Citizens Holding Company (the “Company”) (NASDAQ:CIZN) announced
today results of operations for the three months ended March 31,
2020.
(in thousands, except share and per share data)
Net income for the three months ended March 31, 2020 was $1,160,
or $0.21 per share-basic and diluted, a decrease of $67 from net
income of $1,227, or $0.25 per share-basic and diluted for the same
quarter in 2019. The majority of the decrease relates to additional
non-interest expense and an increase in the interest paid on
interest bearing liabilities that exceeded the increase in interest
income and non-interest income.
In light of the recent events surrounding the COVID-19 pandemic,
the Company is continually assessing the effects of the pandemic to
its employees, customers and communities. In March 2020, the
Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”)
was enacted. The CARES Act contains many provisions related to
banking, lending, mortgage forbearance and taxation, and the
Company has been working diligently to help support its customers
through the SBA Paycheck Protection Program, loan modifications,
deferrals and fee waivers for early withdrawal of certificates of
deposit due to hardship.
While the ultimate impact of the crisis can’t be accurately
predicted at this point, management believes the Company is
well-capitalized and has the financial stability to continue to
serve its customers and communities during this unprecedented
time.
Net interest income for the first quarter of 2020, after the
provision for loan losses, was $7,071, approximately 17.6% higher
than the same period in 2019. The provision for loan losses for the
three months ended March 31, 2020 was $314 compared to a provision
for loan losses of $195 for the same period in 2019. 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 an increase in total loans
outstanding. The net interest margin was 2.72% for the first
quarter of 2020 compared to 2.74% for the same period in 2019. The
decrease in net interest margin was overall minimal as yields on
earning assets and rates on interest bearing liabilities decreased
proportionally.
Non-interest income increased in the first quarter of 2020 by
$334, or 16.3%, while non-interest expenses increased $1,427, or
21.5%, compared to the same period in 2019. The increase in
non-interest income was mainly the result of an increase in
mortgage loan origination income due to a decrease in long-term
mortgage rates. Non-interest expense increased due to an increase
in salaries and employee benefits, occupancy expense and other
non-interest expenses.
Total assets as of March 31, 2020 increased to $1,216,111, an
increase of $20,677, or 1.7%, when compared to $1,195,434 at
December 31, 2019. Deposits increased by $26,892, or 3.0%, and
loans, net of unearned income, decreased by $88, or 0.02%, when
compared to December 31, 2019. Non-performing assets decreased by
$204 thousand to $15,598 at March 31, 2020 as compared to $15,802
at December 31, 2019, due to a decrease in non-accrual loans and
loans 90 days or more past due and still accruing partially offset
by an increase in other real estate owned.
During the three months ended March 31, 2020, the Company paid
dividends totaling $0.24 per share or $1,339 compared to $0.24 per
share or $1,177 for the same period in 2019.
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 and 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 banking 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) the impact of COVID-19 on our
business, including the impact of the actions taken by governmental
authorities to try and contain the virus or address the impact of
the virus on the United States economy (including, without
limitation, the CARES Act), and the resulting effect of all of such
items on our operations, liquidity and capital position, and on the
financial condition of our borrowers and other customers; our
ability to mitigate our risk exposures; (c) changes in the
legislative and regulatory environment that negatively impact the
Company and Bank through increased operating expenses; (d)
increased competition from other financial institutions; (e) the
impact of technological advances; (f) expectations about the
movement of interest rates, including actions that may be taken by
the Federal Reserve Board in response to changing economic
conditions; (g) changes in asset quality and loan demand; (h)
expectations about overall economic strength and the performance of
the economics in the Company’s market area; and (i) 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,
2020
2019
2019
INTEREST INCOME
Loans, including fees
$7,480
$7,433
$5,450
Investment securities
1,997
2,073
2,699
Other interest
232
377
235
9,709
9,883
8,384
INTEREST EXPENSE
Deposits
1,969
2,151
1,729
Other borrowed funds
355
427
445
2,324
2,578
2,174
NET INTEREST INCOME
7,385
7,305
6,210
PROVISION FOR LOAN LOSSES
314
101
195
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES
7,071
7,204
6,015
NON-INTEREST INCOME
Service charges on deposit accounts
1,049
1,144
1,097
Other service charges and fees
773
812
684
Other non-interest income
559
1,166
266
2,381
3,122
2,047
NON-INTEREST EXPENSE
Salaries and employee benefits
4,435
4,358
3,547
Occupancy expense
1,659
1,125
1,423
Other non-interest expense
1,973
2,245
1,670
8,067
7,728
6,640
NET INCOME BEFORE TAXES
1,385
2,598
1,422
INCOME TAX EXPENSE
225
627
195
NET INCOME
$1,160
$1,971
$1,227
Earnings per share - basic
$0.21
$0.35
$0.25
Earnings per share - diluted
$0.21
$0.35
$0.25
Dividends paid per share
$0.24
$0.24
$0.24
Average shares outstanding - basic
5,579,381
5,558,891
4,892,530
Average shares outstanding - diluted
5,581,411
5,561,351
4,895,128
For the Period Ended,
March 31,
December 31,
March 31,
2020
2019
2019
Period End Balance Sheet Data:
Total assets
$1,216,111
$1,195,434
$1,057,392
Total earning assets
1,124,671
1,105,103
984,794
Loans, net of unearned income
576,979
577,067
447,470
Allowance for loan losses
3,816
3,755
3,560
Total deposits
925,888
898,996
840,160
Short-term borrowings
-
-
-
Long-term borrowings
5
6
11
Shareholders' equity
118,744
112,800
90,579
Book value per share
$21.28
$20.22
$18.51
Period End Average Balance Sheet Data:
Total assets
$1,202,483
$1,164,570
$1,006,484
Total earning assets
1,109,562
1,068,683
929,677
Loans, net of unearned income
574,749
561,483
435,033
Total deposits
918,571
929,598
803,278
Short-term borrowings
56
2,096
-
Long-term borrowings
5
10
13
Shareholders' equity
112,945
96,295
86,136
Period End Non-performing Assets:
Non-accrual loans
$11,941
$11,993
$10,018
Loans 90+ days past due and accruing
14
257
20
Other real estate owned
3,643
3,552
3,440
As of
March 31,
December 31,
March 31,
2020
2019
2019
Year to Date Net charge-offs as a
percentage of average net loans
0.04%
0.03%
0.00%
Year to Date Performance Ratios:
Return on average assets(1)
0.39%
0.51%
0.49%
Return on average equity(1)
4.11%
6.13%
5.70%
Year to Date Net Interest Margin (tax
equivalent)(1)
2.72%
2.77%
2.74%
(1) Annualized
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200424005491/en/
Citizens Holding Company, Philadelphia Robert T. Smith,
601/656-4692 rsmith@tcbphila.com
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