Citizens Bancshares : Trust Bank Statement in Response to Recent Banking industry developments

Statement from the Citizens Trust Bank on Silicon Valley Bank and Signature Bank

ATLANTA, GEORGIA - (March 13, 2023) Today, Citizens Trust Bank (CTB) President & CEO Cynthia N. Day released the following statement regarding Silicon Valley Bank (SVB) and Signature Bank.

"Though the current business environment may pose some uncertainty, Citizens Trust Bank remains well-capitalized and well-positioned to continue serving our customers and community for generations to come. As a community bank, we take pride in building relationships focused on long-term trust with our customers," said Cynthia N. Day, President and CEO of the Citizens Trust Bank.

Chartered over 100 years ago and now serving customers in 48 of the 50 states, Citizens Trust Bank is proud to be a Minority DepositoryInstitution(MDI)* driven by a legacy of strength, and a track record of solid performance, providing capital to businesses, protecting customers' deposits, and providing continued access to their funds. Through a long-tenuredexperience, Citizens Trust Bank was built and prepared to continue to stand by all relationships and be there for them on their financial journey.

Prudent management actions, even thru times of uncertainty, have yielded a strong balance sheet. Each of the following metrics puts Citizens Trust Bank among the most well-capitalized community banks in the United States. Currently, the bank has

• A total capitalization of 20% and 48% at the bank and our parent company, respectively +.
• 32% of the bank's total assets in cash and liquid assets+.
• Considerable untappedborrowing capacity at the Federal Reserve Bank, Federal Home Loan Bank, and other sources of liquidity.
• People, processes,and technologyinvestments that make it easier for customers to do business with the Bank.
• New account opening platforms which enable us to start new commercial and consumer deposit relationships anywhere or anytime.

"We are proud of the bank's 100-year journey with our customers and community. We continue to support businesses with access to capital and help families realize the American dream through home ownership and other family and lifestyle needs. As a mission-driven community bank, we remain committed to serving and positively impacting our communities," concluded Day.

Celebrating over 100 years in the community, Citizens Trust Bank remains committed to providing personalized service and financial solutions to meet the growing needs of the community. Through a legacy built on economic equality and well-being, we go beyond meeting the needs of offering banking solutions; our mission is to empower our customers and future generations for financial success. The bank takes pride in offering its financial solutions throughout metropolitan-Atlanta and Birmingham and Eutaw, Alabama.

+ as of 1-31-2023

*Minority Depository Institutions [MDIs] Learn More

• Traditional Banking Model with Diverse & Secure Assets: MDIs utilize a traditional banking model with diverse and secure assets versus a unique deposit and asset profile like SVB and Signature Bank.
  o With a diverse base of consumer, small business, and commercial customers, MDIs are diversified in terms of their assets, predominately focus on well-collateralized loans, do not have a lot of uninsured deposits (98% of accounts at MDIs are FDIC-insured and fall under $250,000), and are not exposed to riskier asset classes.
  o Unlike SVB and Signature Bank, MDIs have very limited exposure to the volatile venture capital industry and crypto deposits.
• Well-Capitalizedand Strong Liquidity: MDIs are in the strongest position ever.

1. The sector is exceptionally well capitalized, enjoys substantial liquidity overall, and has grown by 33% over the last three years in total assets.

1. Nearly $4 billion in new, permanent capital has flowed to MDIs.

• 1. Currently, the median MDI common equity ratio is 16.4% versus 14.8% for non-MDIs.
• Customer Money is Safe with Minority Banks and Backed with FDIC Insurance: 98% of accounts at MDIs are FDIC-insuredand fall under $250,000.
• 1. Minority banks have always been focused on safety and soundness as part of their traditional and relationship-based business model.
• Positioned for Impact: MDIs are in the best position to safely support customers and small businesses.
• 1. 77% of MDI branches are in areas with a higher average share of minorities compared to 31% for all FDIC-insured depository institutions.

1. According to a Dallas Fed Study in 2022, MDIs originate almost 40% of their mortgages

to minority borrowers, versus only 10% by other banks.

1. MDIs originate 30% of small business loans to low- to moderate-income communities in comparison to 20% at community banks and 24% at large banks.

• 1. Customer deposits are not only extremely safe in an MDI but are far more likely to have a positive impact in the community.
• Move Your Deposits to MDIs
• 1. With a traditional banking model and less exposure to riskier asset classes, depositors should move their money to minority banks that have a proven track record of safety, soundness and impact.

+ as of 1-31-2023

Additional Banking and the Economy Resources

• President Biden Remarks on Banking and the Economy
• Biden vows new bank rules after SVB collapse, cites Trump rollback
• Joint Statement by Treasury, Federal Reserve, and FDIC
• Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors

+ as of 1-31-2023