Citizens Holding Company (NASDAQ:CIZN) announced today results
of operations for the three and nine months ended September 30,
2017.
Net income for the three months ended September 30, 2017 was
$1.608 million, or $0.33 per share-basic and diluted, down from
$1.752 million, or $0.36 per share-basic and diluted for the same
quarter in 2016. Net interest income for the third quarter of 2017,
after the provision for loan losses, was $6.793 million,
approximately 2.4% higher than the same period in 2016. The
provision for loan losses for the three months ended September 30,
2017 was negative $74 thousand compared to $183 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 2.98% in the third quarter of 2017
from 3.10% in the same period in 2016. This was due primarily to
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 third quarter of 2017 by
$48 thousand, or 2.3%, while non-interest expenses increased $330
thousand, or 5.0%, compared to the same period in 2016. The
increase in 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 $285 thousand, occupancy expense
of $6 thousand and a $39 thousand increase in other operating
expenses. The increase in other non-interest expense was due mainly
to office supply costs for the quarter.
Net income for the nine months ended September 30, 2017
decreased 4.5% to $4.828 million, or $0.99 per share-basic and
diluted, from $5.057 million, or $1.04 per share-basic and diluted,
for the nine months ended September 30, 2016. Net interest income
for the nine months ended September 30, 2017, after the provision
for loan losses, increased 1.2% to $20.648 million from $20.404
million for the same period in 2016. Net interest margin for the
nine months ended September 30, 2017, decreased to 3.03% in 2017
from 3.11% in the same period in 2016. The provision for loan
losses for the nine months ended September 30, 2017 was a negative
$255 thousand compared to $97 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 $381 thousand, or 6.6%, and
non-interest expense increased by $1.05 million, or 5.3%, for the
nine months ended September 30, 2017 when compared to the same
period in 2016. The increase in 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 September 30, 2017 increased to $1.026
billion, up $910 thousand, or 0.1%, when compared to December 31,
2016. Deposits decreased by $5.387 million, or 0.7%, and loans, net
of unearned income, decreased by $972 million, or 0.2%, 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 $1.223 million to
$12.305 million at September 30, 2017 as compared to $13.528
million at December 31, 2016, due in large part to decreases in
other real estate owned and in non-accrual loans partially offset
by a slight increase in loans 90 days or more past due and still
accruing interest.
During the nine months of 2017, the Company paid dividends
totaling $0.72 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 Nine Months Ending
September 30, June 30, September 30, September 30,
September 30, 2017 2017 2016
2017 2016 INTEREST INCOME Loans, including fees
$4,585 $4,864 $4,825 $14,017 $14,344 Investment Securities 2,893
2,919 2,720 8,644 8,287 Other Interest 66 59 29
194 148 7,544 7,842 7,574
22,855 22,779 INTEREST EXPENSE Deposits 472 486 448 1,435
1,367 Other borrowed funds 353 344 306
1,027 911 825 830 754 2,462 2,278
NET INTEREST INCOME 6,719 7,012 6,820 20,393 20,501
PROVISION FOR LOAN LOSSES -74 -30 183
-255 97
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
6,793 7,042 6,637 20,648 20,404 NON-INTEREST INCOME Service
charges on deposit accounts 1,116 1,019 1,010 3,177 2,795 Other
service charges and fees 703 673 658 1,993 1,852 Other non-interest
income 308 431 411 1,014
1,156 2,127 2,123 2,079 6,184 5,803
NON-INTEREST EXPENSE Salaries and employee benefits 3,745 3,745
3,460 11,154 10,341 Occupancy expense 1,336 1,339 1,330 3,985 3,867
Other non-interest expense 1,806 1,827 1,767
5,768 5,649 6,887 6,911 6,557
20,907 19,857 NET INCOME BEFORE TAXES 2,033 2,254 2,159
5,925 6,350 INCOME TAXES 425 471 407
1,097 1,293 NET INCOME
$1,608 $1,783 $1,752 $4,828
$5,057 Earnings per share - basic $0.33
$0.37 $0.36 $0.99
$1.04 Earnings per share - diluted $0.33 $0.36
$0.36 $0.99 $1.04
Dividends Paid $0.24 $0.24 $0.24
$0.72 $0.72 Average shares
outstanding-basic 4,882,705 4,883,679 4,869,079 4,877,338 4,864,924
Average shares outstanding-diluted 4,893,148 4,897,893
4,877,693 4,894,750 4,873,240 For the
Period Ended, September 30, June 30, December 31, 2017
2017 2016 Period End Balance Sheet Data: Total assets
$1,026,124 $1,017,564 $1,025,214 Total earning assets 939,295
930,708 935,957 Loans, net of unearned income 393,079 389,410
394,051 Allowance for loan losses 3,404 3,506 3,093 Total deposits
754,768 779,926 760,155 Long-term borrowings 20,000 20,000 20,000
Shareholders' equity 91,942 92,795 85,059 Book value per share
$18.86 $19.03 $17.42 Period End Average Balance Sheet Data:
Total assets $1,009,781 $1,008,111 $996,266 Total earning assets
926,107 924,144 928,861 Loans, net of unearned income 393,796
394,855 409,367 Total deposits 767,634 768,494 766,264 Long-term
borrowings 20,000 20,928 20,000 Shareholders' equity 89,693 88,159
91,766 Period End Non-performing Assets: Non-accrual loans
$7,833 $7,724 $8,879 Loans 90+ days past due and accruing 298 128
206 Other real estate owned 4,174 4,174 4,443 As of
September 30, June 30, December 31, 2017 2017
2016
Year to Date Net charge-offs as a
percentage of average net loans
0.06 % 0.05 % 0.61 % Year to Date Performance Ratios: Return
on average assets(1) 0.64 % 0.64 % 0.68 % Return on average
equity(1) 7.18 % 7.31 % 7.34 %
Year to Date Net Interest Margin (tax
equivalent)(1)
3.03 % 3.06 % 3.07 % (1) Annualized
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version on businesswire.com: http://www.businesswire.com/news/home/20171027005630/en/
Citizens Holding CompanyRobert T. Smith,
601-656-4692rsmith@tcbphila.com
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