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8-K
CITIZENS HOLDING CO /MS/ filed this Form 8-K on 10/24/2016
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8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15 (d)

of the Securities Exchange Act of 1934

October 21, 2016

Date of Report (Date of earliest event reported)

 

 

CITIZENS HOLDING COMPANY

(Exact name of the registrant as specified in its charter)

 

 

 

MISSISSIPPI   001-15375   64-0666512

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

521 Main Street, Philadelphia, Mississippi   39350
(Address of principal executive office)   (Zip Code)

(601) 656-4692

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425).

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12).

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)).

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)).

 

 

 


Item 2.02. Results of Operation and Financial Condition.

On October 21, 2016, Citizens Holding Company (the “Company”) issued a press release that announced the earnings for the Company for the third quarter of 2016. This press release, including accompanying financial highlights, is furnished as Exhibit 99.1 to this Form 8-K.

 

Item 7.01. Regulation FD Disclosure.

On October 21, 2016, the Company issued a press release that announced the earnings for the Company for the third quarter of 2016. This press release, including accompanying financial highlights, is furnished as Exhibit 99.1 to this Form 8-K.

 

Item 9.01. Financial Statements and Exhibits.

 

  (d) Exhibits

 

Exhibit 99.1    Press Release dated October 21, 2016, including financial highlights


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

CITIZENS HOLDING COMPANY
  BY:  

  /s/ Robert T. Smith

      Robert T. Smith
      Treasurer and Chief Financial Officer

DATE: October 21, 2016


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Press Release dated October 21, 2016, including financial highlights
EX-99.1

Exhibit 99.1

CITIZENS HOLDING COMPANY REPORTS EARNINGS

PHILADELPHIA, Miss.—(BUSINESS WIRE)—October 21, 2016—Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three and nine months ended September 30, 2016.

Net income for the three months ended September 30, 2016 was $1.752 million, or $0.36 per share-basic and diluted, down from $1.837 million, or $0.38 per share-basic and diluted for the same quarter in 2015. Net interest income for the third quarter of 2016, after the provision for loan losses, was $6.637 million, approximately 3.6% lower than the same period in 2015. The provision for loan losses for the three months ended September 30, 2016 was $183 thousand compared to $142 thousand for the same period in 2015. 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 3.10% in the third quarter of 2016 from 3.34% in the same period in 2015 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 2016 by $62 thousand, or 3.1%, while non-interest expenses increased $82 thousand, or 1.3%, compared to the same period in 2015. The increase in non-interest income was mainly due to an increase in other non-interest income of $57 thousand and an increase in other service charges and fees of $32 thousand offset by a decrease in service charges on checking accounts of $27 thousand. Non-interest expense increased due to an increase in salary and benefit expense of $119 thousand partially offset by an $27 thousand decrease in occupancy expense and a decrease in other operating expenses of $10 thousand.

Net income for the nine months ended September 30, 2016 decreased 3.8% to $5.057 million, or $1.04 per share-basic and diluted, from $5.259 million, or $1.08 per share-basic and diluted, for the nine months ended September 30, 2015. Net interest income for the nine months ended September 30, 2016, after the provision for loan losses, decreased 0.6% to $20.404 million from $20.531 million for the same period in 2015. Net interest margin for the nine months ended September 30, 2016, decreased to 3.11% in 2016 from 3.38% in the same period in 2015. The provision for loan losses for the nine months ended September 30, 2016 was $97 thousand compared to $408 thousand in 2015. 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.

Non-interest income increased by $182 thousand, or 3.2%, and non-interest expense increased by $574 thousand, or 3.0%, for the nine months ended September 30, 2016 when compared to the same period in 2015. The increase in non-interest income was due primarily to an increase in other service charges and fees and an increase in other non-interest income. Non-interest expense increased primarily due to an increase in loan related collection expenses and an increase in salary and benefits costs.

Total assets as of September 30, 2016 increased to $1.025 billion, up $51.621 million, or 5.3%, when compared to December 31, 2015. Deposits increased by $27.058 million, or 3.6%, and loans, net of unearned income, decreased by $19.563 million, or 4.6%, when compared to December 31, 2015. 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 $2.342 million to


$15.721 million at September 30, 2016 as compared to $18.063 million at December 31, 2015, because of a decrease in non-accrual loans offset by increases in other real estate owned and in loans 90 days or more past due and still accruing interest.

During the nine months of 2016, 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 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)

 

     For the Three Months Ending      For the Nine Months Ending  
     September 30,      June 30      September 30,      September 30,      September 30,  
     2016      2016      2015      2016      2015  

INTEREST INCOME

              

Loans, including fees

   $ 4,825       $ 4,734       $ 5,038       $ 14,344       $ 15,034   

Investment Securities

     2,720         2,851         2,737         8,287         8,096   

Other Interest

     29         40         14         148         61   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     7,574         7,625         7,789         22,779         23,191   

INTEREST EXPENSE

              

Deposits

     448         451         468         1,367         1,350   

Other borrowed funds

     306         304         297         911         902   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     754         755         765         2,278         2,252   

NET INTEREST INCOME

     6,820         6,870         7,024         20,501         20,939   

PROVISION FOR LOAN LOSSES

     183         -147         142         97         408   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

     6,637         7,017         6,882         20,404         20,531   

NON-INTEREST INCOME

              

Service charges on deposit accounts

     1,010         898         1,037         2,795         2,878   

Other service charges and fees

     658         608         626         1,852         1,721   

Other non-interest income

     411         402         354         1,156         1,022   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     2,079         1,908         2,017         5,803         5,621   

NON-INTEREST EXPENSE

              

Salaries and employee benefits

     3,460         3,479         3,341         10,341         10,038   

Occupancy expense

     1,330         1,208         1,357         3,867         3,953   

Other non-interest expense

     1,767         1,968         1,777         5,649         5,292   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
     6,557         6,655         6,475         19,857         19,283   

NET INCOME BEFORE TAXES

     2,159         2,270         2,424         6,350         6,869   

INCOME TAXES

     407         491         587         1,293         1,610   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

NET INCOME

   $ 1,752       $ 1,779       $ 1,837       $ 5,057       $ 5,259   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share - basic

   $ 0.36       $ 0.36       $ 0.38       $ 1.04       $ 1.08   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Earnings per share - diluted

   $ 0.36       $ 0.36       $ 0.38       $ 1.04       $ 1.08   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Dividends Paid

   $ 0.24       $ 0.24       $ 0.23       $ 0.72       $ 0.69   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average shares outstanding-basic

     4,869,079         4,880,568         4,877,614         4,864,924         4,872,092   

Average shares outstanding-diluted

     4,877,693         4,885,951         4,879,911         4,873,240         4,872,996   


     For the Period Ended,  
     September 30,     June 30,     December 31,  
     2016     2016     2015  

Period End Balance Sheet Data:

      

Total assets

   $ 1,025,126      $ 1,014,585      $ 973,505   

Total earning assets

     942,827        930,332        894,765   

Loans, net of unearned income

     410,019        402,368        429,582   

Allowance for loan losses

     4,113        4,809        6,474   

Total deposits

     780,463        779,659        753,405   

Long-term borrowings

     20,000        20,000        20,000   

Shareholders’ equity

     97,071        92,885        86,425   

Book value per share

   $ 19.91      $ 19.05      $ 17.73   

Period End Average Balance Sheet Data:

      

Total assets

   $ 992,221      $ 988,756      $ 945,270   

Total earning assets

     913,507        908,706        863,829   

Loans, net of unearned income

     411,802        413,566        412,161   

Total deposits

     768,224        766,927        725,116   

Long-term borrowings

     20,000        20,000        20,000   

Shareholders’ equity

     91,170        89,155        84,250   

Period End Non-performing Assets:

      

Non-accrual loans

   $ 9,734      $ 12,796      $ 14,423   

Loans 90+ days past due and accruing

     1,089        16        67   

Other real estate owned

     4,898        3,205        3,573   
           As of        
     September 30,     June 30,     December 31,  
     2016     2016     2015  

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

     0.60     0.38     0.03

Year to Date Performance Ratios:

      

Return on average assets(1)

     0.68     0.66     0.80

Return on average equity(1)

     7.40     7.28     9.01

Year to Date Net Interest

      

Margin (tax equivalent)(1)

     3.11     3.12     3.33

 

(1)  Annualized

Contact:

Citizens Holding Company, Philadelphia

Robert T. Smith, 601/656-4692

rsmith@tcbphila.com

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