The Citizens Holding Company Announces Third Quarter Results

Core quarterly net income rose 6.2% year over year, while credit-loss provisions and operating expenses also increased.

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11/02/2026 - 08:08 PM EST

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 nine months ended September 30, 2026.

(in thousands, except share and per share data)

Net income for the three months ended September 30, 2026, was $4,322, or $0.76 per basic and diluted share, a linked-quarter increase of $1,127, or 35.3%, from net income of $3,195, or $0.56 per basic and diluted share, for the three months ended June 30, 2026. Net income increased $1,965, or 83.4%, from net income of $2,357, or $0.42 per basic and diluted share for the same quarter in 2025. Excluding the after-tax impact of non-core items, including the third-quarter sale-leaseback gain, core net income increased $65, or 3.1%, to $2,184 from $2,119 at June 30, 2026, and increased $127, or 6.2%, from $2,057 at September 30, 2025.

See the core net income reconciliation at the end of the release.

Net income for the nine months ended September 30, 2026, was $9,403, or $1.65 per basic and diluted share, an increase of $3,346, or 55.3%, from net income of $6,057, or $1.08 per basic and diluted share, for the same period in 2025. See supplemental information for additional disclosures.

Third Quarter Highlights

Net interest margin (“NIM”) on a fully taxable-equivalent basis, decreased 2 basis points (“bps”) to 3.35% for the three months ended September 30, 2026, from 3.37% for the three months ended June 30, 2026, and increased 23 bps from 3.13% for the three months ended September 30, 2025.
The Company sold three branches during the quarter in sale-leaseback transactions generating a pre-tax gain of $2,849. The transactions supported the Company’s continued capital-building efforts. The Bank’s Tier 1 leverage ratio increased 9 basis points to 9.20% from 9.11% in the prior quarter and 90 basis points from 8.30% for the same period a year ago.
Credit quality remained stable with total non-performing assets (“NPA”) to loans unchanged at 0.64% at September 30, 2026 and June 30, 2026. Total non-performing assets increased $166, or 2.9%, to $5,909 at September 30, 2026, compared to $5,743 at June 30, 2026, and decreased $1,154, or 16.3%, compared to $7,063 at September 30, 2025.
Allowance for credit losses (“ACL”) to loans was 1.00% at September 30, 2026 compared to 1.06% in the prior quarter and 1.04% the same period a year ago.
Tangible book value (“TBV”) per common share was $9.92 at September 30, 2026, a decrease of $0.03 from $9.95 at June 30, 2026, and an increase of $1.96 from $7.96 at September 30, 2025. Earnings growth predominantly drove the year-over-year increase in TBV per common share.

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 banking teams drove net interest income expansion of $233 over the prior quarter and by $918 over the same period prior year representing increases of 2.00%, and 8.4%, respectively. These results have been achieved primarily through loan growth, disciplined pricing, and focus on generating new low-cost deposits. Lending teams have built strong loan pipelines entering the fourth quarter and we expect solid loan growth over the remainder of the year even in the face of several expected commercial loan prepayments.”

“Credit quality metrics remain sound. As referenced below, charges-offs related to two asset-based lines in our C&I portfolio have facilitated higher provision charges throughout the year. We consider asset quality issues to be contained to these two lines and not indicative of larger issues. Estimated losses have been realized and charged to our reserves appropriately.”

“As we enter the fourth quarter and begin to look forward into 2027, the Company will expand efforts and dedicate resources to grow our treasury and mortgage lending teams. We have been fortunate to add seasoned leadership tasked with building out these two key business lines since we last reported earnings. Our focus entering the fourth quarter is squarely placed on finishing strong, laying groundwork for a record 2027, and growing your investment.”

Financial Condition and Results of Operations

Loans and Deposits

Total loans outstanding, net of unearned income, at September 30, 2026, totaled $916,170, an increase of $23,381, or 2.6%, compared to $892,788 at June 30, 2026, and an increase of $85,954, or 10.4%, from $830,216 at September 30, 2025.

Total deposits as of September 30, 2026, were $1,411,954, an increase of $94,250, or 7.2%, compared to $1,317,704 at June 30, 2026, and an increase of $229,361, or 19.4%, compared to $1,182,593 at September 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.

Noninterest-bearing deposits decreased $1,855, or 0.6%, to $299,967 at September 30, 2026, from $301,822 at June 30, 2026, and increased $15,266, or 5.4%, from $284,701 at September 30, 2025.

Net Interest Income

Net interest income for the three months ended September 30, 2026, was $11,870, an increase of $233, or 2.0%, compared to $11,637 for the three months ended June 30, 2026, and an increase of $918, or 8.4%, compared to $10,952 for the three months ended September 30, 2025. Net interest margin on a fully taxable-equivalent basis was 3.35% for the three months ended September 30, 2026, compared to 3.37% for the three months ended June 30, 2026, and 3.13% for the same period in 2025.

The linked‑quarter increase in net interest income was primarily attributable to a $444, or 2.5%, increase in interest income, partially offset by a $211, or 3.4%, increase in interest expense.

Net interest income for the nine months ended September 30, 2026 increased $2,832, or 8.9%, to $34,799 from $31,967 for the same period in 2025. The year-to-date net interest margin on a fully taxable-equivalent basis was 3.35% as of September 30, 2026, compared to 3.08% for the same period in 2025.

Net interest income for the nine months ended September 30, 2026, increased compared to the prior year due to total interest income increasing $467, or 0.9% and total interest expense decreasing $2,365, or 11.1%. During 2026, the Bank significantly reduced its reliance on wholesale funding, including repurchase agreements. Interest expense on other borrowed funds decreased $5,408, or 71.4%, to $2,168 for the nine months ended September 30, 2026, from $7,576 for the same period in 2025.

Credit Quality

The Company’s non‑performing assets to loans ratio was unchanged during the quarter at 64 bps at September 30, 2026, compared to 64 bps at June 30, 2026. Total non‑performing assets increased $166, or 2.9%, to $5,909 at September 30, 2026, compared to $5,743 at June 30, 2026, and decreased $1,154, or 16.3%, compared to $7,063 at September 30, 2025.

Net charge-offs during the year are primarily attributable to two commercial and industrial loan (“C&I”) relationships and were not indicative of broad-based deterioration in the loan portfolio. Net charge-offs totaled $1,088 and $2,321 for the three and nine months ended September 30, 2026, respectively. Year-to-date net charge-offs to average loans were 0.27% at September 30, 2026, compared with 0.02% at September 30, 2025.

The provision for credit losses (“PCL”) for the three months ended September 30, 2026, was $840, representing an increase of $189, or 29.0%, from the prior quarter and an increase of $289, or 52.4%, from the same period a year ago. PCL increased $1,115, or 66.4%, to $2,794 for the nine months ended September 30, 2026 as compared to the same period in 2025. The allowance for credit losses (“ACL”) to loans held for investment (“LHFI”) decreased 6 basis points to 1.00% at September 30, 2026, from 1.06% at June 30, 2026, and decreased 4 basis points from 1.04% at September 30, 2025.

The decrease in the ACL during the year was primarily attributable to charge-offs associated with the aforementioned C&I relationships. These charge-offs were concentrated in those relationships and were not indicative of broad-based deterioration in the loan portfolio.

Liquidity and Capital

The Company manages a variety of liquidity metrics with the most pertinent metric being on-balance sheet (“OBS”) liquidity. The Company maintained a strong liquidity position with OBS liquidity of 12.0% at September 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 $1,373,000 at September 30, 2026, consisting of the following:

$266,000 from the Federal Home Loan Bank of Dallas (“FHLB”)
Approximately $271,000 in brokered deposit availability
$786,000 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
	September 30, 2026	June 30, 2026	March 31, 2026	December 31, 2025	September 30, 2025
	(Dollars in thousands, except per share data)
Citizens Holding Company
Tier 1 leverage ratio	8.15%	8.00%	7.89%	7.62%	7.44%
Common Equity tier 1 capital ratio	11.09%	10.95%	10.99%	11.01%	10.90%
Tier 1 risk-based capital ratio	11.09%	10.95%	10.99%	11.01%	10.90%
Total risk-based capital ratio	12.03%	11.94%	11.96%	11.95%	11.80%
The Citizens Bank
Tier 1 leverage ratio	9.20%	9.11%	8.97%	8.45%	8.30%
Common Equity tier 1 capital ratio	12.43%	12.38%	12.42%	12.13%	12.08%
Tier 1 risk-based capital ratio	12.43%	12.38%	12.42%	12.13%	12.08%
Total risk-based capital ratio	13.36%	13.36%	13.39%	13.06%	12.97%

Noninterest Income

Noninterest income increased $1,543, or 35.0%, for the three months ended September 30, 2026, compared to the three months ended June 30, 2026, and increased $2,981, or 100.3%, compared to the same period in 2025.

The linked-quarter increase was primarily driven by a $2,849 pre-tax gain related to sale-leaseback transactions of three branches completed during the quarter. The branches were sold to further enhance regulatory capital ratios.

Noninterest income increased for the nine months ended September 30, 2026, by $4,892, or 57.3%, to $13,425 from $8,533 for the nine months ended September 30, 2025.

The year-over-year increase was primarily attributable to $4,357 of pre-tax gains from sale-leaseback transactions completed during the second and third quarters of 2026 and $507 of tax-exempt life insurance proceeds.

Noninterest Expense

Noninterest expense increased $151, or 1.3%, for the three months ended September 30, 2026, compared to the three months ended June 30, 2026, and increased $1,006, or 9.4%, compared to the same period in 2025. The linked-quarter increase was primarily attributable to an increase of $178, or 3.1% in salary and employee benefits.

For the nine months ended September 30, 2026, noninterest expense increased $2,525, or 8.0%, to $34,143, compared to $31,618 for the same period in 2025. The year-over-year increase was primarily driven by higher salaries and employee benefits expense, which increased $1,242, or 7.7%, as well as an increase in technology expense of $426, or 12.6%. Management remains focused on investing in talent in strategic markets/business lines, technology to increase efficiency and the necessary risk management areas to grow the Company.

Effective Tax Rate

The effective tax rate for the three months ended September 30, 2026, was 17.9%, compared to 16.5% for the three months ended June 30, 2026, and 11.3% for the same period in 2025. The effective tax rate for the nine months ended September 30, 2026, was 16.7%, compared to 15.9% for the nine months ended September 30, 2025.

The effective tax rate increased compared to the second quarter of 2026, primarily due to the tax effects of the sale-leaseback transaction completed during the quarter but this was partially offset by the purchase of a $1,620 transferable federal Investment Tax Credit in which the Bank participated with another bank. Despite the quarter-over-quarter increase, the Company’s effective tax rate remained generally comparable to the prior-year period, due to the Bank's investment in Mississippi New Market Tax Credits initiated during the third quarter of 2025, the aforementioned federal Investment Tax Credit, as well as the receipt of tax-exempt life insurance proceeds.

Dividends

The Company did not pay cash dividends during the nine-month period ended September 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
	September 30, 2026		June 30, 2026			March 31, 2026		December 31, 2025			September 30, 2025
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	15,397	$	14,919		$	14,444	$	14,820		$	14,315
Interest on investment securities		2,543		2,709			2,803		3,063			3,275
Other interest income		376		244			235		383			528
Total interest income		18,316		17,872			17,482		18,266			18,118
Interest expense:
Interest on deposits		5,909		5,326			5,468		5,579			4,709
Interest on other borrowed funds		537		909			722		1,303			2,457
Total interest expense		6,446		6,235			6,190		6,882			7,166
Net interest income		11,870		11,637			11,292		11,384			10,952
Provision for credit losses (PCL)		840		651			1,303		582			551
Net interest income after PCL		11,030		10,986			9,989		10,802			10,401
Noninterest income:
Service charges on deposit accounts		1,239		1,151			1,125		1,139			1,428
Other service charges and fees		1,456		1,211			1,113		1,149			1,087
Loss on sales of securities		-		(38	)		-		(11	)		-
Gain on disposition of asset		2,849		1,508			-		-			-
Gain on proceeds from BOLI policy		-		207			300		-			300
Other noninterest income		408		370			526		373			156
Total noninterest income		5,952		4,409			3,064		2,650			2,971
Salaries and employee benefits		5,956		5,778			5,671		5,725			5,541
Occupancy expense		1,263		1,160			1,134		1,115			1,143
Technology expense		1,312		1,271			1,219		1,124			1,838
Other noninterest expense		3,189		3,360			2,830		3,145			2,192
Total noninterest expense		11,720		11,569			10,854		11,109			10,714
Income before income tax expense		5,262		3,826			2,199		2,343			2,658
Income tax expense		940		631			313		264			301
Net income	$	4,322	$	3,195		$	1,886	$	2,079		$	2,357

Earnings per Common Share
Basic	$	0.76	$	0.56		$	0.33	$	0.37		$	0.42
Diluted	$	0.76	$	0.56		$	0.33	$	0.37		$	0.42
Dividends paid		-		-			-		-			-

Average shares outstanding
Basic		5,693,611		5,691,136			5,674,990		5,624,880			5,627,244
Diluted		5,708,973		5,706,498			5,690,353		5,632,629			5,630,639

CITIZENS HOLDING COMPANY Consolidated Statements of Income (Unaudited)

	For the Nine Months Ended
	September 30, 2026			September 30, 2025
	(Dollars in thousands, except per share data)
Interest income:
Interest and fees on loans	$	44,760		$	41,576
Interest on investment securities		8,055			10,206
Other interest income		855			1,421
Total interest income		53,670			53,203
Interest expense:
Interest on deposits		16,703			13,660
Interest on other borrowed funds		2,168			7,576
Total interest expense		18,871			21,236
Net interest income		34,799			31,967
Provision for credit losses (PCL)		2,794			1,679
Net interest income after PCL		32,005			30,288
Noninterest income:
Service charges on deposit accounts		3,516			3,418
Other service charges and fees		3,780			3,330
Loss on sales of securities		(38	)		-
Gain on disposition of asset		4,357			-
Gain on proceeds from BOLI policy		507			300
Other noninterest income		1,304			1,485
Total noninterest income		13,425			8,533
Salaries and employee benefits		17,405			16,163
Occupancy expense		3,557			3,308
Technology expense		3,802			3,376
Other noninterest expense		9,379			8,771
Total noninterest expense		34,143			31,618
Income before income tax expense		11,288			7,203
Income tax expense		1,884			1,146
Net income	$	9,403		$	6,057

Earnings per Common Share
Basic	$	1.65		$	1.08
Diluted	$	1.65		$	1.08
Dividends paid		-			0.04

Average shares outstanding
Basic		5,686,626			5,621,924
Diluted		5,701,989			5,626,279

CITIZENS HOLDING COMPANY Consolidated Balance Sheets (Unaudited)

	As of
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Assets:	(Dollars in thousands)
Cash and due from banks	$	15,226		$	17,514		$	23,200		$	17,140		$	15,321
Interest-bearing deposits in other banks		56,652			78,579			66,513			47,379			113,727
Total cash and cash equivalents		71,878			96,093			89,713			64,519			129,048
Investment securities:
Held to maturity securities, at amortized cost		339,060			343,741			348,191			352,325			357,028
Available for sale securities, at fair value		121,737			124,354			146,138			152,418			174,562
Total investment securities		460,797			468,095			494,329			504,743			531,590
Loans:
Loans held for investment (LHFI)		916,170			892,788			844,491			841,136			830,216
Less: allowance for credit losses (ACL), LHFI		(9,187	)		(9,435	)		(8,875	)		(8,945	)		(8,611	)
Loans, net		906,983			883,353			835,616			832,191			821,605
Premises and equipment, net		14,755			18,261			19,976			20,191			20,185
Other real estate owned, net		1,596			1,596			1,596			1,839			1,939
Accrued interest receivable		5,657			5,711			5,274			5,774			5,524
Cash surrender value of life insurance		25,459			25,324			25,764			26,337			26,058
Deferred tax assets, net		26,367			24,472			25,392			25,244			25,884
Identifiable intangible assets, net		13,030			13,058			13,085			13,113			13,140
Other assets		25,119			19,247			17,725			17,373			17,243
Total assets		1,551,641			1,555,210			1,528,470			1,511,324			1,592,216
Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing		299,967			301,822			290,793			285,291			284,701
Interest-bearing		1,111,987			1,015,882			1,053,751			1,051,991			897,892
Total deposits		1,411,954			1,317,704			1,344,544			1,337,282			1,182,593

Short-term borrowings		22,896			126,754			78,921			74,223			313,475
Long-term liabilities		17,048			17,596			18,050			13,475			13,900
Accrued interest payable		1,149			1,308			1,134			1,196			1,367
Deferred compensation payable		8,996			9,046			9,416			9,477			9,494
Other liabilities		20,102			13,108			12,772			13,540			13,246
Total liabilities		1,482,144			1,485,516			1,464,837			1,449,193			1,534,075
Stockholders' Equity:
Common stock, $0.20 par value, 22,500 shares authorized
Issued and outstanding: 5,693,611 shares - September 30, and June 30, 2026; 5,685,361 shares - March 31, 2026;
5,653,753 shares - December 31, and September 30, 2025		1,136			1,136			1,129			1,129			1,129
Additional paid-in capital		18,917			18,879			18,853			18,819			18,785
Accumulated other comprehensive loss, net of tax benefit of $21,325 at September 30, 2026;
$21,415 at June 30, 2026; $22,361 at March 31, 2026;
$22,203 at December 31, 2025; and		(69,580	)		(64,561	)		(67,394	)		(66,976	)		(68,841	)
$22,847 at September 30, 2025		119,024			114,240			111,045			109,159			107,068
Total stockholders' equity		69,497			69,694			63,633			62,131			58,141
Total liabilities and stockholders' equity		1,551,641			1,555,210			1,528,470			1,511,324			1,592,216

*SELECTED FINANCIAL INFORMATION* *(Unaudited)*

	For the Three Months Ended
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
Per Share Data
Basic Earnings per Common Share	$	0.76		$	0.56		$	0.33		$	0.37		$	0.42
Diluted Earnings per Common Share		0.76			0.56			0.33			0.37			0.42
Dividends per Common Share		-			-			-			-			-
Book Value per Common Share		12.21			12.24			11.19			10.99			10.28
Book Value per Common Share (ex-OCI)		24.43			23.58			23.05			22.84			22.46
TBV per Common Share		9.92			9.95			8.89			8.67			7.96
TBV per Common Share (ex-OCI)		22.14			21.29			20.74			20.52			20.14
Closing Market Price per Common Share		9.71			9.63			9.00			7.91			6.60
Closing Price to TBV		97.88	%		96.78	%		101.24	%		91.23	%		82.88	%

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

Annualized Performance Ratios
Return on Average Assets		1.12	%		0.85	%		0.51	%		0.54	%		0.54	%
Return on Average Equity		24.56	%		19.09	%		11.91	%		15.29	%		15.97	%
Return on Average Assets (normalized)		0.56	%		0.56	%		0.43	%		0.60	%		0.54	%
Return on Average Equity (normalized)		12.41	%		12.66	%		10.15	%		16.90	%		16.48	%
Equity/Assets		4.48	%		4.48	%		4.16	%		4.11	%		3.65	%
Equity/Assets (ex-OCI)		8.96	%		8.63	%		8.57	%		8.54	%		7.98	%
Yield on Earning Assets		5.05	%		5.05	%		5.13	%		5.09	%		5.07	%
Cost of Funds		2.26	%		2.24	%		2.25	%		2.36	%		2.45	%
Net Interest Margin ("FTE")		3.35	%		3.37	%		3.34	%		3.25	%		3.13	%

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

CITIZENS HOLDING COMPANY
Loan Composition
(Unaudited)


	As of
	September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
	(Dollars in thousands)
Loans:
Real estate:
Land Development and Construction	$	98,804	$	99,522	$	97,476	$	89,050	$	107,872
Farmland		18,410		17,292		17,100		17,079		17,302
1-4 single Family Mortgages		191,161		176,431		154,924		151,262		144,072
Commercial Real Estate		484,359		473,111		455,675		471,377		453,946
Business Loans:
Commercial and Industrial Loans		103,307		107,394		97,835		90,361		86,746
Farm Production and Other Farm Loans		1,118		900		619		680		546
Consumer Loans:
Credit Cards		4,057		3,645		4,122		4,272		4,074
Other Consumer Loans		14,953		14,493		16,740		17,055		15,658
Total loans held in portfolio	$	916,170	$	892,788	$	844,491	$	841,136	$	830,216

CITIZENS HOLDING COMPANY
Deposit Composition
(Unaudited)

	As of
	September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025
	(Dollars in thousands)
Deposits:
Noninterest-bearing demand deposits	$	299,967	$	301,822	$	290,793	$	285,291	$	284,701
Interest-bearing demand deposits		327,459		338,983		351,509		321,892		324,622
Savings and money market accounts		528,248		409,467		439,466		471,729		311,209
Time deposits		256,280		267,432		262,776		258,370		262,061
Total deposits	$	1,411,954	$	1,317,704	$	1,344,544	$	1,337,282	$	1,182,593

CITIZENS HOLDING COMPANY
Average Balances and Yields
(Unaudited)

	Three Months Ended
	September 30, 2026						June 30, 2026
	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	$	44,277	$	376	3.37	%	$	23,674	$	244	4.13	%
Loans(2)		899,045		15,397	6.79	%		879,566		14,919	6.80	%
Investment securities and other		499,417		2,543	2.02	%		517,229		2,709	2.10	%
Total interest-earning assets		1,442,739		18,316	5.04	%		1,420,469		17,872	5.05	%
Noninterest-earning assets		90,958						87,012
Total assets	$	1,533,697					$	1,507,481
Interest-bearing liabilities:
Interest-bearing demand deposits	$	379,066	$	1,475	1.54	%	$	365,901	$	1,511	1.66	%
Savings and money market accounts		436,901		2,572	2.34	%		383,477		1,908	2.00	%
Time deposits		260,138		1,863	2.84	%		262,345		1,907	2.92	%
FHLB advances and other borrowings		56,329		537	3.78	%		103,095		909	3.54	%
Total interest-bearing liabilities		1,132,434		6,446	2.26	%		1,114,818		6,235	2.24	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		303,272						299,454
Other liabilities		28,164						26,083
Stockholders' equity		69,827						67,126
Total liabilities and stockholders' equity	$	1,533,697					$	1,507,481
Net interest rate spread					2.78	%					2.80	%
Net interest income and margin			$	11,870	3.26	%			$	11,637	3.29	%
Net interest income and margin (tax equivalent)(3)			$	12,178	3.35	%			$	11,923	3.37	%

(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 September 30, 2026 and June 30, 2026, respectively.

CITIZENS HOLDING COMPANY
Average Balances and Yields
(Unaudited)

	Nine Months Ended
	September 30, 2026						September 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	$	31,543	$	855	3.63	%	$	40,755	$	1,421	4.66	%
Loans(2)		874,030		44,760	6.85	%		805,027		41,576	6.90	%
Investment securities and other		516,625		8,055	2.08	%		580,424		10,206	2.35	%
Total interest-earning assets		1,422,198		53,670	5.05	%		1,426,206		53,203	4.99	%
Noninterest-earning assets		89,120						83,883
Total assets	$	1,511,318					$	1,510,089
Interest-bearing liabilities:
Interest-bearing demand deposits	$	370,337	$	4,480	1.62	%	$	387,899	$	4,871	1.68	%
Savings and money market accounts		401,988		6,569	2.18	%		221,562		2,663	1.61	%
Time deposits		261,595		5,654	2.89	%		256,074		6,126	3.20	%
FHLB advances and other borrowings		89,372		2,168	3.24	%		292,638		7,576	3.46	%
Total interest-bearing liabilities		1,123,292		18,871	2.25	%		1,158,173		21,236	2.45	%
Noninterest-bearing liabilities and shareholders' equity:
Noninterest-bearing demand deposits		293,839						271,082
Other liabilities		27,044						30,122
Stockholders' equity		67,143						50,712
Total liabilities and stockholders' equity	$	1,511,318					$	1,510,089
Net interest rate spread					2.80	%					2.54	%
Net interest income and margin			$	34,799	3.27	%			$	31,967	3.00	%
Net interest income and margin (tax equivalent)(3)			$	35,653	3.35	%			$	32,804	3.08	%

(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 nine months ended September 30, 2026 and September 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
	September 30, 2026			June 30, 2026
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	11,870		$	11,637
Average interest-earning assets		1,442,739			1,420,469
Net interest margin		3.26	%		3.29	%
Net interest margin - Non-GAAP basis:
Net interest income	$	11,870		$	11,637
Plus:
Impact of fully taxable equivalent adjustment		308			286
Net interest income on a fully taxable equivalent basis	$	12,178		$	11,923
Average interest-earning assets		1,442,739			1,420,469
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		3.35	%		3.37	%

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

	As of or for the Nine Months Ended
	September 30, 2026			September 30, 2025
	(Dollars in thousands, except per share data)
Net interest margin - GAAP basis:
Net interest income	$	34,799		$	31,967
Average interst-earning assets		1,422,198			1,426,206
Net interest margin		3.27	%		3.00	%
Net interest margin - Non-GAAP basis:
Net interest income	$	34,799		$	31,967
Plus:
Impact of fully taxable equivalent adjustment		854			837
Net interest income on a fully taxable equivalent basis	$	35,653		$	32,804
Average interest-earning assets		1,422,198			1,426,206
Net interest margin on a fully taxable equivalent basis - Non-GAAP basis		3.35	%		3.08	%

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

	As of
	September 30, 2026		June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025

Total stockholders' equity	$	69,497	$	69,694	$	63,633	$	62,131	$	58,141
Less:
Goodwill and other intangible assets		13,030		13,058		13,085		13,113		13,140
Tangible stockholders' equity	$	56,467	$	56,636	$	50,548	$	49,018	$	45,001
Shares outstanding		5,693,611		5,693,611		5,685,361		5,653,753		5,653,753
Book value per share	$	12.21	$	12.24	$	11.19	$	10.99	$	10.28
Less:
Goodwill and other intangible assets per share	$	2.29	$	2.29	$	2.30	$	2.32	$	2.32
Tangible book value per share	$	9.92	$	9.95	$	8.89	$	8.67	$	7.96

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

	As of
	September 30, 2026			June 30, 2026			March 31, 2026			March 31, 2026			December 31, 2025

Total stockholders' equity to total assets - GAAP basis:
Total stockholders' equity (numerator)	$	69,497		$	69,694		$	63,633		$	62,131		$	58,141
Total assets (denominator)		1,551,641			1,555,210			1,528,470			1,511,324			1,592,216
Total stockholders' equity to total assets		4.48	%		4.48	%		4.16	%		4.11	%		3.65	%
Tangible equity to tangible assets - Non-GAAP basis:
Tangible equity:
Total stockholders' equity	$	69,497		$	69,694		$	63,633		$	62,131		$	58,141
Less:
Goodwill and other intangible assets		13,030			13,058			13,085			13,113			13,140
Total tangible common equity (numerator)	$	56,467		$	56,636		$	50,548		$	49,018		$	45,001
Tangible assets:
Total assets		1,551,641			1,555,210			1,528,470			1,511,324			1,592,216
Less:
Goodwill and other intangible assets		13,030			13,058			13,085			13,113			13,140
Total tangible assets (denominator)	$	1,538,610		$	1,542,152		$	1,515,385		$	1,498,211		$	1,579,076

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

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

	For the Three Months Ended
	September 30, 2026			June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025
	(Dollars in thousands)
NET INCOME (GAAP)	$	4,322		$	3,195		$	1,886		$	2,079		$	2,357

Gain on disposition of asset	$	(2,849	)		(1,508	)		-			-			-
Write-down of bank-owned property		-			-			-			253			-
Gain on proceeds from BOLI policy		-			(207	)		(300	)		-			(300	)
Other loss (gain)		-			350			-			-			-
Tax expense (benefit)		711			289			-			(63	)		-
NET INCOME, CORE	$	2,184		$	2,119		$	1,586		$	2,269		$	2,057

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.