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Citizens' income decreases

PHILADELPHIA — Citizens Holding Company saw net income for the three months ended June 30, 2009, decrease to $1.84 million, or $0.38 per share-basic and $0.37 per share-diluted, from $2.475 million, or $0.51 per share-basic and diluted for the same quarter in 2008.

The provision for loan losses for the quarter was $824,000, compared to $559,000 for the same period in 2008.

Net income for the six months ended June 30, 2009, decreased 10.1 percent to $3.699 million, or $0.76 per share-basic and $0.75 per share-diluted, from $4.115 million, $0.85 per share-basic and $0.84 per share-diluted, for the six months ended June 30, 2008.

The provision for loan losses for the six-month period was $1.140 million, compared to the provision of $657,000 in 2008.

During the second quarter of 2008, the bank received proceeds from bank-owned life insurance that insured the life of one of its officers. These net proceeds resulted in an additional $770,000 in other income for the quarter and year to date. Benefits were paid out to the officer’s beneficiary in the amount of $260,000, adding to the increase in other expense. The net effect on income after taxes of this transaction was an increase of $597,000, or $0.12 per share-basic and diluted.

In the second quarter of 2009, Citizens expensed the special FDIC assessment that all banks are required to pay on Sept. 30, 2009. This assessment amounted to a reduction of net income after taxes of $233,949, or $0.05 per share-basic and diluted.

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