Citizens Holding Company Reports Earnings

Citizens Holding Company 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.

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