Citizens Holding Company Earnings up 8.6%

Citizens Holding Company (the "Company") (Amex:CIZ)
announced today results of operations for the three and nine months
ended September 30, 2005.
   Net income for the three months ended September 30, 2005 decreased
to $1.933 million, or $.39 per share-basic and $.38 per share-diluted,
from $1.938 million, or $.39 per share-basic and $.38 per
share-diluted for the same quarter in 2004. Net interest income for
the third quarter of 2005, after the provision for loan losses for the
quarter, was approximately 2.8% lower even though the net interest
margin increased to 4.63% in the third quarter of 2005 from 4.53% in
the same period in 2004. The increase in the net interest margin
primarily resulted from interest bearing assets repricing faster than
interest bearing liabilities and the decline in net interest income
was due to the increase in the provision for loan losses to $540
thousand in the third quarter of 2005 compared to $122 thousand in the
same period of 2004. The increase in the provision was the result of
the downgrading of several loans in the portfolio. Non-interest income
increased in the third quarter of 2005 by approximately $189 thousand
due mainly to an increase in service charges and fees collected.
Non-interest expenses increased $180 thousand compared to the same
period in 2004. Of this increase, $141 thousand was due to an increase
in salaries and benefits paid.
   Net income for the nine months ended September 30, 2005 increased
8.6% to $5.879 million, or $1.17 per share-basic and $1.16 per
share-diluted, from the $5.413 million, $1.08 per share basic and
$1.07 per share diluted for the first nine months of 2004. Net
interest income for the nine month period ended September 30, 2005,
increased 6.4% to $16.527 million from $15.540 million in the same
period in 2004 while the net interest margin increased to 4.69% in
2005 from 4.56% in 2004 primarily because of interest bearing assets
repricing faster than interest bearing liabilities. The provision for
possible loan losses for the nine months ended September 30, 2005 was
$1.046 million compared to the $1.022 million for the same period in
2004. Non-interest income increased $295 thousand due to an increase
in service charges and other fees received. Non-interest expense
increased $1.014 million in the nine month period ended September 30,
2005 when compared to the same period in 2004 due mainly to a $589
thousand increase in salaries and benefits paid.
   Total assets as of September 30, 2005 increased $15.481 million,
or 2.6%, when compared to December 31, 2004. Deposits decreased
$3.581 million, or .8%. Loans, net of unearned income during this
period grew $6.601 million, or 1.8%. Non performing assets increased
$2.907 million at September 30, 2005 compared to December 31, 2004
because of an increase in loans that were 90 days or more past due. Of
this amount, $2.332 million was attributable to one customer that has
declared bankruptcy. 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.
   During the first three quarters of 2005, the Company paid
dividends totaling $0.48 per share. This represents an increase of
6.7% 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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                                 Three Months          Nine Months
                              Ended September 30   Ended September 30
                               2005       2004       2005       2004
                            ------------------------------------------

Interest income and fees       $8,449     $7,502    $24,537    $22,101
Interest expense                2,588      1,908      6,964      5,539
                            ------------------------------------------
   Net interest income          5,861      5,594     17,573     16,562


Provision for loan losses         540        122      1,046      1,022
                            ------------------------------------------
   Net interest income after
     provision for loan
      losses                    5,321      5,472     16,527     15,540

Non-interest income             1,554      1,365      4,452      4,157
Non-interest expense            4,370      4,190     13,326     12,312
                            ------------------------------------------

   Net income before taxes      2,505      2,647      7,653      7,385
Income taxes                      572        709      1,774      1,972
                            ------------------------------------------

     Net income                $1,933     $1,938     $5,879     $5,413
                            ==========================================


Earnings per share - basic      $0.39      $0.39      $1.17      $1.08
                            ==========================================

Earnings per share - diluted    $0.38      $0.38      $1.16      $1.07
                            ==========================================

Average shares outstanding-
 basic                      5,006,981  4,997,099  5,003,784  4,990,279

Average shares outstanding-
 diluted                    5,064,874  5,055,843  5,060,484  5,057,138


                                               As of         As of
                                           September 30, December 31,
                                               2005          2004
                                           ------------- -------------
Balance Sheet Data:
     Total assets                              $602,720      $587,239
     Total earning assets                       536,937       525,155
      Loans, net of unearned income             376,190       369,589
     Allowance for loan losses                    4,679         4,721
     Total deposits                             470,883       474,464
     Long-term borrowings                        60,321        46,119
     Shareholders' equity                        63,745        60,191
     Book value per share                        $12.73        $12.04
     Dividends paid per share (a)                 $0.48         $0.60

Average Balance Sheet Data:
     Total assets                              $586,911      $565,892
     Total earning assets                       524,740       506,898
      Loans, net of unearned income             370,203       364,922
     Total deposits                             462,143       457,510
     Long-term borrowings                        53,006        41,607
     Shareholders' equity                        62,465        58,750

Non-performing assets:
     Non-accrual loans                            2,033         3,163
     Loans 90+ days past due                      3,811           904
     Other real estate owned                      2,638         2,787

Net charge-offs as a percentage
     average net loans (a)                         0.29%         0.40%

Performance Ratios:
     Return on average assets (a)                  1.32%         1.33%
     Return on average equity (a)                 12.41%        12.84%

Net interest margin (tax equivalent) (a)           4.69%         4.61%

(a)   For the nine months ended September 30, 2005 and for the year 
      ended December 31, 2004, as applicable.
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