Citizens Holding Company revealed last week its decision to voluntarily deregister their common stock and delist from the NASDAQ Global Market. The holding company operates a single bank, headquartered in Philadelphia, Mississippi.
A day prior to announcing the delisting from NASDAQ Global Markets, Citizens Holding Company declared a quarterly dividend payable on Dec. 29 to shareholders of record on Dec. 15. The dividend is set at $.16 per share. CEO Brantley stated in a news release that while they continue to face challenges concerning earnings, they remain committed to customer service and have aspirations to expand the core business. According to Brantley, the company is repositioning its balance sheet to manage interest rates and enhance profitability.
Citizens Bank of Philadelphia boasts 26 branches throughout the state. Established in 1908, the bank serves 26 counties.
MarketWatch reported a 23% drop in after-hours trading following the announcement of the company’s voluntary delisting, which left the stock valued at $8 per share. The final day for trading Citizens Holding Company’s stock on NASDAQ is anticipated to be Dec. 15.
In his announcement, Brantley indicated that the company will trade stock on the OTCQX market, where other investor-focused community banks are currently trading. Quarterly and annual reports will be published via press releases or on the OTC Markets website. Despite delisting from NASDAQ, Brantley confirmed that the bank will continue reporting quarterly to federal regulators. He mentioned that cost savings were taken into consideration as part of the delisting vote.
OTC Market provides trading services, corporate services, and market data to its companies. It operates three markets - OTXQX Best Market (where Citizens Bank of Philadelphia stock is expected to trade), OTCQB Venture Market and Pink Open Market - trading 12,000 U.S. and international securities. Regulated by SEC (Securities and Exchange Commission) and FINRA (Financial Industry Regulatory Authority), OTC Market, in its Delisting FAQs, notes that companies with fewer than 300 shareholders choosing to deregister with the SEC can save up to $500,000 in fees related to the SEC.