Citizens Holding Company Earnings for 2002 up 10.6%.

Business Editors

PHILADELPHIA, Miss.--(BUSINESS WIRE)--Oct. 24, 2002

Citizens Holding Company (Amex:CIZ) announced today results of operations for the three and nine months ended September 30, 2002.

Net income for the nine months ended September 30, 2002 was $4.887 million, or $0.98 per share-basic and diluted, an increase of 10.6% over the $4.420 million ($0.89 per share basic and diluted) for the same period in 2001. Net interest income, after provision for loan losses increased $3.428 million or 32.0%. Other income increased slightly to $3.203 million while other operating expenses increased $2.774 million (37.7%) to $10.128 million.

Net income for the three months ended September 30, 2002 increased 7.7% to $1.680 million, or $0.34 per share-basic and diluted, compared to $1.560 million, or $0.31 per share-basic and diluted for the same quarter last year. Net interest income, after the provision for loan losses for the quarter, was approximately 32.5% higher compared to same quarter last year. The significant increases in net interest income for the three and nine month periods are attributable to the ongoing repricing of interest bearing deposits and the growth in investments and loans from the acquisitions of the Forest and Decatur branches and Citizens Bank & Trust in Louisville. The net interest margin increased to 4.69% in the third quarter of 2002 from 4.27% in the same period in 2001. Non-interest expenses in both the nine month and three month period increased as a result of personnel and occupancy costs and amortization expense associated with the acquisitions, and normal costs increases related to growth of the bank.

Total assets as of September 30, 2002 increased $122.767 million, or 28.7%, compared to December 31, 2001. Deposits increased $105.083 million, or 29.2%. Loans net of unearned interest during this period grew $36.283 million, or 13.7%. The acquisition of Citizens Bank & Trust Company in Louisville, Mississippi in May 2002 accounted for $71.116 million of the asset growth, $57.940 million of the deposit growth and $15.019 million of the loan growth.

Steve Webb, Chairman and CEO stated, "We are pleased with our performance for the third quarter and for the first three quarters of 2002. Net income for the quarter is up 7.7% and up 10.6% for the nine months when compared to the same periods of last year. Our current net interest margin of 4.69% for the nine month period is substantially better than the 4.27% for the same period last year."

Webb added, "During the third quarter we moved into our new Operations Center, converted to check imaging and completed the operational conversion of Citizens Bank & Trust Company in Louisville while still showing strong earnings growth. We look forward to using the new Operations Center to help better serve our customers."

Adjusted for the three for two split of January 2, 2002, the Company's dividend of $0.38 per share for the first three quarters of 2002 represents an increase of 34.3% over the dividends paid in the first three quarters of 2001.

Citizens Holding Company (the "Company") is a one-bank holding company and the parent company of The Citizens Bank of Philadelphia, both headquartered in Philadelphia, Mississippi. The Bank currently has nineteen banking locations in eight counties in East Central Mississippi. In addition to full service commercial banking, the Company offers mortgage loans, title insurance services through its subsidiary, Title Services, LLC, and a full range of Internet banking services including online banking, bill pay and cash management services for businesses. Internet services are available at the Bank web site, www.thecitizensbankphila.com. Citizens Holding Company stock is listed on the American Stock Exchange and is traded under the symbol CIZ. The Company's transfer agent is American Stock Transfer & Trust Company.

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this release regarding the Company's financial position, results of operations, business strategies, plans, objectives and expectations for future operations, are forward looking statements. The Company can give no assurances that the assumptions upon which such forward-looking statements are based will prove to have been correct. Such forward-looking statements are subject to certain risks, uncertainties and assumptions. The risks and uncertainties that may affect the operation, performance, development and results of the Company's and the bank's business include, but are not limited to, the following: (a) the risk of adverse changes in business conditions in the banking industry generally and in the specific markets in which the Company operate; (b) changes in the legislative and regulatory environment that negatively impact the Company and bank through increased operating expenses; (c) increased competition from other financial institutions; (d) the impact of technological advances; (e) expectations about the movement of interest rates, including actions that may be taken by the federal Reserve Board in response to changing economic conditions; (f) changes in asset quality and loan demand; (g) expectations about overall economic strength and the performance of the economics in the Company's market area and (h) other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected.

                       Citizens Holding Company
                         Financial Highlights
             (amounts in thousands, except per share data)
                              (Unaudited)


                            Three Months Ended     Nine Months Ended
                               September 30          September 30

                             2002       2001       2002       2001
                           ---------- ---------- ---------- ----------

Interest income and fees      $7,891     $7,399    $22,495    $21,842
Interest expense               2,507      3,417      7,352     10,391
                           ---------- ---------- ---------- ----------
   Net interest income         5,384      3,982     15,143     11,451


Provision for loan losses        337        174      1,007        743
   Net interest income
    after provision for
    loan losses                5,047      3,808     14,136     10,708

Non-interest income            1,154      1,066      3,203      3,094
Non-interest expense           3,721      2,532     10,128      7,354
                           ---------- ---------- ---------- ----------

   Net income before taxes     2,480      2,342      7,211      6,448
Income taxes                     800        782      2,324      2,028
                           ---------- ---------- ---------- ----------

     Net income               $1,680     $1,560     $4,887     $4,420
                           ========== ========== ========== ==========


Earnings per share - basic     $0.34      $0.31      $0.98      $0.89
                           ========== ========== ========== ==========

Earnings per share -
 diluted                       $0.34      $0.31      $0.98      $0.89
                           ========== ========== ========== ==========

Average shares outstanding-
 basic                     4,963,028  4,963,028  4,963,028  4,963,028

Average shares outstanding-
 diluted                   5,000,727  4,976,120  4,996,794  4,976,942


                                               As of         As of
                                           September 30, December 31,
                                               2002          2001
                                           ------------- -------------
Balance Sheet Data:
     Total assets                              $549,980      $427,213
     Total earning assets                       500,682       394,315
     Loans net of unearned                      300,561       264,278
     Allowance for loan losses                   -4,222        -3,375
     Total deposits                             464,392       359,309
     Long term borrowings                        24,841        14,629
     Shareholders' equity                        53,204        47,182
     Book value per share                        $10.72         $9.51
     Dividends paid year to date                 $0.380        $0.383

Average Balance Sheet Data:
     Total assets                              $481,348      $403,882
     Total earning assets                       441,489       361,520
     Loans net of unearned                      284,189       255,185
     Total deposits                             406,560       327,536
     Long term borrowings                        19,752        14,815
     Shareholders' equity                        50,380        47,664

Non-performing assets:
     Non-accrual loans                              433           419
     Loans 90+ days past due                      2,379         2,918
     Other real estate owned                      1,379           340

Net charge-off as a percentage
     average loans                                 0.35%         0.42%

Performance Ratios:
     Return on average assets                      1.35%         1.41%
     Return on average equity                     12.93%        11.98%

Net interest margin (tax equivalent)               4.69%         4.32%