Citizens Holding Company Reports Earnings

Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three and nine months ended September 30, 2018.

Net income for the three months ended September 30, 2018 of $1.497 million, or $0.31 per share-basic and diluted, a decrease of $111 thousand from net income of $1.608 million, or $0.33 per share-basic and diluted for the same quarter in 2017.

Net interest income for the third quarter of 2018, after the provision for loan losses, was $6.430 million, approximately 5.3% lower than the same period in 2017. The provision for loan losses for the three months ended September 30, 2018 was $289 thousand compared to a negative $74 thousand for the same period in 2017. The increase in the provision reflects managements 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 3.07% for the third quarter of 2018 compared to 2.98% for the same period in 2017. This increase was due to both an increase in interest rates on interest bearing due from banks accounts and an increase in loans outstanding.

Non-interest income increased in the third quarter of 2018 by $94 thousand, or 4.4%, while non-interest expenses increased $7 thousand, or 0.1%, compared to the same period in 2017. 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 partially offset by a decrease in other non-interest income. Non-interest expense increased due to an increase in occupancy expense of $150 thousand offset by a decrease in other operating expenses of $66 thousand and a decrease in salary and benefit expense of $77 thousand. The increase in occupancy expense was due mainly to an increase in equipment rental and service contracts for the third quarter.

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 

Net income for the nine months ended September 30, 2018 increased 2.7% to $4.957 million, or $1.01 per share-basic and diluted, from $4.828 million, or $0.99 per share-basic and diluted, for the nine months ended September 30, 2017. Net interest income for the nine months ended September 30, 2018, after the provision for loan losses, decreased 1.5% to $20.335 million from $20.648 million for the same period in 2017. Net interest margin for the nine months ended September 30, 2018, increased to 3.10% in 2018 from 3.03% in the same period in 2017. The provision for loan losses for the nine months ended September 30, 2018 was $141 thousand compared to negative $255 thousand in 2017. The increase in the provision reflects managements assessment of inherent losses in the loan portfolio including the impact caused by current local and national economic conditions and an increase in loans outstanding.

Non-interest income increased by $215 thousand, or 3.5%, and non-interest expense decreased by $18 thousand, or 0.9%, for the nine months ended September 30, 2018 when compared to the same period in 2017. 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 decreased primarily due to a decrease in salary and benefits costs and other operating expenses partially offset by an increase in occupancy expense.

Total assets as of September 30, 2018 decreased to $962.968 million, down $30.128 million, or 3.0%, when compared to $993.096 million at December 31, 2017. Deposits increased by $36.695 million, or 5.1%, and loans, net of unearned income, increased by $29.196 million, or 7.2%, when compared to December 31, 2017. The increase in loans, net of unearned income, was due to new loan demand in excess of loan payments. Non-performing assets increased by $1.146 million to $13.515 million at September 30, 2018 as compared to $12.369 million at December 31, 2017, due to decreases in other real estate owned, loans 90 days or more past due and still accruing interest and a decrease in non-accrual loans.

During the nine months of 2018, 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 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 Banks website, www.thecitizensbankphila.com. Citizens Holding Company stock is listed on the NASDAQ Global Market and is traded under the symbol CIZN. The Companys 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 Companys 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 Companys and the Banks 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 Companys market area; and (h) other risks detailed from time to time in the Companys 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
2018     2018     2017 2018     2017
INTEREST INCOME
Loans, including fees $ 5,166 $ 4,984 $ 4,585 $ 14,867 $ 14,017
Investment securities 2,697 2,734 2,893 8,254 8,644
Other interest   25       60       66     145         194  
7,888 7,778 7,544 23,266 22,855
 
INTEREST EXPENSE
Deposits 710 516 472 1,727 1,435
Other borrowed funds   459       310       353     1,063         1,027  
1,169 826 825 2,790 2,462
 
NET INTEREST INCOME 6,719 6,952 6,719 20,476 20,393
 
PROVISION FOR (REVERSAL OF)
LOAN LOSSES   289       89       (74 )   141         (255 )
 
NET INTEREST INCOME AFTER
PROVISION FOR (REVERSAL OF)
LOAN LOSSES 6,430 6,863 6,793 20,335 20,648
 
NON-INTEREST INCOME
Service charges on deposit accounts 1,171 1,067 1,116 3,382 3,177
Other service charges and fees 761 718 703 2,147 1,993
Other non-interest income   289       293       308     870         1,014  
2,221 2,078 2,127 6,399 6,184
 
NON-INTEREST EXPENSE
Salaries and employee benefits 3,668 3,675 3,745 11,011 11,154
Occupancy expense 1,486 1,362 1,336 4,373 3,985
Other non-interest expense   1,741       1,909       1,806     5,505         5,768  
6,895 6,946 6,887 20,889 20,907
 
NET INCOME BEFORE TAXES 1,756 1,995 2,033 5,845 5,925
 
INCOME TAXES   260       306       425     888         1,097  
 
NET INCOME $ 1,496     $ 1,689     $ 1,608   $ 4,957       $ 4,828  
 
Earnings per share – basic $ 0.31     $ 0.35     $ 0.33   $ 1.01       $ 0.99  
 
Earnings per share – diluted $ 0.31     $ 0.35     $ 0.33   $ 1.01       $ 0.99  
 
Dividends Paid $ 0.24     $ 0.24     $ 0.24   $ 0.72       $ 0.72  
 
Average shares outstanding – basic 4,899,520 4,889,772 4,882,705 4,888,372 4,877,338
 
Average shares outstanding – diluted 4,904,613 4,894,792 4,893,148 4,897,958 4,894,750
 
 
 
For the Period Ended,
September 30, June 30, December 31,
2018     2018     2017
Period End Balance Sheet Data:
Total assets $ 962,968 $ 963,070 $ 993,096
Total earning assets 883,667 884,412 910,282
Loans, net of unearned income 434,606 420,617 405,410
Allowance for loan losses 3,173 3,028 3,019
Total deposits 757,380 764,616 720,685
Short-term borrowings 26,500 32,500 11,500
Long-term borrowings 17 19 20,000

Shareholders equity

79,795 81,681 88,451
Book value per share $ 16.27 $ 16.65 $ 18.07
 
Period End Average Balance Sheet Data:
Total assets $ 973,553 $ 979,714 $ 1,013,177
Total earning assets 893,022 898,833 929,261
Loans, net of unearned income 413,725 409,282 395,216
Total deposits 765,580 768,924 762,983
Short-term borrowings 19,628 13,610 668
Long-term borrowings 688 1,016 21,644

Shareholders equity

84,625 85,989 90,230
 
Period End Non-performing Assets:
Non-accrual loans $ 10,101 $ 7,084 $ 7,582
Loans 90+ days past due and accruing 0 6 807
Other real estate owned 3,414 3,312 3,980
 
 
 
As of
September 30, June 30, December 31,
2018     2018     2017
 

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

0.00 % -0.04 % 0.09 %
 
Year to Date Performance Ratios:
Return on average assets(1) 0.68 % 0.71 % 0.62 %
Return on average equity(1) 7.81 % 8.06 % 7.01 %
 
Year to Date Net Interest
Margin (tax equivalent)(1) 3.10 % 3.12 % 3.01 %
 
(1) Annualized
 

Citizens Holding Company
Robert T. Smith, 601-656-4692
[email protected]

 Stay Updated To Save Money & Time. Join Our Free Newsletter 
. Indepth Analysis & Opinion       . Interviews      . Exclusive Reports  
. Free Digital Magazines      News & updates      . Event Invitations 
                     
& Much More Delivered To Your Inbox For Free.
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.

 
Close
Stay Updated To Save Money & Time. Join Our Free Newsletter. 
. Indepth Analysis & Opinion       Interviews          . Exclusive Reports 
. Free Digital Magazines        . News & updates        . Event Invitations
& Much More Delivered To Your Inbox For Free. 
Submit
We Will Not Spam, Rent, or Sell Your Information.
All emails include an unsubscribe link. You may opt-out at any time. See our privacy policy.
 
Close