EX-99.1 2 d527371dex991.htm EX-99.1 EX-99.1

EXHIBIT 99.1

CITIZENS HOLDING COMPANY REPORTS EARNINGS

PHILADELPHIA, Miss.—(BUSINESS WIRE)—April 26, 2013—Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three months ended March 31, 2013.

Net income for the three months ended March 31, 2013 was $1.414 million or $0.29 per share-basic and diluted, down from $1.663 million, or $0.34 per share-basic and diluted for the same quarter in 2012. Net interest income for the first quarter of 2013, after the provision for loan losses for the quarter, was $6.581 million, approximately 4.0% lower than the same period in 2012, due to a decrease in net interest income offset partially by a decrease in the provision for loan losses. The provision for loan losses for the three months ended March 31, 2013 was $175 thousand compared to $536 thousand for the same period in 2012. 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 3.52% in the first quarter of 2013 from 4.10% in the same period in 2012 primarily because of the decrease in yields on earning assets was greater than the decline in rates paid on interest bearing deposits and weak loan demand has caused a shift from traditionally higher earning assets such as loans to investment securities.

Non-interest income increased in the first quarter of 2013 by $71 thousand, or 4.4%, while non-interest expenses increased $148 thousand, or 2.3%, compared to the same period in 2012. The increase in non-interest income was due primarily to an increase in service charges and ATM fees. Non-interest expenses increased primarily due to a $320 thousand increase in other operating expense and an $82 thousand increase in occupancy expense, partially offset by a $254 thousand decrease in salaries and benefits.

Total assets as of March 31, 2013 increased to $894.637 million, up $13.797 million, or 1.6%, when compared to December 31, 2012. Deposits increased by $ 16.543 million, or 2.6%, and loans, net of unearned income increased by $1.504 million, or 0.4%, when compared to December 31, 2012. The increase in loans, net of unearned, was due to new loans made in excess of payoffs and regularly scheduled payments. Non-performing assets increased by $1.157 million to $20.559 million at March 31, 2013 as compared to December 31, 2012, because of increases in non-accrual loans and other real estate owned partially offset by a decrease in loans 90 days or more past due and still accruing interest.

During the first three months of 2013, the Company paid dividends totaling $0.22 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-two banking locations in ten counties in East Central and South Mississippi and has a loan production office in Biloxi, 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,  
     2013      2012  

Interest income and fees

   $ 7,988       $ 8,899   

Interest expense

     1,232         1,511   
  

 

 

    

 

 

 

Net interest income

     6,756         7,388   

Provision for loan losses

     175         536   
  

 

 

    

 

 

 

Net interest income after provision for loan losses

     6,581         6,852   

Non-interest income

     1,681         1,610   

Non-interest expense

     6,558         6,410   
  

 

 

    

 

 

 

Net income before taxes

     1,704         2,052   

Income taxes

     290         389   
  

 

 

    

 

 

 

Net income

   $ 1,414       $ 1,663   
  

 

 

    

 

 

 

Earnings per share - basic

   $ 0.29       $ 0.34   
  

 

 

    

 

 

 

Earnings per share - diluted

   $ 0.29       $ 0.34   
  

 

 

    

 

 

 

Dividends Paid

   $ 0.22       $ 0.22   
  

 

 

    

 

 

 

Average shares outstanding-basic

     4,866,933         4,849,164   

Average shares outstanding-diluted

     4,872,362         4,858,616   
     As of      As of  
     March 31,      December 31,  
     2013      2012  

Period End Balance Sheet Data:

     

Total assets

   $ 894,637       $ 880,840   

Total earning assets

     807,466         802,219   

Loans, net of unearned income

     370,395         368,891   

Allowance for loan losses

     6,835         6,954   

Total deposits

     659,092         642,549   

Long-term borrowings

     68,658         68,674   

Shareholders’ equity

     87,904         88,869   

Book value per share

   $ 18.06       $ 18.28   


Period End Average Balance Sheet Data:

    

Total assets

   $ 891,069      $ 842,456   

Total earning assets

     814,524        766,663   

Loans, net of unearned income

     370,481        374,286   

Total deposits

     654,957        592,723   

Long-term borrowings

     68,663        72,553   

Shareholders’ equity

     89,227        87,972   

Period End Non-performing Assets:

    

Non-accrual loans

     15,437        14,142   

Loans 90+ days past due and accruing

     433        578   

Other real estate owned

     4,689        4,682   
     As of     As of  
     March 31,     March 31,  
     2013     2012  

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

     0.08     0.04

Period End Performance Ratios:

    

Return on average assets(1)

     0.63     0.80

Return on average equity(1)

     6.59     7.68

Period Ending Net Interest

    

Margin (tax equivalent)(1)

     3.52     4.10

(1)        Annualized

    

Contact:

Citizens Holding Company, Philadelphia

Robert T. Smith, 601/656-4692

rsmith@tcbphila.com