Citizens Holding Company Reports Earnings
(in thousands, except share and per share data)
Net income for the three months ended
Net income for the six months ended
Second Quarter Highlights
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Total revenues, or interest and non-interest income, for the three months ended
June 30, 2022 totaled , an increase of$12,323 , or$736 6.35% from the prior quarter. The increase in total revenue is primarily attributed to an increase of , or$506 5.59% in total interest income attributed to higher interest rates due to the recent interest rate hikes by theFederal Reserve Bank coupled with modest loan growth. -
Yields on earning assets increased 12 basis points (“bps”) to 302 bps for the three months ended
June 30, 2022 compared to 290 bps for the three months endedMarch 31, 2022 and increased 7 bps compared to 295 bps for the three months endedJune 30, 2021 . -
Loans held for investment (“LHFI”) increased
, or$6,347 1.09% , to at$589,541 June 30, 2022 , compared to at$583,194 March 31, 2022 . Excluding PPP loans with a total balance of at$1,356 June 30, 2022 and at$2,047 March 31, 2022 , total loans increased , or$7,038 1.21% , compared to at$581,147 March 31, 2022 . The linked-quarter growth primarily reflects increases in construction and development, commercial real estate, and consumer loans. -
Securities available for sale decreased
, or ($36,970 6.15% ), to at$563,796 June 30, 2022 , compared to at$600,766 March 31, 2022 . The decrease in the securities portfolio is primarily due to the increase in medium-term interest rates causing a decline in the fair value of investment securities. For the second quarter endedJune 30, 2022 , net unrealized losses totaled . Additionally, the impact to stockholders’ equity, as recorded through other comprehensive income, totaled$50,978 , which resulted in the decline in stockholders' equity quarter-over-quarter. Management continues to monitor the impact the unrealized losses have on equity; however, the unrealized losses do not affect regulatory capital. Total risk-based capital and tier 1 risk-based capital remain strong at$38,259 13.32% and12.71% respectively. -
Credit quality continues to remain solid with total non-performing assets to loans at 84 bps at
June 30, 2022 . Total non-performing assets decreased , or ($10 0.20% ), to at$4,972 June 30, 2022 , compared to at$4,982 March 31, 2022 , and decreased , or ($3,879 43.83% ), compared to at$8,851 June 30, 2021 .
Net Interest Income
Net interest income for the three months ended
The linked-quarter increase in net interest income is primarily a result of the higher medium-term interest rates and corresponding higher yields on both new loans originated and securities purchased during the quarter. Interest on loans increased
Net interest income for the six months ended
Net interest income for the six months ended
Credit Quality
The provision for loan losses for the three months ended
The Company’s non-performing assets decreased by
Net recoveries for the quarter were
Noninterest Income
Noninterest income increased for the three months ended
Noninterest income decreased by
Noninterest Expense
Noninterest expense increased for the three months ended
Noninterest expense decreased by
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
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Financial Highlights |
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(amounts in thousands, except share and per share data) |
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For the Three Months Ended |
For the Six Months Ended |
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2022 |
2022 |
2021 |
2022 |
2021 |
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INTEREST INCOME |
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Loans, including fees |
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|
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Investment securities |
2,884 |
2,644 |
1,889 |
5,528 |
2,822 |
Other interest |
37 |
13 |
10 |
50 |
25 |
9,560 |
9,054 |
9,816 |
18,614 |
18,895 |
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INTEREST EXPENSE |
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Deposits |
528 |
556 |
1,186 |
1,084 |
2,452 |
Other borrowed funds |
269 |
211 |
136 |
480 |
316 |
797 |
767 |
1,322 |
1,564 |
2,768 |
|
NET INTEREST INCOME |
8,763 |
8,287 |
8,494 |
17,050 |
16,127 |
PROVISION FOR LOAN LOSSES |
56 |
93 |
232 |
149 |
319 |
NET INTEREST INCOME AFTER |
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PROVISION FOR LOAN LOSSES |
8,707 |
8,194 |
8,262 |
16,901 |
15,808 |
NONINTEREST INCOME |
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Service charges on deposit accounts |
967 |
945 |
768 |
1,912 |
1,582 |
Other service charges and fees |
1,094 |
1,025 |
1,091 |
2,119 |
2,066 |
Other noninterest income |
702 |
563 |
1,130 |
1,265 |
2,573 |
2,763 |
2,533 |
2,989 |
5,296 |
6,221 |
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NONINTEREST EXPENSE |
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Salaries and employee benefits |
4,412 |
4,439 |
4,585 |
8,851 |
9,153 |
Occupancy expense |
1,711 |
1,775 |
1,791 |
3,486 |
3,608 |
Other noninterest expense |
2,309 |
2,087 |
2,606 |
4,396 |
4,689 |
8,432 |
8,301 |
8,982 |
16,733 |
17,450 |
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NET INCOME BEFORE TAXES |
3,038 |
2,426 |
2,269 |
5,464 |
4,579 |
INCOME TAX EXPENSE |
497 |
390 |
362 |
887 |
775 |
NET INCOME |
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Earnings per share - basic |
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Earnings per share - diluted |
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Dividends paid |
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Average shares outstanding - basic |
5,592,782 |
5,587,070 |
5,584,441 |
5,589,958 |
5,581,662 |
Average shares outstanding - diluted |
5,592,782 |
5,587,070 |
5,584,681 |
5,589,958 |
5,582,258 |
For the Period Ended, |
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2022 |
2022 |
2021 |
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Period End Balance Sheet Data: |
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Total assets |
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Total earning assets |
1,182,127 |
1,245,299 |
1,243,973 |
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Loans, net of unearned income |
589,541 |
583,194 |
634,042 |
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Allowance for loan losses |
5,046 |
4,776 |
4,351 |
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Securities available for sale, at fair value |
563,796 |
600,766 |
542,669 |
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Total deposits |
1,117,987 |
1,149,580 |
1,127,362 |
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Securities sold under agreement to repurchase |
124,162 |
105,795 |
67,286 |
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Long-term debt |
18,000 |
18,000 |
18,000 |
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Shareholders' equity |
25,926 |
62,950 |
109,574 |
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Book value per share |
4.64 |
11.27 |
19.62 |
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Period End Average Balance Sheet Data: |
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Total assets |
1,343,566 |
1,352,709 |
1,479,315 |
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Total earning assets |
1,242,569 |
1,255,510 |
1,375,100 |
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Loans, net of unearned income |
584,959 |
578,974 |
647,170 |
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Securities available for sale, at fair value |
628,137 |
642,213 |
678,863 |
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Total deposits |
1,130,989 |
1,127,727 |
1,169,554 |
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Securities sold under agreement to repurchase |
94,915 |
90,510 |
168,332 |
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Short-term borrowings |
7,791 |
8,711 |
11,149 |
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Long-term debt |
18,000 |
18,000 |
2,571 |
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Shareholders' equity |
79,467 |
95,462 |
112,912 |
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Period End Non-performing Assets: |
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Non-accrual loans |
3,580 |
3,545 |
4,365 |
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Loans 90+ days past due and accruing |
64 |
16 |
5 |
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Other real estate owned |
1,328 |
1,421 |
4,481 |
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As of |
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2022 |
2022 |
2021 |
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Year to Date Credit Performance Ratios: |
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Non-performing assets to loans |
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Allowance for loan losses to loans |
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Allowance for loan losses to non-performing loans |
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Net (recoveries)/charge-offs to average net loans |
( |
( |
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Year to Date Performance Ratios: |
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Return on average assets(1) |
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Return on average equity(1) |
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Year to Date Net Interest |
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Margin (tax equivalent)(1) |
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(1) Annualized |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220726005017/en/
Phillip.branch@thecitizensbank.bank
Source: