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

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