Item 1. Business
ITEM 1.
BUSINESS.
BACKGROUND
The Company is a one-bank holding company incorporated under the laws of the State of
Mississippi on February 16, 1982. The Company is the sole shareholder of The Citizens Bank of Philadelphia (the Bank). The Company does not have any subsidiaries other than the Bank. The Company, we, or
our, as used herein, includes the Bank, unless the context otherwise requires.
The Bank was opened on
February 8, 1908 as The First National Bank of Philadelphia. In 1917, the Bank surrendered its national charter and obtained a state charter, at which time the name of the Bank was changed to The Citizens Bank of Philadelphia, Mississippi. At
December 31, 2018, the Bank was the largest bank headquartered in Neshoba County, Mississippi, with total assets of $958.630 million and total deposits of $756.222 million. For more information regarding the assets, revenue and
profits of the Company, refer to the Consolidated Financial Statements of the Company contained in Item 8, Financial Statements and Supplementary Data. The Companys only reportable segment is the assets and cash flow of the Bank,
resulting in revenues of $40,106,707, operating profit of $7,011,807 and total assets of $975,454,918 for the Company as of December 31, 2018.
The principal executive offices of both the Company and the Bank are located at 521 Main Street, Philadelphia, Mississippi
39350, and the main telephone number is (601) 656-4692. All references hereinafter to the activities or operations of the Company reflect the Companys activities or operations through the Bank.
OPERATIONS
Through its ownership of the Bank, 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.
Revenues from the Companys lending activities constitute the largest component of the Companys operating revenues.
Revenue from loan interest and fees made up 50.7% of gross revenues in 2018, 48.3% in 2017 and 50.2% in 2016. Loan demand has improved, loan yields are gradually increasing and the investment portfolio is decreasing, all of which has contributed to
this percentage increasing from 2017. The increase in lending has been distributed among the Banks leading products, including commercial, real estate, installment (direct and indirect) and credit card loans. The Companys primary lending
area is East Central and South Mississippi, specifically Neshoba, Newton, Leake, Lamar, Forrest, Scott, Attala, Lauderdale, Oktibbeha, Lafayette, Rankin, Harrison, Jackson, Winston and Kemper counties and contiguous counties. In 2008, the Company
entered the southern Mississippi market with the opening of a branch office in Hattiesburg, Mississippi, which is located in Lamar County. In 2009, the Company opened a Loan Production Office (LPO) in Biloxi, Mississippi to serve the
Mississippi Gulf Coast and in April 2014 converted this office to a full service branch and at the same time opened another branch in Biloxi. In 2011, the Company opened a branch in Flowood, Mississippi. In December 2016, the Company opened a LPO in
Oxford, Mississippi to offer commercial loans to the people in North Mississippi. On a very limited basis, the Company extends out-of-area credit to borrowers who are
considered to be low risk, as defined within the Banks lending policy. The Company is not dependent upon any single customer or small group of customers, and it has no foreign operations.
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The Companys market area is mainly rural, with Hattiesburg, population
50,233, Biloxi, population 50,644, and Meridian, population 38,314, being the largest markets. Agriculture and some light industry comprise a significant portion of the economy of this area. The largest employer in the Companys service area is
the Mississippi Band of Choctaw Indians. Its schools, manufacturing plants and The Pearl River Resort (the Resort) generate a significant number of jobs in the area. The Resort and its related services employ approximately 2,400 people
within the Companys market. For more information regarding revenue from external customers for the last three fiscal years, attributed by geographic region, please refer to Item 7, Managements Discussion and Analysis of Financial
Condition and Results of Operations, which is included in the Companys Annual Report and attached as an exhibit hereto.
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. At December 31, 2018, approximately 81.1% of the Companys loan portfolio was attributed to real estate lending,
15.6% of the Companys loan portfolio was comprised of commercial, industrial and agricultural production loans, and consumer loans made up the remaining 3.3% of the Companys total loan portfolio.
The Companys loan personnel have the authority to extend credit under guidelines established and approved by the
Companys Board of Directors. Any aggregate credit that exceeds the authority of the loan officer is forwarded to the Boards loan committee for approval. The loan committee is composed of certain independent Company directors. All
aggregate credits that exceed the loan committees lending authority are presented to the Board of Directors for ultimate approval or denial. The loan committee not only acts as an approval body to ensure consistent application of the
Companys loan policies, but also provides valuable insight through the communication and pooling of knowledge, judgment and experience of its members.
All loans in the Companys portfolio are subject to risk based on the state of both the local and national economy. As
our footprint expands, the Companys portfolio risks are more closely aligned with the state economy. The state economy remains strong with 2018 being one of the best in recent years. The state economy is expected to slow down some but still
projected to see growth over the next couple of years. The national economy remains strong but is seeing signs of slowing. It is still uncertain how the slowing economies on the local, state and national levels will affect the Company in the future.
The Company continues to invest in technology as we understand it is necessary to compete in todays market. The
Company has the technology for consumers to perform many of the routine, transaction-related items through its online and mobile platforms. Additionally, the Company continues to build out a robust treasury management suite of products for business
banking such as remote deposit capture, ACH transactions and wire transfers. The Company is evolving with the market to ensure we continue to offer a great customer experience that they have come to expect from the Company.
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EXECUTIVE OFFICERS OF THE COMPANY
Greg L. McKee, 57, has been employed by the Bank since 1984. He was named President and Chief Executive Officer of the Company
and Chief Executive Officer of the Bank in January 2003. He has served as President of the Bank since January 2002 and served as Chief Operating Officer of the Bank from January 2002 until December 31, 2002. He has also been a member of the
Board of Directors of both the Company and the Bank since 2001. Mr. McKee served as Executive Vice-President of the Bank from 2001 to 2002, Senior Vice-President of the Bank from 2000 to 2001, Vice-President of the Bank from 1992 to 2000,
Assistant Vice-President of the Bank from 1989 to 1992, and Assistant Cashier of the Bank from 1984 to 1989.
Robert T.
Smith, 67, has been employed by the Bank since 1986. He has served as Senior Vice-President and Chief Financial Officer of the Bank since January 2001. Prior to January 2001, Mr. Smith held the title of Vice-President and Controller of the Bank
from 1987 until 2001 and Assistant Vice-President of the Bank from 1986 to 1987. In addition to his position with the Bank, Mr. Smith has served as Treasurer of the Company since February 1996 and Treasurer and Chief Financial Officer since
January 2001.
EMPLOYEES
The Company has no employees other than three Bank officers who provide services to the Company. These officers receive no
compensation from the Company for their services to it as their compensation is paid by the Bank. At December 31, 2018, the Bank employed 235 full-time employees and 24 part-time employees. The Bank is not a party to any collective bargaining
agreements, and employee relations are considered to be good.
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). Certain legislation and regulations affecting the businesses of the Company and the Bank are discussed below.
General.
The current regulatory environment for financial institutions includes substantial enforcement activity by the federal and
state banking agencies, and other state and federal law enforcement agencies, reflecting an increase in activity over prior years. This environment entails significant increases in compliance requirements and associated costs. The FRB requires the
Company to maintain certain levels of capital and to file an annual report with the FRB. The FRB also has the authority to conduct examinations of the Company and the Bank and to take enforcement action against any bank holding company that engages
in any unsafe or unsound practice or that violates certain laws, regulations, or conditions imposed in writing by the FRB.
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Financial Reform.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended, (Dodd-Frank Act) made extensive changes
in the regulation of financial institutions. There are many provisions in the Dodd-Frank Act mandating regulators to adopt new regulations and conduct studies upon which future regulation may be based, a number of which still have not been
implemented. It is anticipated that these rules and enforcement by the Banks regulators will continue to evolve through regulatory amendments, informal interpretations, and enhanced enforcement in the future. Congress and the President have
announced proposed reforms and changes to the Dodd-Frank Act, and it is uncertain how the Dodd-Frank Act provisions may be modified or the ultimate impact any such modifications may have to our business operations.
In November 2017, a bipartisan group of U.S. Senators, led by Senate Banking Committee Chairman, introduced the Economic
Growth, Regulatory Relief and Consumer Protection Act (the Economic Growth Act). The Economic Growth Act, signed into law on May 24, 2018, provides relief from certain regulatory requirements under the Dodd-Frank Act. Generally, the
Economic Growth Act addressed the following areas: the threshold at which banks are classified as systemically important financial institutions (SIFIs), and therefore subject to stricter oversight; targeted relief from Dodd-Frank Act requirements
for smaller banks; capital formation; mortgage lending; student borrower debt and provisions addressing veterans, consumers and homeowners. While we expect the Economic Growth Act to have an overall positive impact on our business going forward, we
continue to evaluate its impact on our business and that impact remains uncertain.
Capital Standards.
The FRB, FDIC and other federal banking agencies have established risk-based capital adequacy guidelines. These guidelines are
intended to provide a measure of a banks capital adequacy that reflects the degree of risk associated with a banks operations.
A banking organizations risk-based capital ratios are obtained by dividing its qualifying capital by its total
risk-adjusted assets and off-balance sheet items. Since December 31, 1992, the federal banking agencies have required a minimum ratio of qualifying total capital to risk-adjusted assets and off-balance sheet items of 8%, and a minimum ratio of Tier 1 capital to risk-adjusted assets and off-balance sheet items of 4%. At December 31, 2018, the Companys
ratio of qualifying total capital to risk-adjusted assets and off-balance sheet items was 18.02%, and its ratio of Tier 1 capital to risk-adjusted assets and off-balance
sheet items was 17.40%.
In addition to the risk-based guidelines, federal banking regulators require banking
organizations to maintain a minimum amount of Tier 1 capital to total assets, referred to as the leverage ratio. For a banking organization rated in the highest of the five categories used by regulators to rate banking organizations, the minimum
leverage ratio of Tier 1 capital to total assets is 4%. The Companys leverage ratio at December 31, 2018 was 9.93%.
The Dodd-Frank Act requires the FRB, the Office of the Comptroller of the Currency (OCC) and the FDIC to adopt
regulations imposing a continuing floor on the risk-based capital requirements. In December 2010, the Basel Committee released a final framework for a strengthened set of capital requirements, known as Basel III. In July
2013, each of the U.S. federal banking agencies adopted final rules relevant to us: (1) the Basel III regulatory capital
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reforms; and (2) the standardized approach of Basel II for non-core banks and bank holding companies, such as the Bank and the Company. The
capital framework under Basel III will replace the existing regulatory capital rules for all banks, savings associations and U.S. bank holding companies with greater than $500 million in total assets, and all savings and loan holding companies.
Beginning January 1, 2015, the Bank began to comply with the Basel III rules, although the rules were not fully phased-in until January 1, 2019. Among other things, the final Basel III rules impact regulatory capital ratios of banking organizations in the following manner:
Create a new requirement to maintain a ratio of common equity Tier 1 capital to total risk-weighted assets of
not less than 4.5%;
Increase the minimum leverage ratio to 4% for all banking organizations (currently 3% for certain banking
organizations);
Increase the minimum Tier 1 risk-based capital ratio from 4% to 6%; and
Maintain the minimum total risk-based capital ratio at 8%.
In addition, the Basel III rules will subject a banking organization to certain limitations on capital distributions and
discretionary bonus payments to executive officers if the organization does not maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of its total risk-weighted assets. The capital conservation buffer
increases the minimum common equity Tier 1 capital ratio to 7%, the minimum Tier 1 risk-based capital ratio to 8.5% and the minimum total risk-based capital ratio to 10.5% for banking organizations seeking to avoid the limitations on capital
distributions and discretionary bonus payments to executive officers.
The Basel III rules also changed the capital
categories for insured depository institutions for purposes of prompt corrective action. Under the rules, to be well capitalized, an insured depository institution must maintain a minimum common equity Tier 1 capital ratio of at least 6.5%, a Tier 1
risk-based capital ratio of at least 8%, a total risk-based capital ratio of at least 10.0%, and a leverage capital ratio of at least 5%. In addition, the Basel III rules established more conservative standards for including an instrument in
regulatory capital and imposed certain deductions from and adjustments to the measure of common equity Tier 1 capital.
Management believes that, as of December 31, 2018, the Company and the Bank met all capital adequacy requirements under
Basel III. Management will continue to monitor these and any future proposals submitted by the Companys and Banks regulators.
Prompt Corrective Action and Other Enforcement Mechanisms.
The Federal Deposit Insurance Corporation Improvement Act of 1991, as amended (FDICIA) requires each federal
banking agency to take prompt corrective action to resolve the problems of insured depository institutions, including, but not limited to, those that fall below one or more of the prescribed minimum capital ratios. The law requires each federal
banking agency to promulgate regulations defining the following five categories in which an insured depository institution will be placed, based on the level of its capital ratios: well capitalized; adequately capitalized; undercapitalized;
significantly undercapitalized; and critically undercapitalized. The Company and the Bank are classified as well capitalized under the guidelines promulgated by the FRB and the FDIC.
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Safety and Soundness Standards.
FDICIA also implemented certain specific restrictions on transactions and required the regulators to adopt overall safety and
soundness standards for depository institutions related to internal control, loan underwriting and documentation, and asset growth. Among other things, FDICIA limits the interest rates paid on deposits by undercapitalized institutions, the use of
brokered deposits and the aggregate extension of credit by a depository institution to an executive officer, director, principal shareholder or related interest, and reduces deposit insurance coverage for deposits offered by undercapitalized
institutions and for deposits by certain employee benefits accounts.
Restrictions on Dividends and Other Distributions.
The Companys ability to pay dividends depends in large part on the ability of the Bank to pay dividends to the Company.
The power of the board of directors of an insured depository institution to declare a cash dividend or other distribution with respect to capital is subject to federal statutory and regulatory restrictions, which limit the amount available for such
distribution depending upon the earnings, financial condition and cash needs of the institution, as well as general business conditions.
The approval of the Mississippi Department of Banking and Consumer Finance is also required prior to the Bank paying
dividends. The departments regulations limit dividends to earned surplus in excess of three times the Banks capital stock. At December 31, 2018, the maximum amount available for transfer from the Bank to the Company in the form of a
dividend was approximately $81.5 million, or 99.3% of the Banks consolidated net assets.
FRB regulations limit
the amount the Bank may loan to the Company unless those loans are collateralized by specific obligations. At December 31, 2018, the maximum amount available for transfer from the Bank in the form of loans was $8.2 million, or 10% of the
Banks consolidated net assets. The Bank does not have any outstanding loans with the Company.
FDIC Insurance Assessments.
The FDIC insures the deposits of federally insured banks up to prescribed statutory limits for each depositor, through
the Deposit Insurance Fund (DIF) and safeguards the safety and soundness of the banking and thrift industries. The amount of FDIC assessments paid by each insured depository institution is based on its relative risk of default as
measured by regulatory capital ratios and other supervisory factors.
The FDICs deposit insurance premium assessment
is based on an institutions average consolidated total assets minus average tangible equity.
We are generally
unable to control the amount of premiums that we are required to pay for FDIC insurance. At least semi-annually, the FDIC will update its loss and income projections for the DIF and, if needed, will increase or decrease assessment rates, following notice-and-comment rulemaking, if required. If there are additional bank or financial institution failures or if the FDIC otherwise determines to increase assessment rates,
the Bank may be required to pay higher FDIC insurance premiums. Any future increases in FDIC insurance premiums may have a material and adverse effect on our earnings.
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Other BHC Act Provisions.
The BHC Act requires a bank holding company to obtain the prior approval of the FRB before acquiring direct or indirect
ownership or control of more than 5% of the voting shares of any bank that is not already majority-owned by such bank holding company. The BHC Act provides that the FRB shall not approve any acquisition, merger or consolidation that would result in
a monopoly or that would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking. The FRB also will not approve any other transactions in which the effect might be to substantially lessen
competition or in any manner be a restraint on trade, unless the anti-competitive effects of the proposed transaction are clearly outweighed by the public interest in the probable effect of the transaction in meeting the convenience and needs of the
community to be served.
The BHC Act also prohibits a bank holding company, with certain exceptions, from engaging in or
from acquiring direct or indirect control of more than 5% of the voting shares of any company engaged in non-banking activities. The principal exception to this rule is for engaging in or acquiring shares of a
company whose activities are found by the FRB to be so closely related to banking or managing banks as to be a proper incident thereto. In making such determinations, the FRB is required to consider whether the performance of such activities by a
bank holding company or its subsidiaries can reasonably be expected to produce benefits to the public such as greater convenience, increased competition or gains in efficiency of resources that outweigh the risks of possible adverse effects such as
decreased or unfair competition, conflicts of interest or unsound banking practices.
The BHC Act prohibits the
acquisition by a bank holding company of more than 5% of the outstanding voting shares of a bank located outside the state in which the operations of its banking subsidiaries are principally conducted, unless such an acquisition is specifically
authorized by statute of the state in which the bank to be acquired is located.
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.
The BHC Act was amended in 2000 by the
Gramm-Leach-Bliley Financial Services Modernization Act of 1999 to permit financial holding companies to engage in a broader range of nonbanking financial activities, such as underwriting and selling insurance, providing financial or
investment advice, and dealing and making markets in securities and merchant banking. 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). To date, we have not elected to become a financial holding company.
Community Reinvestment Act.
The CRA requires the assessment by the appropriate regulatory authority of a financial institutions record in meeting the
credit needs of the local community, including low and moderate-income neighborhoods. The regulations promulgated under CRA emphasize an assessment of actual performance in meeting local credit needs, rather than of the procedures followed by a bank
to
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evaluate compliance with the CRA. CRA compliance is also a factor in evaluations of proposed mergers, acquisitions and applications to open new branches or facilities. Overall CRA compliance is
rated across a four-point scale from outstanding to substantial noncompliance. Different evaluation methods are used depending on the asset size of the bank.
The FDIC examined the Bank on July 12, 2016 for its performance under the CRA. The Bank was rated
Satisfactory during this examination. No discriminatory practices or illegal discouragement of applications were found.
Consumer Protection.
The Bank is subject to a number of federal and state consumer protection laws. These laws provide substantive consumer rights
and subject the Bank to substantial regulatory oversight. Violations of applicable consumer protection laws can result in significant potential liability from litigation brought by customers, including actual damages, restitution and attorneys
fees. Federal bank regulators, state attorneys general and state and local consumer protection agencies may also seek to enforce consumer protection requirements and obtain these and other remedies, including regulatory sanctions, customer
rescission rights, action by the state and local attorneys general in each jurisdiction in which our bank subsidiary operates and civil money penalties. Failure to comply with consumer protection requirements may also result in the Banks
failure to obtain any required bank regulatory approval for merger or acquisition transactions the Bank may wish to pursue or its prohibition from engaging in such transactions even if approval is not required.
Anti-Money Laundering Efforts.
The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
(USA PATRIOT Act) requires financial institutions to establish anti-money laundering programs and due diligence policies, procedures and controls with respect to bank accounts involving foreign individuals and certain foreign banks, and
to avoid establishing and maintaining accounts in the United States for, or on the behalf of, foreign banks that do not have a physical presence in any country. We believe that we are in compliance with the requirements of the USA PATRIOT Act.
Corporate Governance .
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. As a result, additional duties have been placed on officers, directors, auditors and attorneys of public companies. The Sarbanes Act requires certifications regarding financial statement
accuracy and internal control adequacy by the chief executive officer and the chief financial officer to accompany periodic reports filed with the Securities and Exchange Commission (SEC). The Sarbanes Act also accelerates insider
reporting obligations under Section 16 of the Securities Exchange Act of 1934, as amended, restricts certain executive officer and director transactions, imposes new obligations on corporate audit committees and provides for enhanced review by
the SEC.
The Dodd-Frank Act mandated a number of new requirements with respect to corporate governance. The legislation
requires publicly traded companies to give stockholders a non-binding vote on executive compensation at least every three years and on so-called golden
parachute
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payments in connection with approvals of mergers and acquisitions. The Dodd-Frank Act also authorizes the SEC to promulgate rules that would allow stockholders to nominate their own candidates
using a companys proxy materials. Additionally, the Dodd-Frank Act directs the federal banking regulators to promulgate rules prohibiting excessive compensation paid to executives of depository institutions and their holding companies with
assets in excess of $1.0 billion, regardless of whether the company is publicly traded. The Dodd-Frank Act gives the SEC authority to prohibit broker discretionary voting on elections of directors and executive compensation matters.
Impact of Monetary Policies.
Banking is a business that substantially depends on interest rate differentials. In general, the difference between the
interest paid by a bank on its deposits and other borrowings and the interest rate earned by banks on loans, securities and other interest-earning assets comprises the major source of banks earnings. Thus, the earnings and growth of banks are
subject to the influence of economic conditions generally, both domestic and foreign, and also to the monetary and fiscal policies of the United States and its agencies including the FRB. The nature and timing of any future changes in such policies
and their impact on the Company cannot be predicted.
Future Legislation.
Various legislation affecting financial institutions and the financial industry is from time to time introduced in Congress.
Such legislation may change banking statutes and our operating environment in substantial and unpredictable ways and could increase or decrease the cost of doing business, limit or expand permissible activities or affect the competitive balance
depending upon whether any of this potential legislation will be enacted, and if enacted, the effect that it or any implementing regulations, would have on the financial condition or our results of operations. With the proposals to alter the
Dodd-Frank Act and the evolution of the CFPB, the nature and extent of future legislative and regulatory changes affecting financial institutions continues to be very unpredictable.
COMPETITION
The banking business is highly competitive. The Companys market consists principally of Neshoba, Newton, Leake, Lamar,
Forrest, Scott, Attala, Lafayette, Lauderdale, Oktibbeha, Lafayette, Rankin, Harrison, Jackson, Winston and Kemper and contiguous counties in Mississippi. In 2008, the Company entered the southern Mississippi market with the opening of a branch
office in Hattiesburg, Mississippi, which is located in Lamar County, and in 2009, opened a loan production office in Biloxi, Mississippi, which in April 2014, was converted into a full service branch. In 2011, the Company opened a branch in
Flowood, Mississippi. In 2014, the Company established an additional branch in Biloxi to better serve the Gulf Coast. In 2016, the Company entered North Mississippi with the establishment of a loan production office in Oxford, Mississippi. The
Company competes with local, regional and national financial institutions in these counties and in surrounding counties in Mississippi in obtaining deposits, lending activities and providing many types of financial services. The Company also
competes with larger regional banks for the business of companies located in the Companys market area.
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All financial institutions, including the Company, compete for customers
deposits. The Company also competes with savings and loan associations, credit unions, production credit associations, federal land banks, finance companies, personal loan companies, money market funds and other
non-depository financial intermediaries. Many of these financial institutions have resources significantly greater than those of the Company. In addition, financial intermediaries, such as money-market mutual
funds and large retailers, are not subject to the same regulations and laws that govern the operation of traditional depository institutions. The Company believes it benefits from a good reputation in the community and from the significant length of
time it has provided needed banking services to its customers. Also, as a locally owned financial institution, the Company believes it is able to respond to the needs of the community with services tailored to the particular demands of its
customers. Furthermore, as a local institution, the Company believes it can provide such services faster than a larger institution not based in the Companys market area.
Changes in federal and state law have resulted in, and are expected to continue to result in, increased competition. The
reductions in legal barriers to the acquisition of banks by out-of-state bank holding companies resulting from implementation of the Dodd-Frank Act and other banking
laws and regulations are expected to continue to further stimulate competition in the markets in which the Company operates, although it is not possible to predict the extent or timing of such increased competition.
Currently, there are approximately thirty different financial institutions in the Companys market competing for the same
customer base. According to the FDICs Summary of Deposits that is collected as of June 30 each year, the Companys market share in its market area was approximately 5.48% at June 30, 2018. The Company competes in its market for
loan and deposit products, along with many of the other services required by todays banking customer, on the basis of availability, quality and pricing. The Company believes it is able to compete favorably in its markets, in terms of both the
rates the Company offers and the level of service that the Company provides to its customers.
AVAILABILITY OF INFORMATION
The Companys Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments thereto, along with other information about the Company, are available, free of charge, on our website,
http://www.citizensholdingcompany.com. The information contained on our website is not incorporated into this report. Upon request, the Company will provide to any record holder or beneficial holder of its shares a copy of such reports without
charge. Requests should be made to Robert T. Smith, Treasurer and Chief Financial Officer, Citizens Holding Company, 521 Main Street, Philadelphia, Mississippi 39350.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.