<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number: 000-25221
CITIZENS HOLDING COMPANY
State of Incorporation or other jurisdiction of I. R. S. Employer
incorporation or organization Identification Number
Mississippi 64-0666512
Citizens Holding Company
521 Main Street
Philadelphia, MS 39350
(601) 656-4692
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [ ] Yes [X] No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of May 2, 2000.
Title Outstanding
Common Stock, $.20 par value 3,308,750
<PAGE>
CITIZENS HOLDING COMPANY
FIRST QUARTER 2000 INTERIM FINANCIAL STATEMENTS
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets
March 31, 2000 and December 31, 1998
Consolidated Statements of Income
Three months ended March 31, 2000 and 1999
Consolidated Statements of Comprehensive Income
Three months ended March 31, 2000 and 1999
Consolidated Statements of Cash Flows
Three months ended March 31, 2000 and 1999
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
<PAGE>
PART 1.CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CITIZENS HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CONDITION
March 31, December 31,
ASSETS 2000 1999
--------------------------
<S> <C> <C>
Cash and due from banks $ 19,502,391 $ 13,312,028
Interest bearing balances at Federal Home Loan Bank 989,851 182,042
Federal funds sold 0 0
--------------------------
Cash and cash equivalents 20,492,242 13,494,070
Federal Home Loan Bank stock 1,560,300 1,284,000
Investment securities available for sale, at
fair value 100,386,195 101,167,360
Loans, net of allowance for loan losses of
$3,175,000 in 2000 and $3,100,000 in 1999 237,291,933 231,248,551
Premises and equipment, net 4,466,846 4,410,976
Other real estate owned, net 77,716 291,508
Accrued interest receivable 3,843,592 3,683,849
Cash value of life insurance 2,828,265 2,828,265
Goodwill (net) 708,236 649,854
Other Assets 3,623,316 3,731,269
--------------------------
TOTAL $375,278,641 $362,789,702
--------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing demand $ 43,013,156 $ 37,090,779
Interest-bearing NOW and money market accounts 87,407,854 74,616,711
Savings deposits 20,220,772 20,031,653
Certificates of deposit 155,921,163 152,722,496
--------------------------
Total deposits 306,562,945 284,461,639
Accrued interest payable 1,288,145 1,242,916
Federal Home Loan Bank advances 10,000,000 23,100,000
Federal funds Purchased 12,300,000 10,600,000
ABE loan liability 2,785,001 2,727,004
Treasury tax and loan note option 700,000 700,000
Directors deferred compensation payable 836,988 812,130
Income taxes payable 612,530 0
Other liabilities 209,409 339,403
--------------------------
</TABLE>
<PAGE>
--------------------------
Total liabilities 335,295,018 323,983,092
--------------------------
Minority interest in consolidated subsidiaries 1,297,047 1,260,649
STOCKHOLDERS' EQUITY
Common stock; $.20 par value, 15,000,000 shares
authorized, and 3,308,750 shares outstanding at
March 31, 2000, and at December 31, 1999 670,750 670,750
Less: Treasury stock, at cost, 45,000 shares at
March 31, 2000 and at December 31, 1999 (239,400) (239,400)
Additional paid-in capital 3,353,127 3,353,127
Retained earnings 36,344,814 35,303,504
Unrealized gain on securities available for sale,
net of income taxes of $(768,380) in 2000 and
$(821,577) in 1999 (1,442,715) (1,542,020)
--------------------------
Total stockholders' equity 38,686,576 37,545,961
--------------------------
TOTAL $375,278,641 $362,789,702
--------------------------
See notes to consolidated financial statements
CITIZENS HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
For the three months
ended March 31,
2000 1999
-------------------------
INTEREST INCOME:
Loans, including fees $5,273,458 $4,737,316
Federal funds sold 514 62,469
Investment securities 1,512,014 1,302,222
Other interest 5,379 11,781
-------------------------
Total interest income 6,791,365 6,113,788
INTEREST EXPENSE:
Deposits 2,659,745 2,491,068
Other borrowed funds 470,890 147,870
-------------------------
Total interest expense 3,130,635 2,638,938
-------------------------
NET INTEREST INCOME 3,660,730 3,474,850
<PAGE>
<TABLE>
<S> <C> <C>
PROVISION FOR LOAN LOSSES 84,862 145,634
-------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 3,575,868 3,329,216
-------------------------
OTHER INCOME:
Service charges on deposit accounts 578,917 562,629
Other service charges and fees 89,218 91,166
Other income 93,681 86,656
-------------------------
Total other income 761,816 740,451
OTHER EXPENSES:
Salaries and employee benefits 1,245,738 1,170,009
Occupancy expense 361,997 308,069
Other operating expense 570,980 478,557
Earnings applicable to minority interest 47,630 49,279
-------------------------
Total other expenses 2,226,345 2,005,914
-------------------------
INCOME BEFORE PROVISION
FOR INCOME TAXES 2,111,339 2,063,753
-------------------------
PROVISION FOR INCOME TAXES 739,153 740,393
-------------------------
NET INCOME $1,372,186 $1,323,360
-------------------------
NET INCOME PER SHARE-basic and diluted $0.41 $0.40
-------------------------
See notes to consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CITIZENS HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the three months
ended March 31,
2000 1999
--------------------------
<S> <C> <C>
Net Income $1,372,186 $1,323,360
Other Comprehensive Income, net of tax
Unrealized holding gains (losses) 114,538 (396,620)
Less reclassification adjustment for
losses included in net income (15,233) 0
Total other comprehensive income 99,305 (396,620)
--------------------------
Comprehensive income $1,471,491 $ 926,740
--------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CITIZENS HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months
ended March 31,
2000 1999
----------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Cash Provided by Operating Activities $ 2,219,934 $ 1,576,433
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of securities available
for sale 5,805,319 9,000,225
Proceeds from sale of investment securities 4,442,059 0
Purchases of investment securities (9,586,216) (11,795,514)
Purchases of bank premises, furniture, fixtures
and Equipment (192,970) (27,664)
Decrease in interest bearing deposits with other
banks (807,809) 207,764
Net (increase) decrease in federal funds sold 0 (5,500,000)
Net increase in loans (6,118,382) (4,116,863)
Net Cash Used by Investing Activities (6,457,999) (12,232,052)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in deposits 22,101,306 6,686,743
Net increase (decrease) in ABE loans 57,997 318,221
Increase in FHLB advances (13,100,000) 0
Increase in federal funds purchased 1,700,000 0
Payment of dividends (330,875) 0
Net Cash Provided by Financing Activities 10,428,428 7,004,964
Net Increase (Decrease) in Cash and Due from
Banks 6,190,363 (3,650,655)
Cash and Due From Banks, beginning of year 13,312,028 15,234,594
Cash and Due from Banks, end of period 19,502,391 11,583,939
</TABLE>
<PAGE>
CITIZENS HOLDING COMPANY AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the three months ended March 31, 2000
1. The interim consolidated financial statements are unaudited and reflect all
adjustments and reclassifications which, in the opinion of management, are
necessary for a fair presentation of the results of operations and
financial condition of the interim period. All adjustments and
reclassifications are or a normal and recurring nature. Results for the
period ending March 31, 2000 are not necessarily indicative of the results
which may be expected for any other interim period or for the year as a
whole.
2. Summary of Significant Accounting Policies. See note 1 of the Notes to
Consolidated Financial Statements of the Citizens Holding Company that were
included in the Form 10-K Annual Report filed March 29, 2000. Registration
with the Securities and Exchange Commission was effective August 20, 1999.
Investment Securities B The Corporation classifies all of its securities as
available-for-sale and carries them at fair value with unrealized gains or
losses reported as a separate component of capital, net of any applicable
income taxes. Realized gains or losses on the sale of securities
available-for-sale, if any, are determined on an identification basis. The
Corporation does not have any securities classified as Held for Trading.
3. In the ordinary course of business, the Corporation enters into commitments
to extend credit to its customers. The unused portion of these commitments
is not reflected in the accompanying financial statements. As of March 31,
2000, the Corporation had entered into commitments with certain customers
that had an unused balance of $21,264,000 compared to $16,241,000 unused at
December 31, 1999. There were $334,025 of letters of credit outstanding at
March 31, 2000, compared to $313,105 at December 31, 1999.
4. Net income per share B Basic, has been computed based on the
weighted average number of shares outstanding during each period. Net
income per share B Diluted, has been computed based on the weighted average
number of shares outstanding during each period plus the dilutive effect of
outstanding granted options. Basic weighted average shares have been
adjusted to reflect the five-for-one stock split on the common stock
effective January 1, 1999. Earnings per share were computed as follows:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
------------------------
<S> <C> <C>
Basic weighted average shares outstanding 3,308,750 3,308,750
Dilutive effect of granted options 8,033 7,273
------------------------
Diluted weighted average shares outstanding 3,316,783 3,316,023
Net income $1,372,186 $5,621,356
Net income per share-basic $ 0.41 $ 1.70
Net income per share-diluted $ 0.41 $ 1.70
</TABLE>
<PAGE>
CITIZENS HOLDING COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Management's discussion and analysis is written to provide greater insight into
the results of operations and the financial condition of Citizens Holding
Company, (the "Corporation").
Statements concerning future performance, developments or events, concerning
expectations for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements which are subject to a number of
risks and uncertainties which might cause actual results to differ materially
from stated expectations. These factors include, but are not limited to, the
approval of regulatory agencies and shareholders, the effect of interest rates
changes, the expansion of the Corporation, competition in the financial services
market for both deposits and loans, and general economic conditions.
LIQUIDITY
The Corporation has an asset and liability management program that assists
management in maintaining it interest margins during times of both rising and
falling interest rates and in maintaining sufficient liquidity. Liquidity of
the Corporation at March 31, 2000 was 42.74% and at March 31, 1999 was 40.14%.
Liquidity is the ratio of short-term investments to potentially volatile
liabilities. Management believes it maintains adequate liquidity for the
Corporation's current needs.
When the Corporation has more funds than it needs for its reserve requirements
or short-term liquidity needs, the Corporation increases its security
investments or sells federal funds. It is management's policy to maintain an
adequate portion of its portfolio of assets and liabilities on a short-term
basis to insure rate flexibility and to meet loan funding and liquidity needs.
The Corporation has secured and unsecured federal funds lines with correspondent
banks in the amount of $38,500,000. In addition, the Corporation has the
ability to draw on its line of credit with the Federal Home Loan Bank in excess
of $47,448,000 at March 31, 2000.
CAPITAL RESOURCES
The Corporation's equity capital was $38,686,576 at March 31, 2000. The main
source of capital for the Corporation has been the retention of net income.
On January 1, 1999, the Corporation issued a five-for-one (5:1) split to the
shareholders of the Corporation. This split increased the number of shares
outstanding to 3,308,750
<PAGE>
from 661,750. The number of shares authorized increased from 750,000 to
3,750,000 after the split. Additionally, the shareholders approved an increase
in authorized shares to 15,000,000 at the annual meeting held April 13, 1999.
Cash dividends in the amount of $330,875 or $.10 per share were paid March 31,
2000. This is the first time that the Company paid a quarterly dividend rather
than paying a semi-annual dividend as had been paid in the prior years.
Quantitative measures established by regulation to ensure capital adequacy
require the Corporation to maintain minimum amounts and ratios of Total and Tier
1 capital (primarily common stock and retained earnings, less goodwill) to risk
weighted assets, and of Tier 1 capital to average assets. Management believes
that as of March 31, 2000, the Corporation meets all capital adequacy
requirements to which it is subject.
<TABLE>
<CAPTION>
To Be Well
Capitalized Under
For Capital prompt Corrective
Actual Adequacy Purposes Actions Provisions
Amount Ratio Amount Ratio Amount Ratio
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
As of March 31, 2000
Total Capital $43,628,402 18.74% $18,625,918 greater than 8.00% $23,282,398 greater than 10.00%
(to Risk-Weighted Assets)
Tier 1 Capital $40,718,102 17.49% $ 9,312,959 greater than 4.00% $13,969,439 greater than 6.00%
(to Risk-Weighted Assets)
Tier 1 Capital $40,718,102 11.07% $14,713,771 greater than 4.00% $18,392,214 greater than 5.00%
(to Average Assets)
</TABLE>
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated, certain items in the
consolidated statements of income of the Corporation and the related changes
between those periods:
For the three Months Ended March 31,
<TABLE>
<CAPTION>
Difference
2000 1999 Amount Per Cent
<S> <C> <C> <C> <C>
Interest Income $6,791,365 $6,113,788 $677,577 11.08%
Interest Expense 3,130,635 2,638,938 491,697 18.63%
---------- ---------- -------- ------
Net Interest Income 3,660,730 3,474,850 185,880 5.35%
Provision for Loan Losses 84,862 145,634 (60,772) (41.73)%
Net Interest Income after
Provision for Loan Losses 3,575,868 3,329,216 246,652 7.41%
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
Other Income 761,816 740,451 21,365 2.89%
Other Expense 2,226,345 2,005,914 220,431 10.99%
---------- ---------- -------- ------
Income before Provision
For Income Taxes 2,111,339 2,063,753 47,586 2.31%
Provision for Income Taxes 739,153 740,393 (1,240) -0.17%
---------- ---------- -------- ------
Net Income $1,372,186 $1,323,360 $ 48,826 3.69%
---------- ---------- -------- ------
Net Income Per share -
Basic $ 0.41 $ 0.40 $ 0.01 3.69%
---------- ---------- -------- ------
Net Income Per
Share-Diluted $ 0.41 $ 0.40 $ 0.01 3.69%
---------- ---------- -------- ------
</TABLE>
Net Income Per Share B Basic is calculated using weighted average number of
shares outstanding for the period. Net Income Per Share B Diluted is calculated
using the weighted average number of shares outstanding for the period, plus the
net dilutive effect of granted stock options determined using the treasury stock
method.
Annualized return on average equity was 13.68% for the three months ended
March 31, 2000, and 14.72% for the three months ended March 31, 1999.
The book value per share increased to $11.69 at March 31, 2000 compared to
$11.35 at December 31, 1999. This increase is due to earnings exceeding
dividends paid during this period. Average assets for the three months ended
March 31, 2000, were $367,844,283 compared to $347,613,000 at December 31, 1999;
average equity increased to $38,707,475 for the three months ended March 31,
2000, from $37,603,000 at December 31, 1999.
NET INTEREST INCOME/NET INTEREST MARGIN
One component of the Corporation's earnings is net interest income, which is the
difference between the interest and fees earned on loans and investments and the
interest paid for deposits and borrowed funds. The net interest margin is net
interest income expressed as a percentage of average earning assets.
The annualized net interest margin was 4.33% for the three months ended
March 31, 2000, compared to an annualized net interest margin of 4.51% for the
three months ended March 31, 1999. Earnings assets averaged $341,034,193 for the
three months ended March 31, 2000. This represented an increase of $31,484,871
or 10.17%, over average earning assets of $309,549,322 for the three months
ended March 31, 1999. This increase was from normal growth of the Corporation
and not from any special program or promotion.
<PAGE>
The net interest income figures above include income from the Corporation's
securities. The following table shows the interest and fees and corresponding
yields for loans only.
<TABLE>
<CAPTION>
For the Three Months Ended March 31,
2000 1999
---------------------------------
<S> <C> <C>
Interest and Fees $ 5,273,458 $ 4,737,316
Average Loans 237,579,566 211,930,929
Annualized Yield 8.88% 8.94%
</TABLE>
CREDIT LOSS EXPERIENCE
As a natural corollary to the Corporation's lending activities, some loan losses
are to be expected. The risk of loss varies with the type of loan being made
and the creditworthiness of the borrower over the term of the loan. The degree
of perceived risk is taken into account in establishing the structure of, and
interest rates and security for, specific loans and for various types of loans.
The Corporation attempts to minimize its credit risk exposure by use of thorough
loan application and approval procedures.
The Corporation maintains a program of systematic review of its existing loans.
Loans are graded for their overall quality. Those loans which the Corporation's
management determines require further monitoring and supervision are segregated
and reviewed on a periodic basis. Significant problem loans are reviewed on a
monthly basis by the Corporation's Board of Directors.
The Corporation charges off that portion of any loan which management considers
to represent a loss. A loan is generally considered by management to represent
a loss in whole or in part when an exposure beyond the collateral value is
apparent, servicing of the unsecured portion has been discontinued or collection
is not anticipated based on the borrower's financial condition and general
economic conditions in the borrower's industry. The principal amount of any loan
which is declared a loss is charged against the Corporation's allowance for loan
losses.
The Corporation's allowance for loan losses is designed to provide for loan
losses which can be reasonably anticipated. The allowance for loan losses is
established through charges to operating expenses in the form of provisions for
loan losses. Actual loan losses or recoveries are charges or credited to the
allowance for loan losses. The amount of the allowance is determined by
management of the Corporation. Among the factors considered in determining the
allowance for loan losses are the current financial condition of the
Corporation's borrowers and the value of security, if any, for their loans.
Estimates of future economic conditions and their impact on various industries
and individual borrowers are also taken into consideration, as are the
Corporation's historical loan loss experience and reports of banking regulatory
authorities. Because these estimates, factors
<PAGE>
and evaluations are primarily judgmental, no assurance can be given as to
whether or not the Corporation will sustain loan losses or that subsequent
evaluation of the loan portfolio may not require substantial changes in such
allowance.
The following table summarizes the Corporation's allowance for loan loss for the
dates indicated:
<TABLE>
<CAPTION>
Amount of Percent of
March 31, December 31, Increase Increase
2000 1999 (Decrease) (Decrease)
-----------------------------------------------------------
<S> <C> <C> <C> <C>
BALANCES:
Gross Loans $245,339,015 $237,007,080 $8,331,935 3.52%
Allowance for Loan
Losses 3,175,000 3,100,000 75,000 2.42%
Non-accrual Loans 373,512 389,876 (16,364) (4.20)%
Ratios:
Allowance for loan losses to
gross loans 1.29% 1.31%
Net loans charged off to
allowance for loan losses 12.25% 20.95%
</TABLE>
The provision for loan losses was $84,862 for the three months ended March 31,
2000. This is a decrease of $60,772 or 41.7%, over the $145,634 for the three
months ended March 31, 1999. In addition to the quarterly addition to the
allowance, the Corporation adds an amount to the allowance in the amount of the
net charge offs each month. Gross loans outstanding increased 11.5% for the
three months in 2000. For the three months ended March 31, 2000, losses charged
to the allowance for loan losses totaled $134,588. This was offset by
recoveries of $124,726, with the net effect being $9,862 in loans charged to the
allowance.
Management of the Corporation reviews with the Board of Directors the adequacy
of the allowance for possible loan losses on a quarterly basis. The loan loss
provision is adjusted when specific items reflect a need for such an adjustment.
Management believes that there were no material loan losses during the last
fiscal year that have not been charged off. Management also believes that the
Corporation has adequately reserved for all credits in its portfolio that may
result in a loss to the Corporation.
OTHER OPERATING INCOME
Other operating income includes service charges on deposit accounts, wire
transfer fees, safe deposit box rentals and other revenue not derived from
interest on earning assets. Other operating income for the three months ended
March 31, 2000, increased $9,896 or
<PAGE>
1.2% over the three months ended March 31, 1999. Especially in periods of
declining net interest margins, the Corporation has sought to increase the
income derived from these sources and will continue to seek opportunities to do
so.
OTHER OPERATING EXPENSE
Other expenses include salaries and employee benefits, occupancy and equipment,
and other operating expenses. The continued growth of the Corporation has put
pressure on Management to control overhead expenses. The growth of the
Corporation, annual raises, and the addition of the mortgage department has
resulted in an increase in salaries and benefits of $75,729 or 6.5%. Other
operating expenses in the three months ended March 31, 2000 were $2,226,345
compared to the $2,005,914 for the three months ended March 31, 1999 for an
increase of $220,431 or 11.0%. The Corporation's efficiency ratio
at March 31, 2000 was 47.94%.
BALANCE SHEET ANALYSIS
<TABLE>
<CAPTION>
Amount of Percent of
March 31, December 31, Increase Increase
2000 1999 (Decrease) (Decrease)
--------------------------------------------------------
<S> <C> <C> <C> <C>
Cash and Cash Equivalents $ 20,492,242 $ 13,494,070 $ 6,998,172 51.86%
Investment Securities 100,386,195 101,167,360 (781,165) -0.77%
Loans, net 237,291,933 231,248,551 6,043,382 2.61%
Total Assets 375,278,641 362,789,702 12,488,939 3.44%
Total Deposits 306,562,945 284,461,639 22,101,306 7.77%
Total Stockholders' Equity 38,686,576 37,545,961 1,140,615 3.04%
</TABLE>
CASH AND CASH EQUIVALENTS
Cash and cash equivalents are made up of cash, balances at correspondent banks
and federal funds sold. The increase at March 31, 2000 was due to the temporary
increase in correspondent bank accounts caused by an unusually large cash letter
sent out on this date. The Corporation did not have any federal funds sold at
this date due to continued strong loan demand.
<PAGE>
INVESTMENT SECURITIES
The investment securities are made up of U. S. Treasury Notes, U. S. Agency
debentures, mortgage-backed securities, obligations of states, counties and
municipal governments and Federal Home Loan Bank Stock.
Investments decreased $781,165 or 0.8% as a result of the need for liquidity to
fund the strong loan demand.
LOANS
Loan demand continued to be strong in the service area of the Corporation as
evidenced by the 2.61% increase in net loans. Residential housing loans
continue to be in demand along with commercial and industrial loans. No special
loan programs were initiated during this period to add to this growth.
DEPOSITS
The following shows the balance and percentage change in the various deposits:
<TABLE>
<CAPTION>
Amount of Percent of
March 31, December 31, Increase Increase
2000 1999 (Decrease) (Decrease)
--------------------------------------------------------
<S> <C> <C> <C> <C>
Non-interesting-bearing Deposits $ 43,013,156 $ 37,090,779 $ 5,922,377 15.97%
Interest-bearing Deposits 87,407,854 74,616,711 12,791,143 17.14%
Savings 20,220,772 20,031,653 189,119 0.94%
Certificates of Deposit 155,921,163 152,722,496 3,198,667 2.09%
--------------------------------------------------------
Total Deposits $306,562,945 $284,461,639 $22,101,306 7.77%
--------------------------------------------------------
</TABLE>
The increase in deposits reflected in the above table is solely the result of
normal deposit growth for our service area. The Corporation does not have any
brokered deposits. There were no special deposit programs or incentives in
place during this period.
YEAR 2000
The Corporation has not encountered any problems with the Y2K date change.
Although we are pleased with our transition through this period, we are on guard
for any problems that might yet surface. We will continue to look for potential
Y2K problems until we are satisfied that no such problems exist.
<PAGE>
CITIZENS HOLDING COMPANY
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
There have been no material change in the Corporation's market risk since the
end of the last fiscal year end of December 31, 1999.
PART II. - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
1. The following exhibit is included herein:
(27) Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
CITIZENS HOLDING COMPANY
BY: /s/ Steve Webb BY: /s/ Robert T. Smith
----------------------------- ---------------------------------
Steve Webb Robert T. Smith
Chairman, President and Treasurer (Chief Financial
Chief Executive Officer and Accounting Officer)
DATE: May 11, 2000 DATE: May 11, 2000
<PAGE>
EXHIBIT INDEX
Exhibit Number Description
-------------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-2000 DEC-31-1999
<PERIOD-START> JAN-01-2000 JAN-01-1999
<PERIOD-END> MAR-31-2000 DEC-31-1999
<CASH> 19,502 13,312
<INT-BEARING-DEPOSITS> 990 182
<FED-FUNDS-SOLD> 0 0
<TRADING-ASSETS> 0 0
<INVESTMENTS-HELD-FOR-SALE> 101,946 102,451
<INVESTMENTS-CARRYING> 0 0
<INVESTMENTS-MARKET> 0 0
<LOANS> 237,467 234,349
<ALLOWANCE> 3,175 3,100
<TOTAL-ASSETS> 375,279 362,790
<DEPOSITS> 306,563 284,462
<SHORT-TERM> 13,000 24,400
<LIABILITIES-OTHER> 2,947 2,631
<LONG-TERM> 12,785 12,727
0 0
0 0
<COMMON> 671 671
<OTHER-SE> 38,016 36,875
<TOTAL-LIABILITIES-AND-EQUITY> 375,279 362,790
<INTEREST-LOAN> 5,273 19,337
<INTEREST-INVEST> 1,512 5,515
<INTEREST-OTHER> 6 172
<INTEREST-TOTAL> 6,791 25,024
<INTEREST-DEPOSIT> 2,660 10,087
<INTEREST-EXPENSE> 3,130 10,974
<INTEREST-INCOME-NET> 3,661 14,049
<LOAN-LOSSES> 85 849
<SECURITIES-GAINS> (15) 0
<EXPENSE-OTHER> 2,221 8,361
<INCOME-PRETAX> 2,111 8,414
<INCOME-PRE-EXTRAORDINARY> 2,111 5,621
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,372 5,621
<EPS-BASIC> 0.41 1.70
<EPS-DILUTED> 0.41 1.70
<YIELD-ACTUAL> 4.33 4.52
<LOANS-NON> 374 390
<LOANS-PAST> 1,022 1,643
<LOANS-TROUBLED> 0 0
<LOANS-PROBLEM> 0 0
<ALLOWANCE-OPEN> 3,100 2,900
<CHARGE-OFFS> 135 916
<RECOVERIES> 124 267
<ALLOWANCE-CLOSE> 3,175 3,100
<ALLOWANCE-DOMESTIC> 1,850 1,800
<ALLOWANCE-FOREIGN> 0 0
<ALLOWANCE-UNALLOCATED> 1,325 1,300
</TABLE>
