Market Overview

Citizens Holding Company Reports Earnings


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

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,
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

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
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
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  



6,813 6,745 6,750
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
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

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