Citizens Bancorp Investment : Quarterly Dividend Notice to Shareholders

CITIZENS BANCORP INVESTMENT, INC.

February 2, 2022

Dear Stockholder:

I am pleased to announce our board of directors approved a dividend of $0.16 per share, to shareholders of record on January 26, 2022, payable on February 2, 2022. This represents a 6.7% increase over the dividend paid in November 2021. Enclosed is a check or notice of direct deposit, as appropriate, for your dividend.

For 2021, Citizens Bancorp Investment, Inc. had record net income of $16.7 million (unaudited) versus $11.0 million in 2020, a 52.3% increase. The addition of American Bank & Trust in late 2020, the recognition of Paycheck Protection Program (PPP) loan fee income, and $2.2 million in gain on sale of secondary market mortgage loans contributed significantly to the increase in earnings over 2020. These income gains were offset somewhat as the Company incurred $1.38 million in data processing costs in the third quarter of 2021 resulting from the merger of American Bank into Citizens Bank in August 2021.

Total assets grew to $1.48 billion at December 31, 2021 versus $1.34 billion in 2020, a 10.7% increase. Total deposits were $1.30 billion at December 31, 2021, a 13.3% increase versus 2020. Customer deposit growth in 2021 totaled $152 million as liquidity in the economy continued to increase from the government stimulus.

Total loans were $808 million at December 31, 2021, a 0.47% decrease versus 2020. Core loans, excluding PPP loans, grew $11.1 million, or 1.4%, in 2021. The PPP program ended in 2021 and Citizens Bank experienced a net decrease in PPP loans of $14.9 million (PPP loan pay-offs and loan forgiveness, net of new PPP loans). Approximately $2.9 million in PPP loans remained on the books at the end of 2021. Credit quality continued to improve in 2021. Charge-offs declined to 0.035% of loans and loans past due 30 days or more declined to 1.59% as of December 31, 2021. Citizens Bancorp's capital remained strong at $136.3 million at year-end 2021; this represents 9.2% of total assets.

Earnings were strong in 2021. However, the future loss of the PPP revenue source and an expected reduction in secondary market mortgage volume in 2022 due to higher rates and lower refinance activity present "headwinds" for the bank's earnings. Consequently, the year 2022 brings a focus on growing loans and other income sources, as well as strategically managing expenses. Management also looks forward to gaining synergies - economic, managerial and product mix - from the combination of American Bank and Citizens Bank.

With trading in our stock on OTCQX now a reality, investors are beginning to take advantage of the OTCQX stock listing service using the "ticker" symbol CBTN. Shareholders may now easily hold their shares in a brokerage account, buy and sell CBTN stock through their brokerage account, and receive direct deposit of their dividends. As of the writing of this letter, the most recent sale of CBTN occurred at $46 per share. Please contact us if you have questions on how to take full advantage of these services.

Enclosed with this letter are the financial highlights for the quarter and year-to-date. Please call us if we can help you with your banking needs.

Very truly yours,

Peter G. Williston Chief Executive Officer

Citizens Bancorp Investment, Inc.

Enclosure

P.O. Box 100 | 400 Highway 52 West, Lafayette, TN 37083 | T 615-666-2195 | F 615-666-6287www.citizens-bank.org