- Citizens Holding Company (CIZN, Financial) reported a 40.3% increase in net income for Q1 2025 compared to Q4 2024, though net income decreased 35.5% year-over-year.
- The company's total revenues rose 4.2% from the previous quarter, driven by a 4.9% growth in loans held for investment.
- Citizens Holding Company strategically reduced its quarterly dividend to $0.02 per share to retain capital for growth initiatives.
Citizens Holding Company (CIZN) announced its financial results for the first quarter of 2025, marking significant progress in enhancing profitability and repositioning its balance sheet. The company reported a net income of $1,850, or $0.33 per share, showing a substantial increase of 40.3% from the last quarter of 2024. Despite the quarter-over-quarter improvement, this represents a 35.5% decline compared to the same quarter in 2024 due to a one-time gain from a previous sale-leaseback transaction.
Total revenues for the quarter reached $20,364, a 4.2% increase from Q4 2024, attributed primarily to robust loan growth. Loans held for investment grew by $37,757, or 4.9%, amounting to $803,886 at the end of March 2025. Additionally, the company's net interest margin improved to 2.97% from 2.77% in the previous quarter, further fueled by increased asset yields and reduced funding costs.
Achieving strong credit quality, Citizens Holding maintained a non-performing assets ratio of 66 basis points. Although there was a slight uptick in NPAs due to two large relationships, the overall credit quality remained stable with an allowance for credit losses to loans ratio at 0.95% by the quarter's close.
Strategically reducing its quarterly dividend to $0.02 per share from $0.16, the company aims to bolster capital retention to support its growth strategies. The Citizens Holding Company continues to leverage its strong capital and liquidity positions, with a Tier 1 leverage ratio of 7.22% and a total risk-based capital ratio of 11.51%, indicating robust financial health.
