Summarized Financial Information of Citizens Holding Company

12 Months Ended

Dec. 31, 2012

Summarized Financial Information of Citizens Holding Company

Note 11. Summarized Financial Information of Citizens Holding Company

Summarized financial information of Citizens Holding Company, parent company only, at December 31, 2012 and 2011, and for the years ended December 31, 2012, 2011 and 2010, is as follows:

Balance Sheets

December 31, 2012 and 2011

	2012		2011
Assets
Cash (1)	$	1,657,268	$	1,416,801
Investment in bank subsidiary (1)		86,885,774		84,377,402
Other assets (1)		326,188		285,414
Total assets	$	88,869,230	$	86,079,617
Liabilities
Other liabilities	$	400	$	400
Stockholders’ equity		88,868,830		86,079,217
Total liabilities and stockholders’ equity	$	88,869,230	$	86,079,617

(1) Fully or partially eliminates in consolidation.

Income Statements

Years Ended December 31, 2012, 2011 and 2010

	2012			2011			2010
Interest income	$	3,348		$	3,264		$	3,559
Other income
Dividends from bank subsidiary (1)		4,332,000			4,332,000			4,654,050
Equity in undistributed earnings of bank subsidiary (1)		2,603,735			3,016,877			2,677,680
Other income		—			51			115
Total other income		6,939,083			7,348,928			7,331,845
Other expense		252,278			236,904			265,594
Income before income taxes		6,686,805			7,115,288			7,069,810
Income tax benefit		(97,194	)		(102,559	)		(92,721	)
Net income	$	6,783,999		$	7,217,847		$	7,162,531

(1) Eliminates in consolidation.

Statements of Cash Flows

Years Ended December 31, 2012, 2011 and 2010

	2012			2011			2010
Cash flows from operating activities
Net income	$	6,783,999		$	7,217,847		$	7,162,531
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed earnings of Bank		(2,603,735	)		(3,016,877	)		(2,677,680	)
Stock compensation expense		119,834			123,702			150,748
Decrease (Increase) in other assets		(40,774	)		(61,093	)		(62,129	)
Increase in other liabilities		—			—			400
Net cash provided by operating activities		4,259,324			4,263,579			4,573,870

	2012			2011			2010
Cash flows from financing activities
Dividends paid to stockholders	$	(4,276,282	)	$	(4,261,652	)	$	(4,110,791	)
Proceeds from exercise of stock options		257,425			63,385			189,161
Repurchase of company stock		—			—			(366,381	)
Net cash used by financing activities		(4,018,857	)		(4,198,267	)		(4,288,011	)
Net increase in cash		240,467			65,312			285,859
Cash, beginning of year		1,416,801			1,351,489			1,065,630
Cash, end of year	$	1,657,268		$	1,416,801		$	1,351,489

The Bank is required to obtain approval from state regulators before paying dividends. The Bank paid dividends of $4,332,000, $4,332,000 and $4,654,050 to the Citizens Holding Company during the years ended December 31, 2012, 2011 and 2010, respectively.