Citizens Holding Company Reports Earnings

http://www.businesswire.com/news/home/20100422007082/en

PHILADELPHIA, Miss.--(Business Wire)--
Citizens Holding Company (NASDAQ:CIZN) announced today results of operations for
the three months ended March 31, 2010.

Net income for the three months ended March 31, 2010 increased to $1.976
million, or $0.41 per share-basic and diluted, from $1.859 million, or $0.38 per
share-basic and diluted for the same quarter in 2009. Net interest income for
the first quarter of 2010, after the provision for loan losses for the quarter,
was $6.940 million, approximately 7.8% higher than the same period in 2009, due
to a decrease in the amount of interest expense partially offset by an increase
in the provision for loan losses. The provision for loan losses for the three
months ended March 31, 2010 was $625 thousand compared to $316 thousand for the
same period in 2009. The increase in the provision reflects management`s
assessment of inherent losses in the loan portfolio including the impact caused
by current local and national economic conditions. The net interest margin
increased to 4.18% in the first quarter of 2010 from 4.09% in the same period in
2009 primarily because of the decrease in yields on earning assets was less than
the decline in rates paid on interest bearing deposits.

Non-interest income increased in the first quarter of 2010 by approximately $61
thousand, or 3.9%, while non-interest expenses increased $399 thousand, or 7.1%,
compared to the same period in 2009. The increase in non-interest income was due
primarily to an increase in fees received on deposits and other service charges
and fees. Non-interest expense increased mainly due to a $155 thousand increase
in FDIC premiums paid in 2010, and an increase in salaries and benefits in the
amount of $257 thousand.

Total assets as of March 31, 2010 increased by $9.140 million, or 1.1%, when
compared to December 31, 2009. Deposits increased by $5.473 million, or 1.0%,
over the same period in 2010. Loans, net of unearned income, during this period
decreased by $702 thousand, or 0.2%, due to decreasing loan demand.
Non-performing assets increased by $122 thousand to $14.436 million at March 31,
2010 compared to December 31, 2009 because of an increase in non-accrual loans
and loans 90 days or more past due and still accruing interest offset by a
decrease in other real estate.

During the first quarter of 2010, the Company paid dividends totaling $0.21 per
share. This represents an increase of 5.0% over the dividends paid in 2009.

Citizens Holding Company (the "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 twenty-three
banking locations in ten counties in East Central and South Mississippi and has
a Loan Production Office in Biloxi, Mississippi. In addition to full service
commercial banking, the Bank 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`s web site,
www.thecitizensbankphila.com. Citizens Holding Company stock is listed on the
NASDAQ Global Market and is traded under the symbol CIZN. 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 press 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 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.

Citizens Holding Company
Financial Highlights
(amounts in thousands, except share and per share data)

Three Months
Ending March 31,
2010 2009

Interest income and fees $ 9,875 $ 9,983
Interest expense 2,310 3,232
Net interest income 7,565 6,751

Provision for loan losses 625 316
Net interest income after provision for loan losses 6,940 6,435

Non-interest income 1,623 1,562
Non-interest expense 6,023 5,624

Net income before taxes 2,540 2,373
Income taxes 564 514

Net income $ 1,976 $ 1,859

Earnings per share - basic $ 0.41 $ 0.38

Earnings per share - diluted $ 0.41 $ 0.38

Average shares outstanding-basic 4,831,879 4,851,339

Average shares outstanding-diluted 4,870,057 4,887,477

As of As of
March 31, December 31,
2010 2009
Balance Sheet Data:
Total assets $ 849,144 $ 840,004
Total earning assets 769,487 764,780
Loans, net of unearned income 446,519 447,221
Allowance for loan losses 5,727 5,526
Total deposits 575,276 569,803
Long-term borrowings 86,922 74,947
Shareholders' equity 77,379 74,597
Book value per share $ 15.99 $ 15.42
Dividends paid per share $ 0.21 $ 0.81

Average Balance Sheet Data:
Total assets $ 840,442 $ 806,213
Total earning assets 762,841 732,968
Loans, net of unearned income 451,525 441,841
Total deposits 562,415 559,036
Long-term borrowings 85,205 79,774
Shareholders' equity 76,322 74,330

Non-performing assets:
Non-accrual loans 10,217 9,794
Loans 90+ days past due 1,498 1,291
Other real estate owned 2,721 3,229

Net charge-offs as a percentage of average net loans 0.09 % 0.45 %

Performance Ratios:
Return on average assets 0.94 % 0.88 %
Return on average equity 10.35 % 9.58 %

Net interest margin (tax equivalent) 4.18 % 4.20 %

Citizens Holding Company, Philadelphia
Robert T. Smith, 601-656-4692
rsmith@tcbphila.com

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