8-K
Citizens Community Bancorp Inc. (CZWI)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 28, 2025
CITIZENS COMMUNITY BANCORP, INC.
(Exact name of registrant as specified in its charter)
Maryland
(State or other jurisdiction of incorporation)
| 001-33003 | 20-5120010 |
|---|---|
| (Commission File Number) | (I.R.S. Employer Identification No.) |
2174 EastRidge Center
Eau Claire, WI 54701
(Address and Zip Code of principal executive offices)
715-836-9994
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered or to be registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $.01 par value per share | CZWI | NASDAQ Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933. (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter.)
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On April 28, 2025, Citizens Community Bancorp, Inc. (the “Company”) issued a press release announcing our financial results for the three months ended March 31, 2025, and posted its Earnings Release Supplement and Earnings Release Presentation to its website. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K, a copy of the Earnings Release Supplement is attached hereto as Exhibit 99.2 and a copy of the Earnings Release Presentation is attached hereto as Exhibit 99.3. The attached Exhibits 99.1, 99.2 and 99.3 are furnished pursuant to Item 2.02 of Form 8-K.
The information in this Item 2.02, Item 9.01 and Exhibits 99.1, 99.2 and 99.3 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of such section, nor shall it be deemed incorporated by reference in any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The following exhibit is being furnished herewith:
| 99.1 | Press Release datedApril 28, 2025 |
|---|---|
| 99.2 | Earnings Release Supplement dated April 28, 2025 |
| 99.3 | Earnings Release Presentation dated April 28, 2025 |
| 104 | The cover page from this Current Report on Form 8-K in Inline XBRL (Extensible Business Reporting Language) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CITIZENS COMMUNITY BANCORP, INC. | ||
|---|---|---|
| Date: April 28, 2025 | By: | /s/ James S. Broucek |
| James S. Broucek | ||
| Chief Financial Officer |
Document
EXHIBIT 99.1
Citizens Community Bancorp, Inc. Reports First Quarter 2025 Earnings of $0.32 Per Share; Book Value Per Share Up 8% and Tangible Book Value Per Share Up 10% Since March 31, 2024, After Annual Dividend Payment of $0.36 Per Share
EAU CLAIRE, WI, April 28, 2025 - Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $3.2 million and earnings per diluted share of $0.32 for the first quarter ended March 31, 2025, compared to $2.7 million and earnings per diluted share of $0.27 for the fourth quarter ended December 31, 2024, and $4.1 million and $0.39 earnings per diluted share for the quarter ended March 31, 2024, respectively.
The Company’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) decrease in net interest income of $0.1 million as two fewer days in the quarter were largely offset by an increase in the net interest margin of 6 basis points; (2) a smaller negative provision for credit losses of $0.3 million compared to $0.5 million in the fourth quarter; (3) higher non-interest income of $0.6 million primarily due to $0.5 million higher gain on sale of loans and $0.3 million higher net gains on sale of equity securities in the first quarter of 2025; and (4) lower non-interest expense primarily due to lower compensation and related benefits of $0.2 million and lower losses on repossessed assets of $0.2 million.
Book value per share improved to $18.02 at March 31, 2025, compared to $17.94 at December 31, 2024, and $16.61 at March 31, 2024. Tangible book value per share (non-GAAP)1 was $14.79 at March 31, 2025, compared to $14.69 at December 31, 2024, and a 10.1% increase from $13.43 at March 31, 2024. For the first quarter of 2025, tangible book value was positively impacted by (1) net income, (2) the impact of lower long-term interest rates which decreased the net unrealized loss on the available for sale securities portfolio, and (3) amortization of intangibles which were largely offset by the payment of the annual $0.36 per share dividend. Stockholders’ equity as a percentage of total assets was 10.12% at March 31, 2025, compared to 10.24% at December 31, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 decreased modestly to 8.45% at March 31, 2025, compared to 8.54% at December 31, 2024, largely due to the payment of the dividend.
“I am pleased with results in a quarter that is seasonally the slowest for us because of winter. The balance sheet is well positioned for the remainder of 2025 with strong capital and liquidity positions, strong ACL reserves and credit metrics in our historical range. Our TCE at 8.5% provides a cushion for uncertainty like we have seen thus far in 2025 and for share repurchases. Our liquidity position, including the loan to deposit ratio below 90% is expected to support quality, well priced loan growth in the low to mid-single digit percentages with strategic, relationship borrowers. Our markets remain stable with unemployment below national averages and tariff exposure appears to be indirect should this risk persist. We believe loan repricing and originations will benefit our net-interest margin expansion, especially in the second half of 2025, and throughout 2026, as well as will the impact of deposit repricing,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.
March 31, 2025, Highlights:
•Quarterly earnings were $3.2 million, or $0.32 per diluted share for the quarter ended March 31, 2025, an increase compared to earnings of $2.7 million, or $0.27 per diluted share for the quarter ended December 31, 2024, and a decrease from $4.1 million, or $0.39 per diluted share for the quarter ended March 31, 2024.
•Net interest income decreased $0.1 million to $11.6 million for the current quarter ended March 31, 2025, from $11.7 million for the quarter ended December 31, 2024, and from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income from the fourth quarter of 2024 was primarily due to two fewer days in the quarter which was mostly offset by an increase in net interest margin of six basis points.
•The net interest margin increased to 2.85%, primarily due to lower deposit costs. The net interest margin increase in the first quarter of 2025 was negatively impacted by three basis points from lower deferred fee accretion compared to the fourth quarter of 2024 due to lower payoffs in the first quarter of 2025.
•Negative provision for credit losses of $0.25 million, $0.45 million, and $0.80 million were recorded during the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The first quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.35 million partially offset by a $0.10 million increase in off-balance sheet ACL due to an increase in unfunded loan commitments.
•Non-interest income increased by $0.6 million in the first quarter of 2025 to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans, $0.3 million of higher net gains on equity securities partially offset by lower loan fees and service charges of $0.2 million due to lower customer activity. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities.
•Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the fourth quarter of 2024 and the first quarter of 2024. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets, partially offset by higher other expense. The $0.3 million decrease from the first quarter of 2024 was due to a $0.4 million decrease in other expenses resulting from lower SBA recourse reserve expense.
•Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower activity.
•Total deposits increased $35.5 million during the quarter ended March 31, 2025, to $1.524 billion. Total deposit growth reflected the seasonal growth in municipal deposits of $20.8 million, which typically decreases in the middle two quarters before increasing in the fourth quarter. Growth in retail and commercial areas was partially offset by the reduction of $6.3 million in wholesale deposits due to reduction in brokered deposits.
•The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier.
•The effective tax rate was 19.6% for the quarter ended March 31, 2025, compared to 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024.
•Nonperforming assets increased $0.3 million during the quarter to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024.
•Special mention loans increased $6.5 million to $15.0 million at March 31, 2025, from $8.5 million in the previous quarter. The increase was largely due to one C&I relationship that showed weaker cash flow than expected.
•The efficiency ratio was 73% for the quarter ended March 31, 2025, compared to 76% for the quarter ended December 31, 2024.
Balance Sheet and Asset Quality
Total assets increased by $31.4 million during the quarter to $1.780 billion at March 31, 2025.
Cash increased $50.0 million due to the growth in deposits and loan shrinkage growing our balances at the Federal Reserve.
Securities available for sale (“AFS”) decreased $3.2 million during the quarter ended March 31, 2025, to $139.6 million from $142.9 million at December 31, 2024. The decrease was due to principal repayments of $2.6 million, and a corporate debt security maturity of $2.5 million, partially offset by lower pre-tax unrealized losses of $1.9 million.
Securities held to maturity (“HTM”) decreased $1.2 million to $84.3 million during the quarter ended March 31, 2025, from $85.5 million at December 31, 2024, due to principal repayments.
The on-balance sheet liquidity ratio, which is defined as the fair market value of AFS and HTM securities that are not pledged and cash on deposit with other financial institutions, was 14.38% of total assets at March 31, 2025, compared to 11.75% at December 31, 2024. On-balance sheet liquidity collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $852 million, or 314%, of uninsured and uncollateralized deposits at March 31, 2025, and $725 million, or 273%, at December 31, 2024.
Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower origination and funding activity.
The office loan portfolio consisting of seventy-two loans totaled $28 million at March 31, 2025, compared to seventy-one loans totaling $28 million at December 31, 2024. Criticized loans in the office loan portfolio for the quarter ended March 31, 2025, totaled $0.5 million, the same amount at December 31, 2024, and there have been no charge-offs in the trailing twelve months.
The allowance for credit losses on loans decreased by $0.34 million to $20.2 million at March 31, 2025, representing 1.49% of total loans receivable compared to 1.50% of total loans receivable at December 31, 2024. For the quarter ended March 31, 2025, the Bank recorded a negative provision of $0.25 million which included a negative provision on ACL for loans of $0.35 million, partially offset by a provision of $0.10 million on ACL for unfunded commitments due to an increase in unfunded commitments. 30-89 day loan delinquencies decreased to 0.15% of total loans at March 31, 2025, compared to a 0.33% delinquency ratio at December 31, 2024. The Bank had $0.007 million of net recoveries in the first quarter.
Allowance for Credit Losses (“ACL”) - Loans Percentage
(in thousands, except ratios)
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loans, end of period | $ | 1,352,728 | $ | 1,368,981 | $ | 1,424,828 | $ | 1,428,588 | ||||
| Allowance for credit losses - Loans | $ | 20,205 | $ | 20,549 | $ | 21,000 | $ | 21,178 | ||||
| ACL - Loans as a percentage of loans, end of period | 1.49 | % | 1.50 | % | 1.47 | % | 1.48 | % |
In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.435 million at March 31, 2025, $0.334 million at December 31, 2024, and $0.975 million at March 31, 2024, classified in other liabilities on the consolidated balance sheets.
Allowance for Credit Losses - Unfunded Commitments:
(in thousands)
| March 31, 2025 and Three Months Ended | December 31, 2024 and Three Months Ended | March 31, 2024 and Three Months Ended | ||||
|---|---|---|---|---|---|---|
| ACL - Unfunded commitments - beginning of period | $ | 334 | $ | 460 | $ | 1,250 |
| (Reductions) additions to ACL - Unfunded commitments via provision for credit losses charged to operations | 101 | (126) | (275) | |||
| ACL - Unfunded commitments - end of period | $ | 435 | $ | 334 | $ | 975 |
Special mention loans increased by $6.5 million to $15.0 million at March 31, 2025, compared to $8.5 million at December 31, 2024. The increase was largely due to one C&I relationship as noted earlier.
Substandard loans increased by $0.7 million to $19.6 million at March 31, 2025, compared to $18.9 million at December 31, 2024.
Nonperforming assets increased modestly by $0.3 million to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024.
| (in thousands) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||
| Special mention loan balances | $ | 14,990 | $ | 8,480 | $ | 11,047 | $ | 8,848 | $ | 13,737 |
| Substandard loan balances | 19,591 | 18,891 | 21,202 | 14,420 | 14,733 | |||||
| Criticized loans, end of period | $ | 34,581 | $ | 27,371 | $ | 32,249 | $ | 23,268 | $ | 28,470 |
Deposit Portfolio Composition
(in thousands)
| March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | March 31,<br>2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Consumer deposits | $ | 861,746 | $ | 852,083 | $ | 844,808 | $ | 822,665 | $ | 827,290 |
| Commercial deposits | 423,654 | 412,355 | 406,095 | 395,148 | 400,910 | |||||
| Public deposits | 211,261 | 190,460 | 176,844 | 187,698 | 202,175 | |||||
| Wholesale deposits | 26,993 | 33,250 | 92,920 | 114,033 | 97,114 | |||||
| Total deposits | $ | 1,523,654 | $ | 1,488,148 | $ | 1,520,667 | $ | 1,519,544 | $ | 1,527,489 |
At March 31, 2025, the deposit portfolio composition was 56% consumer, 28% commercial, 14% public, and 2% wholesale deposits compared to 57% consumer, 28% commercial, 13% public, and 2% wholesale deposits at December 31, 2024.
Deposit Composition By Type
(in thousands)
| March 31,<br>2025 | December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | March 31,<br>2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Non-interest-bearing demand deposits | $ | 253,343 | $ | 252,656 | $ | 256,840 | $ | 255,703 | $ | 248,537 |
| Interest-bearing demand deposits | 386,302 | 355,750 | 346,971 | 353,477 | 361,278 | |||||
| Savings accounts | 167,614 | 159,821 | 169,096 | 170,946 | 177,595 | |||||
| Money market accounts | 370,741 | 369,534 | 366,067 | 370,164 | 387,879 | |||||
| Certificate accounts | 345,654 | 350,387 | 381,693 | 369,254 | 352,200 | |||||
| Total deposits | $ | 1,523,654 | $ | 1,488,148 | $ | 1,520,667 | $ | 1,519,544 | 1,527,489 |
Uninsured and uncollateralized deposits were $271.7 million, or 18% of total deposits, at March 31, 2025, and $265.4 million, or 18% of total deposits, at December 31, 2024. Uninsured deposits alone at March 31, 2025, were $444.4 million, or 29% of total deposits, and $428.0 million, or 29% of total deposits at December 31, 2024.
The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier.
No common stock was repurchased in the first quarter of 2025. There are 238 thousand shares remaining available to repurchase under the July 2024 Board of Director repurchase authorization.
Review of Operations
Net interest income decreased $0.1 million for the quarter ended March 31, 2025, to $11.6 million from $11.7 million for the quarter ended December 31, 2024, and decreased $0.3 million from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income compared to the fourth quarter of 2024 was primarily due to two fewer days of interest income or approximately $0.2 million, the impact of smaller average assets of $0.2 million, offset by an increase in net interest margin of six basis points or $0.3 million. The net interest margin increase was negatively impacted by 3 basis points due to lower deferred fee accretion compared to the fourth quarter resulting from lower loan payoffs.
Net interest income and net interest margin analysis:
(in thousands, except yields and rates)
| Three months ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||||||||
| Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | |||||||||||
| As reported | $ | 11,594 | 2.85 | % | $ | 11,708 | 2.79 | % | $ | 11,285 | 2.63 | % | $ | 11,576 | 2.72 | % | $ | 11,905 | 2.77 | % |
| Less accretion for PCD loans | (36) | (0.01) | % | (42) | (0.01) | % | (45) | (0.01) | % | (62) | (0.01) | % | (75) | (0.02) | % | |||||
| Less scheduled accretion interest | (33) | (0.01) | % | (33) | (0.01) | % | (33) | (0.01) | % | (32) | (0.01) | % | (33) | (0.01) | % | |||||
| Without loan purchase accretion | $ | 11,525 | 2.83 | % | $ | 11,633 | 2.77 | % | $ | 11,207 | 2.61 | % | $ | 11,482 | 2.70 | % | $ | 11,797 | 2.74 | % |
The table below shows the impact of certificate, loan and securities contractual fixed rate maturing and repricing.
Portfolio Contractual Repricing:
(in millions, except yields)
| Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | Q4 2026 | FY 2027 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Maturing Certificate Accounts: | ||||||||||||||||||||||||
| Contractual Balance | $ | 174 | $ | 101 | $ | 28 | $ | 23 | $ | 8 | $ | — | $ | — | $ | 8 | ||||||||
| Contractual Interest Rate | 4.59 | % | 3.98 | % | 3.72 | % | 3.66 | % | 3.47 | % | — | % | — | % | 4.01 | % | ||||||||
| Maturing or Repricing Loans: | ||||||||||||||||||||||||
| Contractual Balance | $ | 52 | $ | 18 | $ | 55 | $ | 45 | $ | 51 | $ | 120 | $ | 98 | $ | 243 | ||||||||
| Contractual Interest Rate | 6.62 | % | 6.14 | % | 4.64 | % | 4.53 | % | 4.18 | % | 3.61 | % | 3.72 | % | 4.66 | % | ||||||||
| Maturing or Repricing Securities: | ||||||||||||||||||||||||
| Contractual Balance | $ | 5 | $ | 3 | $ | 4 | $ | 2 | $ | 7 | $ | 7 | $ | 3 | $ | 6 | ||||||||
| Contractual Interest Rate | 5.64 | % | 4.07 | % | 4.31 | % | 3.72 | % | 3.57 | % | 3.44 | % | 3.27 | % | 4.47 | % |
Non-interest income increased by $0.6 million in the first quarter of 2025, to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans and $0.3 million of higher net gains on equity securities. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities.
Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the previous quarter and the quarter one year earlier. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets. The $0.3 million decrease from the first quarter of 2024 was largely due to a $0.4 million decrease in other expense due to lower SBA recourse reserve expense.
Provision for income taxes increased to $0.8 million in the first quarter of 2025, from $0.7 million in the fourth quarter of 2024, largely due to higher pre-tax income. The effective tax rate was 19.6% for the quarter ended March 31, 2025, 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024.
These financial results are preliminary until the Form 10-Q is filed in May 2025.
About the Company
Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of the Bank, a national bank based in Altoona, Wisconsin, currently serving customers primarily in Wisconsin and Minnesota through 21 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, ag operators and consumers, including residential mortgage loans.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “on pace,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our ability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 13, 2025 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release.
1 Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity, which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods.
Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. Tangible book value, tangible book value per share, tangible common equity as a percentage of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.
Contact: Steve Bianchi, CEO
(715)-836-9994
(CZWI-ER)
CITIZENS COMMUNITY BANCORP, INC.
Consolidated Balance Sheets
(in thousands, except share data)
| March 31, 2025 (unaudited) | December 31, 2024 (audited) | September 30, 2024 (unaudited) | March 31, 2024 (unaudited) | |||||
|---|---|---|---|---|---|---|---|---|
| Assets | ||||||||
| Cash and cash equivalents | $ | 100,199 | $ | 50,172 | $ | 36,632 | $ | 28,638 |
| Securities available for sale “AFS” | 139,642 | 142,851 | 149,432 | 151,672 | ||||
| Securities held to maturity “HTM” | 84,301 | 85,504 | 87,033 | 89,942 | ||||
| Equity investments | 5,462 | 4,702 | 5,096 | 3,281 | ||||
| Other investments | 12,496 | 12,500 | 12,311 | 13,022 | ||||
| Loans receivable | 1,352,728 | 1,368,981 | 1,424,828 | 1,450,159 | ||||
| Allowance for credit losses | (20,205) | (20,549) | (21,000) | (22,436) | ||||
| Loans receivable, net | 1,332,523 | 1,348,432 | 1,403,828 | 1,427,723 | ||||
| Loans held for sale | 3,296 | 1,329 | 697 | — | ||||
| Mortgage servicing rights, net | 3,583 | 3,663 | 3,696 | 3,774 | ||||
| Office properties and equipment, net | 16,649 | 17,075 | 17,365 | 18,026 | ||||
| Accrued interest receivable | 5,926 | 5,653 | 6,235 | 6,324 | ||||
| Intangible assets | 800 | 979 | 1,158 | 1,515 | ||||
| Goodwill | 31,498 | 31,498 | 31,498 | 31,498 | ||||
| Foreclosed and repossessed assets, net | 876 | 915 | 1,572 | 1,845 | ||||
| Bank owned life insurance (“BOLI”) | 26,296 | 26,102 | 25,901 | 25,836 | ||||
| Other assets | 16,416 | 17,144 | 16,683 | 16,219 | ||||
| TOTAL ASSETS | $ | 1,779,963 | $ | 1,748,519 | $ | 1,799,137 | $ | 1,819,315 |
| Liabilities and Stockholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Deposits | $ | 1,523,654 | $ | 1,488,148 | $ | 1,520,667 | $ | 1,527,489 |
| Federal Home Loan Bank (“FHLB”) advances | — | 5,000 | 21,000 | 39,500 | ||||
| Other borrowings | 61,664 | 61,606 | 61,548 | 67,523 | ||||
| Other liabilities | 14,594 | 14,681 | 15,773 | 11,982 | ||||
| Total liabilities | 1,599,912 | 1,569,435 | 1,618,988 | 1,646,494 | ||||
| Stockholders’ Equity: | ||||||||
| Common stock— $0.01 par value, authorized 30,000,000; 9,989,536, 9,981,996, 10,074,136, and 10,406,880 shares issued and outstanding, respectively | 100 | 100 | 101 | 104 | ||||
| Additional paid-in capital | 114,477 | 114,564 | 115,455 | 118,916 | ||||
| Retained earnings | 80,439 | 80,840 | 78,438 | 71,831 | ||||
| Accumulated other comprehensive loss | (14,965) | (16,420) | (13,845) | (18,030) | ||||
| Total stockholders’ equity | 180,051 | 179,084 | 180,149 | 172,821 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,779,963 | $ | 1,748,519 | $ | 1,799,137 | $ | 1,819,315 |
Note: Certain items previously reported were reclassified for consistency with the current presentation.
CITIZENS COMMUNITY BANCORP, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, 2025 (unaudited) | December 31, 2024 (unaudited) | March 31, 2024 (unaudited) | ||||
| Interest and dividend income: | ||||||
| Interest and fees on loans | $ | 18,602 | $ | 19,534 | $ | 20,168 |
| Interest on investments | 2,501 | 2,427 | 2,511 | |||
| Total interest and dividend income | 21,103 | 21,961 | 22,679 | |||
| Interest expense: | ||||||
| Interest on deposits | 8,597 | 9,273 | 9,209 | |||
| Interest on FHLB borrowed funds | 11 | 65 | 512 | |||
| Interest on other borrowed funds | 901 | 915 | 1,053 | |||
| Total interest expense | 9,509 | 10,253 | 10,774 | |||
| Net interest income before provision for credit losses | 11,594 | 11,708 | 11,905 | |||
| (Negative) provision for credit losses | (250) | (450) | (800) | |||
| Net interest income after provision for credit losses | 11,844 | 12,158 | 12,705 | |||
| Non-interest income: | ||||||
| Service charges on deposit accounts | 423 | 450 | 471 | |||
| Interchange income | 518 | 550 | 541 | |||
| Loan servicing income | 559 | 520 | 582 | |||
| Gain on sale of loans | 720 | 218 | 1,020 | |||
| Loan fees and service charges | 120 | 292 | 230 | |||
| Net realized gains on debt securities | — | — | — | |||
| Net gains (losses) on equity securities | 10 | (287) | 167 | |||
| Other | 243 | 266 | 253 | |||
| Total non-interest income | 2,593 | 2,009 | 3,264 | |||
| Non-interest expense: | ||||||
| Compensation and related benefits | 5,597 | 5,840 | 5,483 | |||
| Occupancy | 1,287 | 1,217 | 1,367 | |||
| Data processing | 1,719 | 1,743 | 1,597 | |||
| Amortization of intangible assets | 179 | 179 | 179 | |||
| Mortgage servicing rights expense, net | 140 | 107 | 148 | |||
| Advertising, marketing and public relations | 167 | 218 | 164 | |||
| FDIC premium assessment | 198 | 192 | 205 | |||
| Professional services | 508 | 514 | 566 | |||
| Losses on repossessed assets, net | 4 | 247 | — | |||
| Other | 664 | 552 | 1,068 | |||
| Total non-interest expense | 10,463 | 10,809 | 10,777 | |||
| Income before provision for income taxes | 3,974 | 3,358 | 5,192 | |||
| Provision for income taxes | 777 | 656 | 1,104 | |||
| Net income attributable to common stockholders | $ | 3,197 | $ | 2,702 | $ | 4,088 |
| Per share information: | ||||||
| Basic earnings | $ | 0.32 | $ | 0.27 | $ | 0.39 |
| Diluted earnings | $ | 0.32 | $ | 0.27 | $ | 0.39 |
| Cash dividends paid | $ | 0.36 | $ | — | $ | 0.32 |
| Book value per share at end of period | $ | 18.02 | $ | 17.94 | $ | 16.61 |
| Tangible book value per share at end of period (non-GAAP) | $ | 14.79 | $ | 14.69 | $ | 13.43 |
Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
(in thousands, except per share data)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31,<br>2025 | December 31,<br>2024 | March 31,<br>2024 | ||||
| GAAP pretax income | $ | 3,974 | $ | 3,358 | $ | 5,192 |
| Branch closure costs (1) | — | — | — | |||
| Pretax income as adjusted (2) | $ | 3,974 | $ | 3,358 | $ | 5,192 |
| Provision for income tax on net income as adjusted (3) | 777 | 656 | 1,104 | |||
| Net income as adjusted (non-GAAP) (2) | $ | 3,197 | $ | 2,702 | $ | 4,088 |
| GAAP diluted earnings per share, net of tax | $ | 0.32 | $ | 0.27 | $ | 0.39 |
| Branch closure costs, net of tax | — | — | — | |||
| Diluted earnings per share, as adjusted, net of tax (non-GAAP) | $ | 0.32 | $ | 0.27 | $ | 0.39 |
| Average diluted shares outstanding | 10,000,818 | 10,033,957 | 10,443,267 |
(1) Branch closure costs include severance pay recorded in compensation and benefits and depreciation and right of use lease asset accelerated expense included in other non-interest expense in the consolidated statement of operations.
(2) Pretax income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
(3) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.
Loan Composition
(in thousands)
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||
|---|---|---|---|---|---|---|---|---|
| Total Loans: | ||||||||
| Commercial/Agricultural real estate: | ||||||||
| Commercial real estate | $ | 709,975 | $ | 709,018 | $ | 730,459 | $ | 729,236 |
| Agricultural real estate | 71,071 | 73,130 | 76,043 | 78,248 | ||||
| Multi-family real estate | 237,872 | 220,805 | 239,191 | 234,758 | ||||
| Construction and land development | 58,461 | 78,489 | 87,875 | 87,898 | ||||
| C&I/Agricultural operating: | ||||||||
| Commercial and industrial | 109,620 | 115,657 | 119,619 | 127,386 | ||||
| Agricultural operating | 29,310 | 31,000 | 27,550 | 27,409 | ||||
| Residential mortgage: | ||||||||
| Residential mortgage | 129,070 | 132,341 | 134,944 | 133,503 | ||||
| Purchased HELOC loans | 2,560 | 2,956 | 2,932 | 2,915 | ||||
| Consumer installment: | ||||||||
| Originated indirect paper | 3,434 | 3,970 | 4,405 | 5,110 | ||||
| Other consumer | 4,679 | 5,012 | 5,438 | 5,860 | ||||
| Gross loans | $ | 1,356,052 | $ | 1,372,378 | $ | 1,428,456 | $ | 1,432,323 |
| Unearned net deferred fees and costs and loans in process | (2,542) | (2,547) | (2,703) | (2,733) | ||||
| Unamortized discount on acquired loans | (782) | (850) | (925) | (1,002) | ||||
| Total loans receivable | $ | 1,352,728 | $ | 1,368,981 | $ | 1,424,828 | $ | 1,428,588 |
Nonperforming Assets
Loan Balances at Amortized Cost
(in thousands, except ratios)
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nonperforming assets: | ||||||||||||
| Nonaccrual loans | ||||||||||||
| Commercial real estate | $ | 4,948 | $ | 4,594 | $ | 4,778 | $ | 5,350 | ||||
| Agricultural real estate | 5,934 | 6,222 | 6,193 | 382 | ||||||||
| Construction and land development | — | 103 | 106 | — | ||||||||
| Commercial and industrial (“C&I”) | 701 | 597 | 1,956 | 422 | ||||||||
| Agricultural operating | 725 | 793 | 901 | 1,017 | ||||||||
| Residential mortgage | 782 | 858 | 1,088 | 1,145 | ||||||||
| Consumer installment | 1 | 1 | 20 | 36 | ||||||||
| Total nonaccrual loans | $ | 13,091 | $ | 13,168 | $ | 15,042 | $ | 8,352 | ||||
| Accruing loans past due 90 days or more | 568 | 186 | 530 | 256 | ||||||||
| Total nonperforming loans (“NPLs”) at amortized cost | 13,659 | 13,354 | 15,572 | 8,608 | ||||||||
| Foreclosed and repossessed assets, net | 876 | 915 | 1,572 | 1,662 | ||||||||
| Total nonperforming assets (“NPAs”) | $ | 14,535 | $ | 14,269 | $ | 17,144 | $ | 10,270 | ||||
| Loans, end of period | $ | 1,352,728 | $ | 1,368,981 | $ | 1,424,828 | $ | 1,428,588 | ||||
| Total assets, end of period | $ | 1,779,963 | $ | 1,748,519 | $ | 1,799,137 | $ | 1,802,307 | ||||
| Ratios: | ||||||||||||
| NPLs to total loans | 1.01 | % | 0.98 | % | 1.09 | % | 0.60 | % | ||||
| NPAs to total assets | 0.82 | % | 0.82 | % | 0.95 | % | 0.57 | % |
Average Balances, Interest Yields and Rates
(in thousands, except yields and rates)
| Three Months Ended <br>March 31, 2025 | Three Months Ended <br>December 31, 2024 | Three Months Ended<br>March 31, 2024 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average<br>Balance | Interest<br>Income/<br>Expense | Average<br>Yield/<br>Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Average<br>Yield/<br>Rate | Average<br>Balance | Interest<br>Income/<br>Expense | Average<br>Yield/<br>Rate | ||||||||||
| Average interest earning assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 47,835 | $ | 524 | 4.44 | % | $ | 26,197 | $ | 327 | 4.97 | % | $ | 13,071 | $ | 191 | 5.88 | % |
| Loans receivable | 1,363,352 | 18,602 | 5.53 | % | 1,396,854 | 19,534 | 5.56 | % | 1,456,586 | 20,168 | 5.57 | % | ||||||
| Investment securities | 228,514 | 1,808 | 3.21 | % | 235,268 | 1,940 | 3.28 | % | 243,991 | 2,060 | 3.40 | % | ||||||
| Other investments | 12,498 | 169 | 5.48 | % | 12,318 | 160 | 5.17 | % | 13,350 | 260 | 7.83 | % | ||||||
| Total interest earning assets | $ | 1,652,199 | $ | 21,103 | 5.18 | % | $ | 1,670,637 | $ | 21,961 | 5.23 | % | $ | 1,726,998 | $ | 22,679 | 5.28 | % |
| Average interest-bearing liabilities: | ||||||||||||||||||
| Savings accounts | $ | 167,001 | $ | 407 | 0.99 | % | $ | 162,501 | $ | 383 | 0.94 | % | $ | 176,838 | $ | 421 | 0.96 | % |
| Demand deposits | 382,355 | 2,033 | 2.16 | % | 346,411 | 1,891 | 2.17 | % | 353,995 | 2,017 | 2.29 | % | ||||||
| Money market accounts | 365,528 | 2,535 | 2.81 | % | 351,566 | 2,720 | 3.08 | % | 377,475 | 2,920 | 3.11 | % | ||||||
| CD’s | 343,751 | 3,622 | 4.27 | % | 374,087 | 4,279 | 4.55 | % | 360,177 | 3,851 | 4.30 | % | ||||||
| Total deposits | $ | 1,258,635 | $ | 8,597 | 2.77 | % | $ | 1,234,565 | $ | 9,273 | 2.99 | % | $ | 1,268,485 | $ | 9,209 | 2.92 | % |
| FHLB advances and other borrowings | 64,635 | 912 | 5.72 | % | 72,431 | 980 | 5.38 | % | 124,701 | 1,565 | 5.05 | % | ||||||
| Total interest-bearing liabilities | $ | 1,323,270 | $ | 9,509 | 2.91 | % | $ | 1,306,996 | $ | 10,253 | 3.12 | % | $ | 1,393,186 | $ | 10,774 | 3.11 | % |
| Net interest income | $ | 11,594 | $ | 11,708 | $ | 11,905 | ||||||||||||
| Interest rate spread | 2.27 | % | 2.11 | % | 2.17 | % | ||||||||||||
| Net interest margin | 2.85 | % | 2.79 | % | 2.77 | % | ||||||||||||
| Average interest earning assets to average interest-bearing liabilities | 1.25 | 1.28 | 1.24 |
Wholesale Deposits
(in thousands)
| Quarter Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||
| Brokered certificate accounts | $ | 5,489 | $ | 14,123 | $ | 48,578 | $ | 54,123 | $ | 43,507 |
| Brokered money market accounts | 5,053 | 5,002 | 18,076 | 42,673 | 40,429 | |||||
| Third party originated reciprocal deposits | 16,451 | 14,125 | 26,266 | 17,237 | 13,178 | |||||
| Total | $ | 26,993 | $ | 33,250 | $ | 92,920 | $ | 114,033 | $ | 97,114 |
Key Financial Metric Ratios:
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||
| Ratios based on net income: | ||||||
| Return on average assets (annualized) | 0.74 | % | 0.61 | % | 0.90 | % |
| Return on average equity (annualized) | 7.26 | % | 6.00 | % | 9.57 | % |
| Return on average tangible common equity4 (annualized) | 9.28 | % | 7.72 | % | 12.26 | % |
| Efficiency ratio | 73 | % | 76 | % | 71 | % |
| Net interest margin with loan purchase accretion | 2.85 | % | 2.79 | % | 2.77 | % |
| Net interest margin without loan purchase accretion | 2.83 | % | 2.77 | % | 2.74 | % |
| Ratios based on net income as adjusted (non-GAAP) | ||||||
| Return on average assets as adjusted2 (annualized) | 0.74 | % | 0.61 | % | 0.90 | % |
| Return on average equity as adjusted3 (annualized) | 7.26 | % | 6.00 | % | 9.57 | % |
Reconciliation of Return on Average Assets
(in thousands, except ratios)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||
| GAAP earnings after income taxes | $ | 3,197 | $ | 2,702 | $ | 4,088 | |||
| Net income as adjusted after income taxes (non-GAAP) (1) | $ | 3,197 | $ | 2,702 | $ | 4,088 | |||
| Average assets | $ | 1,763,191 | $ | 1,771,351 | $ | 1,834,152 | |||
| Return on average assets (annualized) | 0.74 | % | 0.61 | % | 0.90 | % | |||
| Return on average assets as adjusted (non-GAAP) (annualized) | 0.74 | % | 0.61 | % | 0.90 | % |
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
Reconciliation of Return on Average Equity
(in thousands, except ratios)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||
| GAAP earnings after income taxes | $ | 3,197 | $ | 2,702 | $ | 4,088 | |||
| Net income as adjusted after income taxes (non-GAAP) (1) | $ | 3,197 | $ | 2,702 | $ | 4,088 | |||
| Average equity | $ | 178,470 | $ | 179,242 | $ | 171,794 | |||
| Return on average equity (annualized) | 7.26 | % | 6.00 | % | 9.57 | % | |||
| Return on average equity as adjusted (non-GAAP) (annualized) | 7.26 | % | 6.00 | % | 9.57 | % |
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
Reconciliation of Return on Average Tangible Common Equity (non-GAAP)
(in thousands, except ratios)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||
| Total stockholders’ equity | $ | 180,051 | $ | 179,084 | $ | 172,821 | |||
| Less: Goodwill | (31,498) | (31,498) | (31,498) | ||||||
| Less: Intangible assets | (800) | (979) | (1,515) | ||||||
| Tangible common equity (non-GAAP) | $ | 147,753 | $ | 146,607 | $ | 139,808 | |||
| Average tangible common equity (non-GAAP) | $ | 146,083 | $ | 146,676 | $ | 138,692 | |||
| GAAP earnings after income taxes | 3,197 | 2,702 | 4,088 | ||||||
| Amortization of intangible assets, net of tax | 144 | 144 | 141 | ||||||
| Tangible net income | $ | 3,341 | $ | 2,846 | $ | 4,229 | |||
| Return on average tangible common equity (annualized) | 9.28 | % | 7.72 | % | 12.26 | % |
Reconciliation of Efficiency Ratio
(in thousands, except ratios)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||
| Non-interest expense (GAAP) | $ | 10,463 | $ | 10,809 | $ | 10,777 | |||
| Less amortization of intangibles | (179) | (179) | (179) | ||||||
| Efficiency ratio numerator (GAAP) | $ | 10,284 | $ | 10,630 | $ | 10,598 | |||
| Non-interest income | $ | 2,593 | $ | 2,009 | $ | 3,264 | |||
| Add back net losses on debt and equity securities | — | (287) | — | ||||||
| Subtract net gains on debt and equity securities | 10 | — | 167 | ||||||
| Net interest income | 11,594 | 11,708 | 11,905 | ||||||
| Efficiency ratio denominator (GAAP) | $ | 14,177 | $ | 14,004 | $ | 15,002 | |||
| Efficiency ratio (GAAP) | 73 | % | 76 | % | 71 | % |
Reconciliation of tangible book value per share (non-GAAP)
(in thousands, except per share data)
| Tangible book value per share at end of period | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total stockholders’ equity | $ | 180,051 | $ | 179,084 | $ | 180,149 | $ | 176,045 | $ | 172,821 |
| Less: Goodwill | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | |||||
| Less: Intangible assets | (800) | (979) | (1,158) | (1,336) | (1,515) | |||||
| Tangible common equity (non-GAAP) | $ | 147,753 | $ | 146,607 | $ | 147,493 | $ | 143,211 | $ | 139,808 |
| Ending common shares outstanding | 9,989,536 | 9,981,996 | 10,074,136 | 10,297,341 | 10,406,880 | |||||
| Book value per share | $ | 18.02 | $ | 17.94 | $ | 17.88 | $ | 17.10 | $ | 16.61 |
| Tangible book value per share (non-GAAP) | $ | 14.79 | $ | 14.69 | $ | 14.64 | $ | 13.91 | $ | 13.43 |
Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)
(in thousands, except ratios)
| Tangible common equity as a percent of tangible assets at end of period | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total stockholders’ equity | $ | 180,051 | $ | 179,084 | $ | 180,149 | $ | 176,045 | $ | 172,821 | |||||
| Less: Goodwill | (31,498) | $ | (31,498) | $ | (31,498) | $ | (31,498) | (31,498) | |||||||
| Less: Intangible assets | (800) | $ | (979) | $ | (1,158) | $ | (1,336) | (1,515) | |||||||
| Tangible common equity (non-GAAP) | $ | 147,753 | $ | 146,607 | $ | 147,493 | $ | 143,211 | $ | 139,808 | |||||
| Total Assets | $ | 1,779,963 | $ | 1,748,519 | $ | 1,799,137 | $ | 1,802,307 | $ | 1,819,315 | |||||
| Less: Goodwill | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | ||||||||||
| Less: Intangible assets | (800) | (979) | (1,158) | (1,336) | (1,515) | ||||||||||
| Tangible Assets (non-GAAP) | $ | 1,747,665 | $ | 1,716,042 | $ | 1,766,481 | $ | 1,769,473 | $ | 1,786,302 | |||||
| Total stockholders’ equity to total assets ratio | 10.12 | % | 10.24 | % | 10.01 | % | 9.77 | % | 9.50 | % | |||||
| Tangible common equity as a percent of tangible assets (non-GAAP) | 8.45 | % | 8.54 | % | 8.35 | % | 8.09 | % | 7.83 | % |
1Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”.
2Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”.
3Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”.
4Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on tangible common equity are non-GAAP measures that management believes enhances investors’ ability to understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of tangible book value per share (non-GAAP)”, “Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)”, and “Reconciliation of return on average tangible common equity)”.
16
ex992
EXHIBIT 99.2 Earnings Release Supplement First Quarter 2025
Citizens Community Bancorp, Inc. Table of Contents Cautionary Notes and Additional Disclosures Deposit Composition Commercial Deposit Concentrations Top 100 Depositors Liquidity Non-Owner Occupied CRE Owner Occupied CRE Multi-family Commercial & Industrial Loans Construction & Development Loans Agricultural Real Estate & Operating Loans Hotel Loans Restaurant Loans Campground Loans Office Loans Credit Quality/Risk Rating Descriptions Loans by Risk Rating as of March 31, 2025 Loans by Risk Rating as of December 31, 2024 Loans by Risk Rating as of March 31, 2024 Allowance for Credit Losses – Loans Allowance for Credit Losses – Unfunded Commitments Delinquency as of March 31, 2025 and December 31, 2024 Delinquency as of September 30, 2024 and June 30, 2024 Nonaccrual Loans Roll Forward Other Real Estate Owned Roll Forward Page(s) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 18 19 20 20 21 22 23 23 Investments – Amortized Cost and Fair Value Investments – Credit Ratings Earnings Per Share Economic Value of Equity Net Interest Income Over One Year Horizon Selected Capital Composition Highlights – Bank and Company Fair Value Accounting and Fair Value Table Page(s) 24 24 25 26 26 27 28 1
Cautionary Notes and Additional Disclosures DATES AND PERIODS PRESENTED In this earnings release financial supplement, unless otherwise noted, “20YY” refers to either the corresponding fiscal year-end date or the corresponding 12-months (i.e. fiscal year) then ended. “MMM-YY” refers to either the corresponding quarter-end date, or the corresponding three-month period then ended. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This earnings release financial supplement may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, descriptions of the financial condition, results of operations, asset and credit quality trends, profitability, projected earnings, future plans, strategies and expectations of Citizens Community Bancorp, Inc. (“CZWI” or the “Company”) and its subsidiary, Citizens Community Federal, National Association (“CCFBank”). The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of complying with those safe harbor provisions. Forward-looking statements, which are based on certain assumptions of the Company, are generally identifiable by use of the words “believe,” “expect,” “estimates,” “intend,” “anticipate,” “estimate,” “project,” “on pace,” “seek,” “target,” “potential,” “focus,” “may,” “preliminary,” “could,” “should” or similar expressions. These forward-looking statements express management’s current expectations or forecasts of future events, and by their nature, are subject to risks and uncertainties. Therefore, there are a number of factors that might cause actual results to differ materially from those in such statements. These uncertainties include: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our ability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company's performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 13, 2025, and the Company's subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward- looking statements contained herein or to update them to reflect events or circumstances occurring after the date hereof. NON-GAAP FINANCIAL MEASURES This earnings release financial supplement contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Non-GAAP financial measures referred to herein include net income as adjusted, return on average equity as adjusted, and return on average assets as adjusted. Reconciliations of all non-GAAP financial measures used herein to the comparable GAAP financial measures appear in the appendix at the end of this presentation. 2
Deposit Composition March 31, 2025 Average Account Size (In Thousands) AmountType $16Retail $67Commercial $475Public $1.52 Billion 82% of deposits insured or collateralized Top 10 Depositors Coverage Beyond FDIC(1)Industry% of DepositsRank ICSHealth Care 2.2%1 ICSPublic Administration2.0%2 ICSEducational Services1.6%3 CollateralizedPublic Administration1.4%4 CollateralizedPublic Administration1.4%5 CollateralizedPublic Administration1.3%6 CollateralizedEducational Services0.8%7 ICSWholesale Trade0.8%8 ICS & CollateralizedEducational Services0.7%9 CollateralizedPublic Administration0.7%10 (1) Coverage by ICS and private insurance may not cover entire balance 3
Commercial Deposit Concentrations March 31, 2025 Source: Internal Company Documents Diverse commercial deposit base with no industry concentration over 10% 4
Top 100 Depositors March 31, 2025 $441 Million 5
Liquidity March 31, 2025 $852 Million 6
Portfolio Fundamentals 51% 21% 28% Wisconsin Minnesota Other By Geography As of 3/31/25 • Typically, well seasoned investors with multiple projects, track record of success and personal financial strength (Net Worth/Liquidity) • Maximum LTV =<80% with recourse to owners with >20% interest • Term of 5-10 years with 20 to 25-year amortizations depending on property type, markets and strength and liquidity of sponsors • Minimum DSC and/or Global DSC covenant required to monitor performance ranging from 1.15x-1.25x • Conservative underwriting approach emphasizing actual results or market data • Appropriate use of SBA 504/7a for lower cash injection or special use projects Non – Owner Occupied CRE 3/31/2025 12/31/2024 $471 $471 740 746 $636 $632 Approximate Weighted Average LTV 52% 52% 46 44 Trailing 12 Month Net Charge-Offs 0.00% 0.00% $7.6 $7.6 1.6% 1.6% Weighted Average Seasoning In Months Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands Portfolio Characteristics - Non-Owner Occupied CRE As of Criticized Loans Millions Criticized Loans as a Percent of Total 28% 20%18% 11% 9% 3% 3% 3%2% 3% CRE - Campground Investor Residential Hotel CRE - Senior Living CRE - Retail CRE - Warehouse/Mini Storage CRE - Office CRE - Mixed Use CRE - Industrial/Manufacturing Other Non – Owner Occupied CRE As of 3/31/25 7
21% 20% 16% 12% 10% 5% 1% 15% CRE Restaurant CRE Warehouse/Mini Storage CRE Industrial/Manufacturing CRE Retail CRE Mixed Use CRE Office Residential Lot Other Owner Occupied CRE As of 3/31/25 Portfolio Fundamentals 80% 16% 4% Wisconsin Minnesota Other By Geography As of 3/31/25 • Underwritten to <80% LTV based on appraised value (<75% for Restaurant) • Term of 5-10 years with 20-year amortization • Recourse to owners with greater than 20% interest • DSC covenant of 1.25x on project and/or Global DSC of 1.15x • Appropriate use of SBA 504/7a for lower cash injection or special use projects • By Geography “Other” segment includes borrowers with warm climates, no income tax states Owner Occupied CRE 3/31/2025 12/31/2024 $239 $238 388 385 $616 $617 Approximate Weighted Average LTV 53% 51% 43 41 Trailing 12 Month Net Charge-Offs (Recoveries) 0.00% 0.00% $8.3 $4.2 3.5% 1.7%Criticized Loans as a Precent of Total Weighted Average Seasoning In Months Criticized Loans In Millions Portfolio Characteristics - Owner Occupied CRE Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands As of 8
Portfolio Fundamentals 61% 28% 11% Wisconsin Minnesota Other By Geography As of 3/31/25 42% 24% 16% 6% 4% 3% 3% 1% 1% By Vintage As of 3/31/25 2025 2023 2022 2021 2020 2019 2018 Prior 2024 • Robust housing markets in Eau Claire and Mankato markets supported by student populations at state universities, technical colleges, and growing population and job markets • Multi-family sponsors experienced owners with multi-project portfolios • Typically underwritten to 75% LTV based on appraised value with recourse; metro markets and/or strong sponsors may warrant up to 80% LTV • Generally, term of 5-10 years with 20 to 25-year amortization (varies by new versus existing, size of market and sponsor strength) • Covenant for minimum DSC/Global DSC Multi-family 3/31/2025 12/31/2024 $238 $221 131 129 $1.82 $1.71 61% 62% Weighted Average Seasoning In Months 42 41 0% 0% $0.0 $0.0 0.0% 0.0%Criticized Loans as a Percent of Total Approximate Weighted Average LTV Trailing 12 Month Net Charge-Offs Criticized Loans in Millions Portfolio Characteristics - Multi-family Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Millions As of 9
92% 7% 1% Wisconsin Minnesota Other By Geography As of 3/31/25 14% 13% 13% 10%10% 7% 5% 5% 4% 2% 2% 15% Transportation and Warehousing Finance and Insurance Manufacturing Public Admin Wholesale Trade Construction Administrative Support Real Estate, Rental and Leasing Retail Trade Education Services Agriculture Other Commercial & Industrial As of 3/31/25 • Highly diversified, secured loan portfolio underwritten with recourse • Lines of credit reviewed annually and may have borrowing base certificates governing line usage • Fixed asset LTV’s based on age and type of equipment; <5-year amortization • Use of SBA Guaranty Program (Preferred Lender or General Processing) as appropriate • “Retail Trade” segment consists of Farm Supply, Franchised Hardware, Franchised Auto Parts, Franchised and Non-franchised Auto Dealers and Repair Shops, Convenience Stores/Gas Stations Commercial & Industrial Loans 3/31/2025 12/31/2024 $110 $116 637 638 $172 $181 33 34 0.09% (0.01%) $33 $45 $8.0 $5.1 Criticized Loans as a Precent of Total 7.3% 4.4% Criticized Loans In Millions Weighted Average Seasoning In Months Trailing 12 Month Net Charge-Offs Committed Line, if collateral In Millions Portfolio Characteristics - Commercial & Industrial Loan Balance In Millions Number of Loans Average Loan Size In Thousands As of Portfolio Fundamentals 10
Portfolio Fundamentals 27% 16% 14% 12% 11% 1% 19% Multi-Family 1-4 Family Campgrounds Land Hospitality Retail Other Construction & Development As of 3/31/25 70% 12% 8% 7% 2% 1% Wisconsin Tennessee Minnesota Colorado South Dakota Texas By Geography As of 3/31/25 • Underwritten to 75-80% LTV based on lesser of cost or appraised value with full recourse • Interest only typically up to 18 months (depending on project complexity and seasonal timing) followed by amortization of 15-25 years (terms vary by property type) • Borrower equity contribution of cash/land value =>15% injected at the beginning of project (cash/land contribution) • Construction loans require 3rd party inspections and title company draws after balancing to sworn construction statement • 1-4 residential construction centered in eastern Twin Cities and Northwest Wisconsin. Generally, 80% LTC /60%-80% of AV. Spec building capped. Progress reporting monthly by individual home Construction & Development Loans 3/31/2025 12/31/2024 Loan Balance Outstanding In Millions $58 $78 Number of Loans 93 91 Average Loan Size In Millions $0.6 $0.9 Approximate Weighted Average LTV 70% 74% Trailing 12 Month Net Charge-Offs 0.00% 0.00% Percent Utilized of Commitments 67% 83% $0.0 $0.1 Criticized Loans as a Percent of Total 0.0% 0.1% Portfolio Characteristics - Construction & Development As of Criticized Loans in Millions 11
39% 27% 19% 15% Crop Other Farming Dairy Other Agricultural As of 3/31/25 Portfolio Fundamentals 79% 20% 1% Wisconsin Minnesota Other By Geography As of 3/31/25 • Producers required to have marketing plans to mitigate volatility of commodities • Appropriate crop/revenue insurance and/or dairy margin protection required • Maximum ag RE LTV of less than 65%; equipment LTV of less than 75% • Appropriate structuring to separate crop production cycles and to match length of loan with asset financed • Use of Farmer Mac, FSA, SBA or USDA programs to address DSC, collateral margins or working capital • Operating and ag loan relationships are typically cross collateralized Agricultural Real Estate & Operating Loans 3/31/2025 12/31/2024 $100 $104 462 472 $217 $221 41 42 (0.05%) (0.28%) Criticized Loans in Millions $7.3 $7.6 7.3% 7.3%Criticized Loans as a Percent of Total Weighted Average Seasoning In Months Trailing 12 Month Net Charge-Offs (Recoveries) Portfolio Characteristics - Agricultural Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands As of 12
53% 30% 17% Limited Service Full Service Other Hotels As of 3/31/25 Portfolio Fundamentals 41% 38% 16% 5% Minnesota Wisconsin Illinois Colorado By Geography As of 3/31/25 • Mainly experienced multi project hoteliers and guarantors with strong personal financial statements (net worth and liquidity) • Mainly flagged/franchised limited stay properties • Underwriting consistent with management's conservative approach to Investor CRE, emphasizing actual results in underwriting Hotel Loans 3/31/2025 12/31/2024 $87 $88 20 20 $4.4 $4.4 50% 51% (0.04%) (0.04%) Criticized Loans in Millions $3.9 $4.0 4.5% 4.6%Criticized Loans as a Precent of Total As of Number of Loans Trailing 12 Month Net Charge Offs (Recoveries) Portfolio Characteristics - Hotels Loan Balance Outstanding In Millions Average Loan Size In Millions Approximate Weighted Average LTV 13
61%21% 11% 3%3%1% Culver's - Limited Service Restaurants Bowling Centers Drinking Establishments Other National Limited Services Other Restaurants As of 3/31/25 Portfolio Fundamentals 56%27% 17% Wisconsin Minnesota Other By Geography As of 3/31/25 • Experienced developers/operators of national Limited /Quick Service brands (Culver’s, Subway, Dairy Queen, McDonalds, Jimmy John’s, A&W) • Underwritten to =<80% LTV with full recourse (depending on sponsor history); 20-year amortization with 5 to 10-year terms • Use of SBA Guaranty Program (Preferred Lender or General Processing) as appropriate • Drinking establishments may have other collateral pledged and tend to be in smaller communities in our footprint • Lessors of RE include investor and owner-occupied structure Restaurant Loans 3/31/2025 12/31/2024 $58 $59 82 78 $710 $762 48% 48% 0.00% 0.00% Criticized Loans In Millions $0.04 $0.04 0.1% 0.1%Criticized Loans as a Percent of Total Portfolio Characteristics - Restaurants As of Trailing 12 Month Net Charge-Offs Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands Approximate Weighted Average LTV 14
24% 21% 20% 19% 6% 2% 2%2% 4% By Vintage As of 3/31/25 2025 2023 2022 2021 2020 2017 2016 Prior 2024 Portfolio Fundamentals 20% 11% 9% 9%7%6% 6% 6% 3% 3% 3% 17% Wisconsin Alabama Ohio Tennessee Illinois Pennsylvania Maryland Utah Kentucky New York North Carolina Other By Geography As of 3/31/25 • Experienced multi-unit operators and owner-occupied franchised campgrounds (typically Jellystone Park) • Grounds offer a mix of camping, RV and cabin options with recreational amenities • Park locations within reasonable proximity of metropolitan areas and/or near national and state parks • Underwritten with recourse generally with 5-10 year terms and 20 year amortization • Use of SBA 7a and 504, or other government guaranteed loan programs as appropriate • 20+ years of history through CCF acquisition with no charge-off history Campground Loans 3/31/2025 12/31/2024 $141 $139 71 68 $2.0 $2.0 48% 49% 40 38 0.00% 0.00% $0.0 $0.0 Criticized Loans as a Percent of Total 0.0% 0.0% Portfolio Characteristics - Campgrounds As of Weighted Average Seasoning in Months Criticized Loans in Millions Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Millions Approximate Weighted Average LTV Trailing 12 Month Net Charge-Offs 15
56% 34% 10% Maturity or Next Repricing Date As of 3/31/25 2025 2026 2027 & Beyond Portfolio Fundamentals 83% 8% 9% Wisconsin Minnesota Other By Geography As of 3/31/25 • Properties financed are generally in Wisconsin and Minnesota and 98% of properties are located outside of large cities • Projects underwritten with 5-10 year term, up to 20 year amortization, and less than 80% LTV • Loans are with recourse to the sponsor/owner(s) • Buildings are mostly single level buildings and no more than three floors high • Tenants centered in medical, insurance, professional services and government Office Loans 3/31/2025 12/31/2024 $28 $28 72 71 $383 $387 57% 58% 46 44 0.00% 0.00% $0.5 $0.5 1.8% 1.8%Criticized Loans as a Percent of Total Portfolio Characteristics - Office As of Weighted Average Seasoning in Months Criticized Loans in Millions Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands Approximate Weighted Average LTV Trailing 12 Month Net Charge-Offs 16
Credit Quality/Risk Ratings: Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its loan portfolio. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant. Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio is presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows: 1 through 4 - Pass. A “Pass” loan means that the condition of the borrower and the performance of the loan is satisfactory or better. 5 - Watch. A “Watch” loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future. 6 - Special Mention. A “Special Mention” loan has one or more potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future. 7 - Substandard. A “Substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 8 - Doubtful. A “Doubtful” loan has all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. 9 - Loss. Loans classified as “Loss” are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future. As of March 31, 2025, and December 31, 2024, there were no loans classified as doubtful with a risk rating of 8 and no loans classified as loss with a risk rating of 9. Residential and consumer loans are typically not rated until they are past due 90 days at month-end which is why they are classified as pass graded 1-5 and once past due or have a history of delinquencies, get assigned a grade 7. 17
Below is a breakdown of loans by risk rating as of March 31, 2025: (in thousands) 1 to 5 6 7 TOTAL Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 694,112 $ 7,728 $ 8,135 $ 709,975 Agricultural real estate 64,968 143 5,960 71,071 Multi-family real estate 237,872 — — 237,872 Construction and land development 58,461 — — 58,461 C&I/Agricultural operating: Commercial and industrial 101,594 6,605 1,421 109,620 Agricultural operating 28,073 514 723 29,310 Residential mortgage: Residential mortgage 125,872 — 3,198 129,070 Purchased HELOC loans 2,443 — 117 2,560 Consumer installment: Originated indirect paper 3,400 — 34 3,434 Other consumer 4,676 — 3 4,679 Gross loans $ 1,321,471 $ 14,990 $ 19,591 $ 1,356,052 Less: Unearned net deferred fees and costs and loans in process (2,542) Unamortized discount on acquired loans (782) Allowance for credit losses (20,205) Loans receivable, net $ 1,332,523 Below is a breakdown of loans by risk rating as of December 31, 2024: (in thousands) 1 to 5 6 7 TOTAL Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 697,273 $ 3,953 $ 7,792 $ 709,018 Agricultural real estate 66,737 145 6,248 73,130 Multi-family real estate 220,805 — — 220,805 Construction and land development 78,386 — 103 78,489 C&I/Agricultural operating: Commercial and industrial 110,529 3,992 1,136 115,657 Agricultural operating 29,819 390 791 31,000 Residential mortgage: Residential mortgage 129,664 — 2,677 132,341 Purchased HELOC loans 2,839 — 117 2,956 Consumer installment: Originated indirect paper 3,945 — 25 3,970 Other consumer 5,010 — 2 5,012 Gross loans $ 1,345,007 $ 8,480 $ 18,891 $ 1,372,378 Less: Unearned net deferred fees and costs and loans in process (2,547) Unamortized discount on acquired loans (850) Allowance for credit losses (20,549) Loans receivable, net $ 1,348,432 18
Below is a breakdown of loans by risk rating as of March 31, 2024: (in thousands) 1 to 5 6 7 TOTAL Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 731,757 $ 4,418 $ 9,545 $ 745,720 Agricultural real estate 73,898 6,172 381 80,451 Multi-family real estate 235,450 — — 235,450 Construction and land development 93,302 109 149 93,560 C&I/Agricultural operating: Commercial and industrial 124,939 3,038 457 128,434 Agricultural operating 25,133 — 1,104 26,237 Residential mortgage: Residential mortgage 126,624 — 3,041 129,665 Purchased HELOC loans 2,895 — — 2,895 Consumer installment: Originated indirect paper 5,805 — 46 5,851 Other consumer 5,740 — 10 5,750 Gross loans $ 1,425,543 $ 13,737 $ 14,733 $ 1,454,013 Less: Unearned net deferred fees and costs and loans in process (2,757) Unamortized discount on acquired loans (1,097) Allowance for loan losses (22,436) Loans receivable, net $ 1,427,723 Below is a breakdown of loans by risk rating as of December 31, 2023: (in thousands) 19
Allowance for Credit Losses - Loans (in thousand, except ratios) March 31, 2025 and Three Months Ended December 31, 2024 and Three Months Ended September 30, 2024 and Three Months Ended June 30, 2024 and Three Months Ended Allowance for Credit Losses (“ACL”) ACL - Loans, at beginning of period $ 20,549 $ 21,000 $ 21,178 $ 22,436 Loans charged off: Commercial/Agricultural real estate (51) — (39) — C&I/Agricultural operating (20) (143) — — Residential mortgage — — (4) — Consumer installment (11) (7) (11) (12) Total loans charged off (82) (150) (54) (12) Recoveries of loans previously charged off: Commercial/Agricultural real estate 40 10 5 2 C&I/Agricultural operating 45 1 10 10 Residential mortgage 1 — 4 2 Consumer installment 3 12 5 2 Total recoveries of loans previously charged off: 89 23 24 16 Net loan recoveries/(charge-offs) (“NCOs”) 7 (127) (30) 4 (Reductions) additions to ACL - Loans via provision for credit losses charged to operations (351) (324) (148) (1,262) ACL - Loans, at end of period $ 20,205 $ 20,549 $ 21,000 $ 21,178 Average outstanding loan balance $ 1,363,352 $ 1,396,854 $ 1,429,928 $ 1,439,535 Ratios: NCOs (annualized) to average loans 0.00 % 0.04 % 0.01 % 0.00 % Allowance for Credit Losses - Unfunded Commitments: (in thousands) In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.435 million at March 31, 2025, $0.334 million at December 31, 2024, and $0.975 million at March 31, 2024, classified in other liabilities on the consolidated balance sheets. March 31, 2025 and Three Months Ended December 31, 2024 and Three Months Ended March 31, 2024 and Three Months Ended ACL - Unfunded commitments - beginning of period $ 334 $ 460 $ 1,250 Additions (reductions) to ACL - Unfunded commitments via provision for credit losses charged to operations 101 (126) (275) ACL - Unfunded commitments - End of period $ 435 $ 334 $ 975 20
Delinquency Detail Loan balances at amortized cost (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans March 31, 2025 Commercial/Agricultural real estate: Commercial real estate $ 217 $ 224 $ 370 $ 811 $ 707,183 $ 707,994 Agricultural real estate 41 61 554 656 70,070 70,726 Multi-family real estate — — — — 237,736 237,736 Construction and land development 289 — — 289 57,869 58,158 C&I/Agricultural operating: Commercial and industrial 50 — 501 551 108,928 109,479 Agricultural operating — — 725 725 28,604 29,329 Residential mortgage: Residential mortgage 1,069 54 830 1,953 126,680 128,633 Purchased HELOC loans — — 117 117 2,443 2,560 Consumer installment: Originated indirect paper 16 1 — 17 3,417 3,434 Other consumer 44 16 — 60 4,619 4,679 Total $ 1,726 $ 356 $ 3,097 $ 5,179 $ 1,347,549 $ 1,352,728 December 31, 2024 Commercial/Agricultural real estate: Commercial real estate $ 857 $ 322 $ 367 $ 1,546 $ 705,463 $ 707,009 Agricultural real estate 26 — 556 582 72,156 72,738 Multi-family real estate — — — — 220,706 220,706 Construction and land development — — — — 78,146 78,146 C&I/Agricultural operating: Commercial and industrial 566 50 564 1,180 114,355 115,535 Agricultural operating — — 793 793 30,224 31,017 Residential mortgage: Residential mortgage 1,873 796 500 3,169 128,723 131,892 Purchased HELOC loans — — 117 117 2,839 2,956 Consumer installment: Originated indirect paper 25 — — 25 3,945 3,970 Other consumer 27 — — 27 4,985 5,012 Total $ 3,374 $ 1,168 $ 2,897 $ 7,439 $ 1,361,542 $ 1,368,981 21
Delinquency Detail (Continued) Loan balances at amortized cost (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans September 30, 2024 Commercial/Agricultural real estate: Commercial real estate $ 125 $ — $ 232 $ 357 $ 728,090 $ 728,447 Agricultural real estate 229 — 354 583 75,030 75,613 Multi-family real estate — — — — 239,065 239,065 Construction and land development 413 — — 413 86,968 87,381 C&I/Agricultural operating: Commercial and industrial 48 253 421 722 118,792 119,514 Agricultural operating — — 901 901 26,666 27,567 Residential mortgage: Residential mortgage 1,534 770 1,070 3,374 131,093 134,467 Purchased HELOC loans — — 117 117 2,815 2,932 Consumer installment: Originated indirect paper 9 — 12 21 4,384 4,405 Other consumer 21 29 2 52 5,385 5,437 Total $ 2,379 $ 1,052 $ 3,109 $ 6,540 $ 1,418,288 $ 1,424,828 June 30, 2024 Commercial/Agricultural real estate: Commercial real estate $ 103 $ 111 $ 533 $ 747 $ 726,423 $ 727,170 Agricultural real estate — — 354 354 77,428 77,782 Multi-family real estate — — — — 234,624 234,624 Construction and land development — — — — 87,379 87,379 C&I/Agricultural operating: Commercial and industrial 277 — 421 698 126,610 127,308 Agricultural operating — — 1,017 1,017 26,405 27,422 Residential mortgage: Residential mortgage 3,025 692 814 4,531 128,487 133,018 Purchased HELOC loans — 117 — 117 2,798 2,915 Consumer installment: Originated indirect paper 2 9 25 36 5,074 5,110 Other consumer 41 3 2 46 5,814 5,860 Total $ 3,448 $ 932 $ 3,166 $ 7,546 $ 1,421,042 $ 1,428,588 22
Nonaccrual Loans Roll Forward Loan balances at amortized cost (in thousands) Quarter Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Balance, beginning of period $ 13,168 $ 15,042 $ 8,352 $ 8,413 $ 13,184 Additions 694 1,054 7,486 352 961 Charge offs (21) (138) — — — Transfers to OREO — (201) (124) — — Payments received (752) (2,515) (641) (411) (5,767) Other, net 2 (74) (31) (2) 35 Balance, end of period $ 13,091 $ 13,168 $ 15,042 $ 8,352 $ 8,413 Other Real Estate Owned Roll Forward (in thousands) Quarter Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Balance, beginning of period $ 891 $ 1,567 $ 1,662 $ 1,845 $ 1,795 Loans transferred in — 201 — — 73 Real estate transferred in from fixed assets value reduction — (245) — — (27) Branch properties sales — (637) — — — Sales — — (25) (183) — Write-downs (15) — (70) — — Other, net — 5 — — 4 Balance, end of period $ 876 $ 891 $ 1,567 $ 1,662 $ 1,845 23
The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of March 31, 2025 and December 31, 2024, respectively, were as follows: (in thousands) Available-for-sale securities Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value March 31, 2025 U.S. government agency obligations $ 13,062 $ 24 $ 100 $ 12,986 Mortgage-backed securities 86,510 — 17,806 68,704 Corporate debt securities 42,436 88 2,933 39,591 Asset-backed securities 18,496 28 163 18,361 Total available-for-sale securities $ 160,504 $ 140 $ 21,002 $ 139,642 December 31, 2024 U.S. government agency obligations $ 13,853 $ 28 $ 128 $ 13,753 Mortgage-backed securities 87,762 — 19,376 68,386 Corporate debt securities 44,931 111 3,326 41,716 Asset-backed securities 19,058 43 105 18,996 Total available-for-sale securities $ 165,604 $ 182 $ 22,935 $ 142,851 (in thousands) Held-to-maturity securities Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Estimated Fair Value March 31, 2025 Obligations of states and political subdivisions $ 400 $ — $ 21 $ 379 Mortgage-backed securities 83,901 5 18,094 65,812 Total held-to-maturity securities $ 84,301 $ 5 $ 18,115 $ 66,191 December 31, 2024 Obligations of states and political subdivisions $ 500 $ — $ 22 $ 478 Mortgage-backed securities 85,004 4 19,864 65,144 Total held-to-maturity securities $ 85,504 $ 4 $ 19,886 $ 65,622 The composition of our available for sale portfolios by credit rating as of the dates indicated below was as follows: (in thousands) March 31, 2025 December 31, 2024 Available-for-sale securities Amortized Cost Fair Value Amortized Cost Fair Value U.S. government agency $ 92,066 $ 74,225 $ 94,327 $ 74,910 AAA 7,677 7,649 7,210 7,148 AA 20,343 20,169 19,136 19,077 A 5,100 4,427 5,950 5,620 BBB 35,318 33,172 38,981 36,096 Non-rated — — — — Total available for sale securities $ 160,504 $ 139,642 $ 165,604 $ 142,851 24
The composition of our held to maturity portfolio by credit rating as of the dates indicated was as follows: (in thousands) March 31, 2025 December 31, 2024 Held-to-maturity securities Amortized Cost Fair Value Amortized Cost Fair Value U.S. government agency $ 83,901 $ 65,812 $ 85,004 $ 65,144 A 400 379 500 478 Total $ 84,301 $ 66,191 $ 85,504 $ 65,622 On July 25, 2024, the Board of Directors authorized a stock repurchase program of 5% of the outstanding shares on that date or 512,709 shares. As of the beginning of the quarter ended March 31, 2025, 238 thousand shares were available for purchase under the 2024 share repurchase program. During the quarter ended March 31, 2025, no shares were repurchased under the program. As of March 31, 2025, an additional 238 thousand shares remain available for repurchase under the 2024 share repurchase program. Earnings Per Share (Amounts in thousands, except per share data) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Basic Net income attributable to common shareholders $ 3,197 $ 2,702 $ 4,088 Weighted average common shares outstanding 9,989 10,023 10,439 Basic earnings per share $ 0.32 $ 0.27 $ 0.39 Diluted Net income attributable to common shareholders $ 3,197 $ 2,702 $ 4,088 Weighted average common shares outstanding 9,989 10,023 10,439 Add: Dilutive stock options outstanding 12 11 4 Average shares and dilutive potential common shares 10,001 10,034 10,443 Diluted earnings per share $ 0.32 $ 0.27 $ 0.39 Common stock issued and outstanding 9,990 9,982 10,407 25
Economic Value of Equity Percent Change in Economic Value of Equity (EVE) Change in Interest Rates in Basis Points (“bp”) Rate Shock in Rates (1) At March 31, 2025 At December 31, 2024 +300 bp 3 % 2 % +200 bp 2 % 2 % +100 bp 1 % 1 % -100 bp (1) % (1) % -200 bp (4) % (4) % Net Interest Income Over One Year Horizon Percent Change in Net Interest Income Over One Year Horizon Change in Interest Rates in Basis Points (“bp”) Rate Shock in Rates (1) At March 31, 2025 At December 31, 2024 +300 bp (8) % (8) % +200 bp (5) % (5) % +100 bp (2) % (3) % -100 bp 2 % 2 % -200 bp 3 % 3 % 26
CITIZENS COMMUNITY FEDERAL N.A. Selected Capital Composition Highlights March 31, 2025 (unaudited) December 31, 2024 (audited) September 30, 2024 (unaudited) June 30, 2024 (unaudited) To Be Well Capitalized Under Prompt Corrective Action Provisions Tier 1 leverage ratio (to adjusted total assets) 12.0% 11.9% 11.7% 11.7% 5.0% Tier 1 capital (to risk weighted assets) 14.3% 14.4% 13.8% 13.7% 8.0% Common equity tier 1 capital (to risk weighted assets) 14.3% 14.4% 13.8% 13.7% 6.5% Total capital (to risk weighted assets) 15.6% 15.6% 15.0% 15.0% 10.0% CITIZENS COMMUNITY BANCORP, INC. Selected Capital Composition Highlights March 31, 2025 (unaudited) December 31, 2024 (audited) September 30, 2024 (unaudited) June 30, 2024 (unaudited) For Capital Adequacy Purposes Tier 1 leverage ratio (to adjusted total assets) 9.5% 9.5% 9.2% 9.1% 4.0% Tier 1 capital (to risk weighted assets) 11.3% 11.4% 10.8% 10.7% 6.0% Common equity tier 1 capital (to risk weighted assets) 11.3% 11.4% 10.8% 10.7% 4.5% Total capital (to risk weighted assets) 16.0% 16.1% 15.3% 15.2% 8.0% 27
Fair Value Accounting ASC Topic 820-10, “Fair Value Measurements and Disclosures” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs that may be used to measure fair value: Level 1- Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2- Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3- Significant unobservable inputs that reflect the Company’s assumptions about the factors that market participants would use in pricing an asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the fair value measurement. The fair value of securities available for sale is determined by obtaining market price quotes from independent third parties wherever such quotes are available (Level 1 inputs); or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). Where such quotes are not available, we utilize independent third party valuation analysis to support our own estimates and judgments in determining fair value (Level 3 inputs). Fair Value Table The table below represents what we would receive to sell an asset or what we would have to pay to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount and estimated fair value of the Company’s financial instruments as of the dates indicated below were as follows: March 31, 2025 Valuation Method Used Carrying Amount Estimated Fair Value Financial assets: Cash and cash equivalents (Level I) $ 100,199 $ 100,199 Securities available for sale “AFS” (Level II) 139,642 139,642 Securities held to maturity “HTM” (Level II) 84,301 66,141 Farmer Mac equity securities (Level I) 539 539 Preferred equity (Level III) 1,362 1,362 Equity investments valued at NAV (1) N/A 3,561 N/A Other investments (Level II) 12,496 12,496 Loans receivable, net (Level III) 1,332,523 1,292,183 Loans held for sale - Residential mortgage (Level I) 328 328 Loans held for sale - SBA /FSA (Level II) 2,968 2,968 Mortgage servicing rights (Level III) 3,583 5,090 Accrued interest receivable (Level I) 5,926 5,926 Financial liabilities: Deposits (Level III) $ 1,523,654 $ 1,523,290 FHLB advances (Level II) — — Other borrowings (Level II) 61,664 59,139 Accrued interest payable (Level I) 6,369 6,369 (1) Investments valued at NAV are excluded from being reported under the fair value hierarchy but are presented to permit reconciliation with the balance sheet in accordance with ASC 820-10-35-54B. 28
ex993
2025 First Quarter Results Earnings Release Presentation Exhibit 99.3
Cautionary Notes and Additional Disclosures 2 DATES AND PERIODS PRESENTED Unless otherwise noted, “20YY” refers to either the corresponding fiscal year-end date or the corresponding 12-months (i.e., fiscal year) then ended. “MMM-YY” refers to either the corresponding quarter-end date, or the corresponding three-month period then ended. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This presentation may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, descriptions of the financial condition, results of operations, asset and credit quality trends, profitability, projected earnings, future plans, strategies and expectations of Citizens Community Bancorp, Inc. (“CZWI” or the “Company”) and its subsidiary, Citizens Community Federal, National Association (“CCFBank”) . The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of complying with those safe harbor provisions. Forward- looking statements, which are based on certain assumptions of the Company, are generally identifiable by use of the words “believe,” “expect,” “estimates,” “intend,” “anticipate,” “estimate,” “project,” “on pace,” “seek,” “target,” “potential,” “focus,” “may,” “preliminary,” “could,” “should” or similar expressions. These forward-looking statements express management’s current expectations or forecasts of future events, and by their nature, are subject to risks and uncertainties. Therefore, there are a number of factors that might cause actual results to differ materially from those in such statements. These uncertainties include: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our ability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company's performance are discussed further in Part I, Item 1A, "Risk Factors," in the Company's Form 10-K, for the year ended December 31, 2024, filed with the Securities and Exchange Commission ("SEC") on March 13, 2025, and the Company's subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward- looking statements contained herein or to update them to reflect events or circumstances occurring after the date hereof. NON-GAAP FINANCIAL MEASURES These slides contain non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Non·GAAP financial measures referred to herein include net income as adjusted, EPS as adjusted, ROAA as adjusted, return on average tangible common equity (ROATCE), ROATCE as adjusted, tangible book value, tangible book value per share, efficiency ratio as adjusted and tangible common equity / tangible assets. Reconciliations of all Non·GAAP financial measures used herein to the comparable GAAP financial measures appear in the appendix at the end of this presentation. SOURCE Unless otherwise noted, internal Company documents
Investment Summary Markets Earnings and TCE profile supports double digit percentage dividend growth and share buyback activity 3 Returns Asset Quality Growing markets with diverse industries mitigate volatility and support steady growth Sound underwriting practices and portfolio administration have produced strong credit performance Capital Ratios Strong bank capital ratios and holding company TCE ratio of 8.5% Insider Ownership Board and Executive Management, including former chairperson, beneficially own 6% of outstanding shares
Performance Objectives Capital Management Strong Credit Culture Operating Leverage Culture Optimize balance sheet and earnings to support share buybacks and maintain TCE >8% to weather economic shocks Strength of credit culture demonstrated by prudent underwriting, disciplined loan administration, and net charge offs averaging <5 bps since 2017 Management track record of holding expense growth below the rate of inflation by utilizing technology to reduce operating and occupancy costs and improve productivity Accountability for executing business strategy that engages customers, colleagues, and our communities to generate strong results and increase franchise value 4 Diversification Broad industry exposure in deposit and loan portfolios provides stability in earnings, capital and asset quality in various economic cycles
Operating Market Overview CZWI Operates in diverse markets within the northwestern region of Wisconsin, metro Twin Cities and the Mankato, Minnesota MSA Source: S&P Global Market Intelligence 0 0 0 0 0 5
$574 $733 $759 $1,177 $1,238 $1,311 $1,412 $1,461 $1,369 $1,353 $558 $743 $747 $1,196 $1,295 $1,388 $1,425 $1,519 $1,488 $1,524 $696 $941 $975 $1,531 $1,649 $1,740 $1,816 $1,851 $1,749 $1,780 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY Mar-25 Franchise Expansion CZWI has transformed the Company from a consumer bank to a commercial bank to strengthen the earnings profile and franchise. Total Assets Loans Receivable Total Deposits Source: S&P Global Market Intelligence, company filings 6 July 2019 Assets: $192mm Tomah, WI May 2016 Assets: $154mm Rice Lake, WI 2 Central Bank branches February 2016 Deposits: $27mm Northwestern WI August 2017 Assets: $269mm Wells, MN October 2018 Assets: $269mm Osseo, WI
89.2% 82.3% 76.1% 87.1% 73.7% 86.5% 87.1% 84.0% 80.8% 89.6% 74.1% 87.4% 87.4% 84.2% 76.8% 84.9% 70.2% 90.9% 86.0% 82.9% 82.6% 87.0% 69.4% 87.8% 75% 0.0% 25.0% 50.0% 75.0% 100.0% Overall Role Team Supervisor Compensation Organization Colleague Engagement 2021 Favorable 2022 Favorable 2023 Favorable 2024 Favorable Excellent Target Values Our six main values are: integrity, commitment, innovation, collaboration, focus, and sustainability. Vision Make more possible for our customers, colleagues, communities, and shareholders! Mission Provide the best products, service, and ideas to our customers every interaction every day. Culture & Engagement 7 20242023 20222021 Participation Rate: 95.1%84.8%91.4%71.8%
Net Income and Diluted EPS Source: S&P Global Market Intelligence, company filings Net Income as Adjusted and Diluted EPS Income as Adjusted are non-GAAP financial measures, which management believes may be helpful in understanding the Company's results of operations or financial position and comparing results over different periods. Reconciliation of Net Income and Diluted EPS Income as Adjusted to the comparable GAAP financial measure can be found in the appendix of this presentation. These measures should not be viewed as a substitute for operating results determined in accordance with GAAP. 8 $2,499 $4,283 $9,463 $12,725 $21,266 $17,761 $13,059 $13,751 $3,197$4,221 $4,962 $10,675 $12,425 $21,339 $18,500 $13,321 $13,883 $3,197 $0 $5,000 $10,000 $15,000 $20,000 $25,000 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Net Income Net Income Net Income as Adjusted Annual vs. Quarterly $0.46 $0.58 $0.85 $1.14 $1.98 $1.69 $1.25 $1.34 $0.32 $0.78 $0.68 $0.96 $1.11 $1.99 $1.76 $1.28 $1.35 $0.32 $0.00 $0.50 $1.00 $1.50 $2.00 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Diluted EPS Diluted EPS Diluted EPS Income as Adjusted Annual vs. Quarterly
Book Value, Tangible Book Value and Core Net Revenue Detail Source: S&P Global Market Intelligence, company filings Tangible book value per share is a non-GAAP measure which management believes may be helpful in assessing capital adequacy. The reconciliation of Tangible book value per share can be found in the appendix of this presentation. These measures should not be viewed as substitutes for operating results determined in accordance with GAAP. 9 $9.78 $11.05 $9.89 $11.18 $12.90 $12.77 $13.42 $14.69 $14.79 $12.48 $12.46 $13.36 $14.52 $16.27 $16.03 $16.60 $17.94 $18.02 $0.00 $5.00 $10.00 $15.00 $20.00 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY Mar-25 BOOK VALUE AND TANGIBLE BOOK VALUE PER SHARE TANGIBLE BOOK VALUE PER SHARE BOOK VALUE PER SHARE $22,878 $29,764 $42,686 $43,673 $40,532 $41,743 $40,142 $42,306 $10,463 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD CORE NET REVENUE DETAIL ($000) NET INTEREST INCOME NON-INTEREST INCOME NON-INTEREST EXPENSE $58,488 $68,703 $69,491 $56,581 $58,599 $14,187 $27,019 $37,673 $66,799
Quarterly data is annualized for the quarterly 2025 information. Return on average assets as adjusted, return on average tangible common equity (ROATCE) and ROATCE as adjusted are non-GAAP measures, which management believes may be helpful in understanding the underlying business performance trends related to average assets and average tangible equity. Reconciliations of ROAA as adjusted, ROTCE, and ROTCE as adjusted can be found in the appendix of this presentation. These measures should not be viewed as substitutes for operating results determined in accordance with GAAP. Return on Average Assets and Return on Average Tangible Common Equity Source: SEC filings and Company documents 10 0.34% 0.45% 0.68% 0.80% 1.23% 1.00% 0.71% 0.76% 0.74% 0.58% 0.52% 0.76% 0.78% 1.24% 1.04% 0.73% 0.77% 0.74% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 ROAA ROAA ROAA INCOME AS ADJUSTED 4.5% 5.3% 10.1% 12.1% 17.6% 14.4% 10.3% 10.0% 9.3% 7.5% 6.0% 11.2% 11.8% 17.6% 14.9% 10.5% 10.1% 9.3% 0.0% 5.0% 10.0% 15.0% 20.0% 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 ROATCE ROATCE ROATCE INCOME AS ADJUSTED
Efficiency Ratio, Net Interest Income (NII) and Net Interest Margin (NIM) The efficiency ratio as adjusted is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to non-interest expense. A reconciliation of the efficiency ratio as adjusted to its comparable GAAP financial measure can be found in the appendix of this presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP. 11 84% 77% 71% 61% 57% 61% 68% 72% 73%74% 76% 66% 62% 57% 59% 67% 72% 73% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 EFFICIENCY RATIO EFFICIENCY RATIO EFFICIENCY RATIO AS ADJUSTED $20,077 $22,268 $30,303 $43,513 $50,255 $53,667 $56,369 $48,349 $46,474 $11,594 3.27% 3.31% 3.42% 3.37% 3.40% 3.34% 3.39% 2.81% 2.73% 2.85% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 YTD NII AND NIM ($000) NET INTEREST INCOME NET INTEREST MARGIN
Citizens Community Bancorp, Inc. Capital Ratios 12 6.6% 8.3% 7.7% 7.7% 7.9% 8.5% 8.9% 9.5% 9.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 LEVERAGE RATIO 8.9% 10.2% 9.1% 10.5% 9.7% 9.7% 10.3% 11.4% 11.3% 0.0% 4.0% 8.0% 12.0% Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 COMMON EQUITY TIER 1 RATIO 12.0% 12.4% 11.2% 14.3% 13.1% 14.0% 14.7% 16.1% 16.0% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 TOTAL CAPITAL RATIO Tangible common equity/tangible assets is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to tangible assets and tangible common equity. A reconciliation of tangible common equity and tangible assets to its comparable financial measure can be found in the appendix of the presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP. 6.3% 7.9% 7.5% 7.7% 7.9% 7.5% 7.7% 8.5% 8.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 TANGIBLE COMMON EQUITY / TANGIBLE ASSETS
CZWI Shares Repurchased and Tangible Common Equity (TCE) as a Percent of Tangible Assets (non-GAAP) Tangible common equity/tangible assets is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to tangible assets and tangible common equity. A reconciliation of tangible common equity and tangible assets to its comparable financial measure can be found in the appendix of the presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP. 13 7.7% 7.9% 7.5% 7.7% 8.5% 8.5% 253,431 620,197 128,923 41,646 476,099 - - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 YTD SHARES REPURCHASED AND TCE/TANGIBLE ASSETS TCE RATIO SHARES REPURCHASED NONE
Asset Quality 0.82% 0.89% 0.88% 1.38% 1.29% 1.27% 1.57% 1.50% 1.49% 0.00% 0.50% 1.00% 1.50% 2.00% ALLOWANCE FOR CREDIT LOSSES (ACL) - LOANS 1.49% 1.14% 1.41% 0.70% 0.76% 0.70% 0.83% 0.82% 0.82% 0.00% 0.50% 1.00% 1.50% 2.00% NON-PERFORMING ASSETS (NPA) / ASSETS 14 74% 81% 51% 150% 143% 157% 169% 154% 148% 0% 50% 100% 150% 200% 250% 300% ACL-LOANS / NON-PERFORMING LOANS (NPL) 0.07% 0.07% 0.08% 0.08% 0.01% 0.03% -0.03% 0.01% 0.00% -0.04% -0.02% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10% NET (RECOVERIES) CHARGE-OFFS/AVERAGE LOANS Quarterly data is annualized for the quarterly 2025 information.
CRE, C&I, Ag. Related, C&D 90% Residential & HELOC 9% Consumer 1% Loan Portfolio 09/30/2016 03/31/2025 CRE, C&I, Ag. Related, C&D 34% Residential & HELOC 33% Consumer 33% 15 ($000s) Sep-16 Sep-17 Sep-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 Commercial Real Estate $54,600 $109,024 $156,735 $420,383 $425,283 $610,214 $630,857 $653,437 $621,251 $623,621 Housing related CRE $53,475 $77,166 $108,029 $181,084 $204,544 $266,600 $304,022 $325,189 $308,572 $324,226 Commercial & Industrial $31,001 $55,251 $76,254 $133,734 $116,553 $122,167 $136,013 $121,666 $115,657 $109,620 Ag. Real Estate / Ag. Operating $42,845 $91,875 $97,066 $123,143 $101,580 $110,083 $116,714 $109,041 $104,130 $100,381 Q1 2025 Construction & Development $16,580 $19,708 $17,739 $86,410 $98,517 $79,520 $102,492 $110,941 $78,489 $58,461 5.53% Residential mortgage and Purchased HELOC loans $187,738 $247,634 $209,781 $184,739 $137,646 $94,861 $108,651 $131,901 $135,297 $131,630 Yield Indirect Consumer Installment $168,294 $115,287 $78,245 $39,585 $25,851 $15,971 $10,236 $6,535 $3,970 $3,434 Consumer Instal lment $19,715 $20,668 $18,844 $18,186 $13,213 $8,874 $7,150 $6,187 $5,012 $4,679 Gross Loans Ex SBA PPP Loans $574,248 $736,613 $762,693 $1,187,264 $1,123,187 $1,308,290 $1,416,135 $1,464,897 $1,372,378 $1,356,052 SBA PPP Loans $0 $0 $0 $0 $123,702 $8,755 $0 $0 $0 $0 Total Gross Loans $574,248 $736,613 $762,693 $1,187,264 $1,246,889 $1,317,045 $1,416,135 $1,464,897 $1,372,378 $1,356,052
Deposit Composition Focus has been on transforming the deposit composition to core deposits Deposit transformation and growth has been achieved through both acquisitions and organic initiatives 9/30/2016 03/31/2025 Source: S&P Global Market Intelligence, company filings Non Interest Bearing Demand 8% Interest Bearing Demand 9% MMDA & Savings 34% CDs 49% 16 Non Interest Bearing Demand 17% Interest Bearing Demand 25% MMDA & Savings 35% CDs 23% ($000) Sep-16 Sep-17 Sep-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 Non-interest-bearing demand deposits $45,408 $75,318 $87,495 $168,157 $238,348 $276,631 $284,726 $265,704 $252,656 $253,343 Interest-bearing demand deposits $48,934 $147,912 $139,276 $223,102 $301,764 $396,231 $371,210 $343,276 $355,750 $386,302 Q1 2025 Savings accounts $52,153 $102,756 $97,329 $156,599 $196,348 $222,674 $220,019 $176,548 $159,821 $167,614 Cost of Deposits Money market accounts $137,234 $125,749 $109,314 $246,430 $245,549 $288,985 $323,435 $374,055 $369,534 $370,741 2.33% Certificate accounts $273,948 $290,769 $313,115 $401,414 $313,247 $203,014 $225,334 $359,509 $350,387 $345,654 Total Deposits $557,677 $742,504 $746,529 $1,195,702 $1,295,256 $1,387,535 $1,424,724 $1,519,092 $1,488,148 $1,523,654 Deposit Composition - Quarter Lookback
$27,565 $30,653 $35,266 $40,904 $51,710 $55,501 $60,212 $61,425 $66,132 $71,270 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Mar-25 TOTAL DEPOSITS, WHOLESALE, AND BRANCH DEPOSITS ($000) Wholesale Deposits Branch Deposits Average Branch Deposits 23 27 28 2525 2323 22 22 $557,677 $742,504 $1,007,512 $1,195,702 $1,295,256 $1,519,092 21 $1,523,654 Branch Deposit Growth & Efficiency Significant increase in deposits per branch since FY2016 Organic growth and M&A $27.6 million to $71.3 million The number of branches has increased by one since 2016 17 branches purchased 2 branches opened 18 branches closed, consolidated or sold Includes branch acquisitions and consolidations Source: S&P Global Market Intelligence, company filings 17 20 White Numbers Indicate Branch Count $1,387,535 $1,424,724 $1,527,489 $1,519,544
Appendix 18
Net Interest Margin Analysis Source: S&P Global Market Intelligence, company filings 19 Quarter ended March 31, 2025 Quarter ended December 31, 2024 Quarter ended September 30, 2024 Quarter ended June 30, 2024 Interest Average Interest Average Interest Average Interest Average Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ Average Income/ Yield/ ($ Dollars in Thousands) Balance Expense Rate Balance Expense Rate Balance Expense Rate Balance Expense Rate Average interest earning assets: Cash and cash equivalents 47,835$ 524$ 4.44% 26,197$ 327$ 4.97% 25,187$ 360$ 5.69% 18,894$ 272$ 5.79% Loans receivable 1,363,352 18,602 5.53% 1,396,854 19,534 5.56% 1,429,928 20,115 5.60% 1,439,535 19,921 5.57% Investment securities 228,514 1,808 3.21% 235,268 1,940 3.28% 236,960 1,966 3.30% 238,147 2,012 3.40% Non-marketable equity securities, at cost 12,498 169 5.48% 12,318 160 5.17% 12,553 71 2.25% 13,051 258 7.95% Total interest earning assets 1,652,199$ 21,103$ 5.18% 1,670,637$ 21,961$ 5.23% 1,704,628$ 22,512$ 5.25% 1,709,627$ 22,463$ 5.28% Average interest-bearing liabilities: Total deposits 1,258,635$ 8,597$ 2.77% 1,234,565$ 9,273$ 2.99% 1,289,069$ 10,165$ 3.14% 1,258,778$ 9,338$ 2.98% FHLB Advances & Other Borrowings 64,635 912 5.72% 72,431 980 5.38% 80,338 1,062 5.26% 121,967 1,549 5.11% Total interest bearing liabilities 1,323,270$ 9,509$ 2.91% 1,306,996$ 10,253$ 3.12% 1,369,407$ 11,227$ 3.26% 1,380,745$ 10,887$ 3.17% Net interest income 11,594$ 11,708$ 11,285$ 11,576$ Interest Rate Spread 2.27% 2.11% 1.99% 2.11% Net interest margin 2.85% 2.79% 2.63% 2.72%
Interest Rate Risk 20 (1) Assumes an immediate and parallel shift in the yield curve at all maturities. Note: The tables above may not be indicative of future results. Change in Interest Rates In Basis Points ("bp") Rate Shock in Rates (1) Percent Change Change in Interest Rates In Basis Points ("bp") Rate Shock in Rates (1) Percent Change +300 bp 3% +300 bp 2% +200 bp 2% +200 bp 2% +100 bp 1% +100 bp 1% -100 bp -1% -100 bp -1% -200 bp -4% -200 bp -4% Change in Interest Rates In Basis Points ("bp") Rate Shock in Rates (1) Percent Change Change in Interest Rates In Basis Points ("bp") Rate Shock in Rates (1) Percent Change +300 bp -8% +300 bp -8% +200 bp -5% +200 bp -5% +100 bp -2% +100 bp -3% -100 bp 2% -100 bp 2% -200 bp 3% -200 bp 3% December 31, 2024March 31, 2025 December 31, 2024March 31, 2025 Economic Value of Equity (EVE) Net Interest Income Over One Year Horizon
21 Reconciliation of Non-GAAP Financial Measures Reconciliation of GAAP Earnings and Core Earnings (non-GAAP): GAAP pre-tax earnings 3,822$ 6,609$ 12,277$ 17,280$ 28,959$ 23,581$ 18,932$ 17,450$ 3,974$ Merger related costs (1) 1,860$ 463$ 3,880$ -$ -$ -$ -$ -$ -$ Branch closure costs (2) 951$ 26$ 15$ 165$ -$ 981$ 380$ 168$ -$ Settlement proceeds (3) (283)$ -$ -$ (131)$ -$ -$ -$ -$ -$ FHLB borrowings prepayment fee (4) 104$ -$ -$ -$ 102$ -$ -$ -$ -$ Audit and Financial Reporting (5) -$ -$ 358$ -$ -$ -$ -$ -$ -$ Net gain on sale of branch -$ -$ (2,295)$ -$ -$ -$ -$ -$ -$ Net gain on sale of acquired business lines (6) -$ -$ -$ (432)$ -$ -$ -$ -$ -$ Income before provision for income taxes as adjusted (7) 6,454$ 7,098$ 14,235$ 16,882$ 29,061$ 24,562$ 19,312$ 17,618$ 3,974$ Provision for income tax on pre-tax earnings as adjusted (8) 2,233$ 1,798$ 3,260$ 4,457$ 7,722$ 6,062$ 5,991$ 3,735$ 777$ Tax impact of certain acquired BOLI policies (9) -$ -$ 300$ -$ -$ -$ -$ Tax cuts and Jobs Act of 2017 (10) -$ 338$ -$ -$ -$ -$ -$ -$ -$ Total provision for income tax as adjusted 2,233$ 2,136$ 3,560$ 4,457$ 7,722$ 6,062$ 5,991$ 3,735$ 777$ Net income as adjusted (non-GAAP) (7) 4,221$ 4,962$ 10,675$ 12,425$ 21,339$ 18,500$ 13,321$ 13,883$ 3,197$ GAAP diluted earnings per share, net of tax 0.46$ 0.58$ 0.85$ 1.14$ 1.98$ 1.69$ 1.25$ 1.34$ 0.32$ Merger related costs, net of tax 0.22$ 0.06$ 0.27$ -$ -$ -$ -$ -$ -$ Branch related costs, net of tax 0.12$ -$ -$ 0.01$ -$ 0.07$ 0.03$ 0.01$ -$ Settlement proceeds (0.03)$ -$ -$ (0.01)$ -$ -$ -$ -$ -$ FHLB borrowings prepayment fee 0.01$ -$ -$ -$ 0.01$ -$ -$ -$ -$ Tax impact of certain acquired BOLI policies (9) -$ -$ (0.03)$ -$ -$ -$ -$ -$ -$ Tax Cuts and Jobs Act of 2017 tax provision (10) -$ 0.04$ -$ -$ -$ -$ -$ -$ -$ Audit and Financial Reporting, net of tax -$ -$ 0.02$ -$ -$ -$ -$ -$ -$ Net gain on sale of branch -$ -$ (0.15)$ -$ -$ -$ -$ -$ -$ Net gain on sale of acquired business lines -$ -$ -$ (0.03)$ -$ -$ -$ -$ -$ Diluted earnings per share, as adjusted, net of tax (non-GAAP) 0.78$ 0.68$ 0.96$ 1.11$ 1.99$ 1.76$ 1.28$ 1.35$ 0.32$ Average diluted shares outstanding 5,378,548 7,335,247 11,121,435 11,161,811 10,726,539 10,513,773 10,470,298 10,262,710 10,000,818 FY 2017 FY 2018 FY 2019 FY 2023FY 2022 Mar-25FY 2020 FY 2021 FY 2024
(1) All costs incurred are presented as professional fees and other non-interest expense in the consolidated statement of operations and include costs $0, $0, $0, $0, $0, $0, $341,000, $350,000, and $565,000 for the three months ended March 31, 2025, and years ended December 31, 2024, December 31, 2023, December 31, 2022, December 31, 2021, December 31, 2020, December 31, 2019, September 30, 2018, and September 30, 2017, respectively, which are nondeductible expenses for federal income tax purposes. (2) Branch closure costs include severance pay recorded in compensation and benefits, accelerated depreciation expense and lease termination fees included in occupancy and other costs included in other non-interest expense in the consolidated statement of operations. In addition, other non-interest expense includes costs related to the reduction in valuation of a closed branch office in the fourth quarter of fiscal 2017 and costs associated with three branch closures during the quarter ended December 31, 2020, one branch closure in the quarter ended September 30, 2022, two branch closures in the quarter ended December 31, 2022, and one branch office closure in the quarter ended December 31, 2023. Professional services includes legal costs related to the sale of the Michigan branch included in these Branch closure costs during the quarter ended March 31, 2019. (3) Settlement proceeds includes litigation income from a JP Morgan Residential Mortgage-Backed Security (RMBS) claim. This JP Morgan RMBS was previously owned by the Bank and sold in 2011. (4) The prepayment fee to restructure our FHLB borrowings is included in other non-interest expense in the consolidated statement of operations. (5) Audit and financial reporting costs include additional audit and professional fees related to the change in our year end from September 30 to December 31, effective December 31, 2018. (6) Net gain on sale of acquired business lines resulted from (1) the sale of Wells Insurance Agency and (2) the termination and sale of the wealth management business line sales contract acquired in a former acquisition. (7) Pretax net income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities. (8) Provision for income tax on pre-tax income as adjusted is calculated at our effective tax rate for each respective period presented. (9) Tax impact of certain acquired BOLI policies from United Bank. (10) As a result of the Tax Cuts and Jobs Act of 2017, we recorded a one-time net tax provision of $338,000 in 2018, which is included in provision for income taxes expense in the consolidated statement of operations. 22 Reconciliation of Non-GAAP Financial Measures
Note: All quarterly period ratios are annualized for net income / net income as adjusted. 23 Reconciliation of Non-GAAP Financial Measures 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Net Income 2,499$ 4,283$ 9,463$ 12,725$ 21,266$ 17,761$ 13,059$ 13,751$ 3,197$ Net Income as adjusted 4,221$ 4,962$ 10,675$ 12,425$ 21,339$ 18,500$ 13,321$ 13,883$ 3,197$ Average assets 731,407$ 954,912$ 1,398,482$ 1,594,053$ 1,722,483$ 1,775,049$ 1,836,337$ 1,808,256$ 1,763,191$ Return on average assets 0.34% 0.45% 0.68% 0.80% 1.23% 1.00% 0.71% 0.76% 0.74% Return on average assets as adjusted 0.58% 0.52% 0.76% 0.78% 1.24% 1.04% 0.73% 0.77% 0.74% 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Common Equity 73,483$ 135,847$ 150,553$ 160,564$ 170,866$ 167,088$ 173,334$ 179,084$ 180,051$ Less: Goodwill (10,444) (10,444) (31,498) (31,498) (31,498) (31,498) (31,498) (31,498) (31,498) Less: Core Deposit and other intangibles (5,449) (4,805) (7,587) (5,494) (3,898) (2,449) (1,694) (979) (800) Tangible Common Equity (TCE) 57,590$ 120,598$ 111,468$ 123,572$ 135,470$ 133,141$ 140,142$ 146,607$ 147,753$ Average Tangible Common Equity 58,300$ 89,094$ 105,340$ 115,313$ 127,793$ 131,305$ 132,409$ 142,641$ 146,083$ Net Income 2,499$ 4,283$ 9,463$ 12,725$ 21,266$ 17,761$ 13,059$ 13,751$ 3,197$ Intangible amortization, net of tax 143 417 1,153 1,194 1,171 1,095 521 563 144 Tangible Net Income 2,642$ 4,700$ 10,616$ 13,919$ 22,437$ 18,856$ 13,580$ 14,314$ 3,341$ Net Income as adjusted 4,221$ 4,962$ 10,675$ 12,425$ 21,339$ 18,500$ 13,321$ 13,883$ 3,197$ Intangible amortization, net of tax 143 417 1,153 1,194 1,171 1,095 521 563 144 Tangible Net Income as adjusted 4,364$ 5,379$ 11,828$ 13,619$ 22,510$ 19,595$ 13,842$ 14,446$ 3,341$ ROATCE 4.5% 5.3% 10.1% 12.1% 17.6% 14.4% 10.3% 10.0% 9.3% ROATCE as adjusted 7.5% 6.0% 11.2% 11.8% 17.6% 14.9% 10.5% 10.1% 9.3% Return on Average Assets (ROAA) as Adjusted Return on Average Tangible Common Equity (ROATCE) as Adjusted (In thousands except ROAA and ROAA as adjusted) (In thousands except ROATCE and ROATCE as adjusted)
Reconciliation of Non-GAAP Financial Measures Note: All quarterly period ratios are annualized for net income / net income as adjusted 24 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Non-interest Expense (GAAP) 22,878$ 29,764$ 42,686$ 43,673$ 40,532$ 41,743$ 40,142$ 42,306$ 10,463$ Less amortization of intangibles (219) (644) (1,496) (1,622) (1,596) (1,449) (755) (715) (179) Efficiency ratio numerator 22,659 29,120 41,190 42,051 38,936 40,294 39,387 41,591 10,284 Merger related costs (1,860) (463) (3,880) - - - - - - Branch Closure costs (951) (26) (15) (165) - (981) (380) (168) - Audit and financial reporting - - (358) - - - - - - Prepayment fee (104) - - - (102) - - - - Efficiency ratio numerator as adjusted 19,744$ 28,631$ 36,937$ 41,886$ 38,834$ 39,313$ 39,007$ 41,423$ 10,284$ Non-interest income 4,751$ 7,370$ 14,975$ 18,448$ 15,824$ 10,430$ 10,250$ 10,107$ 2,593$ Net interest margin 22,268 30,303 43,513 50,255 53,667 56,369 48,349 46,474 11,594 Add back net losses on debt and equity securities (17) (856) Subtract net gains on debt and equity securities 111 - 271 110 1,224 541 459 - 13 Efficiency ratio denominator (GAAP) 26,908 37,690 58,217 68,593 68,267 66,258 58,140 57,437 14,174 Net gain on sale of branch - - (2,295) - - - - - - Net gain on sale of acquired business l ines - - - (432) - - - - - Settlement proceeds (283) - - (131) - - - - - Efficiency ratio denominator as adjusted 26,625$ 37,690$ 55,922$ 68,030$ 68,267$ 66,258$ 58,140$ 57,437$ 14,174$ Efficiency ratio 84% 77% 71% 61% 57% 61% 68% 72% 73% Efficiency ratio as adjusted 74% 76% 66% 62% 57% 59% 67% 72% 73% 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Total Stockholders' equity 73,483$ 135,847$ 150,553$ 160,564$ 170,866$ 167,088$ 173,334$ 179,084$ 180,081$ Less: Goodwil l (10,444) (10,444) (31,498) (31,498) (31,498) (31,498) (31,498) (31,498) (31,498) Less: Core deposit and intangibles (5,449) (4,805) (7,587) (5,494) (3,898) (2,449) (1,694) (979) (800) Tangible book value (non-GAAP) 57,590$ 120,598$ 111,468$ 123,572$ 135,470$ 133,141$ 140,142$ 146,607$ 147,783$ Shares outstanding 5,888,816 10,913,853 11,266,954 11,056,349 10,502,442 10,425,119 10,440,591 9,981,996 9,989,536 Book Value 12.48$ 12.45$ 13.36$ 14.52$ 16.27$ 16.03$ 16.60$ 17.94$ 18.02$ TBVPS 9.78$ 11.05$ 9.89$ 11.18$ 12.90$ 12.77$ 13.42$ 14.69$ 14.79$ 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Total Assets 940,664$ 975,409$ 1,531,249$ 1,649,095$ 1,739,628$ 1,816,367$ 1,851,391$ 1,748,519$ 1,779,963$ Less: Goodwil l (10,444) (10,444) (31,498) (31,498) (31,498) (31,498) (31,498) (31,498) (31,498) Less: Core deposit and intangibles (5,449) (4,805) (7,587) (5,494) (3,898) (2,449) (1,694) (979) (800) Tangible Assets (non-GAAP) 924,771$ 960,160$ 1,492,164$ 1,612,103$ 1,704,232$ 1,782,420$ 1,818,199$ 1,716,042$ 1,747,665$ Total Stockhoders' Equity/Total Assets 7.8% 13.9% 9.8% 9.7% 9.8% 9.2% 9.4% 10.2% 10.1% Tangible Common Equity / Tangible Assets 6.2% 12.6% 7.5% 7.7% 7.9% 7.5% 7.7% 8.5% 8.5% (In thousands except Tangible Common Equity / Tangible Asets) Efficiency Ratio as Adjusted Tangible Book Value Per Share (TBVPS) as Adjusted Tangible Common Equity / Tangible Assets (In thousands except Shares Outstanding, Book Value and TBVPS) (In thousands except Efficiency Ratio and Efficiency Ratio as adjusted)
Source: S&P Global Market Intelligence, eauclairedevelopment.com, greatermankato.com, Google Images, US Bureau of Labor Statistics Eau Claire MSA: Features a broad-based, diverse economy, which is driven by commercial, housing, retail and medical industries. Mankato MSA: The Mankato market also possesses a broad-based, diverse economy, which is driven by manufacturing, agribusiness, health care and education. Mankato Area EmployersEau Claire Area Employers Market Demographics 25 3.6% 3.9% 3.7% 5.3% 3.7% 3.5% 3.6% 3.9% 3.1% 3.2% 3.1% 4.1% 2.5% 2.8% 3.1% 3.2% 0.0% 2.0% 4.0% 6.0% Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24 Feb-25 MSA Unemployment Rates Eau Claire MSA Mankato MSA
Leadership Team Mr. Stephen M. Bianchi, also known as Steve, has been the Chief Executive Officer and President of Citizens Community Bancorp, Inc. and Citizens Community Federal since June 24, 2016. He has been Chairman of Citizens Community Bancorp, Inc. since October 2018 and Citizens Community Federal National Association. As a banking veteran with 40 years of experience, Mr. Bianchi served in several senior management positions at Wells Fargo Bank and with Associated Bank. He served as the Chief Executive Officer at HF Financial Corp. from October 2011 and its President from April 2010 to May 2015. Mr. Bianchi served as the Chief Executive Officer and President of Home Federal Bank, a subsidiary of HF Financial Corp. from August 2012 to May 2015. He served as the Interim Chief Executive Officer and Interim President of HF Financial Corp. from October 2011 until July 2012. Mr. Bianchi served as Senior Vice President at Associated Bank, where he served as Minnesota Regional President and Minnesota Regional Commercial Banking Manager from July 2006 to April 2010. Before that, he served as Twin Cities Business Banking Manager for Wells Fargo Bank, where he held several other management positions over 14 years. He has been a Director of Citizens Community Bancorp, Inc. since May 25, 2017. He has been a Director of Citizens Community Federal since June 24, 2016. Mr. Bianchi received his B.S. degree in Finance and M.B.A. from Providence College. Stephen M. Bianchi Chairman of the Board President & CEO Mr. James S. Broucek, also known as Jim, has been Chief Financial Officer and Principal Accounting Officer at Citizens Community Bancorp, Inc and Citizens Community Federal since October 31, 2017. He serves as Executive Vice President, CFO, Treasurer, and Secretary of Citizens Community Bancorp, Inc. and of Citizens Community Federal National Association. He served as a Senior Manager of Wipfli LLP (“Wipfli”) from December 2013 to October 2017. Before joining Wipfli, Mr. Broucek held several positions with TCF Financial Corporation (“TCF Financial”) and its subsidiaries from 1995 to 2013, with his last position being Treasurer of TCF Financial. Prior to joining TCF Financial, Mr. Broucek served as the Controller of Great Lakes Bancorp. Mr. Broucek is a banking veteran with 40 years of experience. Mr. Broucek holds a B.A. in mathematics and business administration with a concentration in accounting from Hope College. James S. Broucek Executive VP, CFO Principal Accounting Officer, Treasurer & Secretary 26