Citizens Holding Company Earnings up 2.3%

Citizens Holding Company (Amex:CIZ) announced today
results of operations for the three and six months ended June 30,
2006.
   Net income for the three months ended June 30, 2006 increased to
$2.111 million, or $.42 per share-basic and diluted, from $2.026
million, or $.40 per share-basic and diluted for the same quarter in
2005. Net interest income for the second quarter of 2006, after the
provision for loan losses for the quarter, was approximately 9.0%
higher than the same period in 2005, in part due to the negative
provision for loan losses brought about by the improving loan quality
and favorable loss experience. The provision for possible loan losses
for the three months ended June 30, 2006 was a negative provision of
$63 thousand compared to the positive provision of $343 thousand for
the same period in 2005. The net interest margin decreased to 4.58% in
the second quarter of 2006 from 4.64% in the same period in 2005
primarily because of the recent rise in interest rates paid on
interest bearing liabilities. Non-interest income increased in the
second quarter of 2006 by approximately $87 thousand while
non-interest expenses increased $324 thousand compared to the same
period in 2005.
   Net income for the six months ended June 30, 2006 increased 2.3%
to $4.036 million, or $.81 per share-basic and $.79 per share-diluted,
from the $3.946 million, $.79 per share basic and $.78 per share
diluted for the first six months of 2005. Net interest income for the
six month period ended June 30, 2006, after the provision for loan
losses, increased 5.0% to $11.766 million from $10.206 million in the
same period in 2005 although the net interest margin decreased to
4.52% in 2006 from 4.73% in 2005. The provision for possible loan
losses for the six months ended June 30, 2006 was a negative provision
of $192 thousand compared to the positive provision of $506 thousand
for the same period in 2005. This negative provision was the result of
improved loan quality, favorable loss experience and a decrease in
loans outstanding. Non-interest income increased $166 thousand and
non-interest expense increased $411 thousand in the six month period
ended June 30, 2006 when compared to the same period in 2005.
   Total assets as of June 30, 2006 increased $872 thousand, or .1%,
when compared to December 31, 2005. Deposits decreased $509 thousand,
or .1%. Loans, net of unearned income during this period decreased
$6.355 million, or 1.7%, due to several large loans at December 31,
2005 for supplies for the Hurricane Katrina disaster area. Those
contracts have been completed and the loans repaid. Non performing
assets decreased $4.625 million at June 30, 2006 compared to June 30,
2005 because of a decrease in loans that were 90 days or more past
due.
   During the first two quarters of 2006, the Company paid dividends
totaling $0.34 per share. This represents an increase of 6.3% over the
same period in 2005.
   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. Information about Citizens Holding Company may be
obtained by accessing its corporate website at
www.citizensholdingcompany.com.
   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. 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 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.
-0-
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                       Citizens Holding Company
                         Financial Highlights
        (amounts in thousands, except share and per share data)
                              (Unaudited)

             --------------------------------------------
 
                                  Three Months         Six Months
                                  Ended June 30       Ended June 30
                                 2006      2005      2006      2005
                              ----------------------------------------

Interest income and fees         $9,162    $8,072   $17,822   $16,088
Interest expense                  3,283     2,278     6,248     4,376
                              ----------------------------------------
   Net interest income            5,879     5,794    11,574    11,712


Provision for loan losses           (63)      343      (192)      506
                              ----------------------------------------
   Net interest income after
     provision for loan losses    5,942     5,451    11,766    11,206

Non-interest income               1,664     1,577     3,064     2,898
Non-interest expense              4,724     4,400     9,367     8,956
                              ----------------------------------------

   Net income before taxes        2,882     2,628     5,463     5,148
Income taxes                        771       602     1,427     1,202
                              ----------------------------------------

     Net income                  $2,111    $2,026    $4,036    $3,946
                              ========================================


Earnings per share - basic        $0.42     $0.40     $0.81     $0.79
                              ========================================

Earnings per share - diluted      $0.42     $0.40     $0.79     $0.78
                              ========================================

Average shares outstanding-
 basic                        5,014,460 5,006,981 5,012,762 5,003,784

Average shares outstanding-
 diluted                      5,083,598 5,064,874 5,083,860 5,060,484



                                            As of           As of
                                           June 30,     December  31,
                                            2006            2005
                                         ----------------------------
Balance Sheet Data:
     Total assets                       $    608,581   $     607,709
     Total earning assets                    528,820         535,321
     Loans, net of unearned
       income                                373,171         379,526
     Allowance for loan losses                 4,245           4,562
     Total deposits                          473,303         473,812
     Long-term borrowings                     59,494          60,049
     Shareholders' equity                     64,658          63,774
     Book value per share               $      12.88   $       12.73
     Dividends paid per share (a)       $       0.34   $        0.65

Average Balance Sheet Data:
     Total assets                       $    607,927   $     591,872
     Total earning assets                    540,617         528,562
     Loans, net of unearned income           375,105         371,925
     Total deposits                          474,134         464,629
     Long-term borrowings                     59,805          54,823
     Shareholders' equity                     65,263          63,068

Non-performing assets:
     Non-accrual loans                         3,829           4,347
     Loans 90+ days past due                   1,054             911
     Other real estate owned                   2,771           2,975

Net charge-offs as a percentage of
     average net loans (a)                      0.03%           0.33%

Performance Ratios:
     Return on average assets (a)               1.33%           1.35%
     Return on average equity (a)              12.37%          12.63%

Net interest margin (tax equivalent) (a)        4.52%           4.61%

(a) For the six months ended June 30, 2006 and for the year ended
    December 31, 2005, as applicable.
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