Citizens (AMEX:CIZ)
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Citizens Holding Company (the "Company") (Amex:CIZ)
announced today results of operations for the three and twelve months
ended December 31, 2005.
Net income for the three months ended December 31, 2005 decreased
to $2.087 million, or $.42 per share-basic and $.41 per share-diluted,
from $2.132 million, or $.43 per share-basic and $.42 per
share-diluted for the same quarter in 2004. Net interest income for
the fourth quarter of 2005, after the provision for loan losses for
the quarter, was approximately 4.2% lower than in the fourth quarter
of 2004 as a result of a decrease in the net interest margin to 4.40%
in the fourth quarter of 2005 from 4.77% in the same period in 2004.
The decrease in the net interest margin and the corresponding decline
in net interest income primarily resulted from the increased rates
paid on certificates of deposit in 2005. The provision for loan losses
decreased to $38 thousand in the fourth quarter of 2005 compared to
$45 thousand in the same period of 2004. The decrease in the provision
was the result of an improvement in the credit quality of the loan
portfolio during the fourth quarter of 2005. Non-interest income
decreased in the fourth quarter of 2005 by approximately $133 thousand
compared to the corresponding period in 2004 due mainly to a decrease
in service charges and fees collected and income from unconsolidated
subsidiaries. Non-interest expenses decreased $211 thousand compared
to the same period in 2004 even though salaries and benefits increased
$327 thousand. The decrease was due in large part to the reduction in
the professional fees related to the implementation of Sarbanes Oxley
Section 404 testing and documentation along with a reduction of
expenses related to operations of fixed assets.
Net income for the twelve months ended December 31, 2005 increased
5.6% to $7.966 million, or $1.59 per share-basic and $1.57 per
share-diluted, from the $7.546 million, $1.51 per share-basic and
$1.49 per share-diluted for the same period in 2004. Net interest
income for the twelve month period ended December 31, 2005, increased
3.5% to $22.112 million from $21.368 million in the same period in
2004 while the net interest margin remained the same at 4.61% in 2005
from 2004. The provision for possible loan losses for the twelve
months ended December 31, 2005 was $1.084 million compared to the
$1.067 million for the same period in 2004. Non-interest income in
2005 increased $162 thousand over 2004 non-interest income due to an
increase in service charges and other fees received. Non-interest
expense increased $803 thousand in the twelve month period ended
December 31, 2005 when compared to the same period in 2004 due mainly
to a $916 thousand increase in salaries and benefits paid.
Total assets as of December 31, 2005 increased $20.470 million, or
3.5%, when compared to December 31, 2004. Deposits decreased $652
thousand, or .1%. Loans, net of unearned income during this period
grew $9.937 million, or 2.7%. The Company was able to utilize
borrowings from the Federal Home Loan Bank to offset the decline in
deposits and fund the increase in loans. Non-performing assets
increased $1.379 million at December 31, 2005 compared to December 31,
2004 because of an increase in loans that were placed on nonaccrual
status. Loans placed on nonaccrual status in 2005 include one loan in
the amount of $2.269 million that was attributable to one customer
that was in bankruptcy at December 31, 2005. Subsequent to December
31, 2005, this customer was discharged from bankruptcy proceedings.
During 2005, the Company paid dividends totaling $0.65 per share.
This represents an increase of 8.3% over the same period in 2004.
Citizens Holding Company is a one-bank holding company and the
parent company of The Citizens Bank of Philadelphia (the "Bank"), 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, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. 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.
Forward-looking statements speak only as of the date they are made.
The Company does not undertake a duty to update forward-looking
statements to reflect circumstances or events that occur after the
date the forward-looking statements are made. 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
operates; (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.
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Citizens Holding Company
Financial Highlights
(amounts in thousands, except share and per share data)
(Unaudited)
Three Months Twelve Months
Ended December 31 Ended December 31
2005 2004 2005 2004
-------------------------------------------
Interest income and fees $ 8,506 $7,871 $33,043 $29,972
Interest expense 2,883 1,998 9,847 7,537
-------------------------------------------
Net interest income 5,623 5,873 23,196 22,435
Provision for loan losses 38 45 1,084 1,067
-------------------------------------------
Net interest income
after provision for
loan losses 5,585 5,828 22,112 21,368
Non-interest income 1,285 1,418 5,737 5,575
Non-interest expense 4,191 4,402 17,517 16,714
-------------------------------------------
Income before income
taxes 2,679 2,844 10,332 10,229
Income tax expense 592 712 2,366 2,683
-------------------------------------------
Net income $2,087 $2,132 $7,966 $7,546
===========================================
Earnings per share -
basic $0.42 $0.43 $1.59 $1.51
===========================================
Earnings per share -
diluted $0.41 $0.42 $1.57 $1.49
===========================================
Average shares
outstanding - basic 5,009,278 5,000,278 5,006,493 4,992,792
Average shares
outstanding - diluted 5,070,626 5,055,112 5,066,125 5,056,637
As of As of
December 31, December 31,
2005 2004
--------------------------
Balance Sheet Data:
Total assets $607,709 $587,239
Total earning assets 535,321 525,155
Loans, net of unearned income 379,526 369,589
Allowance for loan losses 4,562 4,721
Total deposits 473,812 474,464
Long-term borrowings 60,049 46,119
Shareholders' equity 63,774 60,191
Book value per share $12.73 $12.04
Dividends paid per share (a) $0.65 $0.60
Average Balance Sheet Data:
Total assets $591,872 $565,892
Total earning assets 528,562 506,898
Loans, net of unearned income 371,925 364,922
Total deposits 464,629 457,510
Long-term borrowings 54,823 41,607
Shareholders' equity 63,068 58,750
Non-performing assets:
Non-accrual loans 4,347 3,163
Loans 90+ days past due 911 904
Other real estate owned 2,975 2,787
Net charge-offs as a percentage of average
net loans (a) 0.33% 0.40%
Performance Ratios:
Return on average assets (a) 1.35% 1.33%
Return on average equity (a) 12.63% 12.84%
Net interest margin (tax equivalent) (a) 4.61% 4.61%
(a) For the year ended December 31, 2005 and for the year ended
December 31, 2004, as applicable.
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