Citizens Holding Company Reports Earnings

Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three and nine months ended September 30, 2013.

Net income for the three months ended September 30, 2013 was $2.009 million, or $0.41 per share-basic and diluted, up from $1.629 million, or $0.34 per share-basic and $0.33 per share-diluted for the same quarter in 2012. Net interest income for the third quarter of 2013, after the provision for loan losses for the quarter, was $6.173 million, approximately 3.8% lower than the same period in 2012, due to an increase in the provision for loan losses. The provision for loan losses for the three months ended September 30, 2013 was $1.080 million compared to $462 thousand for the same period in 2012. 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 3.72% in the third quarter of 2013 from 3.74% in the same period in 2012 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 third quarter of 2013 by $343 thousand, or 18.6%, while non-interest expenses decreased $423 thousand, or 6.7%, compared to the same period in 2012. The increase in non-interest income was due primarily to an increase in service charges on deposit accounts, other income and other service charges and fees. Non-interest expenses decreased due to a $285 thousand decrease in other operating expense and a $134 thousand decrease in salaries and benefits and a $4 thousand decrease in occupancy expense. The decrease in other operating expense was due mainly as a result of lower regulatory and related costs.

Net income for the nine months ended September 30, 2013 decreased 0.3% to $5.028 million, or $1.03 per share-basic and diluted, from $5.044 million, or $1.04 per share-basic and diluted, for the nine months ended September 30, 2012. Net interest income for the nine months ended September 30, 2013, after the provision for loan losses, decreased 7.3% to $18.985 million from $20.485 million for the same period in 2012. Net interest margin for the nine months ended September 30, 2013, decreased to 3.57% in 2013 from 4.00% in the same period in 2012. The provision for loan losses for the nine months ended September 30, 2013 was $1.829 million compared to the provision of $1.328 million in 2012. 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.

Non-interest income increased by $706 thousand, or 13.9%, and non-interest expense decreased by $803 thousand, or 4.1%, for the nine months ended September 30, 2013 when compared to the same period in 2012. The increase in non-interest income was primarily due to an increase in service charges from deposit accounts and other service charges and fees. Non-interest expense decreased primarily due a decrease in other operating expenses of $368 thousand and in salaries and benefits in the amount of $526 thousand partially offset by an increase in occupancy expenses in the amount of $91 thousand. The decrease in other operating expense was due mainly as a result of lower regulatory and related costs.

Total assets as of September 30, 2013 decreased to $871.588 million, down $9.252 million, or 1.1%, when compared to December 31, 2012. Deposits increased by $6.142 million, or 1.0%, and loans, net of unearned income increased by $8.265 million, or 2.3%, when compared to December 31, 2012. The increase in loans, net of unearned, was due to improving loan demand in excess of repayments of existing loans. Non-performing assets decreased by $1.238 million to $18.164 million at September 30, 2013 as compared to December 31, 2012, because of decreases in non-accrual loans, other real estate owned and loans 90 days or more past due and still accruing interest.

During the first three quarters of 2013, the Company paid dividends totaling $0.66 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-two banking locations in ten counties in East Central and South Mississippi and has a loan production office in Biloxi, 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)
 
      Three Months       Nine Months
Ending September 30, Ending September 30,
  2013         2012       2013         2012  
               
Interest income and fees $8,079 $8,276 $24,057 $26,178
Interest expense   826         1,397       3,243         4,365  
Net interest income 7,253 6,879 20,814 21,813
 
 
Provision for loan losses   1,080         462       1,829         1,328  

Net interest income after provision for loan losses
6,173 6,417 18,985 20,485
 
Non-interest income 2,183 1,840 5,793 5,087
Non-interest expense   5,850         6,273       18,554         19,357  
 
Net income before taxes 2,506 1,984 6,224 6,215
Income taxes   497         355       1,196         1,171  
 
Net income   $2,009         $1,629       $5,028         $5,044  
 
 
Earnings per share - basic   $0.41         $0.34       $1.03         $1.04  
 
Earnings per share - diluted   $0.41         $0.33       $1.03         $1.04  
 
Dividends Paid   $0.22         $0.22       $0.66         $0.66  
 
Average shares outstanding-basic 4,870,114 4,861,411 4,867,475 4,856,584
 
Average shares outstanding-diluted 4,870,194 4,867,039 4,869,469 4,865,077
 
As of As of
September 30, December 31,
  2013         2012  
Period End Balance Sheet Data:
Total assets $871,588 $880,840
Total earning assets 782,107 802,219
Loans, net of unearned income 377,971 368,891
Allowance for loan losses 7,770 6,954
Total deposits 648,691 642,549
Long-term borrowings 55,634 68,674

Shareholders’ equity
68,780 88,869
Book value per share $14.12 $18.28
 
Period End Average Balance Sheet Data:
Total assets $883,457 $842,456
Total earning assets 804,600 766,663
Loans, net of unearned income 368,582 374,286
Total deposits 654,663 592,723
Long-term borrowings 61,312 72,553

Shareholders’ equity
82,705 87,972
 
Period End Non-performing Assets:
Non-accrual loans 13,706 14,142
Loans 90+ days past due and accruing 261 578
Other real estate owned 4,197 4,682
 
As of As of
September 30, September 30,
  2013         2012  
 

Period End Net charge-offs as a percentage of average net loans
0.27% 0.15%
 
Period End Performance Ratios:
Return on average assets(1) 0.76% 0.80%
Return on average equity(1) 8.11% 7.62%
 
Period Ending Net Interest
Margin (tax equivalent)(1) 3.57% 4.00%
 
(1) Annualized
 

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX