Citizens Holding Company Reports Earnings
(in thousands, except share and per share data)
Net income for the twelve months ended
Net income for the three months ended
Fourth Quarter And Year Ended
-
Total revenues, or interest and non-interest income, for the three months ended
December 31, 2022 totaled , an increase of$13,676 , or$677 5.21% from the prior quarter. The increase in total revenue is primarily attributed to an increase of , or$843 8.33% in total interest income attributed to higher interest rates impacted by continued interest rate hikes by theFederal Reserve Bank . -
Yields on earning assets increased 31 basis points (“bps”) to 354 bps for the three months ended
December 31, 2022 compared to 323 bps for the three months endedSeptember 30, 2022 . Yields on earning assets increased 19 bps year-over-year to 317 bps for the twelve months endedDecember 31, 2022 , compared to 298 bps for the same period in 2021. -
During the quarter, the Company’s book value per share increased to 6.97 as of
December 31, 2022 , compared to 5.83 as ofSeptember 30, 2022 . The increase is primarily due to a decrease in medium term treasury yields coupled with an increase in earnings. -
Credit quality continued to remain solid with total non-performing assets to loans at 74 bps at
December 31, 2022 , compared to 77 bps atSeptember 30, 2022 , and 113 bps atDecember 31, 2021 . Total non-performing assets decreased , or ($151 3.41% ), to at$4,278 December 31, 2022 , compared to at$4,429 September 30, 2022 , and decreased , or ($2,177 33.73% ), compared to at$6,455 December 31, 2021 . Additionally, recoveries have exceeded charge-offs year-to-date with net recoveries of year to date.$627
Net Interest Income
Net interest income for the three months ended
The linked-quarter decrease in net interest income is primarily a result of higher cost of funds as competition for deposits has increased significantly. Interest on loans increased
Net interest income for the twelve months ended
Net interest income for the twelve months ended
Credit Quality
The Company had a provision for loan losses for the three months ended
The Company’s non-performing assets decreased
Net recoveries for the quarter ended
Noninterest Income
Noninterest income decreased for the three months ended
Noninterest income decreased by
Noninterest Expense
Noninterest expense decreased for the three months ended
Noninterest expense decreased by
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 coupled with an increase in earnings in excess of dividends paid. 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 |
For the Twelve Months Ended |
|||||
|
|
|
|
|
||
2022 |
2022 |
2021 |
2022 |
2021 |
||
INTEREST INCOME |
||||||
Loans, including fees |
|
|
|
|
|
|
Investment securities |
3,400 |
3,187 |
|
2,343 |
12,115 |
7,240 |
Other interest |
258 |
80 |
|
16 |
388 |
62 |
10,965 |
10,122 |
|
9,852 |
39,701 |
38,509 |
|
INTEREST EXPENSE |
||||||
Deposits |
958 |
496 |
|
857 |
2,538 |
4,260 |
Other borrowed funds |
1,197 |
577 |
|
230 |
2,254 |
755 |
2,155 |
1,073 |
|
1,087 |
4,792 |
5,015 |
|
NET INTEREST INCOME |
8,810 |
9,049 |
|
8,765 |
34,909 |
33,494 |
(REVERSAL OF) PROVISION FOR |
||||||
FOR LOAN LOSSES |
28 |
(53 |
) |
122 |
124 |
1,409 |
NET INTEREST INCOME AFTER |
||||||
PROVISION FOR LOAN LOSSES |
8,782 |
9,102 |
|
8,643 |
34,785 |
32,085 |
NONINTEREST INCOME |
||||||
Service charges on deposit accounts |
965 |
1,019 |
|
965 |
3,896 |
3,499 |
Other service charges and fees |
1,038 |
1,111 |
|
1,080 |
4,268 |
4,281 |
Other noninterest income |
708 |
747 |
|
628 |
2,720 |
4,408 |
2,711 |
2,877 |
|
2,673 |
10,884 |
12,188 |
|
NONINTEREST EXPENSE |
||||||
Salaries and employee benefits |
4,292 |
4,506 |
|
4,591 |
17,649 |
18,460 |
Occupancy expense |
1,957 |
1,968 |
|
1,787 |
7,411 |
7,135 |
Other noninterest expense |
2,250 |
2,462 |
|
2,779 |
9,108 |
9,753 |
8,499 |
8,936 |
|
9,157 |
34,168 |
35,348 |
|
NET INCOME BEFORE TAXES |
2,994 |
3,043 |
|
2,159 |
11,501 |
8,925 |
INCOME TAX EXPENSE |
531 |
463 |
|
349 |
1,881 |
1,431 |
NET INCOME |
|
|
|
|
|
|
Earnings per share - basic |
|
|
|
|
|
|
Earnings per share - diluted |
|
|
|
|
|
|
Dividends paid |
|
|
|
|
|
|
Average shares outstanding - basic |
5,595,320 |
5,595,320 |
|
5,587,070 |
5,592,668 |
5,584,396 |
Average shares outstanding - diluted |
5,595,320 |
5,595,320 |
|
5,587,070 |
5,592,668 |
5,584,483 |
For the Period Ended, |
||||||||||||
|
|
|
||||||||||
2022 |
2022 |
2021 |
||||||||||
Period End Balance Sheet Data: |
||||||||||||
Total assets |
$ |
1,324,002 |
|
$ |
1,328,478 |
|
$ |
1,361,335 |
|
|||
Total earning assets |
|
1,192,279 |
|
|
1,213,892 |
|
|
1,273,562 |
|
|||
Loans, net of unearned income |
|
585,591 |
|
|
578,665 |
|
|
571,847 |
|
|||
Allowance for loan losses |
|
5,264 |
|
|
5,068 |
|
|
4,513 |
|
|||
Securities held-to-maturity, at amortized cost |
|
406,590 |
|
|
411,859 |
|
|
- |
|
|||
Securities available-for-sale, at fair value |
|
201,322 |
|
|
198,547 |
|
|
631,835 |
|
|||
Total deposits |
|
1,126,402 |
|
|
1,134,936 |
|
|
1,111,892 |
|
|||
Securities sold under agreement to repurchase |
|
127,574 |
|
|
129,919 |
|
|
112,760 |
|
|||
Long-term debt |
|
18,000 |
|
|
18,000 |
|
|
18,000 |
|
|||
Shareholders' equity |
|
39,024 |
|
|
32,637 |
|
|
105,900 |
|
|||
Book value per share |
|
6.97 |
|
|
5.83 |
|
|
18.95 |
|
|||
Period End Average Balance Sheet Data: |
||||||||||||
Total assets |
|
1,343,234 |
|
|
1,348,574 |
|
|
1,412,082 |
|
|||
Total earning assets |
|
1,231,084 |
|
|
1,247,117 |
|
|
1,312,668 |
|
|||
Loans, net of unearned income |
|
587,034 |
|
|
584,450 |
|
|
629,186 |
|
|||
Securities held-to-maturity, at amortized cost |
|
137,276 |
|
|
45,478 |
|
|
- |
|
|||
Securities available-for-sale, at fair value |
|
486,223 |
|
|
591,678 |
|
|
637,210 |
|
|||
Total deposits |
|
1,127,937 |
|
|
1,126,703 |
|
|
1,141,726 |
|
|||
Securities sold under agreement to repurchase |
|
113,893 |
|
|
103,616 |
|
|
129,207 |
|
|||
Short-term borrowings |
|
7,890 |
|
|
9,107 |
|
|
6,075 |
|
|||
Long-term debt |
|
18,000 |
|
|
18,000 |
|
|
9,692 |
|
|||
Shareholders' equity |
|
62,890 |
|
|
78,710 |
|
|
111,189 |
|
|||
Period End Non-performing Assets: |
||||||||||||
Non-accrual loans |
|
2,988 |
|
|
3,087 |
|
|
3,826 |
|
|||
Loans 90+ days past due and accruing |
|
111 |
|
|
14 |
|
|
154 |
|
|||
Other real estate owned |
|
1,179 |
|
|
1,328 |
|
|
2,475 |
|
|||
As of |
||||||||||||
|
|
|
||||||||||
2022 |
2022 |
2021 |
||||||||||
Year to Date Credit Performance Ratios: |
||||||||||||
Non-performing assets to loans |
|
0.74 |
% |
|
0.77 |
% |
|
1.13 |
% |
|||
Allowance for loan losses to loans |
|
0.91 |
% |
|
0.88 |
% |
|
0.79 |
% |
|||
Allowance for loan losses to non-performing loans |
|
169.86 |
% |
|
163.43 |
% |
|
113.39 |
% |
|||
Net (recoveries)/charge-offs to average net loans |
|
-0.11 |
% |
|
-0.08 |
% |
|
0.26 |
% |
|||
Year to Date Performance Ratios: |
||||||||||||
Return on average assets(1) |
|
0.72 |
% |
|
0.71 |
% |
|
0.53 |
% |
|||
Return on average equity(1) |
|
15.30 |
% |
|
12.12 |
% |
|
6.74 |
% |
|||
Year to Date Net Interest |
||||||||||||
Margin (tax equivalent)(1) |
|
2.80 |
% |
|
2.79 |
% |
|
2.60 |
% |
|||
(1) Annualized |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230124005359/en/
Phillip.branch@thecitizensbank.bank
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