Citizens Holding Stock

Citizens Holding Company operates as the bank holding company for The Citizens Bank of Philadelphia that provides various banking products and services.

The company engages in a wide range of commercial and personal banking activities, including accepting demand deposits, savings and time deposit accounts, making secured and unsecured loans, issuing letters of credit, originating mortgage loans, and providing personal and corporate trust services. The company also provides certain services that are closely related to commercial banking, such as credit life insurance and title insurance for its loan customers through third-party relationships.

The company’s primary market area is the entire state of Mississippi and contiguous states. The company has historically made, and intends to continue to make, most types of real estate loans, including but not limited to, single and multi-family housing, farm, residential and commercial construction, and commercial real estate loans.

Deposits

The company offers a wide variety of deposit services to individual and commercial customers, such as non-interest-bearing and interest-bearing checking accounts, savings accounts, money market deposit accounts and time deposits.

Investment Portfolio

As of December 31, 2022, the company’s investment portfolio included mortgage-backed securities; state, county, and municipal obligations; and other securities.

Supervision and Regulation

The bank is chartered under the banking laws of the State of Mississippi and is subject to the supervision of, and is regularly examined by, the Mississippi Department of Banking and Consumer Finance and the Federal Deposit Insurance Corporation (‘FDIC’). The company is a registered bank holding company within the meaning of the bank Holding Company Act of 1956, as amended (the ‘BHC Act’), and is subject to the supervision of the Federal Reserve Board (‘FRB’).

The company and the bank are classified as well capitalized under the guidelines promulgated by the FRB and the FDIC.

The company and the bank are subject to certain restrictions imposed by the Federal Reserve Act and the Federal Deposit Insurance Act on any extensions of credit to the company or the bank, on investments in the stock or other securities of the company or the bank, and on taking such stock or other securities as collateral for loans of any borrower.

In order to qualify as a financial holding company, the company must declare to the FRB its intention to become a financial holding company and certify that the bank meets the capitalization management requirements and that it has at least a satisfactory rating under the Community Reinvestment Act of 1997, as amended (the ‘CRA’).

The FDIC examined the bank on September 24, 2019 for its performance under the CRA. The company is in compliance with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

The Sarbanes-Oxley Act of 2002 (‘Sarbanes Act’) requires publicly traded companies, such as the company, to adhere to several directives designed to prevent corporate misconduct.

History

Citizens Holding Company was founded in 1908. The company was incorporated under the laws of the state of Mississippi in 1982.