EXHIBIT 99.1
CITIZENS HOLDING COMPANY EARNINGS FOR 2002 UP 12.1%
PHILADELPHIA, Miss.--(BUSINESS WIRE)--July 30, 2002--Citizens Holding Company
(Amex:CIZ) announced today results of operations for the three and six months
ended June 30, 2002.
Net income for the six months ended June 30, 2002 was $3.207 million, or $0.65
per share-basic and $0.64 per share-diluted, an increase of 12.1% over the
$2.860 million ($0.57 per share basic and diluted) for the same period in 2001.
Net interest income, after provision for loan losses increased $2.189 million or
31.7%. Other income increased slightly to $2.049 million while other operating
expenses increased $1.585 million (32.9%) to $6.407 million.
Net income for the three months ended June 30, 2002 increased 11.8% to $1.662
million, or $0.33 per share-basic and diluted, compared to $1.486 million, or
$0.30 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
41.1% higher compared to same quarter last year. The significant increases in
net interest income for the three and six month periods are attributable to an
increase in net interest margin resulting from the ongoing repricing of interest
bearing deposits and the growth in investments and loans from the acquisitions
of the Forest and Decatur branches and Citizens Bank & Trust in Louisville. The
net interest margin increased to 4.79% in the second quarter of 2002 from 4.47%
in the same period in 2001. Non-interest expenses in both the six month and
three month period increased as a result of personnel and occupancy costs and
amortization expense associated with the acquisitions, and normal costs
increases related to growth of the bank.
Total assets as of June 30, 2002 increased $87.338 million, or 20.4%, compared
to December 31, 2001. Deposits increased $73.414 million, or 20.4%. Loans net of
unearned interest during this period grew $32.639 million, or 12.4%. The
acquisition of Citizens Bank & Trust Company in Louisville, Mississippi in May
2002 accounted for $71.116 million of the asset growth, $57.940 million of the
deposit growth and $15.019 million of the loan growth.
Steve Webb, Chairman and CEO stated, "I am pleased to report the 12% increase in
net income for the first six months of this year over last year. We are
especially proud of the increase in our net interest margin over the previous
year."
Webb added, "We are also excited to have completed the acquisition of Citizens
Bank & Trust Company in Louisville. We are optimistic about the opportunities
for growth in this area of the state."
Adjusted for the three for two split of January 2, 2002, the Company's dividend
of $0.24 per share for the first two quarters of 2002 represents an increase of
31.1% over the dividends paid in the first two quarters of 2001.
Citizens Holding Company (the "Company") is a one-bank holding company and the
parent company of The Citizens Bank of Philadelphia, both headquartered in
Philadelphia, Mississippi. The Bank currently has nineteen banking locations in
eight 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 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 operate; (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 per share data)
(Unaudited)
------------------------------------
Three Months Six Months
Ended June 30 Ended June 30
2002 2001 2002 2001
---------------------------------------------------------------
Interest income and fees $ 7,574 $ 7,176 $ 14,604 $ 14,443
Interest expense 2,380 3,354 4,845 6,974
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Net interest income 5,194 3,822 9,759 7,469
Provision for loan losses 436 449 670 569
Net interest income after
provision for loan losses 4,758 3,373 9,089 6,900
Non-interest income 1,043 1,131 2,049 2,028
Non-interest expense 3,364 2,406 6,407 4,822
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Net income before taxes 2,437 2,098 4,731 4,106
Income taxes 775 612 1,524 1,246
---------------------------------------------------------------
Net income $ 1,662 $ 1,486 $ 3,207 $ 2,860
===============================================================
Earnings per share - basic $ 0.33 $ 0.30 $ 0.65 $ 0.57
===============================================================
Earnings per share - diluted $ 0.33 $ 0.30 $ 0.64 $ 0.57
===============================================================
Average shares outstanding-basic 4,963,028 4,963,028 4,963,028 4,963,028
Average shares outstanding-diluted 4,995,325 4,975,466 4,995,296 4,974,359
As of As of
June 30, December 31,
2002 2001
------------------------------
Balance Sheet Data:
Total assets $514,551 $427,213
Total earning assets 466,523 394,315
Loans net of unearned 296,917 264,278
Allowance for loan losses -4,232 -3,375
Total deposits 432,723 359,309
Long term borrowings 21,644 14,629
Shareholders' equity 51,011 47,182
Book value per share $ 10.28 $ 9.51
Dividends paid $ 0.240 $ 0.383
Average Balance Sheet Data:
Total assets $460,706 $403,882
Total earning assets 425,059 361,520
Loans net of unearned 276,738 255,185
Total deposits 390,856 327,536
Long term borrowings 17,903 14,815
Shareholders' equity 48,551 47,664
Non-performing assets:
Non-accrual loans 363 419
Loans 90+ days past due 2,320 2,918
Other real estate owned 1,104 340
Net charge-off as a percentage
average loans 0.24% 0.42%
Performance Ratios:
Return on average assets 1.39% 1.41%
Return on average equity 13.21% 11.98%
Net interest margin (tax equivalent) 4.71% 4.32%
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Contact:
Citizens Holding Company, Philadelphia
Robert T. Smith, 601/656-4692
Rsmith@netdoor.com