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Citizens Holding Company Reports Earnings

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PHILADELPHIA, Miss.--(BUSINESS WIRE)--

Citizens Holding Company (NASDAQ: CIZN) announced today results of operations for the three and twelve months ended December 31, 2015.

Net income for the three months ended December 31, 2015 was $2.330 million, or $0.48 per share-basic and diluted, up from $1.662 million, or $0.34 per share-basic and diluted for the same quarter in 2014. Net interest income for the fourth quarter of 2015, after the provision for loan losses, was $6.801 million, approximately 0.9% higher than the same period in 2014. The provision for loan losses for the three months ended December 31, 2015 was $148 thousand compared to $145 thousand for the same period in 2014. 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. The net interest margin decreased to 3.20% in the fourth quarter of 2015 from 3.48% 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 increased in the fourth quarter of 2015 by $866 thousand, or 47.1%, while non-interest expenses decreased $163 thousand, or 2.5%, compared to the same period in 2014. The increase in non-interest income was mainly due to a gain of $841 thousand on the sale of other repossessed assets. Non-interest expense decreased primarily due to decreases in occupancy expense and other operating expenses partially offset by an increase in salary and benefit expense.

Net income for the twelve months ended December 31, 2015 increased 9.1% to $7.589 million, or $1.56 per share-basic and diluted, from $7.450 million, or $1.53 per share-basic and diluted, for the twelve months ended December 31, 2014. Net interest income for the twelve months ended December 31, 2015, after the provision for loan losses, decreased 0.4% to $27.332 million from $27.440 million for the same period in 2014. Net interest margin for the twelve months ended December 31, 2015, decreased to 3.33% in 2015 from 3.60% in the same period in 2014. The provision for loan losses for the twelve months ended December 31, 2015 was $556 thousand compared to the provision of $923 thousand in 2014. The decrease 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.

Non-interest income increased by $164 thousand, or 2.0%, and non-interest expense decreased by $734 thousand, or 2.8%, for the twelve months ended December 31, 2015 when compared to the same period in 2014. The increase in non-interest income was due primarily to the $841 gain from the sale of other repossessed assets that were in excess of the net proceeds of $557 thousand from bank owned life insurance policies that were received in 2014 as a result of the death of an insured bank officer. Non-interest expense decreased primarily due to decreased losses on other real estate, a decrease in loan related collection expenses and a decrease in office supply costs.

Total assets as of December 31, 2015 increased to $973.505 million, up $52.444 million, or 5.7%, when compared to December 31, 2014. Deposits increased by $57.311 million, or 8.2%, and loans, net of unearned income, increased by $38.622 million, or 9.9%, when compared to December 31, 2014. The increase in loans, net of unearned income, was due to improved loan demand. Non-performing assets increased by $1.276 million to $18.063 million at December 31, 2015 as compared to December 31, 2014, because of an increase in non-accrual loans offset partially by decreases in loans 90 days or more past due and still accruing interest and other real estate owned.

During 2015, the Company paid dividends totaling $0.93 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)

 
    For the Three Months Ending         For the Twelve Months Ending
December 31,     September 30, December 31, December 31,     December 31,
2015     2015     2014 2015     2014
 
INTEREST INCOME
Loans, including fees $ 5,006 $ 5,038 $ 4,972 $ 20,040 $ 20,082
Investment Securities 2,734 2,737 2,679 10,830 11,250
Other Interest   34       14       29         95         49  
7,774 7,789 7,680 30,965 31,381
 
INTEREST EXPENSE
Deposits 494 468 464 1,844 1,755
Other borrowed funds   331       297       333         1,233         1,263  
825 765 797 3,077 3,018
 
NET INTEREST INCOME 6,949 7,024 6,883 27,888 28,363
 
PROVISION FOR LOAN LOSSES   148       142       145         556         923  
 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

6,801 6,882 6,738 27,332 27,440
 
NON-INTEREST INCOME
Service charges on deposit accounts 989 1,037 996 3,867 3,933
Other service charges and fees 563 626 513 2,284 2,097
Other non-interest income   1,154       354       331         2,176         2,133  
2,706 2,017 1,840 8,327 8,163
 
NON-INTEREST EXPENSE
Salaries and employee benefits 3,257 3,341 3,244 13,295 13,095
Occupancy expense 1,272 1,357 1,291 5,225 5,195
Other non-interest expense   1,779       1,777       1,936         7,071         8,035  
6,308 6,475 6,471 25,591 26,325
 
NET INCOME BEFORE TAXES 3,199 2,424 2,107 10,068 9,278
 
INCOME TAXES   869       587       445         2,479         1,828  
 
NET INCOME $ 2,330     $ 1,837     $ 1,662       $ 7,589       $ 7,450  
 
Earnings per share - basic $ 0.48     $ 0.38     $ 0.34       $ 1.56       $ 1.53  
 
Earnings per share - diluted $ 0.48     $ 0.38     $ 0.34       $ 1.56       $ 1.53  
 
Dividends Paid $ 0.24     $ 0.23     $ 0.23       $ 0.93       $ 0.89  
 
Average shares outstanding-basic 4,877,614 4,877,614 4,870,114 4,872,092 4,870,114
 
Average shares outstanding-diluted 4,879,911 4,879,911 4,871,012 4,872,996 4,870,749
 
 
 
For the Period Ended
December 31, September 30, December 31,
2015     2015     2014
Period End Balance Sheet Data:
Total assets $ 973,505 $ 960,895 $ 921,061
Total earning assets 894,765 875,507 833,845
Loans, net of unearned income 429,582 431,945 390,960
Allowance for loan losses 6,474 6,829 6,542
Total deposits 753,405 748,642 696,094
Long-term borrowings 20,000 20,000 20,000

Shareholders' equity

86,425 84,513 81,858
Book value per share $ 17.73 $ 17.30 $ 16.78
 
Period End Average Balance Sheet Data:
Total assets $ 945,270 $ 933,702 $ 884,688
Total earning assets 863,829 852,486 798,432
Loans, net of unearned income 412,161 407,613 389,720
Total deposits 725,116 718,413 684,134
Long-term borrowings 20,000 20,000 35,593

Shareholders' equity

84,250 83,538 73,219
 
Period End Non-performing Assets:
Non-accrual loans $ 14,423 $ 15,161 $ 11,854
Loans 90+ days past due and accruing 67 130 881
Other real estate owned 3,573 3,529 4,052
 
 
 
As of
December 31, September 30, December 31,
2015     2015     2014
 

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

0.03 % 0.03 % 0.63 %
 
Year to Date Performance Ratios:
Return on average assets(1) 0.80 % 0.75 % 0.84 %
Return on average equity(1) 9.01 % 8.39 % 10.17 %
 
Year to Date Net Interest
Margin (tax equivalent)(1) 3.33 % 3.38 % 3.60 %
 
(1) Annualized

Citizens Holding Company, Philadelphia
Robert T. Smith, 601-656-4692
rsmith@tcbphila.com

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