EXHIBIT 99.1
CITIZENS HOLDING COMPANY ANNOUNCES EARNINGS FOR FIRST QUARTER 2003
PHILADELPHIA, Miss.--(BUSINESS WIRE)--April 22, 2003--Citizens Holding Company
(Amex:CIZ) announced today results of operations for the three months ended
March 31, 2003.
Net income for the three months ended March 31, 2003 decreased slightly to
$1.520 million, or $0.31 per share-basic and $0.30 per share-diluted, from
$1.545 million, or $0.31 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 10.6% higher compared to same quarter last year. The
significant increases in net interest income for the three month period is
attributable to the ongoing repricing of interest bearing deposits and the
growth in loans from the acquisitions of the Forest and Decatur branches and
Citizens Bank & Trust in Louisville. The net interest margin decreased to 4.48%
in the first quarter of 2003 from 4.61% in the same period in 2002. Non-interest
expenses in the 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.
Net loan chargeoffs for the first quarter of 2003 were $195,626 compared to
$234,496 for the same quarter in 2002. The provision for loan losses for the
first quarter of 2003 was $375,000 compared to $234,496 in the first quarter of
2002. Increases in loan volume and current economic conditions were the main
reasons for the increase in loan loss provision in the first quarter of 2003.
Total assets as of March 31, 2003 increased $31.0 million, or 6.0%, when
compared to December 31, 2002. Deposits increased $31.0 million, or 7.2%. Loans
net of unearned interest during this period grew $20.3 million, or 6.6%.
Greg L. McKee, President and CEO stated, "The growth of our company in the first
quarter certainly gives us something to be proud of. Assets, loans and deposits
all showed substantial growth. Net income decreased only slightly even with an
increase of 60% in our provision for loan losses over the same period last year.
Non-interest income increased 9.8% in the first quarter of 2003 compared to the
same quarter last year."
During the first quarter of 2003, the Company paid a dividend of $0.14 per
share. This represents an increase of 16.7% over the first quarter of 2002.
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 and
Year-to-Date
Ended March 31
2003 2002
--------------- ----------------
Interest income and fees $7,339 $7,030
Interest expense 2,174 2,465
--------------- ----------------
Net interest income 5,165 4,565
Provision for loan losses 375 234
Net interest income after
provision for loan losses 4,790 4,331
Non-interest income 1,105 1,006
Non-interest expense 3,703 3,043
--------------- ----------------
Net income before taxes 2,192 2,294
Income taxes 672 749
--------------- ----------------
Net income $1,520 $1,545
=============== ================
Earnings per share - basic $0.31 $0.31
=============== ================
Earnings per share - diluted $0.30 $0.31
=============== ================
Average shares outstanding-basic 4,974,578 4,963,028
Average shares outstanding-diluted 5,003,375 4,995,035
As of As of
March 31, December 31,
2003 2002
--------------- ----------------
Balance Sheet Data:
Total assets $549,417 $518,451
Total earning assets 499,781 468,592
Loans net of unearned 328,471 308,175
Allowance for loan losses -4,402 -4,222
Total deposits 463,771 432,768
Long term borrowings 24,368 24,606
Shareholders' equity 54,434 53,783
Book value per share $10.94 $10.81
Dividends paid $0.14 $0.52
Average Balance Sheet Data:
Total assets $530,179 $491,833
Total earning assets 477,462 450,174
Loans net of unearned 322,225 289,407
Total deposits 441,152 406,560
Long term borrowings 25,748 19,301
Shareholders' equity 55,107 51,304
Non-performing assets:
Non-accrual loans 414 358
Loans 90+ days past due 3,520 5,117
Other real estate owned 882 1,286
Net charge-off as a percentage
average net loans 0.06% 0.61%
Performance Ratios:
Return on average assets 1.15% 1.28%
Return on average equity 11.03% 12.28%
Net interest margin (tax equivalent) 4.48% 4.67%
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Contact:
Citizens Holding Company, Philadelphia
Robert T. Smith, 601/656-4692
Rsmith@netdoor.com