Summary

• Citizens Bancshares Corporation (CZBS) is a community bank based in Atlanta, Georgia that received a $95.7 million capital infusion under the U.S. Department of the Treasury’s Emergency Capital Investment Program (ECIP) in 2022.
• Under the ECIP, the US Department of Treasury invests in preferred stock with a dividend of 0 to 2 percent, providing the bank with a significant amount of cheap equity.
• The company trades at a market cap of ~$90 million which is still lower than this capital infusion and slightly less than 6 times it’s 2024 earnings.
• The bank has used the extra capital to increase their net income from $4 million in 2021 to $12 million in 2023, but it can easily still be increased to more than $20 million by 2025 due to there still being large amounts of excess capital.
• The management has kept expenses low, increased dividends and buybacks significantly.
• Keep in mind trading liquidity, expense and non-performing loans ratios should you choose to invest in this company