CIZN 10-Q

CIZN 10-Q

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Citizens Holding Co /Ms/ (CIZN)

10-Q 2022-11-04 For: 2022-09-30

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Added on April 09, 2026

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Mississippi		64-0666512
(State or other jurisdiction of In Company or organization)		(IRS Employer Identification No.)


521 Main Street, Philadelphia, MS		39350
(Address of principal executive offices)		(Zip Code)


Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.20 par value	CIZN	NASDAQ Global Market


Title		Outstanding
Common Stock, $0.20 par value		5,603,570


PART I.	FINANCIAL INFORMATION	1

Item 1.	Consolidated Financial Statements	1

	Consolidated Statements of Financial Condition, as of September 30, 2022 (Unaudited) and December 31, 2021 (Audited)	1

	Consolidated Statements of Income for the Three and nine months ended September 30, 2022 (Unaudited) and 2021 (Unaudited)	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and nine months ended September 30, 2022 (Unaudited) and 2021 (Unaudited)	3

	Condensed Consolidated Statements of Cash Flows for the Nine months ended September 30, 2022 (Unaudited) and 2021 (Unaudited)	4

	Notes to Consolidated Financial Statements (Unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	47

Item 4.	Controls and Procedures	49

PART II.	OTHER INFORMATION	50

Item 1.	Legal Proceedings	50

Item 1A.	Risk Factors	50

Item 6.	Exhibits	50

SIGNATURES		51

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller Reporting Company

Emerging growth company


	September 30,			December 31,
	2022			2021
	(Unaudited)			(Audited)
ASSETS
Cash and due from banks	$	13,256		$	10,673
Interest bearing deposits with other banks		22,532			68,563

Cash and cash equivalents		35,788			79,236
Investment securities held-to-maturity, at amortized cost		411,859			—
Investment securities available-for-sale, at fair value		198,547			631,835
Loans held for investment (LHFI), net of unearned income		578,665			571,847
Less allowance for loan losses, LHFI		5,068			4,513

Net LHFI		573,597			567,334
Premises and equipment, net		27,802			26,661
Other real estate owned, net		1,328			2,475
Accrued interest receivable		4,281			4,171
Cash surrender value of life insurance		25,544			25,679
Deferred tax assets, net		31,492			6,279
Identifiable intangible assets, net		13,468			13,551
Other assets		4,772			4,088

TOTAL ASSETS	$	1,328,478		$	1,361,309

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing deposits	$	308,538		$	302,707
Interest bearing deposits		826,398			809,185

Total deposits		1,134,936			1,111,892
Securities sold under agreement to repurchase		129,919			112,760
Borrowings on secured line of credit		18,000			18,000
Accrued interest payable		503			328
Deferred compensation payable		9,791			9,543
Other liabilities		2,692			2,886

Total liabilities		1,295,841			1,255,409
SHAREHOLDERS’ EQUITY
Common stock, $0.20 par value, 22,500,000 shares authorized, Issued and outstanding: 5,603,570 shares - September 30, 2022; 5,595,320 shares - December 31, 2021		1,121			1,120
Additional paid-in capital		18,409			18,293
Accumulated other comprehensive loss, net of tax benefit of $29,355 at September 30, 2022 and $3,921 at December 31, 2021		(88,299	)		(11,795	)
Retained earnings		101,406			98,282

Total shareholders’ equity		32,637			105,900

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,328,478		$	1,361,309


	For the Three Months					For the Nine Months
	Ended September 30,					Ended September 30,
	2022			2021		2022		2021
INTEREST INCOME
Interest and fees on loans	$	6,855		$	7,666	$	19,891	$	23,714
Interest on securities
Taxable		2,130			1,433		5,728		2,950
Nontaxable		1,057			642		2,987		1,947
Other interest		80			21		130		46

Total interest income		10,122			9,762		28,736		28,657
INTEREST EXPENSE
Deposits		496			951		1,580		3,403
Other borrowed funds		577			209		1,057		525

Total interest expense		1,073			1,160		2,637		3,928

NET INTEREST INCOME		9,049			8,602		26,099		24,729
(REVERSAL OF) PROVISION FOR LOAN LOSSES		(53	)		968		96		1,287

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		9,102			7,634		26,003		23,442
OTHER INCOME
Service charges on deposit accounts		1,019			952		2,931		2,534
Other service charges and fees		1,111			1,135		3,230		3,201
Net gains on sales of securities		—			459		—		1,378
Other operating income		747			748		2,012		2,402

Total other income		2,877			3,294		8,173		9,515

OTHER EXPENSES
Salaries and employee benefits		4,506			4,716		13,357		13,869
Occupancy expense		1,968			1,740		5,454		5,348
Other expense		2,462			2,285		6,858		6,974

Total other expenses		8,936			8,741		25,669		26,191

INCOME BEFORE PROVISION FOR INCOME TAXES		3,043			2,187		8,507		6,766
PROVISION FOR INCOME TAXES		463			307		1,350		1,082

NET INCOME	$	2,580		$	1,880	$	7,157	$	5,684

NET INCOME PER SHARE -Basic	$	0.46		$	0.34	$	1.28	$	1.02

-Diluted	$	0.46		$	0.34	$	1.28	$	1.02

DIVIDENDS PAID PER SHARE	$	0.24		$	0.24	$	0.72	$	0.72


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2022		2021		2022		2021
Basic weighted average shares outstanding		5,595,320		5,587,070		5,591,771		5,583,491
Dilutive effect of granted options		—		—		—		244
Diluted weighted average shares outstanding		5,595,320		5,587,070		5,591,771		5,583,735
Net income	$	2,580	$	1,880	$	7,157	$	5,684
Net income per share-basic	$	0.46	$	0.34	$	1.28	$	1.02
Net income per share-diluted	$	0.46	$	0.34	$	1.28	$	1.02


	Directors’ Plan					2013 Plan
	Number of Shares			Weighted Average Exercise Price		Number of Shares		Weighted Average Exercise Price
Outstanding at December 31, 2021		9,000		$	18.76		—	$	—
Granted		—			—		—		—
Exercised		—			—		—		—
Expired		(9,000	)		18.76		—		—

Outstanding at September 30, 2022		—		$	—		—	$	—


			Gross		Gross
September 30, 2022	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available-for-sale
Mortgage backed securities	$	109,734	$	—	$	11,314	$	98,420
State, County, Municipals		135,147		2		35,461		99,688
Other securities		500	$	—	$	61	$	439

Total	$	245,381	$	2	$	46,836	$	198,547


			Gross		Gross
December 31, 2021	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available-for-sale
Obligations of U.S.
Government agencies	$	4,969	$	—	$	269	$	4,700
Mortgage backed securities		411,729		42		12,180		399,591
State, County, Municipals		230,359		700		4,008		227,051
Other securities		500		—		7		493

Total	$	647,557	$	742	$	16,464	$	631,835


	Available-for-sale				Held-to-maturity
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
Due in one year or less	$	222	$	220	$	—	$	—
Due after one year through five years		3,150		3,018		—		—
Due after five years through ten years		4,927		4,360		—		—
Due after ten years		127,348		92,529		96,804		85,625
Residential mortgage backed securities		96,910		85,914		253,051		229,505
Commercial mortgage backed securities		12,824		12,506		62,004		57,603

Total	$	245,381	$	198,547	$	411,859	$	372,733


September 30, 2022
Available-for-sale	Less than 12 months				12 months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Description of Securities	Value		Losses		Value		Losses		Value		Losses
Mortgage backed securities	$	72,062	$	4,596	$	26,358	$	6,718	$	98,420	$	11,314
State, County, Municipal		58,858		17,787		39,300		17,674		98,158		35,461

Total	$	130,920	$	22,383	$	65,658	$	24,392	$	196,578	$	46,775


	September 30, 2022			December 31, 2021
Real Estate:
Land Development and Construction	$	96,143		$	71,898
Farmland		12,012			13,114
1-4 Family Mortgages		92,111			98,525
Commercial Real Estate		274,300			281,239

Total Real Estate Loans		474,566			464,776
Business Loans:
Commercial and Industrial Loans (1)		88,012			92,501
Farm Production and Other Farm Loans		523			621

Total Business Loans		88,535			93,122
Consumer Loans:
Credit Cards		2,531			1,963
Other Consumer Loans		13,033			11,986

Total Consumer Loans		15,564			13,949

Total Gross Loans		578,665			571,847
Allowance for Loan Losses		(5,068	)		(4,513	)

Loans, net	$	573,597		$	567,334


											Accruing
	Loans 30-89 Days Past Due		Loans 90 or more Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Loans 90 or more Days Past Due
Real Estate:
Land Development and Construction	$	392	$	—	$	392	$	95,751	$	96,143	$	—
Farmland		170		—		170		11,842		12,012		—
1-4 Family Mortgages		1,397		210		1,607		90,504		92,111		—
Commercial Real Estate		347		574		921		273,379		274,300		—

Total Real Estate Loans		2,306		784		3,090		471,476		474,566		—
Business Loans:
Commercial and Industrial Loans		190		266		456		87,556		88,012		—
Farm Production and Other Farm Loans		5		—		5		518		523		—

Total Business Loans		195		266		461		88,074		88,535		—
Consumer Loans:
Credit Cards		61		14		75		2,456		2,531		14
Other Consumer Loans		142		23		165		12,868		13,033		—

Total Consumer Loans		203		37		240		15,324		15,564		14

Total Loans	$	2,704	$	1,087	$	3,791	$	574,874	$	578,665	$	14


	For the Nine Months
	Ended September 30,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities	$	10,864		$	14,910
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities, paydowns and calls of securities available-for-sale		36,692			132,774
Proceeds from maturities, paydowns and calls of securities held-to-maturity		2,332			—
Proceeds from sale of investment securities		—			500,685
Purchases of investment securities		(122,120	)		(551,765	)
Purchases of bank premises and equipment		(2,211	)		(2,232	)
Net change in FHLB stock		(784	)		503
Proceeds from sales of bank premises and equipment		—			492
Proceeds from sale of other real estate owned		1,155			3,263
Proceeds from death benefit of bank-owned life insurance		813			1,162
Net change in loans		(6,359	)		37,276

Net cash (used in) provided by investing activities		(90,482	)		122,158
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits		23,044			18,789
Net change in securities sold under agreement to repurchase		17,159			(93,211	)
Proceeds from borrowings on secured line of credit		—			18,000
Payment of FHLB advances		—			(25,000	)
Payment of dividends		(4,033	)		(4,027	)

Net cash provided by (used in) financing activities		36,170			(85,449	)

Net (decrease) increase in cash and cash equivalents		(43,448	)		51,619
Cash and cash equivalents, beginning of period		79,236			42,308

Cash and cash equivalents, end of period	$	35,788		$	93,927


	Number of Loans		Recorded Investment
Totals at January 1, 2021		3	$	2,113
Reductions due to:
Principal paydowns				(112	)
Reclassification to OREO		2		(1,788	)

Totals at December 31, 2021		1	$	213
Reductions due to:
Principal paydowns				(73	)

Total at September 30, 2022		1	$	140


September 30, 2022	Real Estate			Business Loans		Consumer			Total
Beginning Balance, January 1, 2022	$	3,622		$	645	$	246		$	4,513
Provision for (reversal of) loan losses		231			38		(173	)		96
Chargeoffs		7			61		57			125
Recoveries		133			26		425			584

Net (recoveries) chargeoffs		(126	)		35		(368	)		(459	)

Ending Balance	$	3,979		$	648	$	441		$	5,068

Period end allowance allocated to:
Loans individually evaluated for impairment	$	—		$	—	$	—		$	—
Loans collectively evaluated for impairment		3,979			648		441			5,068

Ending Balance, September 30, 2022	$	3,979		$	648	$	441		$	5,068


September 30, 2021	Real Estate		Business Loans		Consumer		Total
Beginning Balance, January 1, 2021	$	3,885	$	611	$	239	$	4,735
Provision for loan losses		21		155		1,111		1,287
Chargeoffs		685		179		30		894
Recoveries		168		15		7		190

Net chargeoffs (recoveries)		517		164		23		704

Ending Balance	$	3,389	$	602	$	1,327	$	5,318

Period end allowance allocated to:
Loans individually evaluated for impairment	$	6	$	36	$	1,200	$	1,242
Loans collectively evaluated for impairment		3,383		566		127		4,076

Ending Balance, September 30, 2021	$	3,389	$	602	$	1,327	$	5,318


	Loans 30-89 Days Past Due		Loans 90 or more Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or more Days Past Due
Real Estate:
Land Development and Construction	$	6	$	—	$	6	$	71,892	$	71,898	$	—
Farmland		130		33		163		12,951		13,114		—
1-4 Family Mortgages		1,678		292		1,970		96,555		98,525		140
Commercial Real Estate		157		570		727		280,512		281,239		—

Total Real Estate Loans		1,971		895		2,866		461,910		464,776		140
Business Loans:
Commercial and Industrial Loans		205		376		581		91,920		92,501		—
Farm Production and Other Farm Loans		3		—		3		618		621		—

Total Business Loans		208		376		584		92,538		93,122		—
Consumer Loans:
Credit Cards		35		12		47		1,916		1,963		12
Other Consumer Loans		76		2		78		11,908		11,986		2

Total Consumer Loans		111		14		125		13,824		13,949		14

Total Loans	$	2,290	$	1,285	$	3,575	$	568,272	$	571,847	$	154


	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Real Estate:
Land Development and Construction	$	—	$	—	$	—	$	—	$	—	$	86
Farmland		30		30		—		30		—		32
1-4 Family Mortgages		343		343		—		343		—		555
Commercial Real Estate		1,075		913		—		913		—		1,022

Total Real Estate Loans		1,448		1,286		—		1,286		—	$	1,695
Business Loans:
Commercial and Industrial Loans		304		196		—		196		—	$	214

Total Business Loans		304		196		—		196		—	$	214

Total Loans	$	1,752	$	1,482	$	—	$	1,482	$	—	$	1,909


	Satisfactory 1,2,3,4		Special Mention 5,6		Substandard 7		Doubtful 8		Loss 9		Total Loans
Real Estate:
Land Development and Construction	$	94,219	$	1,620	$	304	$	—	$	—	$	96,143
Farmland		11,394		275		343		—		—		12,012
1-4 Family Mortgages		85,672		1,975		4,464		—		—		92,111
Commercial Real Estate		234,368		5,746		34,186		—		—		274,300

Total Real Estate Loans		425,653		9,616		39,297		—		—		474,566
Business Loans:
Commercial and Industrial Loans		86,664		751		597		—		—		88,012
Farm Production and Other Farm Loans		518		—		5		—		—		523

Total Business Loans		87,182		751		602		—		—		88,535
Consumer Loans:
Credit Cards		2,456		—		75		—		—		2,531
Other Consumer Loans		12,965		10		58		—		—		13,033

Total Consumer Loans		15,421		10		133		—		—		15,564

Total Loans	$	528,256	$	10,377	$	40,032	$	—	$	—	$	578,665


	September 30, 2022		December 31, 2021
Funded balance	$	18,000	$	18,000
Unfunded balance		2,000		2,000

Total credit facility	$	20,000	$	20,000


	Number of Shares Issued		Common Stock		Additional Paid-In Capital			Accumulated Other Comprehensive (Loss) Income			Retained Earnings			Total
Balance, January 1, 2022		5,595,320	$	1,120	$	18,293		$	(11,795	)	$	98,282		$	105,900
Net income		—		—		—			—			2,036			2,036
Dividends paid ($0.24 per share)		—		—		—			—			(1,343	)		(1,343	)
Stock compensation expense		—		—		39			—			—			39
Other comprehensive loss, net		—		—		—			(43,682	)		—			(43,682	)

Balance, March 31, 2022		5,595,320	$	1,120	$	18,332		$	(55,477	)	$	98,975		$	62,950
Net income		—		—		—			—			2,541			2,541
Dividends paid ($0.24 per share)		—		—		—			—			(1,345	)		(1,345	)
Restricted stock granted		8,250		1		(1	)		—			—			—
Stock compensation expense		—		—		39			—			—			39
Other comprehensive loss, net		—		—		—			(38,259	)		—			(38,259	)

Balance, June 30, 2022		5,603,570	$	1,121	$	18,370		$	(93,736	)	$	100,171		$	25,926
Net income		—		—		—			—			2,580			2,580
Dividends paid ($0.24 per share)		—		—		—			—			(1,345	)		(1,345	)
Stock compensation expense		—		—		39			—			—			39
Other comprehensive income, net		—		—		—			5,437			—			5,437

Balance, September 30, 2022		5,603,570	$	1,121	$	18,409		$	(88,299	)	$	101,406		$	32,637


Level 1		Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2		Inputs other than quoted prices in active markets for identical assets and liabilities included in Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active; or

Level 3		Unobservable inputs for an asset or liability, such as discounted cash flow models or valuations.


	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Securities available-for-sale
Mortgage-backed securities	$	—	$	98,420	$	—	$	98,420
State, county and municipal		—		99,688		—		99,688
Other securities		439		—		—		439

Total	$	439	$	198,108	$	—	$	198,547


	Quoted Prices in Active Markets for Identical		Significant Other Observable		Significant Unobservable
	Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Totals
Impaired loans	$	—	$	—	$	109	$	109
Other real estate owned		—		—		1,121		1,121

Total	$	—	$	—	$	1,230	$	1,230


			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant		Total
	Carrying		Identical		Observable		Unobservable		Fair
September 30, 2022	Value		Assets		Inputs		Inputs		Value
			(Level 1)		(Level 2)		(Level 3)
Financial assets
Cash and due from banks	$	13,256	$	13,256	$	—	$	—	$	13,256
Interest bearing deposits with banks		22,532		22,532		—		—		22,532
Securities held-to-maturity		411,859		—		372,733		—		372,733
Securities available-for-sale		198,547		—		198,547		—		198,547
Net LHFI		573,597		—		—		537,515		537,515
Financial liabilities
Deposits	$	1,134,936	$	944,513	$	190,805	$	—	$	1,135,318
Securities sold under agreement to repurchase		129,919		129,919		—		—		129,919
Borrowings on secured line of credit		18,000		18,000		—		—		18,000


	Actual					Minimum Capital Requirement to be Well Capitalized					Minimum Capital Requirement to be Adequately Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2022
Citizens Holding Company
Tier 1 leverage ratio	$	107,555		7.84	%	$	68,560		5.00	%	$	54,848		4.00	%
Common Equity tier 1 capital ratio		107,555		13.10	%		89,127		6.50	%		61,704		4.50	%
Tier 1 risk-based capital ratio		107,555		13.10	%		65,689		8.00	%		49,267		6.00	%
Total risk-based capital ratio		112,624		13.72	%		82,112		10.00	%		65,689		8.00	%
The Citizens Bank of Philadelphia
Tier 1 leverage ratio	$	124,916		9.11	%	$	68,548		5.00	%	$	54,839		4.00	%
Common Equity tier 1 capital ratio		124,916		9.11	%		89,113		6.50	%		61,694		4.50	%
Tier 1 risk-based capital ratio		124,916		15.22	%		65,660		8.00	%		49,245		6.00	%
Total risk-based capital ratio		129,985		15.84	%		82,076		10.00	%		65,660		8.00	%
December 31, 2021
Citizens Holding Company
Tier 1 leverage ratio	$	104,181		7.80	%	$	66,789		5.00	%	$	53,431		4.00	%
Common Equity tier 1 capital ratio		104,181		13.16	%		86,826		6.50	%		60,110		4.50	%
Tier 1 risk-based capital ratio		104,181		13.16	%		63,322		8.00	%		47,492		6.00	%
Total risk-based capital ratio		108,694		13.73	%		79,153		10.00	%		63,322		8.00	%
The Citizens Bank of Philadelphia
Tier 1 leverage ratio	$	121,421		9.09	%	$	66,776		5.00	%	$	53,421		4.00	%
Common Equity tier 1 capital ratio		121,421		9.09	%		86,808		6.50	%		60,098		4.50	%
Tier 1 risk-based capital ratio		121,421		15.34	%		63,314		8.00	%		47,486		6.00	%
Total risk-based capital ratio		125,934		15.91	%		79,143		10.00	%		63,314		8.00	%


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2022			2021		2022		2021
Interest Income, including fees	$	10,122		$	9,762	$	28,736	$	28,657
Interest Expense		1,073			1,160		2,637		3,928

Net Interest Income		9,049			8,602		26,099		24,729
(Reversal of) provision for loan losses		(53	)		968		96		1,287

Net Interest Income after
(Reversal of) provision for loan losses		9,102			7,634		26,003		23,442
Other Income		2,877			3,294		8,173		9,515
Other Expense		8,936			8,741		25,669		26,191

Income Before Provision For
Income Taxes		3,043			2,187		8,507		6,766
Provision for Income Taxes		463			307		1,350		1,082

Net Income	$	2,580		$	1,880	$	7,157	$	5,684

Net Income Per share - Basic	$	0.46		$	0.34	$	1.28	$	1.02

Net Income Per Share-Diluted	$	0.46		$	0.34	$	1.28	$	1.02


			Three Months Ended September 30,
	Average Balance				Income/Expense					Average Yield/Rate
	2022		2021		2022		2021			2022			2021
Loans:
Loans, net of unearned⁽¹⁾	$	582,989	$	622,721	$	6,883	$	7,677			4.72	%		4.93	%
Investment Securities
Taxable		474,032		478,968		2,131		1,625			1.80	%		1.36	%
Tax-exempt		215,825		108,082		1,320		427			2.45	%		1.58	%

Total Investment Securities		689,857		587,050		3,451		2,052			2.00	%		1.40	%
Federal Funds Sold and Other		15,627		44,640		73		15			1.87	%		0.13	%

Total Interest Earning Assets⁽¹⁾⁽²⁾		1,288,474		1,254,412		10,407		9,744			3.23	%		3.11	%

Non-Earning Assets		69,953		88,148

Total Assets	$	1,358,427	$	1,342,560

Deposits:
Interest-bearing Demand Deposits ⁽³⁾	$	479,234	$	463,319	$	139	$	205			0.12	%		0.18	%
Savings		135,260		122,841		34		31			0.10	%		0.10	%
Time		195,438		246,875		323		715			0.66	%		1.16	%

Total Deposits		809,932		833,035		496		951			0.24	%		0.46	%
Borrowed Funds
Short-term Borrowings		132,430		90,490		323		209			0.98	%		0.92	%
Long-term Borrowings		18,000		—		254		—			5.64	%		—

Total Borrowed Funds		150,430		90,490		577		209			1.53	%		0.92	%

Total Interest-Bearing Liabilities ⁽³⁾		960,362		923,525		1,073		1,160			0.45	%		0.50	%
Non-Interest Bearing Liabilities
Demand Deposits		309,913		294,790
Other Liabilities		10,931		10,327
Shareholders’ Equity		77,221		113,918

Total Liabilities and Shareholders’ Equity	$	1,358,427	$	1,342,560

Interest Rate Spread											2.78	%		2.60	%

Net Interest Margin					$	9,334	$	8,584			2.90	%		2.74	%

Less
Tax Equivalent Adjustment						285		(18	)

Net Interest Income					$	9,049	$	8,602


			Nine Months Ended September 30,
	Average Balance				Income/Expense				Average Yield/Rate
	2022		2021		2022		2021		2022			2021
Loans:
Loans, net of unearned⁽¹⁾	$	583,859	$	638,675	$	19,976	$	23,805		4.56	%		4.97	%
Investment Securities
Taxable		470,223		516,661		5,729		2,950		1.62	%		0.76	%
Tax-exempt		213,708		134,233		3,732		2,433		2.33	%		2.42	%

Total Investment Securities		683,931		650,894		9,461		5,383		1.84	%		1.10	%
Federal Funds Sold and Other		23,621		45,746		123		40		0.69	%		0.12	%

Total Interest Earning Assets⁽¹⁾⁽²⁾		1,291,411		1,335,315		29,560		29,228		3.05	%		2.92	%

Non-Earning Assets		57,163		97,914

Total Assets	$	1,348,574	$	1,433,229

Deposits:
Interest-bearing Demand Deposits ⁽³⁾	$	482,405	$	503,576	$	534	$	1,138		0.15	%		0.30	%
Savings		133,263		115,579		98		88		0.10	%		0.10	%
Time		205,661		249,149		948		2,177		0.61	%		1.17	%

Total Deposits		821,329		868,304		1,580		3,403		0.26	%		0.52	%
Borrowed Funds
Short-term Borrowings		112,723		151,196		466		525		0.55	%		0.46	%
Long-term Borrowings		18,000		—		591		—		4.38	%		—

Total Borrowed Funds		130,723		151,196		1,057		525		1.08	%		0.46	%

Total Interest-Bearing Liabilities ⁽³⁾		952,052		1,019,500		2,637		3,928		0.37	%		0.51	%
Non-Interest Bearing Liabilities
Demand Deposits		305,374		286,667
Other Liabilities		12,438		13,811
Shareholders’ Equity		78,710		113,251

Total Liabilities and Shareholders’ Equity	$	1,348,574	$	1,433,229

Interest Rate Spread										2.68	%		2.40	%

Net Interest Margin					$	26,923	$	25,300		2.79	%		2.53	%

Less
Tax Equivalent Adjustment						824		571

Net Interest Income					$	26,099	$	24,729


	TABLE 2 - VOLUME/RATE ANALYSIS
	(in thousands)
	Three Months Ended September 30, 2022
	2022 Change from 2021
	Volume			Rate			Total
INTEREST INCOME
Loans	$	(490	)		(304	)	$	(794	)
Taxable Securities		(17	)		523			506
Non-Taxable Securities		426			467			893
Federal Funds Sold and Other		(10	)		68			58

TOTAL INTEREST INCOME	$	(91	)	$	754		$	663

INTEREST EXPENSE
Interest-bearing demand deposits	$	7			(73	)		(66	)
Savings Deposits		3			(0	)		3
Time Deposits		(149	)		(243	)		(392	)
Short-term borrowings		97			17			114
Long-term borrowings		—			254			254

TOTAL INTEREST EXPENSE	$	(42	)	$	(45	)		(87	)

NET INTEREST INCOME	$	(49	)	$	799		$	750


	Nine Months Ended September 30, 2022
	2022 Change from 2021
	Volume			Rate			Total
INTEREST INCOME
Loans	$	(2,043	)		(1,786	)	$	(3,829	)
Taxable Securities		(265	)		3,044			2,779
Non-Taxable Securities		1,441			(142	)		1,299
Federal Funds Sold and Other		(19	)		102			83

TOTAL INTEREST INCOME	$	(887	)	$	1,219		$	332

INTEREST EXPENSE
Interest-bearing demand deposits	$	(48	)		(556	)		(604	)
Savings Deposits		13			(3	)		10
Time Deposits		(380	)		(849	)		(1,229	)
Short-term borrowings		(134	)		75			(59	)
Long-term borrowings		—			591			591

TOTAL INTEREST EXPENSE	$	(548	)	$	(743	)		(1,291	)

NET INTEREST INCOME	$	(339	)	$	1,962		$	1,623


	Quarter Ended September 30, 2022			Year Ended December 31, 2021			Amount of Increase (Decrease)			Percent of Increase (Decrease)
BALANCES:
Gross Loans	$	578,665		$	571,847		$	6,818			1.19	%
Allowance for Loan Losses		5,068			4,513			555			12.30	%
Nonaccrual Loans		3,087			3,826			(739	)		(19.32	%)
Ratios:
Allowance for loan losses to gross loans		0.88	%		0.79	%
Net loans (recovered) charged off to allowance for loan losses		(9.06	%)		20.56	%


	September 30, 2022		December 31, 2021		Amount of Increase (Decrease)			Percent of Increase (Decrease)
Cash and due from banks	$	13,256	$	10,673	$	2,583			24.20	%
Interest bearing deposits with other banks		22,532		68,563		(46,031	)		(67.14	%)
Investment securities held to maturity		411,859		—		411,859			—
Investment securities available for sale		198,547		631,835		(433,288	)		(68.58	%)
Net LHFI		573,597		567,334		6,263			1.10	%
Premises and equipment		27,802		26,661		1,141			4.28	%
Total assets		1,328,478		1,361,309		(32,831	)		(2.41	%)
Total deposits		1,134,936		1,111,892		23,044			2.07	%


	September 30, 2022						December 31, 2021
	Following 12 months			Months 13-24			Following 12 months			Months 13-24
+400 basis points		-10.2	%		-2.2	%		-3.7	%		6.6	%
+300 basis points		-7.4	%		-1.4	%		-1.3	%		6.9	%
+200 basis points		-4.6	%		-0.6	%		-0.1	%		5.8	%
+100 basis points		-1.9	%		0.1	%		-0.8	%		2.6	%
Flat rates		—			—			—			—
-100 basis points		-0.8	%		-2.7	%		-5.5	%		-7.7	%
-200 basis points		-5.1	%		-10.5	%		-10.9	%		-13.6	%


	Economic Value of Equity at Risk (%)
	September 30, 2022			December 31, 2021
+400 basis points		-31.7	%		-20.4	%
+300 basis points		-24.6	%		-13.8	%
+200 basis points		-16.8	%		-7.8	%
+100 basis points		-8.4	%		-3.1	%
Flat rates		—			—
-100 basis points		6.8	%		-13.0	%
-200 basis points		3.3	%		-33.1	%


Exhibits

10(1)		Citizens Holding Company Revolving Credit Loan Agreement⁽¹⁾

31(a)		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).

31(b)		Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).

32(a)		Certification of the Chief Executive Officer pursuant to 18 U.S.C. § 1350.

32(b)		Certification of the Chief Financial Officer pursuant to 18 U.S.C. § 1350.

101		Financial Statements submitted in Inline XBRL format.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)