Citizens Holding Co (CIZN) SEC Filing 8-K Material Event for the period ending Tuesday, July 20, 2021

Exhibit 99.1

CITIZENS HOLDING COMPANY REPORTS EARNINGS

PHILADELPHIA, Miss.—(BUSINESS WIRE)—July 20, 2021—Citizens Holding Company (the “Company”) (NASDAQ:CIZN) announced today results of operations for the three and six months ended June 30, 2021.

(in thousands, except share and per share data)

Net income for the three months ended June 30, 2021 was $1,907, or $0.34 per share-basic and diluted, an increase of $445, or 30.44% from net income of $1,462, or $0.26 per share-basic and diluted for the same quarter in 2020.

Net income for the six months ended June 30, 2021 was $3,804, or $0.68 per share-basic and diluted, an increase of $1,182, or 45.08% from net income of $2,622, or $0.47 per share-basic and diluted for the same period in 2020.

Second Quarter Highlights

Net Interest Income

Net interest income for the three months ended June 30, 2021 was $8,494, an increase of $861, or 11.28% compared to $7,633 for the three months ended March 31, 2021, and an increase of $144, or 1.72%, compared to $8,350 for the three months ended June 30, 2020. The net interest margin (“NIM”) increased 25 bps to 2.57% for the three months ended June 30, 2021 from 2.32% at March 31, 2021.

Net interest income for the six months ended June 31, 2021 increased $392, or 2.49% to $16,127 from $15,735 for the same period in 2020. The net interest margin (“NIM”) was 2.45% as of June 30, 2021 compared to 2.32% at March 31, 2021 and 2.74% for the same period in 2020.

The increase in NIM is a result of management strategically reallocating the security portfolio into securities that are less likely to prepay such as higher yielding municipal investments. Management also continues to reprice higher interest-bearing deposits to help offset margin compression.

Credit Quality

The provision for loan losses for the six months ended June 30, 2021 was $319, down $617 year-over-year compared to $936. The decrease in the provision reflects management’s estimate of inherent losses in the loan portfolio, which is based on the overall improvement of the economy as a result of the continuing vaccine distribution at the local and national level, the steady decline in the unemployment rate, and the overall decrease in the loan portfolio when compared to the prior quarter.

The Company’s non-performing assets decreased by $2,871, or (24.49%), to $8,851 at June 30, 2021 compared to $11,722 at March 31, 2021 and decreased $6,051 or (40.61%), from $14,902 at June 30, 2020. The decrease reflects the foreclosure and charge-off of one non-accrual impaired loan that was already adequately reserved for in the allowance. This addition to other real estate owned (“OREO”) was subsequently offset with the sale of $1,410 of OREO properties coupled with write downs of $375 for the three months ended June 30, 2021.

Year-to-date net charge-offs totaled $702, or 0.11% of average loans at June 30, 2021 compared to 0.07% at June 30, 2020.

Noninterest Income

Noninterest income decreased for the three months ended June 30, 2021, by $243, or (7.52%) compared to the three months ended March 31, 2021 and increased by $519 or 21.01% compared to the same period in 2020.

Noninterest income increased by $1,370, or 28.24%, for the six months ended June 30, 2021 when compared to the same period in 2020.

The increase in noninterest income year-over-year was primarily due to the following factors:

Noninterest Expense

Noninterest expense increased for the three months ended June 30, 2021 by $514, or 6.07% compared to the three months ended March 31, 2021 and increased by $638 or 7.65% compared to the same period in 2020.

Noninterest expense increased by $1,039, or 6.33%, for the six months ended June 30, 2021 when compared to the same period in 2020.

The increase in noninterest expense is mainly attributable to an increase in regulatory related expenses, the write-down of other real estate owned, and the continued investment in customer facing and internal technology.

Dividends

The Company paid aggregate cash dividends in the amount of $2,684 or $0.48 per share, during the six-month period ended June 30, 2021 compared to $2,681, or $0.48 per share, for the same period in 2020.

Citizens Holding Company (the “Company”) is a one-bank holding company and the parent company of The Citizens Bank of Philadelphia (the “Bank”), both headquartered in Philadelphia, Mississippi. The Bank currently has twenty-four banking locations in fourteen counties in East Central and South Mississippi and a Loan Production Office in Oxford, Mississippi to offer loan services to north Mississippi. In addition to full service commercial banking, the Bank offers mortgage loans, title insurance services through its subsidiary, Title Services, LLC, and a full range of Internet banking services including online banking, bill pay and cash management services for businesses. Internet banking services are available at the Bank’s website, www.thecitizensbankphila.com. Citizens Holding Company stock is listed on the NASDAQ Global Market and is traded under the symbol CIZN. The Company’s transfer agent is American Stock Transfer & Trust Company. Information about Citizens Holding Company may be obtained by accessing its corporate website at www.citizensholdingcompany.com.

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) the impact of COVID-19 on our business, including

the impact of the actions taken by governmental authorities to try and contain the virus or address the impact of the virus on the United States economy (including, without limitation, the CARES Act), and the resulting effect of all of such items on our operations, liquidity and capital position, and on the financial condition of our borrowers and other customers; 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.

Citizens Holding Company

Financial Highlights

(amounts in thousands, except share and per share data)

Contact:

Citizens Holding Company, Philadelphia

Phillip R. Branch, 601/656-4692

Phillip.branch@thecitizensbank.bank