Citizens Holding Company Earnings up 8.25%.

PHILADELPHIA, Miss. -- Citizens Holding Company (Amex:CIZ) announced today results of operations for the three and twelve months ended December 31, 2004.

Net income for the three months ended December 31, 2004 increased to $2.132 million, or $.43 per share-basic and $.42 per share-diluted, from $1.767 million, or $.36 per share-basic and $.35 per share-diluted for the same quarter in 2003. Net interest income for the fourth quarter of 2004, after the provision for loan losses for the quarter, was $5.828 million compared to $5.022 million compared to the fourth quarter of 2003. A $315 thousand increase in interest income due to both an interest rate increase on loans and a $491 thousand decrease in the provision for loan losses were the two reasons for this increase in net interest income in the fourth quarter of 2004 as compared to the same period in 2003. As a result of the improvement of the loan portfolio, the provision for loan losses decreased to $45 thousand in the three months ended December 31, 2004 from $536 thousand in the same period in 2003. The net interest margin increased to 4.77% in the fourth quarter of 2004 from 4.65% in the same period in 2003. Non-interest income increased in the fourth quarter of 2004 by $226 thousand while non-interest expenses increased $567 thousand, compared to the same period in 2003. Non-interest income increased as a result of a $137 thousand increase in the income related to bank owned life insurance that was purchased in November 2003. The increase in non-interest expenses was due in part to the $681 thousand increase in salaries and benefits.

Net income for the twelve months ended December 31, 2004 increased 8.25% to $7.546 million, or $1.51 per share-basic and $1.49 per share-diluted, from net income of $6.971 million, or $1.40 per share basic and $1.39 per share diluted, for the twelve months of 2003. Net interest income for the twelve months ended December 31, 2004, after the provision for loan losses, increased 9.39% to $21.368 million from $19.534 million in the same period in 2003 while the net interest margin increased to 4.61% in 2004 from 4.49% in 2003. The provision for possible loan losses for the twelve months ended December 31, 2004 was $1.067 million, compared to the $2.003 million for the same period in 2003. Improvements in the quality of the loan portfolio and an improving economy were the reasons for the decrease in the provision for possible loan losses. Net interest income increased in the twelve month period ended December 31, 2004when compared to the same period last year due to the increase in loan volume, the increase in the net interest margin and a decrease in the allowance for loan loss.

Total assets as of December 31, 2004 increased $36.478 million, or 6.6%, when compared to December 31, 2003. Deposits increased $35.767 million, or 8.2%. Loans, net of unearned income during this period, grew $12.526 million, or 3.5% from December 31, 2003. The increase in deposits coupled with a smaller increase in loans, allowed the Company to increase its Federal Funds Sold to $11.000 million and to reduce Federal Home Loan Bank borrowings by approximately $1.518 million from December 31, 2003.

Greg L. McKee, President and CEO stated, "It is a pleasure to once again report an increase in annual earnings, an 8.25% increase for 2004 when compared to 2003. Our loan growth in 2004 was respectable at 3.5% and deposit growth was even better at 8.2%. At the same time we have experienced this growth, the quality of our loan portfolio has improved and thus required a smaller provision to the allowance for loan loss for 2004 when compared to the 2003."

For the year of 2004, the Company paid dividends totaling $0.60 per share. This represents an increase of 5.3% over the dividends paid in 2003.

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. Forward-looking statements speak only as of the date they are made. The Company does not undertake a duty to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. 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 operates; (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 share and per share data)
                              (Unaudited)

                                  Three Months        Twelve Months
                                Ended December 31   Ended December 31
                                   2004      2003      2004      2003
                              ----------------------------------------

Interest income and fees         $7,871    $7,468   $29,972   $29,725
Interest expense                  1,998     1,911     7,537     8,188
                              ----------------------------------------
   Net interest income            5,873     5,557    22,435    21,537


Provision for loan losses            45       535     1,067     2,003
                              ----------------------------------------
   Net interest income after
    provision for loan losses     5,828     5,022    21,368    19,534

Non-interest income               1,418     1,191     5,575     5,324
Non-interest expense              4,402     3,835    16,714    15,042
                              ----------------------------------------

   Net income before taxes        2,844     2,378    10,229     9,816
Income taxes                        712       612     2,683     2,845
                              ----------------------------------------

     Net income                  $2,132    $1,766    $7,546    $6,971
                              ========================================


Earnings per share - basic        $0.43     $0.35     $1.51     $1.40
                              ========================================

Earnings per share - diluted      $0.42     $0.35     $1.49     $1.39
                              ========================================

Average shares outstanding-
 basic                        5,000,278 4,975,895 4,992,792 4,979,960

Average shares outstanding-
 diluted                      5,055,112 5,039,898 5,056,637 5,024,809


                                                    As of     As of
                                                  December   December
                                                      31,       31,
                                                     2004      2003
                                                  --------------------
Balance Sheet Data:
     Total assets                                  $587,239  $550,761
     Total earning assets                           525,155   493,209
      Loans, net of unearned
       income                                       369,589   357,063
     Allowance for loan losses                        4,721     5,127
     Total deposits                                 474,464   438,697
     Long-term borrowings                            46,119    47,637
     Shareholders' equity                            60,191    56,502
     Book value per share                            $12.04    $11.35
     Dividends paid per share                         $0.60     $0.57

Average Balance Sheet Data:
     Total assets                                  $565,892  $549,520
     Total earning assets                           506,898   499,726
      Loans, net of unearned
       income                                       364,922   337,763
     Total deposits                                 457,510   447,188
     Long-term borrowings                            41,607    35,314
     Shareholders' equity                            58,750    56,121

Non-performing assets:
     Non-accrual loans                                3,163     1,503
     Loans 90+ days past due                            904     4,396
     Other real estate owned                          2,787       695

Net charge-off as a percentage
 average net loans                                     0.40%     0.33%

Performance Ratios:
     Return on average assets                          1.33%     1.27%
     Return on average equity                         12.84%    12.42%

Net interest margin (tax
 equivalent)                                           4.61%     4.49%