The Citizens Holding Company Announces Second Quarter Results

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07/29/2026 - 05:00 PM

PHILADELPHIA, Miss.--(BUSINESS WIRE)-- Citizens Holding Company (the “Company”), inclusive of its wholly-owned subsidiary, The Citizens Bank (the “Bank”), (OTCQX:CIZN) announced today results of operations for the three and six months ended June 30, 2026.

(in thousands, except share and per share data)

Net income for the three months ended June 30, 2026, was $3,195, or $0.56 per share-basic and diluted, a linked-quarter increase of $1,309, or 69.4%, from net income of $1,886, or $0.33 per share-basic and diluted, for the three months ended March 31, 2026. Net income increased $1,312, or 69.7%, from net income of $1,883, or $0.33 per share-basic and diluted for the same quarter in 2025. Excluding the one-time, non-core transactions, core net income increased $533, or 33.6%, to $2,119 from $1,586 at to March 31, 2026, and increased $236, or 12.5%, from $1,833 compared to June 30, 2025. See the core net income reconciliation at the end of the release.

Net income for the six months ended June 30, 2026, was $5,081, or $0.89 per share-basic and diluted, an increase of $1,349, or 37.3%, from net income of $3,700, or $0.66 per share-basic and diluted, for the same period in 2025. See supplemental information for additional disclosures.

Second Quarter Highlights

Net interest margin (“NIM”) increased 3 basis points (“bps”) to 3.37% for the three months ended June 30, 2026, from 3.34% for the three months ended March 31, 2026, and increased 37 bps from 3.10% for the three months ended June 30, 2025.
The Company sold one branch in a sale leaseback transaction generating a pre-tax gain of $1,508. Additionally, the Company injected $1,000 of additional capital into the Bank to enhance its strategic capital levels. These transactions contributed to the 14 bps increase in the Bank’s leverage ratio to 9.11% from 8.97% in the previous quarter.
Credit quality continues to remain solid with total non-performing assets (“NPA”) to loans at 64 bps at June 30, 2026, compared to 73 bps at March 31, 2026. Total non-performing assets decreased $394, or 6.4%, to $5,743 at June 30, 2026, compared to $6,137 at March 31, 2026, and decreased $1,572, or 21.5%, compared to $7,315 at June 30, 2025.
Allowance for credit losses (“ACL”) to loans was 1.06% at June 30, 2026 compared to 1.05% in the prior quarter and 1.00% the same period a year ago.
Tangible book value (“TBV”) per common share, as of June 30, 2026, was $9.95, an increase of $1.06 compared to $8.89 as of March 31, 2026, and an increase of $3.28 compared to $6.67 as of June 30, 2025. Two factors drove the year-over-year increase in TBV per common share: earnings growth contributed $1.67, and the burn off of the Other Comprehensive Loss added $1.61.

Chief Executive Officer (“CEO”) Commentary

Stacy Brantley, President and Chief Executive Officer of Citizens Holding Company (the “Company”) and The Citizens Bank of Philadelphia (the “Bank”) stated, “Our team continues to make steady and significant progress toward our established key strategic initiatives. With respect to capital, the Bank grew its Tier 1 Leverage ratio by 14 bps during the second quarter and has now grown this key targeted ratio by 66bp year-to-date. The Company’s capital is rapidly approaching target levels and is better positioned to fund growth and resume return of capital to our shareholders in the future. We will continue our capital build throughout the remainder of 2026.”

“Core profitability growth and Net Interest Margin expansion are the result of focused banking teams that deliver outstanding high touch customer service. These banking teams have now delivered twelve consecutive quarters of loan growth. Loan growth for the quarter was approximately $48,297, or 5.7%, over the prior quarter end and 9.2% over the same quarter prior year. Loan growth has been the key driver of Net Interest Margin expansion along with our lower cost of funds. Non-interest-bearing deposits are up $11,029, or 3.8%, over the prior quarter-end and $16,531, or 5.8%, over year-end. Over that same period, the Company has lowered its cost of funds by 2bp and 13bp, respectively. Key hires in treasury leadership and our lending teams should further bolster efforts to expand the margin and grow profitability. I’m encouraged by the strong pipeline of new business in place as we enter the second half of the year.”

“Credit quality metrics remain sound. Non-performing assets to total loans (NPAs) were 64 bps as of June 30, 2026, down from 73 bps as of the prior quarter end. Net charge-offs of $159 and $1,233, for the three and six months ended June 30, 2026, respectively, were primarily related to one relationship in our commercial and industrial (C&I) portfolio and not indicative of broader issues in the loan portfolio.”

“The Company enters the second half of the year well positioned for growth and expanded profitability. We look forward to delivering outstanding service to our communities and to growing our shareholders’ investment.”

Financial Condition and Results of Operations

Loans and Deposits

Total loans outstanding, net of unearned income, at June 30, 2026, totaled $892,788, an increase of $48,297, or 5.72%, compared to $844,491 at March 31, 2026, and an increase of $74,796 or 9.2% at June 30, 2025.

Total deposits as of June 30, 2026, were $1,317,704, a decrease of $26,840, or 2.0%, compared to $1,344,544 at March 31, 2026, and an increase of $52,131, or 4.1%, compared to $1,265,573 at June 30, 2025. The Company continues to focus on core deposit growth to not only fund future loan growth but to also minimize cost of funds.

Non-interest bearing deposits increased $11,029 or 3.8%, to $301,822 compared to $290,793, at March 31, 2026 and increased $9,483 or 3.2%, from $292,339 compared to the same quarter in 2025.

Net Interest Income

Net interest income for the three months ended June 30, 2026, was $11,637, an increase of $345, or 3.1%, compared to $11,292 for the three months ended March 31, 2026, and an increase of $940, or 8.8%, compared to $10,697 for the three months ended June 30 2025. Net interest margin was 3.37% for the three months ended June 30, 2026, compared to 3.34% for the three months ended March 31, 2026, and 3.10% for the same period in 2025.

The linked‑quarter increase in net interest income was primarily driven by the increase in interest income of $390, or 2.2%, which was partially offset by the increase in interest expense of $45, or 0.7%, compared to the three months ended March 31, 2026.

Net interest income for the six months ended June 30, 2026 increased $2,119, or 10.2%, to $22,929 from $20,810 for the same period in 2025. The year-to-date NIM was 3.36% as of June 30, 2026 compared to 3.03% for the same period in 2025.

Net interest income for the six months ended June 30, 2026 increased compared to the prior year due to interest income increasing $207, or 0.6% and interest expense decreasing $1,912, or 13.3%. During the calendar year, the Bank has significantly reduced its wholesale funding reliance on repurchase agreements, as shown by the decrease of interest expense on other borrowed funds totaling $1,631 for the six months ended June 30, 2026, as compared to $5,386 for the six months ended June 30, 2025.

Credit Quality

The Company’s non‑performing assets to loans ratio was 64 bps at June 30, 2026, compared to 73 bps at March 31, 2026. Total non‑performing assets decreased $394, or 6.4%, to $5,743 at June 30, 2026, compared to $6,137 at March 31, 2026, and decreased $1,572, or 21.5%, compared to $7,315 at June 30, 2025.

Net charge‑offs during the quarter were attributable to a single credit relationship and were not indicative of broad‑based deterioration across the loan portfolio. Net charge-offs totaled $159 and $1,233 for the three and six months, respectively, ended June 30, 2026. Year‑to‑date losses to average loans were 0.15% at June 30, 2026, compared to 0.01% at June 30, 2025.

The provision for credit losses (“PCL”) for the three months ended June 30, 2026, was $651, representing a decrease of $652, or 50.0%, from the prior quarter and an increase of $161, or 32.9%, from the same period a year ago. PCL increased $426, or 27.9%, to $1,954 for the six months ended June 30, 2026 as compared to the same period in 2025. The allowance for credit losses (“ACL”) to loans held for investment (“LHFI”) increased 1 bp to 1.06% at June 30, 2026, from 1.05% at March 31, 2026, and increased 6 bps from 1.00% at June 30, 2025.

The increase in the ACL during the year was primarily driven by loan growth coupled with a higher specific reserve associated with a single loan relationship within the commercial and industrial loan segment. This increase was isolated in nature and did not reflect broad‑based deterioration in the loan portfolio, as overall credit metrics improved during the period.

Liquidity and Capital

The Company manages a variety of liquidity metrics with the most pertinent metric being on-balance sheet 202(“OBS”) liquidity. The Company maintained a strong liquidity position with OBS liquidity of 13.7% at June 30, 2026.

In addition to OBS liquidity, the Company has access to a range of off‑balance sheet funding sources to address potential liquidity needs. Total available capacity from wholesale funding sources was approximately $943,000 at June 30, 2026, consisting of the following:

$281,000 from the Federal Home Loan Bank of Dallas (“FHLB”)
Approximately $260,000 in brokered deposit availability
$352,000 of off-balance sheet deposits held in the IntraFi Network’s ICS deposit program
$50,000 in availability with our correspondent Fed Funds lines

In addition, the Company has the ability to pledge additional collateral to the FHLB to further increase borrowing capacity, if needed. The Company and the Bank continue to maintain a strong capital position and remain well‑capitalized. A comparison of key regulatory capital ratios for the Company and the Bank is provided below.

					As of
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands, except per share data)
Citizens Holding Company
Tier 1 leverage ratio	8.00	%	7.89	%	7.62	%	7.44	%	7.34	%
Common Equity tier 1 capital ratio	10.95	%	10.99	%	11.01	%	10.90	%	10.77	%
Tier 1 risk-based capital ratio	10.95	%	10.99	%	11.01	%	10.90	%	10.77	%
Total risk-based capital ratio	11.94	%	11.96	%	11.95	%	11.80	%	11.62	%
The Citizens Bank
Tier 1 leverage ratio	9.11	%	8.97	%	8.45	%	8.30	%	8.25	%
Common Equity tier 1 capital ratio	12.38	%	12.42	%	12.13	%	12.08	%	12.01	%
Tier 1 risk-based capital ratio	12.38	%	12.42	%	12.13	%	12.08	%	12.01	%
Total risk-based capital ratio	13.36	%	13.39	%	13.06	%	12.97	%	12.86	%

Noninterest Income

Noninterest income increased $1,344, or 43.9%, for the three months ended June 30, 2026, compared to the three months ended March 31, 2026, and increased $1,836, or 71.4%, compared to the same period in 2025.

The linked-quarter increase was primarily driven by a $1,508 gain related to the sale-leaseback transaction completed during the quarter. In addition, the Company recognized a $207 gain from proceeds related to a bank-owned life insurance policy during the second quarter of 2026 and an offsetting $38 loss on sale of securities. The securities were sold to further enhance regulatory capital ratios.

Noninterest Expense

Noninterest expense increased $715, or 6.6%, for the three months ended June 30, 2026, compared to the three months ended March 31, 2026, and increased $1,126, or 10.8%, compared to the same period in 2025. The linked-quarter increase was primarily attributable to a one-time fraud-related loss of $350 recognized during the quarter. Recovery efforts related to the loss remain ongoing.

For the six months ended June 30, 2026, noninterest expense increased $2,187, or 10.8%, to $22,423, compared to $20,236 for the same period in 2025. The year-over-year increase was primarily driven by higher salaries and employee benefits expense, which increased $884, or 8.4%, as well as the fraud-related loss recognized during the second quarter of 2026. To reduce the impact of the securities portfolio, management remains focused on investing in talent in strategic markets/business lines and the necessary risk management areas to grow the Company.

Effective Tax Rate

The effective tax rate for the three months ended June 30, 2026, was 16.5%, compared to 14.2% for the three months ended March 31, 2026, and 19.4% for the same period in 2025. The effective tax rate for the six months ended June 30, 2026, was 15.7%, compared to 18.3% for the six months ended June 30, 2025.

The effective tax rate increased compared to the first quarter of 2026, primarily due to the tax effects of the sale-leaseback transaction completed during the quarter. Despite the quarter-over-quarter increase, the Company’s effective tax rate continues to trend lower on a year-over-year basis, primarily due to the Bank's investment in Mississippi New Market Tax Credits initiated during the third quarter of 2025, as well as the receipt of tax-exempt life insurance proceeds.

Dividends

The Company did not pay cash dividends during the six-month period ended June 30, 2026, compared to $226, or $0.04 per share, for the same period in 2025.

CITIZENS HOLDING COMPANY Consolidated Statements of Income (Unaudited)

	For the Three Months Ended
	June 30, 2026			March 31, 2026		December 31, 2025			September 30, 2025		June 30, 2025
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	14,919		$	14,444	$	14,820		$	14,315	$	13,865
Interest on investment securities		2,709			2,803		3,063			3,275		3,359
Other interest income		244			235		383			528		481
Total interest income		17,872			17,482		18,266			18,118		17,705
Interest expense:
Interest on deposits		5,326			5,468		5,579			4,709		4,610
Interest on other borrowed funds		909			722		1,303			2,457		2,398
Total interest expense		6,235			6,190		6,882			7,166		7,008
Net interest income		11,637			11,292		11,384			10,952		10,697
Provision for credit losses (PCL)		651			1,303		582			551		490
Net interest income after PCL		10,986			9,989		10,802			10,401		10,207
Noninterest income:
Service charges on deposit accounts		1,151			1,125		1,139			1,428		976
Other service charges and fees		1,211			1,113		1,149			1,087		1,290
Loss on sales of securities		(38	)		-		(11	)		-		-
Gain on disposition of asset		1,508			-		-			-		-
Other noninterest income		577			826		373			456		307
Total noninterest income		4,409			3,064		2,650			2,971		2,573
Salaries and employee benefits		5,778			5,671		5,725			5,541		5,305
Occupancy expense		1,160			1,134		1,115			1,143		1,045
Technology expense		1,271			1,219		1,124			1,838		1,136
Other noninterest expense		3,360			2,830		3,145			2,192		2,957
Total noninterest expense		11,569			10,854		11,109			10,714		10,443
Income before income tax expense		3,826			2,199		2,343			2,658		2,336
Income tax expense		631			313		264			301		453
Net income	$	3,195		$	1,886	$	2,079		$	2,357	$	1,883

Earnings per Common Share
Basic	$	0.56		$	0.33	$	0.37		$	0.42	$	0.33
Diluted	$	0.56		$	0.33	$	0.37		$	0.42	$	0.33
Dividends paid		-			-		-			-		0.02

Average shares outstanding
Basic		5,691,136			5,674,990		5,624,880			5,627,244		5,627,244
Diluted		5,706,498			5,690,353		5,632,629			5,630,639		5,630,639

CITIZENS HOLDING COMPANY Consolidated Statements of Income (Unaudited)

	For the Six Months Ended
	June 30, 2026			June 30, 2025
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	29,363		$	27,261
Interest on investment securities		5,512			6,807
Other interest income		479			1,079
Total interest income		35,354			35,147
Interest expense:
Interest on deposits		10,794			8,951
Interest on other borrowed funds		1,631			5,386
Total interest expense		12,425			14,337
Net interest income		22,929			20,810
Provision for credit losses (PCL)		1,954			1,528
Net interest income after PCL		20,975			19,282
Noninterest income:
Service charges on deposit accounts		2,276			1,990
Other service charges and fees		2,324			2,422
Loss on sales of securities		(38	)		-
Gain on disposition of asset		1,508			-
Other noninterest income		1,403			1,080
Total noninterest income		7,473			5,492
Salaries and employee benefits		11,449			10,565
Occupancy expense		2,294			2,143
Technology expense		2,490			2,299
Other noninterest expense		6,190			5,229
Total noninterest expense		22,423			20,236
Income before income tax expense		6,025			4,538
Income tax expense		944			838
Net income	$	5,081		$	3,700

Earnings per Common Share
Basic	$	0.89		$	0.66
Diluted	$	0.89		$	0.66
Dividends paid		-			-

Average shares outstanding
Basic		5,683,076			5,621,924
Diluted		5,698,438			5,626,279

CITIZENS HOLDING COMPANY Consolidated Balance Sheets (Unaudited)

	As of
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Assets:	(Dollars in thousands)
Cash and due from banks	$	17,514		$	23,200		$	17,140		$	15,321		$	24,350
Interest-bearing deposits in other banks		78,579			66,513			47,379			113,727			158,483
Total cash and cash equivalents		96,093			89,713			64,519			129,048			182,833
Investment securities:
Held to maturity securities, at amortized cost		343,741			348,191			352,325			357,028			361,740
Available for sale securities, at fair value		124,354			146,138			152,418			174,562			174,470
Total investment securities		468,095			494,329			504,743			531,590			536,210
Loans:
Loans held for investment (LHFI)		892,788			844,491			841,136			830,216			817,992
Less: allowance for credit losses (ACL), LHFI		(9,435	)		(8,875	)		(8,945	)		(8,611	)		(8,180	)
Loans, net		883,353			835,616			832,191			821,605			809,812
Premises and equipment, net		18,261			19,976			20,191			20,185			20,253
Other real estate owned, net		1,596			1,596			1,839			1,939			1,014
Accrued interest receivable		5,711			5,274			5,774			5,524			5,732
Cash surrender value of life insurance		25,324			25,764			26,337			26,058			26,651
Deferred tax assets, net		24,472			25,392			25,244			25,884			27,267
Identifiable intangible assets, net		13,058			13,085			13,113			13,140			13,167
Other assets		19,247			17,725			17,373			17,243			17,484
Total assets		1,555,210			1,528,470			1,511,324			1,592,216			1,640,423
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing		301,822			290,793			285,291			284,701			292,339
Interest-bearing		1,015,882			1,053,751			1,051,991			897,892			973,234
Total deposits		1,317,704			1,344,544			1,337,282			1,182,593			1,265,573

Short-term borrowings		126,754			78,921			74,223			313,475			284,646
Long-term liabilities		17,596			18,050			13,475			13,900			13,900
Accrued interest payable		1,308			1,134			1,196			1,367			1,496
Deferred compensation payable		9,046			9,416			9,477			9,494			9,511
Other liabilities		13,108			12,772			13,540			13,246			14,413
Total liabilties		1,485,516			1,464,837			1,449,193			1,534,075			1,589,539
Stockholders's Equity:
Common stock, $0.20 par value, 22,500,000 shares authorized
Common stock, $0.20 par value, 22,500,000 shares authorized
Issued and outstanding: 5,693,611 shares -June 30, 2026;
5,685,361 shares - March 31, 2026
5,653,753 shares - December 31, September 30, and June 30, 2025
		1,136			1,129			1,129			1,129			1,128
Additional paid-in capital		18,879			18,853			18,819			18,785			18,759
Accumulated other comprehensive loss, net of tax
benefit of $21,415 at June 30, 2026;
$22,361 at March 31, 2026
$22,203 at December 31, 2025
$22,847 at September 30, 2025
$23,966 at June 30, 2025; and
$23,966 at June 30, 2025		(64,561	)		(67,394	)		(66,976	)		(68,841	)		(73,714	)
Retained earnings		114,240			111,045			109,159			107,068			104,711
Total stockholders' equity		69,694			63,633			62,131			58,141			50,884
Total liabilities and stockholders' equity		1,555,210			1,528,470			1,511,324			1,592,216			1,640,423

CITIZENS HOLDING COMPANY Loan Composition (Unaudited)

	As of
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands)
Loans:
Real estate:
Land Development and Construction	$	99,522	$	97,476	$	89,050	$	108,858	$	121,761
Farmland		17,292		17,100		17,079		17,302		16,957
1-4 single Family Mortgages		176,431		154,924		151,262		144,072		140,852
Commercial Real Estate		473,111		455,675		471,377		453,946		438,910
Business Loans:
Commercial and Industrial Loans		107,394		97,835		90,361		86,746		79,890
Farm Production and Other Farm Loans		900		619		680		546		597
Consumer Loans:
Credit Cards		3,645		4,122		4,272		4,074		3,866
Other Consumer Loans		14,493		16,740		17,055		15,658		15,159
Total loans held in portfolio	$	892,788	$	844,491	$	841,136	$	831,202	$	817,992

CITIZENS HOLDING COMPANY Deposit Composition (Unaudited)

	As of
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits	$	301,822	$	290,793	$	285,291	$	284,701	$	292,339
Interest-bearing demand deposits		338,983		351,509		321,892		326,023		383,963
Savings and money market accounts		409,467		439,466		471,729		311,209		330,210
Time deposits		267,432		262,776		258,370		262,061		259,061
Total deposits	$	1,317,704	$	1,344,544	$	1,337,282	$	1,183,994	$	1,265,573

CITIZENS HOLDING COMPANY Average Balances and Yields (Unaudited)

	Three Months Ended
	June 30, 2026						March 31, 2026
	Average Balance (1)		Interest/ Expense		Annualized Yield/Rate		Average Balance (1)		Interest/ Expense		Annualized Yield/Rate
	(Dollars in thousands)						(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks		23,674	$	244	4.13	%	$	26,483	$	235	3.60	%
Loans(2)		879,566		14,919	6.80	%		842,593		14,444	6.95	%
Investment securities and other		517,229		2,709	2.10	%		533,606		2,803	2.13	%
Total interest-earning assets		1,420,469		17,872	5.05	%		1,402,682		17,482	5.05	%
Noninterest-earning assets		87,012						88,179
Total assets	$	1,507,481					$	1,490,861
Interest-bearing liabilities:
Interest-bearing demand deposits	$	365,901	$	1,511	1.66	%	$	338,854	$	1,445	1.73	%
Savings and money market accounts		383,477		1,908	2.00	%		420,676		2,138	2.06	%
Time deposits		262,345		1,907	2.92	%		260,255		1,884	2.94	%
FHLB advances and other borrowings		103,095		909	3.54	%		116,817		723	2.51	%
Total interest-bearing liabilities		1,114,818		6,235	2.24	%		1,136,602		6,190	2.21	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		299,454						284,991
Other liabilities		26,083						5,912
Stockholders' equity		67,126						63,356
Total liabilities and stockholders' equity	$	1,507,481					$	1,490,861
Net interest rate spread					2.80	%					2.85	%
Net interest income and margin			$	11,637	3.29	%			$	11,292	3.26	%
Net interest income and margin (tax equivalent)(3)			$	11,923	3.37	%			$	11,567	3.34	%

(1)	Average balances presented are derived from daily average balances.
(2)	Includes loans on nonaccrual status.
(3)	In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 24.95% for the three months ended June 30, 2026 and March 31, 2026, respectively.

CITIZENS HOLDING COMPANY Average Balances and Yields (Unaudited)

	Six Months Ended
	June 30, 2026						June 30, 2025
	Average Balance (1)		Interest/ Expense		Annualized Yield/Rate		Average Balance (1)		Interest/ Expense		Annualized Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits in other banks	$	25,071	$	479	3.85	%	$	40,917	$	1,079	5.32	%
Loans(2)		861,315		29,363	6.87	%		795,303		27,261	6.91	%
Investment securities and other		525,372		5,512	2.12	%		585,423		6,807	2.34	%
Total interest-earning assets		1,411,758		35,354	5.05	%		1,421,643		35,147	4.99	%
Noninterest-earning assets		95,723						84,482
Total assets	$	1,507,481					$	1,506,125
Interest-bearing liabilities:
Interest-bearing demand deposits	$	365,901	$	2,956	1.63	%	$	401,622	$	3,269	1.64	%
Savings and money market accounts		383,477		4,046	2.13	%		209,252		1,553	1.50	%
Time deposits		262,345		3,792	2.91	%		255,924		4,129	3.25	%
FHLB advances and other borrowings		103,095		1,631	3.19	%		296,858		5,386	3.66	%
Total interest-bearing liabilities		1,114,818		12,425	2.25	%		1,163,656		14,337	2.48	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		299,454						272,474
Other liabilities		26,083						19,246
Stockholders' equity		67,126						50,749
Total liabilities and stockholders' equity	$	1,507,481					$	1,506,125
Net interest rate spread					2.80	%					2.50	%
Net interest income and margin			$	22,929	3.28	%			$	20,810	2.95	%
Net interest income and margin (tax equivalent)(3)			$	23,490	3.36	%			$	21,357	3.03	%

(1)	Average balances presented are derived from daily average balances.
(2)	Includes loans on nonaccrual status.
(3)	In order to make pretax income and resultant yields on tax-exempt loans comparable to those on taxable loans, a tax-equivalent adjustment has been computed using a federal tax rate of 24.95% for the three months ended June 30, 2026 and June 30, 2025 respectively.

CITIZENS HOLDING COMPANY

Reconciliation of Non-GAAP Financial Measures – Net Interest Margin on a Fully Taxable Equivalent Basis

(Unaudited)

	As of or for the Three Months Ended
	June 30, 2026			March 31, 2026
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	11,637		$	11,292
Average interst-earning assets		1,420,469			1,402,682
Net interest margin		3.29	%		3.26	%
Net interest margin - Non-GAAP basis:
Net interest income	$	11,637		$	11,292
Plus:
Impact of fully taxable equivalent adjustment		286			275
Net interest income on a fully taxable equivalent basis	$	11,923		$	11,567
Average interst-earning assets		1,420,469			1,402,682
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		3.37	%		3.34	%

CITIZENS HOLDING COMPANY Reconciliation of Non-GAAP Financial Measures – Net Interest Margin on a Fully Taxable Equivalent Basis (Unaudited)

	As of or for the Six Months Ended
	June 30, 2026			June 30, 2025
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	22,929		$	20,810
Average interst-earning assets		1,411,758			1,421,643
Net interest margin		3.28	%		2.95	%
Net interest margin - Non-GAAP basis:
Net interest income	$	22,929		$	20,810
Plus:
Impact of fully taxable equivalent adjustment		561			547
Net interest income on a fully taxable equivalent basis	$	23,490		$	21,357
Average interst-earning assets		1,411,758			1,421,643
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		3.36	%		3.03	%

CITIZENS HOLDING COMPANY Reconciliation of Non-GAAP Financial Measures – Tangible Book Value Per Share (Unaudited)

	As of
	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
	(Dollars in thousands, except per share data)
Total stockholders' equity	$	69,694	$	63,633	$	62,131	$	58,141	$	50,884
Less:
Goodwill and other intangible assets		13,058		13,085		13,113		13,140		13,167
Tangible stockholders' equity	$	56,636	$	50,548	$	49,018	$	45,001	$	37,717
Shares outstanding		5,693,611		5,685,361		5,653,753		5,653,753		5,653,753
Book value per share	$	12.24	$	11.19	$	10.99	$	10.28	$	9.00
Less:
Goodwill and other intangible assets per share	$	2.29	$	2.30	$	2.32	$	2.32	$	2.33
Tangible book value per share	$	9.95	$	8.89	$	8.67	$	7.96	$	6.67

CITIZENS HOLDING COMPANY Reconciliation of Non-GAAP Financial Measures – Tangible Equity to Tangible Assets (Unaudited)

	As of
	June 30, 2026			March 31, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(Dollars in thousands)
Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)	$	69,694		$	63,633		$	62,131		$	58,141		$	50,884
Total assets (denominator)		1,555,210			1,528,470			1,511,324			1,592,216			1,640,423
Total stockholders' equity to total assets		4.48	%		4.16	%		4.11	%		3.65	%		3.10	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity	$	69,694		$	63,633		$	62,131		$	58,141		$	50,884
Less:
Goodwill and other intangible assets		13,058			13,085			13,113			13,140			13,167
Total tangible common equity (numerator)	$	56,636		$	50,548		$	49,018		$	45,001		$	37,717
Tangible assets:
Total assets		1,555,210			1,528,470			1,511,324			1,592,216			1,640,423
Less:
Goodwill and other intangible assets		13,058			13,085			13,113			13,140			13,167
Total tangible assets (denominator)	$	1,542,152		$	1,515,385		$	1,498,211		$	1,579,076		$	1,627,256

Tangible equity to tangible assets		3.67	%		3.34	%		3.27	%		2.85	%		2.32	%

CITIZENS HOLDING COMPANY Reconciliation of Net Income (GAAP) to Core Net Income (Non-GAAP) (Unaudited)

	For the Three Months Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
	(Dollars in thousands)
NET INCOME (GAAP)	$	3,195		$	1,886		$	2,079		$	2,357		$	1,883

Gain on sale leaseback transaction	$	(1,508	)		-			-			-			-
Write-down of bank-owned property		-			-			253			-			-
Gain on proceeds from BOLI policy		(207	)		(300	)		-			(300	)		-
Other losses (gains)		350			-			-			-			-
Tax expense (benefit)		289			-			(63	)		-			-
NET INCOME, CORE	$	2,119		$	1,586		$	2,269		$	2,057		$	1,883

*SELECTED FINANCIAL INFORMATION* *(Unaudited)*

	For the Three Months Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Per Share Data
Basic Earnings per Common Share	$	0.56		$	0.33		$	0.37		$	0.42		$	0.33
Diluted Earnings per Common Share		0.56			0.33			0.37			0.42			0.33
Dividends per Common Share		-			-			-			-			0.02
Book Value per Common Share		12.24			11.19			10.99			10.28			9.00
Book Value per Common Share (ex-OCI)		12.24			23.05			22.84			22.46			22.10
TBV per Common Share		9.95			8.89			8.67			7.96			6.67
TBV per Common Share (ex-OCI)		9.95			20.74			20.52			20.14			19.71
Closing Market Price per Common Share		9.63			9.00			7.91			6.60			8.45
Closing Price to TBV		96.81	%		101.23	%		91.23	%		82.80	%		126.66	%

End of Period Common Shares Outstanding		5,693,611			5,685,361			5,653,753			5,653,753			5,653,753

Annualized Performance Ratios
Return on Average Assets		0.86	%		0.51	%		0.54	%		0.54	%		0.49	%
Return on Average Equity		19.30	%		11.91	%		15.29	%		15.97	%		14.91	%
Equity/Assets		4.48	%		4.16	%		4.11	%		3.65	%		3.10	%
Equity/Assets (ex-OCI)		4.48	%		8.57	%		8.54	%		7.97	%		7.60	%
Yield on Earning Assets		5.05	%		5.13	%		5.09	%		5.07	%		5.06	%
Cost of Funds		2.25	%		2.25	%		2.36	%		2.45	%		2.48	%
Net Interest Margin		3.29	%		3.34	%		3.25	%		3.10	%		3.02	%

Credit Metrics
Allowance for Loan Losses to Total Loans		1.06	%		1.05	%		1.06	%		1.04	%		1.00	%
Non-performing assets to loans		0.64	%		0.73	%		0.66	%		0.85	%		0.84	%

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 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. Internet services are available at the Bank web site, www.thecitizensbankphila.com. Citizens Holding Company stock is listed on the OTCQX Best Market and is traded under the symbol CIZN. The Company's transfer agent is Equiniti Trust Company LLC. Investor relations information may be obtained at the corporate website, https://www.thecitizensbankphila.com/investor-relations.

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/20260729878618/en/

Phillip R. Branch
Senior Vice President & Chief Financial Officer
601/519-4016
Phillip.branch@thecitizensbank.bank

Source: Citizens Holding Company

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