Exhibit 99.1
CITIZENS HOLDING COMPANY REPORTS EARNINGS
PHILADELPHIA, Miss.—(BUSINESS WIRE)—January 25, 2019—Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for the three and twelve months ended December 31, 2018.
Net income for the three months ended December 31, 2018 of $1.715 million, or $0.35 per share-basic and diluted, an increase of $2.840 million from a net loss of ($1.125) million, or ($0.23) per share-basic and diluted for the same quarter in 2017. The majority of the increase relates to the impact of the Tax Cuts and Jobs Act of 2017. Adjusting the three months ending December 31, 2017 earnings for this impact results in an earnings per share, basic and diluted, of $0.30.
Net interest income for the fourth quarter of 2018, after the provision for loan losses, was $6.231 million, approximately 12.0% lower than the same period in 2017. The provision for loan losses for the three months ended December 31, 2018 was $193 thousand compared to a negative $288 thousand for the same period in 2017. 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 2.93% for the fourth quarter of 2018 compared to 2.98% for the same period in 2017. This decrease was due to both an increase in interest rates paid on interest bearing liabilities partially offset by an increase in yields on interest bearing assets.
Non-interest income increased in the fourth quarter of 2018 by $110 thousand, or 5.3%, whilenon-interest expenses decreased $545 thousand, or 7.4%, compared to the same period in 2017. The increase innon-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 othernon-interest income.Non-interest expense decreased due to a decrease in salaries and employee benefits, occupancy expense and othernon-interest expenses. The decrease innon-interest expense was due in a large part to reduced loan collection expense and other losses coupled with an overall focus on cost containment company-wide.
Net income for the twelve months ended December 31, 2018 increased 80.2% to $6.672 million, or $1.36 per share-basic and diluted, from $3.703 million, or $0.76 per share-basic and diluted, for the twelve months ended December 31, 2017. The majority of the increase relates to the impact of the Tax Cuts and Jobs Act of 2017. Adjusting December 31, 2017 earnings for this impact results in an earnings per share, basic and diluted, of $1.29. Net interest income for the twelve months ended December 31, 2018, after the provision for loan losses, decreased 4.2% to $26.566 million from $27.728 million for the same period in 2017. Net interest margin for the twelve months ended December 31, 2018, increased to 3.05% in 2018 from 3.01% in the same period in 2017. The provision for loan losses for the twelve months ended December 31, 2018 was $334 thousand compared to negative $543 thousand in 2017. The increase 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 an increase in loans outstanding.
Non-interest income increased by $325 thousand, or 3.9%, andnon-interest expense decreased by $563 thousand, or 2.0%, for the twelve months ended December 31, 2018 when compared to the same period in 2017. The increase in othernon-interest income was the result of increases in service charges on deposit accounts and other service charges and fees partially offset by a decrease in othernon-interest income.Non-interest expense decreased due to a decrease in salary and benefits costs and other operating expenses partially offset by an increase in occupancy expense.
