CORRECTING and REPLACING Citizens Holding Company Reports Earnings
- Net income for the first quarter of 2024 was $2,868, or $0.51 per share, a significant increase from the previous quarter.
- Total revenues for the quarter reached $21,213, primarily due to a one-time gain on a sale-leaseback transaction.
- Loans held for investment increased to $667,416, reflecting the company's strong liquidity position.
- Credit quality remained solid, with a decrease in non-performing assets.
- Strategic transactions aimed at enhancing net interest income and balance sheet stability were highlighted by the CEO.
- Challenges in margin expansion were noted due to shifting deposit trends, but the company remains optimistic about future growth and value creation for shareholders.
- The company experienced an increase in noninterest expense, primarily driven by rising occupancy expenses.
- Dividends paid decreased from the previous year, impacting the quarterly dividend yield.
- Noninterest income and expenses showed fluctuations compared to the same period in 2023.
- The company saw a slight decrease in investment securities available-for-sale at fair value.
The updated release reads:
CITIZENS HOLDING COMPANY REPORTS EARNINGS
Citizens Holding Company (the “Company”) (OTCQX:CIZN) announced today results of operations for the three months ended March 31, 2024.
(in thousands, except share and per share data)
Net income for the three months ended March 31, 2024 was
First Quarter Highlights
-
Total revenues, or interest and non-interest income, for the three months ended March 31, 2024 totaled
, an increase of$21,213 , or$6,020 39.62% , from the prior quarter. The increase in total revenue is primarily attributed to an increase of , or$4,920 535.36% , in non-interest income attributed to a one-time gain on a sale-leaseback transaction of .$4,535 - Yields on earning assets increased 19 basis point (“bps”) to 461 bps for the three months ended March 31, 2024 compared to 442 bps for the three months ended December 31, 2023 and increased 101 bps compared to 360 bps for the three months ended March 31, 2023.
-
Loans held for investment (“LHFI”) increased
, or$25,388 3.95% , to at March 31, 2023, compared to$667,416 at December 31, 2023. With the Company’s strong on-balance sheet liquidity, the Company is in an opportune position, relative to the banking industry, to continue to fund loan demand.$642,028 -
Credit quality continues to remain solid with total non-performing assets (“NPA”) to loans at 54 bps at March 31, 2024 compared to 60 bps at December 31, 2023. Total non-performing assets decreased (
), or ($264 6.91% ), to at March 31, 2024, compared to$3,562 at December 31, 2023, and decreased ($3,826 ), or ($615 14.73% ), compared to at March 31, 2023.$4,177 -
Allowance for credit losses (“ACL”) to loans was
1.00% at March 31, 2023 compared to1.02% in the prior quarter and1.06% the same period a year ago.
Chief Executive Officer (“CEO”) Commentary
Stacy Brantley, President and Chief Executive Officer of the Company, stated, “The Citizens Bank of
“The Company’s realized solid loan growth of
“The Company’s net interest margin expanded slightly during the quarter, up 5 bps over the prior quarter ended December 31, 2023. “We are encouraged by margin expansion, although slight, in the first quarter. We anticipate continued margin expansion in the subsequent quarter as our strategic transactions become fully baked in and loan growth realized late in the first quarter more fully impacts quarterly earnings.”
“We will continue to evaluate our balance sheet and look for strategic opportunities to improve performance. Our strong on-balance sheet liquidity has us well positioned for growth as we seek to increase long-term value for our shareholders.”
Financial Condition and Results of Operations
Loans and Deposits
Total loans outstanding, net of unearned income, as of March 31, 2024 totaled
Total deposits as of March 31, 2024 were
Net Interest Income
Net interest income for the three months ended March 31, 2024 was
The linked-quarter increase in net interest income is primarily a result of the increase in interest income of
Credit Quality
The Company’s NPAs decreased by (
Net recoveries were
The provision for credit losses (“PCL”) for the three months ended March 31, 2024 was
Liquidity and Capital
Given the events within the banking industry during 2023, investment securities portfolios, interest rate risk, liquidity and capital have become much more of a focus for the Company’s management team and Board, regulators and investors. As a result of this, the Company is providing additional information on our liquidity and capital position as of March 31, 2024 to disclose the more traditional and stable nature of the Company’s banking model.
The Company currently has limited reliance on the wholesale funding market. The Company had
The Company and the Bank, remain in a strong capital position and well-capitalized. A comparison of the various regulatory ratios for the Company and the Bank are noted below:
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|||
Citizens Holding Company |
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
|
7.31 |
% |
|
7.43 |
% |
|
8.01 |
% |
Common Equity tier 1 capital ratio |
|
7.31 |
% |
|
7.43 |
% |
|
8.01 |
% |
Tier 1 risk-based capital ratio |
|
11.87 |
% |
|
11.95 |
% |
|
13.70 |
% |
Total risk-based capital ratio |
|
12.65 |
% |
|
12.70 |
% |
|
14.46 |
% |
The Citizens Bank |
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
|
8.37 |
% |
|
8.64 |
% |
|
9.29 |
% |
Common Equity tier 1 capital ratio |
|
8.37 |
% |
|
8.64 |
% |
|
9.29 |
% |
Tier 1 risk-based capital ratio |
|
13.48 |
% |
|
13.78 |
% |
|
15.75 |
% |
Total risk-based capital ratio |
|
14.25 |
% |
|
14.52 |
% |
|
16.50 |
% |
Noninterest Income
Noninterest income increased for the three months ended March 31, 2024, by
The increase quarter-over-quarter is primarily due to other noninterest income increasing
Noninterest Expense
Noninterest expense increased for the three months ended March 31, 2024 by
The increase year-over-year is primarily due to an increase in occupancy expense of
Dividends
The Company paid aggregate cash dividends in the amount of
At
Citizens Holding Company Financial Highlights (amounts in thousands, except share and per share data) |
||||||||
For the Three Months Ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2024 |
2023 |
2023 |
||||||
INTEREST INCOME | ||||||||
Loans, including fees | $ |
10,264 |
|
$ |
9,422 |
|
$ |
7,323 |
Investment securities |
|
3,045 |
|
|
3,163 |
|
|
3,370 |
Other interest |
|
2,065 |
|
|
1,689 |
|
|
339 |
|
15,374 |
|
|
14,274 |
|
|
11,032 |
|
INTEREST EXPENSE | ||||||||
Deposits |
|
5,261 |
|
|
4,503 |
|
|
1,820 |
Other borrowed funds |
|
2,323 |
|
|
2,417 |
|
|
1,534 |
|
7,584 |
|
|
6,920 |
|
|
3,354 |
|
NET INTEREST INCOME |
|
7,790 |
|
|
7,354 |
|
|
7,678 |
PCL |
|
192 |
|
|
107 |
|
|
6 |
NET INTEREST INCOME AFTER PCL |
|
7,598 |
|
|
7,247 |
|
|
7,672 |
NONINTEREST INCOME | ||||||||
Service charges on deposit accounts |
|
957 |
|
|
990 |
|
|
914 |
Other service charges and fees |
|
1,176 |
|
|
1,234 |
|
|
1,037 |
Net (losses) gains on sales of securities |
|
(1,574 |
) |
|
(1,986 |
) |
|
- |
Other noninterest income |
|
5,280 |
|
|
680 |
|
|
412 |
|
5,839 |
|
|
919 |
|
|
2,363 |
|
NONINTEREST EXPENSE | ||||||||
Salaries and employee benefits |
|
4,885 |
|
|
4,522 |
|
|
4,695 |
Occupancy expense |
|
2,325 |
|
|
2,199 |
|
|
1,845 |
Other noninterest expense |
|
2,474 |
|
|
2,635 |
|
|
2,201 |
|
9,684 |
|
|
9,357 |
|
|
8,741 |
|
NET INCOME BEFORE TAXES |
|
3,753 |
|
|
(1,190 |
) |
|
1,294 |
INCOME TAX EXPENSE (BENEFIT) |
|
885 |
|
|
(397 |
) |
|
154 |
NET INCOME (LOSS) | $ |
2,868 |
|
$ |
(794 |
) |
$ |
1,140 |
Earnings (Loss) per share - basic | $ |
0.51 |
|
$ |
(0.14 |
) |
$ |
0.20 |
Earnings (Loss) per share - diluted | $ |
0.51 |
|
$ |
(0.14 |
) |
$ |
0.20 |
Dividends paid | $ |
0.16 |
|
$ |
0.16 |
|
$ |
0.24 |
Average shares outstanding - basic |
|
5,603,570 |
|
|
5,603,570 |
|
|
5,595,320 |
Average shares outstanding - diluted |
|
5,603,570 |
|
|
5,603,570 |
|
|
5,595,320 |
March 31, | March 31, | December 31, | |||||||||||||||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||||||||||
Assets | (Unaudited) | (Unaudited) | Change | % Change | (Audited) | Change | % Change | ||||||||||||
Cash and due from banks | $ |
16,868 |
|
$ |
15,600 |
|
$ |
1,268 |
|
8.13 |
% |
$ |
14,553 |
|
$ |
2,315 |
|
15.91 |
% |
Interest bearing deposits with other banks |
|
145,924 |
|
|
606 |
|
|
145,318 |
|
23979.83 |
% |
|
79,923 |
|
|
66,001 |
|
82.58 |
% |
Cash and cash equivalents |
|
162,792 |
|
|
16,206 |
|
|
146,586 |
|
904.52 |
% |
|
94,476 |
|
|
68,316 |
|
72.31 |
% |
Investment securities held-to-maturity, at amortized cost |
|
384,015 |
|
|
402,237 |
|
|
(18,222 |
) |
-4.53 |
% |
|
387,799 |
|
|
(3,783 |
) |
-0.98 |
% |
Investment securities available-for-sale, at fair value |
|
152,553 |
|
|
201,740 |
|
|
(49,187 |
) |
-24.38 |
% |
|
177,795 |
|
|
(25,242 |
) |
-14.20 |
% |
Loans held for investment (LHFI) (1) |
|
667,416 |
|
|
567,240 |
|
|
100,176 |
|
17.66 |
% |
|
642,028 |
|
|
25,388 |
|
3.95 |
% |
Less allowance for credit losses (ACL), LHFI (1) |
|
6,668 |
|
|
6,017 |
|
|
651 |
|
10.82 |
% |
|
6,551 |
|
|
117 |
|
1.79 |
% |
Net LHFI |
|
660,748 |
|
|
561,223 |
|
|
99,525 |
|
17.73 |
% |
|
635,477 |
|
|
25,271 |
|
3.98 |
% |
Premises and equipment, net |
|
20,530 |
|
|
27,561 |
|
|
(7,031 |
) |
-25.51 |
% |
|
27,073 |
|
|
(6,543 |
) |
-24.17 |
% |
Other real estate owned, net |
|
1,234 |
|
|
1,179 |
|
|
55 |
|
4.63 |
% |
|
1,234 |
|
|
- |
|
0.00 |
% |
Accrued interest receivable |
|
4,784 |
|
|
4,562 |
|
|
222 |
|
4.86 |
% |
|
5,231 |
|
|
(447 |
) |
-8.54 |
% |
Cash surrender value of life insurance |
|
26,438 |
|
|
25,909 |
|
|
529 |
|
2.04 |
% |
|
26,284 |
|
|
154 |
|
0.59 |
% |
Deferred tax assets, net |
|
27,533 |
|
|
29,091 |
|
|
(1,558 |
) |
-5.36 |
% |
|
28,008 |
|
|
(475 |
) |
-1.70 |
% |
Identifiable intangible assets, net |
|
13,304 |
|
|
13,413 |
|
|
(109 |
) |
-0.81 |
% |
|
13,331 |
|
|
(27 |
) |
-0.21 |
% |
Other assets |
|
19,592 |
|
|
6,349 |
|
|
13,243 |
|
208.59 |
% |
|
8,972 |
|
|
10,620 |
|
118.36 |
% |
Total Assets | $ |
1,473,523 |
|
$ |
1,289,470 |
|
$ |
184,053 |
|
14.27 |
% |
$ |
1,405,680 |
|
$ |
67,843 |
|
4.83 |
% |
Liabilities and Shareholders' Equity | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Non-interest bearing deposits | $ |
263,006 |
|
$ |
288,466 |
|
$ |
(25,460 |
) |
-8.83 |
% |
$ |
264,528 |
|
$ |
(1,522 |
) |
-0.58 |
% |
Interest bearing deposits |
|
947,594 |
|
|
827,360 |
|
|
120,234 |
|
14.53 |
% |
|
905,549 |
|
|
42,045 |
|
4.64 |
% |
Total deposits |
|
1,210,600 |
|
|
1,115,826 |
|
|
94,774 |
|
8.49 |
% |
|
1,170,077 |
|
|
40,523 |
|
3.46 |
% |
Securities sold under agreement to repurchase |
|
173,254 |
|
|
98,532 |
|
|
74,722 |
|
75.84 |
% |
|
158,086 |
|
|
15,168 |
|
9.59 |
% |
Short-term borrowings |
|
- |
|
|
1,725 |
|
|
(1,725 |
) |
-100.00 |
% |
|
- |
|
|
- |
|
0.00 |
% |
Borrowings on secured line of credit |
|
18,000 |
|
|
18,000 |
|
|
- |
|
0.00 |
% |
|
18,000 |
|
|
- |
|
0.00 |
% |
Deferred compensation payable |
|
9,841 |
|
|
9,985 |
|
|
(144 |
) |
-1.45 |
% |
|
9,929 |
|
|
(88 |
) |
-0.89 |
% |
Other liabilities |
|
16,135 |
|
|
4,279 |
|
|
11,856 |
|
277.08 |
% |
|
6,815 |
|
|
9,320 |
|
136.75 |
% |
Total liabilities |
|
1,427,830 |
|
|
1,248,347 |
|
|
179,483 |
|
14.38 |
% |
|
1,362,907 |
|
|
64,924 |
|
4.76 |
% |
Shareholders' Equity | |||||||||||||||||||
Common stock, |
|||||||||||||||||||
Issued and outstanding: 5,628,811 shares - March 31, 2024; | |||||||||||||||||||
5,616,438 shares - December 31, 2023 |
|
1,123 |
|
|
1,122 |
|
|
- |
|
0.00 |
% |
|
1,123 |
|
|
- |
|
0.00 |
% |
Additional paid-in capital |
|
18,618 |
|
|
18,448 |
|
|
170 |
|
0.92 |
% |
|
18,585 |
|
|
32 |
|
0.17 |
% |
Accumulated other comprehensive loss, net of tax | |||||||||||||||||||
benefit of |
|||||||||||||||||||
|
(75,369 |
) |
|
(79,822 |
) |
|
4,453 |
|
-5.58 |
% |
|
(76,289 |
) |
|
920 |
|
-1.21 |
% |
|
Retained earnings |
|
101,321 |
|
|
101,335 |
|
|
(14 |
) |
-0.01 |
% |
|
99,354 |
|
|
1,967 |
|
1.98 |
% |
Total shareholders' equity |
|
45,693 |
|
|
41,123 |
|
|
4,570 |
|
11.11 |
% |
|
42,773 |
|
|
2,920 |
|
6.83 |
% |
|
- |
|
|||||||||||||||||
Total liabilities and shareholders' equity | $ |
1,473,523 |
|
$ |
1,289,470 |
|
$ |
184,053 |
|
14.27 |
% |
$ |
1,405,680 |
|
$ |
67,843 |
|
4.83 |
% |
SELECTED FINANCIAL INFORMATION |
|||||||||
March 31, | December 31, | March 31, | |||||||
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
Dollars in thousands, except per share data | (Unaudited) | (Audited) | (Unaudited) | ||||||
Per Share Data | |||||||||
Basic Earnings per Common Share | $ |
0.51 |
|
$ |
(0.14 |
) |
$ |
0.20 |
|
Diluted Earnings per Common Share |
|
0.51 |
|
|
(0.14 |
) |
|
0.20 |
|
Dividends per Common Share |
|
0.16 |
|
|
0.16 |
|
|
0.24 |
|
Book Value per Common Share |
|
8.15 |
|
|
7.62 |
|
|
7.35 |
|
Tangible Book Value per Common Share |
|
5.78 |
|
|
5.24 |
|
|
4.70 |
|
Average Diluted Shares Outstanding |
|
5,603,570 |
|
|
5,603,570 |
|
|
5,595,320 |
|
End of Period Common Shares Outstanding |
|
5,628,811 |
|
|
5,616,438 |
|
|
5,595,320 |
|
Annualized Performance Ratios | |||||||||
Return on Average Assets |
|
0.78 |
% |
|
0.14 |
% |
|
0.34 |
% |
Return on Average Equity |
|
18.79 |
% |
|
4.89 |
% |
|
11.49 |
% |
Equity/Assets |
|
3.10 |
% |
|
3.04 |
% |
|
3.19 |
% |
Yield on Earning Assets |
|
4.61 |
% |
|
4.42 |
% |
|
3.60 |
% |
Cost of Funds |
|
2.66 |
% |
|
2.41 |
% |
|
1.35 |
% |
Net Interest Margin |
|
2.40 |
% |
|
2.35 |
% |
|
2.56 |
% |
Credit Metrics | |||||||||
Allowance for Loan Losses to Total Loans |
|
1.00 |
% |
|
1.02 |
% |
|
1.06 |
% |
Non-performing assets to loans |
|
0.54 |
% |
|
0.60 |
% |
|
0.74 |
% |
Citizens Holding Company is a one-bank holding company and the parent company of the Bank, both headquartered in
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/20240418402995/en/
Citizens Holding Company,
Phillip R. Branch, 601/519-4016
Phillip.branch@thecitizensbank.bank
Source: Citizens Holding Company
FAQ
What was Citizens Holding Company's net income for the first quarter of 2024?
How did total revenues compare in the first quarter of 2024?
What was the increase in loans held for investment in the first quarter of 2024?
How did credit quality perform in the first quarter of 2024?
What strategic transactions were highlighted by the CEO?