Citizens Holding Company Announces Corrected Earnings Results for Third Quarter 2025
Citizens Holding Company , the parent company of The Citizens Bank, has issued a corrected and updated financial results announcement for the three- and nine-month periods ending September 30, 2025. This corrected release replaces the version originally issued on October 28, 2025, to reflect several revised figures and additional clarifications. The latest results highlight continued progress across profitability, balance sheet optimization, and strategic execution as the Company continues to emphasize disciplined growth, strong credit management, and enhanced operational performance.
Earnings Performance Overview
For the three months ended September 30, 2025, Citizens Holding Company reported net income of $2,357,000, translating to basic and diluted earnings of $0.42 per share. This represents a significant improvement over both recent and year-ago performance. Comparatively, the Company reported net income of $1,848,000, or $0.33 per share, for the second quarter of 2025—an increase of $509,000, or 27.6%, quarter-over-quarter. The Company also achieved substantial year-over-year earnings growth, rising from net income of $318,000, or $0.06 per share, for the same quarter in 2024.
For the nine months ending September 30, 2025, net income totaled $6,057,000, or $1.08 per share, representing a 45.1% increase over the $4,173,000, or $0.74 per share, reported for the same period in 2024. These results reflect strengthened core earnings performance, supported by improved net interest margin, growth in earning assets, and disciplined funding management.
Key Third Quarter Highlights
- Net Interest Margin (NIM) Strengthened: NIM improved to 3.20%, up 12 basis points from 3.08% in the prior quarter and up 56 basis points from 2.52% in the third quarter of 2024.
- Loan Growth Continued: Loans held for investment (LHFI) increased to $831.2 million, rising 1.6% from June 30, 2025, and 16.8% from the same period a year earlier.
- Credit Quality Remained Solid: Non-performing assets (NPAs) represented 85 basis points of total loans, consistent with internal expectations and well-managed risk practices.
- Allowance for Credit Losses (ACL) Strengthened: ACL to loans rose to 1.04%, reflecting prudent reserve building to support future loan growth and economic uncertainty.
- Improved Tangible Book Value: Tangible book value per share reached $7.96, up from $6.67 in the previous quarter and $6.61 a year ago—an indication of strengthened capital and improved profitability.
CEO Commentary
Stacy Brantley, President and Chief Executive Officer of Citizens Holding Company, emphasized the Company’s ongoing execution of its strategic initiatives and the positive momentum reflected in the quarter’s performance:
Our third quarter results demonstrate continued progress in strengthening our core business and enhancing shareholder value. We achieved meaningful growth in margin, profitability, loans, reserves, and capital. Margins expanded both sequentially and year-over-year as disciplined loan expansion and effective funding strategies continued to yield favorable results.
Brantley noted that loan growth remains a primary contributor to earnings expansion, while also acknowledging that the pace of growth may moderate slightly in coming quarters as loan pipelines recalibrate.
He also highlighted the Company’s progress in balancing revenue generation with disciplined expense and risk management practices:
Our credit metrics remain solid and reflect the strength of our underwriting and asset quality oversight. The increase in credit reserves ensures we remain well-positioned for future growth while prudently managing risk. In parallel, our focus on developing organizational culture and leadership infrastructure supports sustainable long-term performance.
Brantley concluded with confidence in the Company’s trajectory going into year-end 2025, citing the combination of strengthened profitability, enhanced capital structure, operational improvements, and continued commitment to relationship-driven customer banking.
Financial and Balance Sheet Results
Loan and Deposit Trends
Total loans rose to $831.2 million at September 30, 2025, up from $818.0 million at June 30, 2025 and $711.5 million at September 30, 2024. Growth was attributable to ongoing commercial and consumer lending activity across core relationship markets.
Total deposits ended the quarter at $1.18 billion, compared to $1.27 billion at the end of the previous quarter. The Company continues to focus on growing core deposits strategically to support future loan expansion while lowering overall funding costs.
Net Interest Income and Margin Performance
Net interest income totaled $10.95 million for the third quarter, up 2.5% sequentially and 25.0% from the same quarter in 2024. The improvement reflects increases in interest income driven by loan growth and improved earning asset yield, alongside disciplined management of deposit and funding costs.
Year-to-date net interest income increased 25.3% to $31.76 million compared to $25.35 million for the first nine months of 2024.
Credit Quality and Reserve Position
Non-performing assets increased slightly to $7.06 million, reflecting isolated foreclosure activity, though credit quality remains within established risk thresholds. Net loan losses year-to-date were modest at 0.02% of average loans.
The provision for credit losses was $551,000 for the quarter, supporting reserve growth in alignment with loan expansion and macroeconomic considerations.
Capital and Liquidity Strength
The Company remains well-capitalized, with strong on-balance sheet liquidity of 14.9% and access to substantial off-balance sheet funding capacity including FHLB advances, brokered deposits, ICS network placements, and correspondent credit lines.
Key regulatory capital ratios reflect continued strength:
| Ratio (Company) | Sept 30 2025 | June 30 2025 | Sept 30 2024 |
|---|---|---|---|
| Tier 1 Leverage | 7.44% | 7.34% | 7.21% |
| CET1 | 10.90% | 10.77% | 11.39% |
| Total Risk-Based Capital | 11.80% | 11.62% | 12.18% |
The Citizens Bank subsidiary remains even stronger across capital categories.
Noninterest Income and Expense Trends
Noninterest income rose 15.2% quarter-over-quarter, driven primarily by increased service charges on deposit accounts, including higher overdraft-related fee revenue.
However, noninterest income was down year-over-year due to the absence of one-time revenue events, including a $4.54 million gain from a sale-leaseback transaction recorded in early 2024.
Noninterest expense increased slightly, largely reflecting higher personnel costs associated with talent acquisition and retention investments.
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