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8-K - FORM 8-K - CITIZENS HOLDING CO /MS/d377447d8k.htm

EXHIBIT 99.1

CITIZENS HOLDING COMPANY REPORTS EARNINGS

PHILADELPHIA, Miss.—(BUSINESS WIRE)—April 20, 2017—Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three months ended March 31, 2017.

Net income for the three months ended March 31, 2017 was $1.437 million, or $0.29 per share-basic and diluted, down from $1.526 million, or $0.31 per share-basic and diluted for the same quarter in 2016. Net interest income for the first quarter of 2017, after the provision for loan losses, was $6.813 million, approximately 0.9% higher than the same period in 2016. The provision for loan losses for the three months ended March 31, 2017 was negative $151 thousand compared to $60 thousand for the same period in 2016. 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 and a decrease in total loans outstanding. The net interest margin decreased to 3.03% in the first quarter of 2017 from 3.12% in the same period in 2016 primarily because of the decrease in yields on earning assets coupled with a small increase in rates paid on interest bearing deposits.

Non-interest income increased in the first quarter of 2017 by $118 thousand, or 6.5%, while non-interest expenses increased $464 thousand, or 7.0%, compared to the same period in 2016. The increase in other non-interest income was mainly the result of an increase in service charges on checking accounts and other service charges and fees. Non-interest expense increased due to an increase in salary and benefit expense of $262 thousand and an increase in other operating expenses of $221 thousand partially offset by a $19 thousand decrease in occupancy expense. The increase in other operating expense was due mainly to repair and maintenance costs for one parcel of other real estate.

Total assets as of March 31, 2017 increased to $1.048 billion, up $22.795 million, or 2.2%, when compared to December 31, 2016. Deposits increased by $29.060 million, or 3.8%, and loans, net of unearned income, decreased by $1.166 million, or 0.3%, when compared to December 31, 2016. The decrease in loans, net of unearned income, was due to payments on loans in excess of current loan demand. Non-performing assets decreased by $128 thousand to $13.400 million at March 31, 2017 as compared to $13.528 million at December 31, 2016, because of decreases in other real estate owned and in loans 90 days or more past due and still accruing interest offset by an increase in non-accrual loans.

During the three months of 2017, the Company paid dividends totaling $0.24 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 the fourth quarter of 2016, the Bank added a Loan Production Office in Oxford, Mississippi to offer loan services to north 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 website, 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)

 

     For the Three Months Ending  
     March 31,      December 31,      March 31,  
     2017      2016      2016  

INTEREST INCOME

        

Loans, including fees

   $ 4,568      $ 4,668      $ 4,785  

Investment Securities

     2,832        2,685        2,716  

Other Interest

     69        50        79  
  

 

 

    

 

 

    

 

 

 
     7,469        7,403        7,580  

INTEREST EXPENSE

        

Deposits

     477        477        468  

Other borrowed funds

     330        343        301  
  

 

 

    

 

 

    

 

 

 
     807        820        769  

NET INTEREST INCOME

     6,662        6,583        6,811  

PROVISION FOR LOAN LOSSES

     -151        -162        61  
  

 

 

    

 

 

    

 

 

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

     6,813        6,745        6,750  

NON-INTEREST INCOME

        

Service charges on deposit accounts

     1,042        994        887  

Other service charges and fees

     617        589        586  

Other non-interest income

     275        293        343  
  

 

 

    

 

 

    

 

 

 
     1,934        1,876        1,816  

NON-INTEREST EXPENSE

        

Salaries and employee benefits

     3,664        3,356        3,402  

Occupancy expense

     1,310        1,241        1,329  

Other non-interest expense

     2,135        2,026        1,914  
  

 

 

    

 

 

    

 

 

 
     7,109        6,623        6,645  

NET INCOME BEFORE TAXES

     1,638        1,998        1,921  

INCOME TAXES

     201        319        395  
  

 

 

    

 

 

    

 

 

 

NET INCOME

   $ 1,437      $ 1,679      $ 1,526  
  

 

 

    

 

 

    

 

 

 

Earnings per share - basic

   $ 0.29      $ 0.34      $ 0.31  
  

 

 

    

 

 

    

 

 

 

Earnings per share - diluted

   $ 0.29      $ 0.34      $ 0.31  
  

 

 

    

 

 

    

 

 

 

Dividends Paid

   $ 0.24      $ 0.24      $ 0.24  
  

 

 

    

 

 

    

 

 

 

Average shares outstanding-basic

     4,883,679        4,869,079        4,875,079  

Average shares outstanding-diluted

     4,897,893        4,881,088        4,885,094  


     For the Period Ended,  
     March 31,     December 31,  
     2017     2016  

Period End Balance Sheet Data:

    

Total assets

   $ 1,048,009     $ 1,025,214  

Total earning assets

     953,788       935,957  

Loans, net of unearned income

     392,885       394,051  

Allowance for loan losses

     3,702       3,903  

Total deposits

     789,215       760,155  

Long-term borrowings

     20,000       20,000  

Shareholders’ equity

     88,218       85,059  

Book value per share

   $ 18.10     $ 17.42  

Period End Average Balance Sheet Data:

    

Total assets

   $ 999,206     $ 996,266  

Total earning assets

     914,155       928,861  

Loans, net of unearned income

     393,730       409,367  

Total deposits

     763,070       766,264  

Long-term borrowings

     20,000       20,000  

Shareholders’ equity

     86,191       91,766  

Period End Non-performing Assets:

    

Non-accrual loans

   $ 8,987     $ 8,879  

Loans 90+ days past due and accruing

     60       206  

Other real estate owned

     4,353       4,443  
     As of  
     March 31,     December 31,  
     2017     2016  

Year to Date Net charge-offs as a percentage of average net loans

     0.01     0.61

Year to Date Performance Ratios:

    

Return on average assets(1)

     0.58     0.68

Return on average equity(1)

     6.67     7.34

Year to Date Net Interest

    

Margin (tax equivalent)(1)

     3.03     3.07

 

(1)  Annualized

Contact:

Citizens Holding Company, Philadelphia

Robert T. Smith, 601/656-4692

rsmith@tcbphila.com