan balances outstanding:
Individually evaluated for impairment	445	2,354
Collectively evaluated for impairment	7,114	7,785
Ending balance	7,559	10,139
Individually evaluated for impairment	10,175	13,941
Collectively evaluated for impairment	433,671	420,867
Ending balance	443,846	434,808
Residential Real Estate [Member]
Allowance for loan losses:
Beginning balance	5,780	5,796
Individually evaluated for impairment	802	1,199
Charge-offs	(2,907)	(4,506)
Collectively evaluated for impairment	4,422	4,581
Recoveries	458	397
Ending balance	5,224	5,780
Provision	1,893	4,093
Ending Balance	5,224	5,780
Loan balances outstanding:
Individually evaluated for impairment	802	1,199
Collectively evaluated for impairment	4,422	4,581
Ending balance	5,224	5,780
Individually evaluated for impairment	4,005	6,127
Collectively evaluated for impairment	246,686	244,471
Ending balance	250,691	250,598
Real Estate Construction [Member]
Allowance for loan losses:
Beginning balance	349	974
Individually evaluated for impairment		107
Charge-offs	(136)	(446)
Collectively evaluated for impairment	184	242
Recoveries	108	131
Ending balance	184	349
Provision	(137)	(310)
Ending Balance	184	349
Loan balances outstanding:
Individually evaluated for impairment		107
Collectively evaluated for impairment	184	242
Ending balance	184	349
Individually evaluated for impairment		541
Collectively evaluated for impairment	39,964	19,136
Ending balance	39,964	19,677
Consumer and Other [Member]
Allowance for loan losses:
Beginning balance	246	719
Individually evaluated for impairment		60
Charge-offs	(220)	(246)
Collectively evaluated for impairment	214	186
Recoveries	80	71
Ending balance	214	246
Provision	108	(298)
Ending Balance	214	246
Loan balances outstanding:
Individually evaluated for impairment		60
Collectively evaluated for impairment	214	186
Ending balance	214	246
Individually evaluated for impairment	8	61
Collectively evaluated for impairment	10,857	9,748
Ending balance	10,865	9,809
Unallocated [Member]
Allowance for loan losses:
Beginning balance	417	321
Individually evaluated for impairment
Charge-offs
Collectively evaluated for impairment	506	417
Recoveries
Ending balance	506	417
Provision	89	96
Ending Balance	506	417
Loan balances outstanding:
Individually evaluated for impairment
Collectively evaluated for impairment	506	417
Ending balance	506	417
Individually evaluated for impairment
Collectively evaluated for impairment
Ending balance

XML

Income Taxes - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	34.00%
Tax benefit attributable to security gains (losses)	$ 0	$ 0
Liability for uncertain tax positions, current	0
Unrecognized tax benefits	$ 0

XML

Earnings Per Share - Factors Used in Earnings Per Share Computation (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Basic
Net income available to common shareholders									$ 5,020	$ 4,386
Weighted average common shares outstanding									7,707,917	7,707,917
Basic earnings per share	$ 0.09	$ 0.17	$ 0.18	$ 0.21	$ 0.22	$ 0.14	$ 0.08	$ 0.13	$ 0.65	$ 0.57
Diluted
Net income available to common shareholders									$ 5,020	$ 4,386
Weighted average common shares outstanding for basic earnings per common share									7,707,917	7,707,917
Add: dilutive effects of convertible preferred shares									113,863
Average shares and dilutive potential common shares outstanding									7,821,780	7,707,917
Diluted earnings per share	$ 0.08	$ 0.17	$ 0.18	$ 0.21	$ 0.22	$ 0.14	$ 0.08	$ 0.13	$ 0.64	$ 0.57

XML

Premises and Equipment - Rent Commitments Under Non - Cancelable Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Leases [Abstract]
2014	$ 359
2015	274
2016	231
2017	213
2018	117
Thereafter	87
Total	$ 1,281

XML

Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

NOTE 19—EARNINGS PER SHARE

The factors used in the earnings per share computation follow.

	2013		2012
Basic
Net income available to common shareholders	$	5,020	$	4,386
Weighted average common shares outstanding		7,707,917		7,707,917
Basic earnings per share	$	0.65	$	0.57
Diluted
Net income available to common shareholders	$	5,020	$	4,386
Weighted average common shares outstanding for basic earnings per common share		7,707,917		7,707,917
Add: dilutive effects of convertible preferred shares		113,863		—
Average shares and dilutive potential common shares outstanding		7,821,780		7,707,917
Diluted earnings per share	$	0.64	$	0.57

Basic earnings per common share are calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share takes into consideration the pro forma dilution of unexercised stock option awards, computed using the treasury stock method.

Stock options for 10,000 shares in 2012 were not considered in computing diluted earnings per common share because they were anti-dilutive. There were no stock options outstanding as of December 31, 2013.

XML

Interest - Bearing Deposits - Scheduled Maturities of Certificates of Deposit (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Banking And Thrift [Abstract]
2014	$ 156,593
2015	43,240
2016	13,384
2017	9,635
2018	3,995
Thereafter	9,502
Total	$ 236,349

XML

Federal Home Loan Bank Advances (Tables)

12 Months Ended

Dec. 31, 2013

Banking And Thrift [Abstract]

Scheduled Principal Reductions of Federal Home Loan Bank Advances

Scheduled principal reductions of FHLB advances at December 31, 2013 were as follows.

2014	$	30,226
2015		5,000
2017		2,500
Total	$	37,726

XML

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12—INCOME TAXES

Income tax expense was as follows.

	2013		2012
Current	$	11	$	1,395
Deferred		1,362		330
Income tax expense	$	1,373	$	1,725

Effective tax rates differ from the statutory federal income tax rate of 34% due to the following.

	2013			2012
Income taxes computed at the statutory federal tax rate	$	2,568		$	2,483
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(781	)		(630	)
Low income housing tax credit		(280	)		—
Cash surrender value of BOLI		(189	)		(213	)
Other		55			85
Income tax expense	$	1,373		$	1,725

There were no tax benefits attributable to security losses in 2013 and 2012.

Year-end deferred tax assets and liabilities were due to the following.

	2013			2012
Deferred tax assets
Allowance for loan losses	$	5,620		$	6,712
Deferred compensation		1,223			1,057
Intangible assets		50			182
Pension costs		996			2,775
Impairment losses		146			195
Other		133			171
Deferred tax asset		8,168			11,092
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(466	)		(295	)
Discount accretion on securities		(77	)		(73	)
Purchase accounting adjustments		(1,465	)		(1,774	)
FHLB stock dividends		(2,249	)		(2,249	)
Unrealized gain on securities available for sale		(176	)		(3,013	)
Other		(174	)		(105	)
Deferred tax liability		(4,607	)		(7,509	)
Net deferred tax asset	$	3,561		$	3,583

The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the State of Ohio for all affiliates other than Citizens. Citizens is subject to tax in Ohio based upon its net worth.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal tax returns for taxable years through 2009 have been closed for purposes of examination by the Internal Revenue Service.

XML

Commitments, Contingencies and Off-Balance-Sheet Risk - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Maximum period of commitments to make loans	1 year
Maximum time period of maturities	30 years
Average reserve balance under Federal Reserve Board requirements	$ 2,959	$ 1,217
Minimum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	3.05%	3.05%
Maximum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	13.75%	13.75%