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8-K - FORM 8-K - CITIZENS HOLDING CO /MS/d912222d8k.htm

Exhibit 99.1

CITIZENS HOLDING COMPANY REPORTS EARNINGS

PHILADELPHIA, Miss.—(BUSINESS WIRE)—April 17, 2015—Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three months ended March 31, 2015.

Net income for the three months ended March 31, 2015 was $1.594 million, or $0.33 per share-basic and diluted, down from $1.797 million, or $0.37 per share-basic and diluted for the same quarter in 2014. Net interest income for the first quarter of 2015, after the provision for loan losses for the quarter, was $6.771 million, approximately 1.2% lower than the same period in 2014, due to a decrease in interest income and an increase in interest expense offset by a decrease in the provision for loan losses. The provision for loan losses for the three months ended March 31, 2015 was $184 thousand compared to $361 thousand for the same period in 2014. The decrease in the provision reflects management’s estimate of inherent losses in the loan portfolio including the impact of current local and national economic conditions. The net interest margin decreased to 3.42% in the first quarter of 2015 from 3.65% in the same period in 2014 primarily because of the decrease in yields on earning assets was greater than the decline in rates paid on interest bearing deposits.

Non-interest income decreased in the first quarter of 2015 by $31 thousand, or 1.7%, while non-interest expenses increased $118 thousand, or 1.9%, compared to the same period in 2014. The decrease in non-interest income was due primarily to the decrease in deposit account service charges and overdraft fees during the quarter. Non-interest expenses increased mainly due to an increase in occupancy expense caused by an increase in banking equipment related service costs, advertising and legal and auditing costs.

Total assets as of March 31, 2015 increased to $946.063 million, up $25.002 million, or 2.7%, when compared to December 31, 2014. Deposits increased by $20.680 million, or 3.0%, and loans, net of unearned income, increased by $15.193 million, or 3.9%, when compared to December 31, 2014. The increase in loans, net of unearned income, was due to improved loan demand. Non-performing assets decreased by $38 thousand to $16.749 million at March 31, 2015 as compared to December 31, 2014, because of decreases in loans 90 days or more past due and still accruing interest and other real estate owned offset partially by an increase in non-accrual loans.

During the first quarter of 2015, the Company paid dividends totaling $0.23 per share.

Citizens Holding Company (the “Company”) is a one-bank holding company and the parent company of The Citizens Bank of Philadelphia (the “Bank”), both headquartered in Philadelphia, Mississippi. The Bank currently has twenty-four banking locations in fourteen counties in East Central and South Mississippi. In addition to full service commercial banking, the Bank offers mortgage loans, title insurance services through its subsidiary, Title Services, LLC, and a full range of Internet banking services including online banking, bill pay and cash management


services for businesses. Internet services are available at the Bank’s web site, www.thecitizensbankphila.com. Citizens Holding Company stock is listed on the NASDAQ Global Market and is traded under the symbol CIZN. The Company’s transfer agent is American Stock Transfer & Trust Company. Information about Citizens Holding Company may be obtained by accessing its corporate website at www.citizensholdingcompany.com.

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this release regarding the Company’s financial position, results of operations, business strategies, plans, objectives and expectations for future operations, are forward looking statements. The Company can give no assurances that the assumptions upon which such forward-looking statements are based will prove to have been correct. Forward-looking statements speak only as of the date they are made. The Company does not undertake a duty to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions. The risks and uncertainties that may affect the operation, performance, development and results of the Company’s and the Bank’s business include, but are not limited to, the following: (a) the risk of adverse changes in business conditions in the banking industry generally and in the specific markets in which the Company operates; (b) changes in the legislative and regulatory environment that negatively impact the Company and Bank through increased operating expenses; (c) increased competition from other financial institutions; (d) the impact of technological advances; (e) expectations about the movement of interest rates, including actions that may be taken by the Federal Reserve Board in response to changing economic conditions; (f) changes in asset quality and loan demand; (g) expectations about overall economic strength and the performance of the economics in the Company’s market area; and (h) other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.


Citizens Holding Company

Financial Highlights

(amounts in thousands, except share and per share data)

 

    

Three Months

Ending March 31,

 
     2015      2014  

Interest income and fees

   $ 7,706       $ 7,946   

Interest expense

     751         729   
  

 

 

    

 

 

 

Net interest income

  6,955      7,217   

Provision for loan losses

  184      361   
  

 

 

    

 

 

 

Net interest income after provision for loan losses

  6,771      6,856   

Non-interest income

  1,752      1,783   

Non-interest expense

  6,487      6,369   
  

 

 

    

 

 

 

Net income before taxes

  2,036      2,270   

Income taxes

  442      473   
  

 

 

    

 

 

 

Net income

$ 1,594    $ 1,797   
  

 

 

    

 

 

 

Earnings per share - basic

$ 0.33    $ 0.37   
  

 

 

    

 

 

 

Earnings per share - diluted

$ 0.33    $ 0.37   
  

 

 

    

 

 

 

Dividends Paid

$ 0.23    $ 0.22   
  

 

 

    

 

 

 

Average shares outstanding-basic

  4,876,114      4,870,114   

Average shares outstanding-diluted

  4,876,713      4,870,564   


     As of
March 31,
2015
     As of
December 31,
2014
 

Period End Balance Sheet Data:

     

Total assets

   $ 946,063       $ 921,061   

Total earning assets

     860,640         833,845   

Loans, net of unearned income

     406,153         390,960   

Allowance for loan losses

     6,626         6,542   

Total deposits

     716,774         696,094   

Long-term borrowings

     20,000         20,000   

Shareholders’ equity

     83,543         81,858   

Book value per share

   $ 17.13       $ 16.78   

Period End Average Balance Sheet Data:

     

Total assets

   $ 927,524       $ 884,688   

Total earning assets

     845,752         798,432   

Loans, net of unearned income

     400,641         389,720   

Total deposits

     701,094         684,134   

Long-term borrowings

     20,000         35,593   

Shareholders’ equity

     82,906         73,219   

Period End Non-performing Assets:

     

Non-accrual loans

     13,044         11,854   

Loans 90+ days past due and accruing

     215         881   

Other real estate owned

     3,490         4,052   

 

     As of
March 31,
2015
    As of
December 31,
2014
 

Period End Net charge-offs as a percentage of average net loans

     0.03     0.63

Period End Performance Ratios:

    

Return on average assets(1)

     0.69     0.84

Return on average equity(1)

     7.69     10.17

Period Ending Net Interest

    

Margin (tax equivalent)(1)

     3.42     3.60

 

(1)  Annualized

Contact:

Citizens Holding Company, Philadelphia

Robert T. Smith, 601/656-4692

rsmith@tcbphila.com