EX-99.1

Exhibit 99.1

CITIZENS HOLDING COMPANY REPORTS EARNINGS

PHILADELPHIA, Miss.—(BUSINESS WIRE)—October 19, 2018—Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three and nine months ended September 30, 2018.

Net income for the three months ended September 30, 2018 of $1.497 million, or $0.31 per share-basic and diluted, a decrease of $111 thousand from net income of $1.608 million, or $0.33 per share-basic and diluted for the same quarter in 2017.

Net interest income for the third quarter of 2018, after the provision for loan losses, was $6.430 million, approximately 5.3% lower than the same period in 2017. The provision for loan losses for the three months ended September 30, 2018 was $289 thousand compared to a negative $74 thousand for the same period in 2017. The increase 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 an increase in total loans outstanding. The net interest margin was 3.07% for the third quarter of 2018 compared to 2.98% for the same period in 2017. This increase was due to both an increase in interest rates on interest bearing due from banks accounts and an increase in loans outstanding.

Non-interest income increased in the third quarter of 2018 by $94 thousand, or 4.4%, while non-interest expenses increased $7 thousand, or 0.1%, compared to the same period in 2017. The increase in non-interest income was mainly the result of an increase in service charges on checking accounts and other service charges and fees partially offset by a decrease in other non-interest income. Non-interest expense increased due to an increase in occupancy expense of $150 thousand offset by a decrease in other operating expenses of $66 thousand and a decrease in salary and benefit expense of $77 thousand. The increase in occupancy expense was due mainly to an increase in equipment rental and service contracts for the third quarter.

Net income for the nine months ended September 30, 2018 increased 2.7% to $4.957 million, or $1.01 per share-basic and diluted, from $4.828 million, or $0.99 per share-basic and diluted, for the nine months ended September 30, 2017. Net interest income for the nine months ended September 30, 2018, after the provision for loan losses, decreased 1.5% to $20.335 million from $20.648 million for the same period in 2017. Net interest margin for the nine months ended September 30, 2018, increased to 3.10% in 2018 from 3.03% in the same period in 2017. The provision for loan losses for the nine months ended September 30, 2018 was $141 thousand compared to negative $255 thousand in 2017. The increase in the provision reflects management’s assessment of inherent losses in the loan portfolio including the impact caused by current local and national economic conditions and an increase in loans outstanding.

Non-interest income increased by $215 thousand, or 3.5%, and non-interest expense decreased by $18 thousand, or 0.9%, for the nine months ended September 30, 2018 when compared to the same period in 2017. The increase in other non-interest income was the result of increases in service charges on deposit accounts and other service charges and fees. Non-interest expense decreased primarily due to a decrease in salary and benefits costs and other operating expenses partially offset by an increase in occupancy expense.

Total assets as of September 30, 2018 decreased to $962.968 million, down $30.128 million, or 3.0%, when compared to $993.096 million at December 31, 2017. Deposits increased by $36.695 million, or 5.1%, and loans, net of unearned income, increased by $29.196 million, or 7.2%, when compared to December 31, 2017. The increase in loans, net of unearned income,

was due to new loan demand in excess of loan payments. Non-performing assets increased by $1.146 million to $13.515 million at September 30, 2018 as compared to $12.369 million at December 31, 2017, due to decreases in other real estate owned, loans 90 days or more past due and still accruing interest and a decrease in non-accrual loans.

During the nine months of 2018, the Company paid dividends totaling $0.72 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 and 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 banking 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							For the Nine Months Ending
	September 30		June 30		September 30			September 30		September 30
	2018		2018		2017			2018		2017
INTEREST INCOME
Loans, including fees	$	5,166	$	4,984	$	4,585		$	14,867	$	14,017
Investment securities		2,697		2,734		2,893			8,254		8,644
Other interest		25		60		66			145		194

		7,888		7,778		7,544			23,266		22,855
INTEREST EXPENSE
Deposits		710		516		472			1,727		1,435
Other borrowed funds		459		310		353			1,063		1,027

		1,169		826		825			2,790		2,462
NET INTEREST INCOME		6,719		6,952		6,719			20,476		20,393
PROVISION FOR (REVERSAL OF)
LOAN LOSSES		289		89		(74	)		141		(255	)

NET INTEREST INCOME AFTER PROVISION FOR (REVERSAL OF) LOAN LOSSES		6,430		6,863		6,793			20,335		20,648
NON-INTEREST INCOME
Service charges on deposit accounts		1,171		1,067		1,116			3,382		3,177
Other service charges and fees		761		718		703			2,147		1,993
Other non-interest income		289		293		308			870		1,014

		2,221		2,078		2,127			6,399		6,184
NON-INTEREST EXPENSE
Salaries and employee benefits		3,668		3,675		3,745			11,011		11,154
Occupancy expense		1,486		1,362		1,336			4,373		3,985
Other non-interest expense		1,741		1,909		1,806			5,505		5,768

		6,895		6,946		6,887			20,889		20,907
NET INCOME BEFORE TAXES		1,756		1,995		2,033			5,845		5,925
INCOME TAXES		260		306		425			888		1,097

NET INCOME	$	1,496	$	1,689	$	1,608		$	4,957	$	4,828

Earnings per share - basic	$	0.31	$	0.35	$	0.33		$	1.01	$	0.99

Earnings per share - diluted	$	0.31	$	0.35	$	0.33		$	1.01	$	0.99

Dividends Paid	$	0.24	$	0.24	$	0.24		$	0.72	$	0.72

Average shares outstanding - basic		4,899,520		4,889,772		4,882,705			4,888,372		4,877,338
Average shares outstanding - diluted		4,904,613		4,894,792		4,893,148			4,897,958		4,894,750


	For the Period Ended,
	September 30,			June 30,			December 31,
	2018			2018			2017
Period End Balance Sheet Data:
Total assets	$	962,968		$	963,070		$	993,096
Total earning assets		883,667			884,412			910,282
Loans, net of unearned income		434,606			420,617			405,410
Allowance for loan losses		3,173			3,028			3,019
Total deposits		757,380			764,616			720,685
Short-term borrowings		26,500			32,500			11,500
Long-term borrowings		17			19			20,000
Shareholders’ equity		79,795			81,681			88,451
Book value per share	$	16.27		$	16.65		$	18.07
Period End Average Balance Sheet Data:
Total assets	$	973,553		$	979,714		$	1,013,177
Total earning assets		893,022			898,833			929,261
Loans, net of unearned income		413,725			409,282			395,216
Total deposits		765,580			768,924			762,983
Short-term borrowings		19,628			13,610			668
Long-term borrowings		688			1,016			21,644
Shareholders’ equity		84,625			85,989			90,230
Period End Non-performing Assets:
Non-accrual loans	$	10,101		$	7,084		$	7,582
Loans 90+ days past due and accruing		0			6			807
Other real estate owned		3,414			3,312			3,980

	As of
	September 30,			June 30,			December 31,
	2018			2018			2017
Year to Date Net charge-offs as a percentage of average net loans		0.00	%		-0.04	%		0.09	%
Year to Date Performance Ratios:
Return on average assets⁽¹⁾		0.68	%		0.71	%		0.62	%
Return on average equity⁽¹⁾		7.81	%		8.06	%		7.01	%
Year to Date Net Interest
Margin (tax equivalent)⁽¹⁾		3.10	%		3.12	%		3.01	%

⁽¹⁾	Annualized

Contact:

Citizens Holding Company, Philadelphia

Robert T. Smith, 601/656-4692

rsmith@tcbphila.com