Citizens Bancshares Corporation announced earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company reported net income before preferred dividends of $268,000 compared to net income before preferred dividends of $92,000 for the same period last year. Net income available to common shareholders for the third quarter of 2012 was $209,000, or $0.10 per diluted common share compared to a net income available to common shareholders of $33,000, or $0.02 per diluted common share, reported for the third quarter of 2011. The improvement noted in the third quarter of 2012 includes a 22% reduction in nonperforming loans and a 15% reduction in foreclosed real estate. Also, credit quality continues to improve as its provision for loan losses declined $225,000 from the prior quarter and $255,000 compared to the same quarter last year. Total Revenue was $5,289,000 compared with $5,446,000 for the same period a year ago.

Year-to-date, the company reported a net income before preferred dividends of $153,000 compared to a net loss of $64,000 before preferred dividends for the same period in 2011. Net loss available to common shareholders for the nine month period was $25,000, or $0.01 per diluted common share compared to a net loss available to common shareholders of $241,000, or $0.11 per diluted common share, reported for the same period in 2011. The loss realized for the nine months is mainly due to an additional $1.8 million in OREO related expenses compared to last year due to its nonperforming asset disposition strategy. This expense was partially offset by a $707,000 decrease in its loan loss provision due to improved credit quality.