Citizens Holding Company Reports Earnings
(in thousands, except share and per share data)
Net income for the three months ended
First Quarter Highlights
-
Total revenues, or interest and non-interest income, for the three months ended
March 31, 2023 totaled , an increase of$13,395 , or$1,808 15.60% , compared to the same quarter in 2022. The increase in total revenue is primarily attributed to an increase of , or$1,978 21.85% , in interest income. -
Allowance for credit losses (“ACL”) to loans was
1.06% as ofMarch 31, 2023 compared to0.90% as ofDecember 31, 2022 and0.82% as ofMarch 31, 2022 . The increase in ACL to loans was primarily attributed to the implementation of Accounting Standard Update (“ASU”) 2016-13 as ofJanuary 1, 2023 . -
During the quarter, the Company’s book value per share increased to
as of$7.35 March 31, 2023 , compared to as of$6.97 December 31, 2022 . The increase is primarily due to a decrease in medium term treasury yields causing an increase in the value of the securities portfolio. -
Total non-performing assets decreased
, or ($101 2.36% ), to at$4,177 March 31, 2023 , compared to at$4,278 December 31, 2022 , and decreased , or ($805 16.16% ), compared to at$4,982 March 31, 2022 .
Net Interest Income
Net interest income for the three months ended
The linked-quarter decrease in net interest income is primarily a result of the increase in interest expense related to deposits and other borrowed funds resulting in an increase of interest expense of
Credit Quality
The Company’s non-performing assets decreased by
Net recoveries for the quarter were
As a result of the aforementioned facts, coupled with a decrease of
Non-interest Income
Non-interest income decreased for the three months ended
The decrease in non-interest income was primarily due to the decrease in secondary market mortgage loan origination income directly attributable to the rise in mortgage rates throughout 2022.
Non-interest Expense
Non-interest expense increased for the three months ended
The increase in non-interest expense is mainly attributable to an increase in salaries and employee benefits due to an overall tight labor market.
Capital
Book value per share increased to
The linked quarter-over-quarter increase primarily reflects the decrease in medium term treasury yields during the quarter. The decrease in book value per share from
Dividends
The Company paid aggregate cash dividends in the amount of
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) the impact of COVID-19 on our business, including the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on
|
||||||
Financial Highlights |
||||||
(amounts in thousands, except share and per share data) |
||||||
For the Three Months Ended |
||||||
|
|
|
||||
2023 |
2022 |
2022 |
||||
INTEREST INCOME |
||||||
Loans, including fees |
$ |
7,323 |
$ |
7,307 |
$ |
6,397 |
Investment securities |
|
3,370 |
|
3,400 |
|
2,644 |
Other interest |
|
339 |
|
258 |
|
13 |
|
11,032 |
|
10,965 |
|
9,054 |
|
INTEREST EXPENSE |
||||||
Deposits |
|
1,820 |
|
958 |
|
556 |
Other borrowed funds |
|
1,534 |
|
1,197 |
|
211 |
|
3,354 |
|
2,155 |
|
767 |
|
NET INTEREST INCOME |
|
7,678 |
|
8,810 |
|
8,287 |
PROVISION FOR CREDIT LOSSES |
|
6 |
|
28 |
|
93 |
NET INTEREST INCOME AFTER |
||||||
PROVISION FOR LOAN LOSSES |
|
7,672 |
|
8,782 |
|
8,194 |
NON-INTEREST INCOME |
||||||
Service charges on deposit accounts |
|
914 |
|
965 |
|
945 |
Other service charges and fees |
|
1,037 |
|
1,038 |
|
1,025 |
Other noninterest income |
|
412 |
|
708 |
|
563 |
|
2,363 |
|
2,711 |
|
2,533 |
|
NON-INTEREST EXPENSE |
||||||
Salaries and employee benefits |
|
4,695 |
|
4,292 |
|
4,439 |
Occupancy expense |
|
1,845 |
|
1,957 |
|
1,775 |
Other noninterest expense |
|
2,201 |
|
2,250 |
|
2,087 |
|
8,741 |
|
8,499 |
|
8,301 |
|
NET INCOME BEFORE TAXES |
|
1,294 |
|
2,994 |
|
2,426 |
INCOME TAX EXPENSE |
|
154 |
|
531 |
|
390 |
NET INCOME |
$ |
1,140 |
$ |
2,463 |
$ |
2,036 |
Earnings per share - basic |
$ |
0.20 |
$ |
0.44 |
$ |
0.36 |
Earnings per share - diluted |
$ |
0.20 |
$ |
0.44 |
$ |
0.36 |
Dividends paid |
$ |
0.24 |
$ |
0.24 |
$ |
0.24 |
Average shares outstanding - basic |
|
5,595,320 |
|
5,595,320 |
|
5,587,070 |
Average shares outstanding - diluted |
|
5,595,320 |
|
5,595,320 |
|
5,587,070 |
For the Period Ended, |
|||||||||
|
|
|
|||||||
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
Period End Balance Sheet Data: |
|||||||||
Total assets |
$ |
1,289,469 |
|
$ |
1,324,002 |
|
$ |
1,348,692 |
|
Total earning assets |
|
1,174,575 |
|
|
1,192,279 |
|
|
1,245,299 |
|
Loans, net of unearned income |
|
567,240 |
|
|
585,591 |
|
|
583,194 |
|
Allowance for credit losses |
|
6,017 |
|
|
5,264 |
|
|
4,776 |
|
Securities held-to-maturity, at amortized cost |
|
402,237 |
|
|
406,590 |
|
|
- |
|
Securities available for sale, at fair value |
|
201,740 |
|
|
201,322 |
|
|
600,766 |
|
Total deposits |
|
1,115,826 |
|
|
1,126,402 |
|
|
1,149,580 |
|
Securities sold under agreement to repurchase |
|
98,532 |
|
|
127,574 |
|
|
105,795 |
|
Short-term borrowings |
|
- |
|
|
- |
|
|
- |
|
Long-term debt |
|
18,000 |
|
|
18,000 |
|
|
18,000 |
|
Shareholders' equity |
|
41,124 |
|
|
39,024 |
|
|
62,950 |
|
Book value per share |
|
7.35 |
|
|
6.97 |
|
|
11.27 |
|
Period End Average Balance Sheet Data: |
|||||||||
Total assets |
|
1,336,480 |
|
|
1,343,234 |
|
|
1,352,709 |
|
Total earning assets |
|
1,218,404 |
|
|
1,231,084 |
|
|
1,255,510 |
|
Loans, net of unearned income |
|
582,169 |
|
|
587,034 |
|
|
578,974 |
|
Securities held-to-maturity, at amortized cost |
|
404,719 |
|
|
137,276 |
|
|
- |
|
Securities available for sale, at fair value |
|
201,328 |
|
|
486,223 |
|
|
642,213 |
|
Total deposits |
|
1,114,446 |
|
|
1,127,937 |
|
|
1,127,727 |
|
Securities sold under agreement to repurchase |
|
142,853 |
|
|
113,893 |
|
|
90,510 |
|
Short-term borrowings |
|
8,014 |
|
|
7,890 |
|
|
8,711 |
|
Long-term debt |
|
18,000 |
|
|
18,000 |
|
|
18,000 |
|
Shareholders' equity |
|
39,693 |
|
|
62,890 |
|
|
95,462 |
|
Period End Non-performing Assets: |
|||||||||
Non-accrual loans |
|
2,993 |
|
|
2,988 |
|
|
3,545 |
|
Loans 90+ days past due and accruing |
|
5 |
|
|
111 |
|
|
16 |
|
Other real estate owned |
|
1,179 |
|
|
1,179 |
|
|
1,421 |
|
As of |
|||||||||
|
|
|
|||||||
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
Year to Date Credit Performance Ratios: |
|||||||||
Non-performing assets to loans |
|
0.74 |
% |
|
0.73 |
% |
|
0.85 |
% |
Allowance for credit losses to loans |
|
1.06 |
% |
|
0.90 |
% |
|
0.82 |
% |
Allowance for credit losses to non-performing loans |
|
200.70 |
% |
|
169.86 |
% |
|
134.12 |
% |
Net (recoveries)/charge-offs to average net loans |
|
-0.01 |
% |
|
-0.11 |
% |
|
-0.03 |
% |
Year to Date Performance Ratios: |
|||||||||
Return on average assets(1) |
|
0.34 |
% |
|
0.72 |
% |
|
0.60 |
% |
Return on average equity(1) |
|
11.49 |
% |
|
15.30 |
% |
|
8.53 |
% |
Year to Date Net Interest |
|||||||||
Margin (tax equivalent)(1) |
|
2.56 |
% |
|
2.80 |
% |
|
2.69 |
% |
(1) Annualized |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005824/en/
Phillip.branch@thecitizensbank.bank
Source: