Citizens Bancshares Corporation Announces First Quarter Earnings

Net income for the first quarter increased by $178,000 to $713,000 compared to $535,000 a year earlier. In the first quarter of 2008, the Company experienced strong growth in its noninterest income, as service charges on deposit accounts increased by $275,000 or 39% compared to the first quarter of 2007.

    Other financial highlights:

    -- Total assets increased by $16 million to $355 million for the three
       month period.

    -- Gross loans receivable decreased by $10.6 million to $228 million for
       the three month period as a result of a strategic risk management
       decision to discontinue several borrowing relationships due to the
       continuing deterioration in the real estate market and other economic
       indicators.  On a year-over-year basis, average loans increased
       approximately $20 million.

    -- Offsetting the decreases in gross loans receivable the Company
       increased its investment securities portfolio by $16 million.

    -- The provision for loan losses was increased by $105,000 in the first
       quarter due to the declining financial condition of several commercial
       borrowers as a result of the weakening economy.

    -- Noninterest income increased by $302,000 or 29.3% compared to the same
       period last year as a new fee generating product introduced in 2007
       continues to perform above expectations.

    -- Noninterest expense decreased by $121,000 or 3.2% to $3,659,000
       compared to the same quarter last year. The decrease is primarily due
       to the impact of a $200,000 legal judgment the Company accrued for in
       the first quarter of 2007



                                                  1st         1st
    (In thousands, expect per share data)       Quarter     Quarter
                                                  2008        2007     Change
    Income Statement
       Net income available to shareholders       $713        $535      33.3%
       Net income per diluted share               0.34        0.26      30.8%
       Total revenue                             6,641       6,486       2.4%
       Provision for loan losses                   105         -       100.0%
       Noninterest income                        1,331       1,029      29.3%
       Noninterest expense                       3,659       3,780      (3.2%)

    Balance Sheet
       Average loans, gross                    233,910     214,292       9.2%
       Average deposits                        292,282     289,285       1.0%

    Capital
       Total capital (to risk weighted assets)      14%         16%
       Tier 1 capital (to risk weighted assets)     13%         15%
       Tier 1 capital (to average assets)           10%         11%

For the first quarter of 2008, based on the Company's evaluation, a provision for loan losses of $105,000 was charged against operating earnings. For the same period in 2007, the Company determined that no addition to the provision for loan losses was required. The allowance for loan losses was $2.8 million at March 31, 2008 and December 31, 2007, respectively. The Company considers its allowance for loan losses for the first quarter of 2008 to be adequate.

The Company's capital position remains strong at March 31, 2008 as both the Company and the Bank's capital position were defined as "well capitalized" for regulatory purposes. The decrease in the Company's first quarter 2008 capital ratios compared to the first quarter of 2007 is attributed to the redemption of its $5 million Junior Subordinated Debentures in June 2007.

As a leader in the financial services industry, Citizens Trust Bank prides itself on offering a full range of quality products and services. Since its inception, the Bank has remained dedicated to the growth and development of communities through superior products and extraordinary service. Citizens Trust Bank has assets of approximately $355 million and financial centers throughout metropolitanAtlanta andColumbus, Georgia, and inBirmingham and Eutaw, Alabama. Through its parent company, Citizens Bancshares Corporation, its common stock is offered over-the-counter to the general public under the trading symbol CZBS. For more information please visit Citizens Trust Bank on the web at www.CTBconnect.com. Citizens Trust Bank - A relationship you can bank on.

This news release contains forward-looking statements and comments on outlook. Any number of conditions may occur, which would affect important factors that may materially change expectations. These factors include, but are not limited to, customer trading activity, changes in technology, shifts in competitive patterns, decisions with regard to products and services, changes in revenues and profits, and significant changes in the market environment regionally or nationally.

SOURCE Citizens Bancshares Corporation

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