EXHIBIT 99.1
CITIZENS HOLDING COMPANY THIRD QUARTER 2001 EARNINGS INCREASE 16%
PHILADELPHIA, Miss.--(BUSINESS WIRE)--October 29, 2001--Citizens Holding Company
(Amex:CIZ) announced today results of operations for the three and nine months
ended September 30, 2001.
Net income for the three months ended September 30, 2001 grew 16% to $1.560
million or $0.47 per share-basic and diluted compared to $1.348 million or $0.41
per share-basic and diluted for the same quarter last year. Net interest
income, after the provision for loan losses for the quarter was approximately
11% higher compared to same quarter last year. The net interest margin
increased to 4.16% in the third quarter of 2001 from 4.11% in the same period in
2000. Non-interest income grew 34% as a result of increased fee income on
deposit accounts and fee income from mortgage loan refinancing.
Net income for the nine months ended September 30, 2001 increased 7% to $4.4
million ($1.34 per share-basic and $1.33 per share-diluted) over the $4.1
million ($1.24 per share-basic and diluted) for the same period last year. Net
interest income rose 4.5% to $11.5 million compared to $11.0 million for 2000.
The net interest margin increased to 4.27% in 2001 from 4.20% in the same period
in 2000. Non-interest income for the nine months of 2001 grew 28% when compared
to the same period in 2000.
Total assets as of September 30, 20001 increased $45.8 million, or 12%, compared
to December 31, 2000. The July 2001 acquisition of Forest and Decatur,
Mississippi branches from Union Planters Bank accounted for an approximately
$30.3 million increase in deposits, an $11.7 million increase in loans and $15.4
million increase in cash and short-term investments. Deposits increased further
as economic conditions have caused many customers to turn to bank deposits as a
more attractive investment. This increase in cash permitted the Bank to reduce
its short-term borrowings from the Federal Home Loan Bank by $32 million from
the December 31, 2000 level.
Steve Webb, Chairman, President and CEO stated, "Third quarter and year to date
2001 earnings increased primarily because of an increase in net interest income.
The liquidity experienced by the Bank from the significant increase in deposits
allowed us to pay down more expensive Federal Home Loan Bank advances. This,
together with continued strong loan demand, caused net interest income to
increase. Non-interest income also increased as a result of an increase in
overdraft privilege fee income and strong mortgage department earnings as low
interest rates create refinancing opportunities. While increases in non-
interest expense are necessary as the Bank grows, we continue to be successful
in controlling such cost as evidenced by our efficiency ratio of 48.6%."
Steve Webb further stated, "We are happy to announce that the Forest and Decatur
branch acquisitions have been completed and assimilated into our system. We
expect
these important acquisitions will make greater contributions to earnings
growth in the future."
The Company's dividend of $0.15 per share for the third quarter of 2001
brought the total dividends for the nine months ended September 30, 2001 to
$0.425. This represents an increase of 42% over the dividends paid in the same
period of 2000.
Citizens Holding Company is a one-bank holding company and the parent company of
The Citizens Bank of Philadelphia, both headquartered in Philadelphia,
Mississippi. The Bank has sixteen banking locations in seven counties in East
Central Mississippi. In addition to full service commercial banking, the
Company 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 web site, www.thecitizensbankphila.com.
Citizens Holding Company stock is listed on the American Stock Exchange and is
traded under the symbol CIZ. The Company's transfer agent is American Stock
Transfer & Trust Company.
This 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. 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 Corporation'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 Corporation operate; (b) changes in the
legislative and regulatory environment that negatively impact the Corporation
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 Corporation's
market area and (h) other risks detailed from time to time in the Corporation'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 per share data)
(Unaudited)
____________________________________
Three Months Nine Months
Ended September 30 Ended September 30
2001 2000 2001 2000
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Interest income and fees $ 7,399 $ 7,353 $ 21,842 $ 21,155
Interest expense -3,417 -3,627 -10,391 -10,195
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Net interest income 3,982 3,726 11,451 10,960
Provision for loan losses -174 -316 -743 -598
Net interest income after
provision for loan losses 3,808 3,410 10,708 10,362
Non-interest income 1,066 796 3,094 2,413
Non-interest expense -2,533 -2,177 -7,354 -6,535
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Net income before taxes 2,341 2,029 6,448 6,240
Income taxes -781 -681 -2,028 -2,143
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Net income $ 1,560 $ 1,348 $ 4,420 $ 4,097
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Earnings per share - basic $0.47 $0.41 $ 1.34 $ 1.24
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Earnings per share - diluted $0.47 $0.41 $ 1.33 $ 1.24
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Average shares outstanding-basic 3,308,750 3,308,750 3,308,750 3,308,750
Average shares outstanding-diluted 3,320,644 3,317,478 3,318,026 3,316,821
As of As of
September 30, December 31,
2001 2000
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Balance Sheet Data:
Total assets $ 428,602 $ 382,800
Total earning assets 391,222 355,058
Loans net of unearned 261,195 252,022
Allowance for loan losses -3,375 -3,325
Total deposits 358,749 289,908
Long term borrowings 14,705 10,000
Shareholders' equity 47,766 43,377
Book value per share $ 14.44 $ 13.11
Dividends paid $ 0.425 $ 0.425
Average Balance Sheet Data:
Total assets $ 393,874 $ 374,439
Total earning assets 362,040 343,159
Loans net of unearned 253,155 244,307
Total deposits 316,174 290,704
Long term borrowings 15,777 10,000
Shareholders' equity 46,193 40,701
Non-performing assets:
Non-accrual loans 509 590
Loans 90+ days past due 3,820 1,746
Other real estate owned 193 133
Net charge-off as a percentage
average loans 0.27% 0.28%
Performance Ratios:
Return on average assets 1.50% 1.48%
Return on average equity 12.76% 13.60%
Net interest margin (tax equivalent) 4.27% 4.16%
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Contact:
Citizens Holding Company, Philadelphia
Robert T. Smith, 601/656-4692
Rsmith@netdoor.com