Citizens Holding Company Announces Sale and Leaseback Transaction

Rhea-AI Summary

Citizens Holding Company (CIZN) has executed an agreement for the sale-leaseback of 3 properties, expecting to realize a pre-tax gain of approximately $4.5 million. The transaction closed on January 19, 2024, with an aggregate cash purchase price of $11 million. The CFO emphasized the positive impact on the company's balance sheet, future growth plans, and value realization.

PHILADELPHIA, Miss.--(BUSINESS WIRE)-- Citizens Holding Company (the “Company”) (OTCQX:CIZN), the holding company for The Citizens Bank of Philadelphia (the “Bank”), today announced it has executed an agreement for sale-leaseback of 3 of its currently owned properties. The properties will be sold for an aggregate cash purchase price of approximately $11 million. The Company expects to realize a pre-tax gain of approximately $4.5 million (after transaction-related expenses). The transaction closed on January 19, 2024.

“The properties identified in this transaction fit within the Company’s long-term strategic plan. The current market conditions, combined with the terms of the leaseback agreement, make this a very positive move for the Company both in the near and long term. This sale only strengthens our balance sheet and allows us to continue to pursue organic growth and future transactions that bolster the Company’s existing value. We do not expect any interruption to our current operations and plan to carry out existing growth plans within our leased space at the facility. Furthermore, this transaction provides flexibility and allows us to realize value within the balance sheet and enhance earning assets over time,” said Phillip Branch, Chief Financial Officer.

Branch added, “We 100% focused on the continued support of the surrounding communities for many years to come.”

About Citizens Holding Company

Citizens Holding Company is a one-bank holding company and the parent company of the Bank, both headquartered in Philadelphia, Mississippi. The Bank currently has twenty-seven banking locations in fourteen counties throughout the state of Mississippi. In addition to full service commercial banking, the Company offers mortgage loans, title insurance services through third party partnerships and a full range of Internet banking services including online banking, bill pay and cash management services for businesses.

Cautionary Note Regarding Forward-Looking Statements

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) our ability to mitigate our risk exposures; (c) changes in the legislative and regulatory environment that negatively impact the Company and Bank through increased operating expenses; (d) increased competition from other financial institutions; (e) the impact of technological advances; (f) expectations about the movement of interest rates, including actions that may be taken by the Federal Reserve Board in response to changing economic conditions; (g) changes in asset quality and loan demand; (h) expectations about overall economic strength and the performance of the economics in the Company’s market area; and (i) 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240122967766/en/

Citizens Holding Company, Philadelphia

Phillip R. Branch, (601) 519-4016

Phillip.branch@thecitizensbank.bank

Source: Citizens Holding Company

FAQ

What is the ticker symbol for Citizens Holding Company?

The ticker symbol for Citizens Holding Company is CIZN.

What is the pre-tax gain expected from the sale-leaseback transaction?

The company expects to realize a pre-tax gain of approximately $4.5 million.

When did the sale-leaseback transaction close?

The transaction closed on January 19, 2024.

How many properties are involved in the sale-leaseback agreement?

The sale-leaseback agreement involves 3 properties.

What is the aggregate cash purchase price for the properties?

The properties will be sold for an aggregate cash purchase price of approximately $11 million.