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Citizens Holding Company Reports Earnings

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Citizens Holding Company (NASDAQ:CIZN) announced today results of
operations for the three and six months ended June 30, 2017.

Net income for the three months ended June 30, 2017 was $1.783 million,
or $0.37 per share-basic and $0.36 per share-diluted, up from $1.779
million, or $0.36 per share-basic and diluted for the same quarter in
2016. Net interest income for the second quarter of 2017, after the
provision for loan losses, was $7.042 million, approximately 0.4% higher
than the same period in 2016. The provision for loan losses for the
three months ended June 30, 2017 was negative $30 thousand compared to a
negative $147 thousand for the same period in 2016. 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 a decrease in total loans outstanding. The net interest
margin decreased to 3.08% in the second 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 second quarter of 2017 by $215
thousand, or 11.3%, while non-interest expenses increased $256 thousand,
or 3.8%, 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 $266 thousand and occupancy expense of $221 thousand
partially offset by a $141 thousand decrease in other operating
expenses. The decrease in other operating expense was due mainly to
regulatory costs for the quarter.

Net income for the six months ended June 30, 2017 decreased 2.5% to
$3.221 million, or $0.66 per share-basic and diluted, from $3.305
million, or $0.68 per share-basic and diluted, for the six months ended
June 30, 2016. Net interest income for the six months ended June 30,
2017, after the provision for loan losses, increased 0.6% to $13.855
million from $13.767 million for the same period in 2016. Net interest
margin for the six months ended June 30, 2017, decreased to 3.06% in
2017 from 3.12% in the same period in 2016. The provision for loan
losses for the six months ended June 30, 2017 was a negative $181
thousand compared to a negative $86 thousand in 2016. 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 and a decrease in loans outstanding.

Non-interest income increased by $333 thousand, or 8.9%, and
non-interest expense increased by $720 thousand, or 5.4%, for the six
months ended June 30, 2017 when compared to the same period in 2016. 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 increased primarily due to an increase in salary
and benefits costs.

Total assets as of June 30, 2017 decreased to $1.018 billion, down
$7.650 million, or 0.7%, when compared to December 31, 2016. Deposits
increased by $19.771 million, or 2.6%, and loans, net of unearned
income, decreased by $4.641 million, or 1.2%, 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 $1.502 million to $12.026 million at June 30, 2017
as compared to $13.528 million at December 31, 2016, because of
decreases in other real estate owned, loans 90 days or more past due and
still accruing interest and by a decrease in non-accrual loans.

During the six months of 2017, the Company paid dividends totaling $0.48
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, 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 Six Months Ending
June 30,     March 31,     June 30, June 30,     June 30,
2017 2017 2016 2017 2016
 
INTEREST INCOME
Loans, including fees $ 4,864 $ 4,568 $ 4,734 $ 9,432 $ 9,519
Investment Securities 2,919 2,832 2,851 5,751 5,567
Other Interest   59   69   40     128     119  
7,842 7,469 7,625 15,311 15,205
 
INTEREST EXPENSE
Deposits 486 477 451 963 919
Other borrowed funds   344   330   304     674     605  
830 807 755 1,637 1,524
 
NET INTEREST INCOME 7,012 6,662 6,870 13,674 13,681
 
PROVISION FOR LOAN LOSSES   -30   -151   -147     -181     -86  
 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

7,042 6,813 7,017 13,855 13,767
 
NON-INTEREST INCOME
Service charges on deposit accounts 1,019 1,042 898 2,061 1,785
Other service charges and fees 673 617 608 1,290 1,194
Other non-interest income   431   275   402     706     745  
2,123 1,934 1,908 4,057 3,724
 
NON-INTEREST EXPENSE
Salaries and employee benefits 3,745 3,664 3,479 7,409 6,881
Occupancy expense 1,339 1,310 1,208 2,649 2,537
Other non-interest expense   1,827   2,135   1,968     3,962     3,882  
6,911 7,109 6,655 14,020 13,300
 
NET INCOME BEFORE TAXES 2,254 1,638 2,270 3,892 4,191
 
INCOME TAXES   471   201   491     672     886  
 
NET INCOME $ 1,783 $ 1,437 $ 1,779   $ 3,220   $ 3,305  
 
Earnings per share - basic $ 0.37 $ 0.29 $ 0.36   $ 0.66   $ 0.68  
 
Earnings per share - diluted $ 0.36 $ 0.29 $ 0.36   $ 0.66   $ 0.68  
 
Dividends Paid $ 0.24 $ 0.24 $ 0.24   $ 0.48   $ 0.48  
 
Average shares outstanding-basic 4,878,986 4,883,679 4,880,568 4,877,824 4,877,824
 
Average shares outstanding-diluted 4,890,049 4,897,893 4,885,951 4,885,222 4,885,222
 
 
 
 
 
For the Period Ended,
June 30, March 31, December 31,
2017 2017 2016
Period End Balance Sheet Data:
Total assets $ 1,017,564 $ 1,048,009 $ 1,025,214
Total earning assets 930,708 953,788 935,957
Loans, net of unearned income 389,410 392,885 394,051
Allowance for loan losses 3,506 3,702 3,093
Total deposits 779,926 789,215 760,155
Long-term borrowings 20,000 20,000 20,000
Shareholders' equity 92,795 88,218 85,059
Book value per share $ 19.03 $ 18.10 $ 17.42
 
Period End Average Balance Sheet Data:
Total assets $ 1,008,111 $ 999,206 $ 996,266
Total earning assets 924,144 914,155 928,861
Loans, net of unearned income 394,855 393,730 409,367
Total deposits 768,494 763,070 766,264
Long-term borrowings 20,928 20,000 20,000
Shareholders' equity 88,159 86,191 91,766
 
Period End Non-performing Assets:
Non-accrual loans $ 7,724 $ 8,987 $ 8,879
Loans 90+ days past due and accruing 128 60 206
Other real estate owned 4,174 4,353 4,443
 
 
As of
June 30, March 31, December 31,
2017 2017 2016
 

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

0.05 % 0.01 % 0.61 %
 
Year to Date Performance Ratios:
Return on average assets(1) 0.64 % 0.58 % 0.68 %
Return on average equity(1) 7.31 % 6.67 % 7.34 %
 

Year to Date Net Interest Margin (tax equivalent)(1)

3.06 % 3.03 % 3.07 %
 
(1) Annualized
 
 
 
 

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