Citizens Community Bancorp Inc 8-K, filed Oct 25, 2021

Citizens Community Bancorp Inc. (CZWI)

8-K 2021-10-25 For: 2021-10-25

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Added on July 04, 2026

About this 8-K

Citizens Community Bancorp Inc filed this 8-K on October 25, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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001-33003						20-5120010
(Commission File Number)						(I.R.S. Employer Identification No.)


☐						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))


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


99.1			Press Release dated October 25, 2021
99.2			Earnings Release Supplement dated October 25, 2021
104			The cover page from this Current Report on Form 8-K in Inline XBRL (Extensible Business Reporting Language)


	September 30, 2021			June 30, 2021			December 31, 2020			September 30, 2020
Originated loans, net of deferred fees and costs	$	1,006,159		$	877,534		$	835,769		$	777,340
SBA PPP loans, net of deferred fees	29,753			71,508			120,711			135,177
Acquired loans, net of unamortized discount	212,742			232,516			281,101			317,622
Loans, end of period	$	1,248,654		$	1,181,558		$	1,237,581		$	1,230,139
SBA PPP loans, net of deferred fees	(29,753)			(71,508)			(120,711)			(135,177)
Loans, net of SBA PPP loans and deferred fees	$	1,218,901		$	1,110,050		$	1,116,870		$	1,094,962
Allowance for loan losses allocated to originated loans	$	15,505		$	15,059		$	14,819		$	12,809
Allowance for loan losses allocated to other loans	1,327			1,786			2,224			2,027
Allowance for loan losses	$	16,832		$	16,845		$	17,043		$	14,836

ALL as a percentage of loans, end of period	1.35		%	1.43		%	1.38		%	1.21		%
ALL as a percentage of loans, net of SBA PPP loans and deferred fees	1.38		%	1.52		%	1.53		%	1.35		%
ALL allocated to originated loans as a percentage of originated loans, net of deferred fees and costs	1.54		%	1.72		%	1.77		%	1.65		%


	(in thousands)
	September 30, 2021		June 30, 2021		March 31, 2021		December 31, 2020		September 30, 2020
Special mention loan balances	$	2,548	$	12,308	$	13,659	$	6,672	$	7,777
Substandard loan balances	27,137		25,890		26,064		28,541		32,922
Criticized loans, end of period	$	29,685	$	38,198	$	39,723	$	35,213	$	40,699


	Three months ended
	September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020
	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	$	13,688	3.34	%	$	12,831	3.22	%	$	12,764	3.31	%	$	13,372	3.51	%	$	11,909	3.11	%
Less non-accretable difference realized as interest from payoff of purchased credit impaired (“PCI”) loans	$	(8)	—	%	$	(37)	(0.01)	%	$	(58)	(0.02)	%	$	(324)	(0.08)	%	$	(130)	(0.03)	%
Less accelerated accretion from payoff of certain PCI loans with transferred non-accretable differences	$	(12)	—	%	$	—	—	%	$	(90)	(0.02)	%	$	(872)	(0.23)	%	$	—	—	%
Less scheduled accretion interest	$	(261)	(0.06)	%	$	(265)	(0.07)	%	$	(266)	(0.07)	%	$	(252)	(0.07)	%	$	(276)	(0.07)	%
Without loan purchase accretion	$	13,407	3.28	%	$	12,529	3.14	%	$	12,350	3.20	%	$	11,924	3.13	%	$	11,503	3.01	%
Less SBA PPP net loan fee accretion	$	(1,878)	(0.46)	%	$	(1,309)	(0.33)	%	$	(1,750)	(0.45)	%	$	(985)	(0.26)	%	$	(643)	(0.17)	%
Without SBA PPP purchase and net loan fee accretion	$	11,529	2.82	%	$	11,220	2.81	%	$	10,600	2.75	%	$	10,939	2.87	%	$	10,860	2.84	%


	2020 Originations				2021 Originations				Total
	Balance		Net Deferred Fee Income		Balance		Net Deferred Fee Income		Balance		Net Deferred Fee Income
SBA PPP Loans, December 31, 2020	$	123,702	$	2,991	$	—	$	—	$	123,702	$	2,991
2021 SBA PPP Loan Originations	—		—		47,467		1,770		47,467		1,770
Less: 2021 SBA PPP Loan Forgiveness and Fee Accretion	(52,238)		(1,750)		—		—		(52,238)		(1,750)
SBA PPP Loans, March 31, 2021	71,464		1,241		47,467		1,770		118,931		3,011
2021 SBA PPP Loan Originations	—		—		8,323		1,715		8,323		1,715
Less: 2021 SBA PPP Loan Forgiveness and Fee Accretion	(50,057)		(933)		(2,272)		(376)		(52,329)		(1,309)
SBA PPP Loans, June 30, 2021	21,407		308		53,518		$	3,109	74,925		3,417
2021 SBA PPP Loan Originations	—		—		64		9		64		9
Less: 2021 SBA PPP Loan Forgiveness and Fee Accretion	(18,286)		(279)		(25,402)		(1,599)		(43,688)		(1,878)
SBA PPP Loans, September 30, 2021	$	3,121	$	29	$	28,180	$	1,519	$	31,301	$	1,548


	September 30, 2021 (unaudited)		June 30, 2021 (unaudited)		December 31, 2020 (audited)		September 30, 2020 (unaudited)
Assets
Cash and cash equivalents	$	102,341	$	128,440	$	119,440	$	115,474
Other interest-bearing deposits	1,512		1,512		3,752		3,752
Securities available for sale “AFS”	234,425		243,746		144,233		150,908
Securities held to maturity “HTM”	67,739		59,582		43,551		16,927
Equity securities with readily determinable fair value	327		297		200		187
Other investments	14,965		14,966		14,948		15,075
Loans receivable	1,248,654		1,181,558		1,237,581		1,230,139
Allowance for loan losses	(16,832)		(16,845)		(17,043)		(14,836)
Loans receivable, net	1,231,822		1,164,713		1,220,538		1,215,303
Loans held for sale	1,675		3,109		3,075		4,938
Mortgage servicing rights, net	4,082		3,862		3,252		3,498
Office properties and equipment, net	21,730		21,121		21,165		21,607
Accrued interest receivable	4,882		4,898		5,652		5,829
Intangible assets	4,297		4,696		5,494		5,893
Goodwill	31,498		31,498		31,498		31,498
Foreclosed and repossessed assets, net	4		145		197		812
Bank owned life insurance (“BOLI”)	24,149		23,991		23,684		23,514

Other assets	8,029		7,896		8,416		7,378
TOTAL ASSETS	$	1,753,477	$	1,714,472	$	1,649,095	$	1,622,593
Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	1,408,315	$	1,371,226	$	1,295,256	$	1,270,778
Federal Home Loan Bank (“FHLB”) advances	111,512		111,496		123,498		124,491
Other borrowings	58,400		58,380		58,328		58,297
Other liabilities	9,324		9,354		11,449		11,704
Total liabilities	1,587,551		1,550,456		1,488,531		1,465,270
Stockholders’ equity:

Common stock— $0.01 par value, authorized 30,000,000; 10,518,885, 10,696,075; 11,056,349 and 11,154,645 shares issued and outstanding, respectively	105		107		111		112
Additional paid-in capital	119,929		121,732		126,154		127,068
Retained earnings	44,660		40,117		32,809		29,239

Accumulated other comprehensive income	1,232		2,060		1,490		904
Total stockholders’ equity	165,926		164,016		160,564		157,323
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,753,477	$	1,714,472	$	1,649,095	$	1,622,593


	Three Months Ended				Nine Months Ended
	September 30, 2021 (unaudited)		June 30, 2021 (unaudited)		September 30, 2020 (unaudited)		September 30, 2021 (unaudited)		September 30, 2020 (unaudited)
Interest and dividend income:
Interest and fees on loans	$	14,537	$	13,960	$	14,154	$	43,014	$	44,300
Interest on investments	1,638		1,518		1,064		4,260		3,712
Total interest and dividend income	16,175		15,478		15,218		47,274		48,012
Interest expense:
Interest on deposits	1,354		1,521		2,255		4,589		8,042
Interest on FHLB and FRB borrowed funds	389		384		430		1,183		1,386
Interest on other borrowed funds	744		742		624		2,217		1,701
Total interest expense	2,487		2,647		3,309		7,989		11,129
Net interest income before provision for loan losses	13,688		12,831		11,909		39,285		36,883
Provision for loan losses	—		—		1,500		—		5,250
Net interest income after provision for loan losses	13,688		12,831		10,409		39,285		31,633
Non-interest income:
Service charges on deposit accounts	463		395		431		1,256		1,336
Interchange income	600		647		556		1,776		1,509
Loan servicing income	842		825		1,144		2,560		3,144
Gain on sale of loans	1,014		1,522		1,987		4,131		4,585
Loan fees and service charges	118		151		320		547		1,041
Insurance commission income	—		—		—		—		474
Net gains (losses) on investment securities	73		37		(1)		344		97

Net gain on sale of acquired business lines	—		—		180		—		432
Settlement proceeds	—		—		—		—		131
Other	338		216		445		801		929
Total non-interest income	3,448		3,793		5,062		11,415		13,678
Non-interest expense:
Compensation and related benefits	5,733		5,473		5,538		16,802		16,881
Occupancy	1,313		1,314		1,396		3,943		4,106

Data processing	1,558		1,396		1,331		4,296		3,735
Amortization of intangible assets	399		399		399		1,197		1,223
Mortgage servicing rights expense, net	37		441		603		28		2,330
Advertising, marketing and public relations	220		194		260		576		802
FDIC premium assessment	148		82		188		395		436
Professional services	347		381		434		1,250		1,391
Gains on repossessed assets, net	(3)		(29)		(105)		(150)		(195)
Other	568		547		680		1,670		2,138
Total non-interest expense	10,320		10,198		10,724		30,007		32,847
Income before provision for income taxes	6,816		6,426		4,747		20,693		12,464
Provision for income taxes	1,819		1,720		1,267		5,484		3,309
Net income attributable to common stockholders	$	4,997	$	4,706	$	3,480	$	15,209	$	9,155
Per share information:
Basic earnings	$	0.47	$	0.44	$	0.31	$	1.41	$	0.82
Diluted earnings	$	0.47	$	0.44	$	0.31	$	1.41	$	0.82
Cash dividends paid	$	—	$	—	$	—	$	0.23	$	0.21
Book value per share at end of period	$	15.77	$	15.33	$	14.10	$	15.77	$	14.10
Tangible book value per share at end of period (non-GAAP)	$	12.37	$	11.95	$	10.75	$	12.37	$	10.75


Loan Composition (in thousands)	September 30, 2021		June 30, 2021		December 31, 2020		September 30, 2020
Originated Loans:
Commercial/Agricultural real estate:
Commercial real estate	$	508,540	$	420,565	$	351,113	$	322,028
Agricultural real estate	49,082		42,925		31,741		32,530
Multi-family real estate	150,094		113,790		112,731		100,148
Construction and land development	84,399		89,586		91,241		80,992
C&I/Agricultural operating:
Commercial and industrial	90,581		80,783		95,290		79,959
Agricultural operating	25,390		23,014		24,457		24,324
Residential mortgage:
Residential mortgage	68,986		72,965		86,283		90,100
Purchased HELOC loans	3,921		4,949		6,260		6,547
Consumer installment:
Originated indirect paper	17,689		20,377		25,851		28,535

Other consumer	9,414		10,296		12,056		13,221
Originated loans before SBA PPP loans	1,008,096		879,250		837,023		778,384
SBA PPP loans	31,301		74,925		123,702		139,166
Total originated loans	$	1,039,397	$	954,175	$	960,725	$	917,550
Acquired Loans:
Commercial/Agricultural real estate:
Commercial real estate	$	129,784	$	139,497	$	156,562	$	178,645
Agricultural real estate	27,552		29,740		37,054		40,613
Multi-family real estate	5,928		7,401		9,421		9,520
Construction and land development	1,139		1,202		7,276		8,346
C&I/Agricultural operating:
Commercial and industrial	16,554		19,701		21,263		24,413
Agricultural operating	4,541		4,893		8,328		9,634
Residential mortgage:
Residential mortgage	30,795		33,781		45,103		51,754
Consumer installment:
Other consumer	516		648		1,157		1,409
Total acquired loans	$	216,809	$	236,863	$	286,164	$	324,334
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate	$	638,324	$	560,062	$	507,675	$	500,673
Agricultural real estate	76,634		72,665		68,795		73,143
Multi-family real estate	156,022		121,191		122,152		109,668
Construction and land development	85,538		90,788		98,517		89,338
C&I/Agricultural operating:
Commercial and industrial	107,135		100,484		116,553		104,372
Agricultural operating	29,931		27,907		32,785		33,958
Residential mortgage:
Residential mortgage	99,781		106,746		131,386		141,854
Purchased HELOC loans	3,921		4,949		6,260		6,547
Consumer installment:
Originated indirect paper	17,689		20,377		25,851		28,535

Other consumer	9,930		10,944		13,213		14,630
Gross loans before SBA PPP loans	1,224,905		1,116,113		1,123,187		1,102,718
SBA PPP loans	31,301		74,925		123,702		139,166
Gross loans	$	1,256,206	$	1,191,038	$	1,246,889	$	1,241,884
Unearned net deferred fees and costs and loans in process	(3,486)		(5,133)		(4,245)		(5,033)
Unamortized discount on acquired loans	(4,066)		(4,347)		(5,063)		(6,712)
Total loans receivable	$	1,248,654	$	1,181,558	$	1,237,581	$	1,230,139


	September 30, 2021 and Three Months Ended			June 30, 2021 and Three Months Ended			December 31, 2020 and Three Months Ended			September 30, 2020 and Three Months Ended
Nonperforming assets:
Originated nonperforming assets:
Nonaccrual loans	$	6,408		$	2,420		$	3,649		$	3,255
Accruing loans past due 90 days or more	295			88			415			698
Total originated nonperforming loans (“NPL”)	6,703			2,508			4,064			3,953
Other real estate owned (“OREO”)	—			—			63			352
Other collateral owned	2			16			41			56
Total originated nonperforming assets (“NPAs”)	$	6,705		$	2,524		$	4,168		$	4,361
Acquired nonperforming assets:
Nonaccrual loans	$	5,298		$	5,655		$	7,098		$	9,899
Accruing loans past due 90 days or more	130			454			171			252
Total acquired nonperforming loans (“NPL”)	5,428			6,109			7,269			10,151
Other real estate owned (“OREO”)	2			129			93			404
Other collateral owned	—			—			—			—
Total acquired nonperforming assets (“NPAs”)	$	5,430		$	6,238		$	7,362		$	10,555
Total nonperforming assets (“NPAs”)	$	12,135		$	8,762		$	11,530		$	14,916
Loans, end of period	$	1,248,654		$	1,181,558		$	1,237,581		$	1,230,139
Total assets, end of period	$	1,753,477		$	1,714,472		$	1,649,095		$	1,622,593
Ratios:
Originated NPLs to total loans	0.54		%	0.21		%	0.33		%	0.32		%
Acquired NPLs to total loans	0.43		%	0.52		%	0.59		%	0.83		%
Originated NPAs to total assets	0.38		%	0.15		%	0.25		%	0.27		%
Acquired NPAs to total assets	0.31		%	0.36		%	0.45		%	0.65		%


	September 30, 2021		June 30, 2021		December 31, 2020		September 30, 2020
Non-interest bearing demand deposits	$	280,611	$	253,097	$	238,348	$	229,217
Interest bearing demand deposits	381,315		375,005		301,764		279,648
Savings accounts	229,623		220,698		196,348		191,511
Money market accounts	291,242		263,390		245,549		246,651
Certificate accounts	225,524		259,036		313,247		323,751
Total deposits	$	1,408,315	$	1,371,226	$	1,295,256	$	1,270,778


	Three months ended September 30, 2021						Three months ended June 30, 2021						Three months ended September 30, 2020
	Average Balance		Interest Income/ Expense		Average Yield/ Rate (1)		Average Balance		Interest Income/ Expense		Average Yield/ Rate (1)		Average Balance		Interest Income/ Expense		Average Yield/ Rate (1)
Average interest earning assets:
Cash and cash equivalents	$	111,192	$	50	0.18	%	$	113,561	$	28	0.10	%	$	77,774	$	18	0.09	%
Loans receivable	1,192,636		14,537		4.84	%	1,186,439		13,960		4.72	%	1,258,224		14,154		4.48	%
Interest bearing deposits	1,512		8		2.10	%	1,754		9		2.06	%	3,752		23		2.44	%
Investment securities (1)	303,325		1,412		1.85	%	283,557		1,308		1.85	%	166,622		846		2.02	%
Other investments	14,961		168		4.46	%	15,020		173		4.62	%	15,145		177		4.65	%
Total interest earning assets (1)	$	1,623,626	$	16,175	3.95	%	$	1,600,331	$	15,478	3.88	%	$	1,521,517	$	15,218	3.98	%
Average interest bearing liabilities:
Savings accounts	$	216,304	$	95	0.17	%	$	219,804	$	99	0.18	%	$	183,381	$	98	0.21	%
Demand deposits	392,080		280		0.28	%	360,314		257		0.29	%	285,993		231		0.32	%
Money market accounts	276,582		193		0.28	%	258,638		182		0.28	%	255,160		280		0.44	%
CD’s	207,494		682		1.30	%	240,224		868		1.45	%	297,691		1,469		1.96	%
IRA’s	39,525		104		1.04	%	39,970		115		1.15	%	41,852		177		1.68	%
Total deposits	$	1,131,985	$	1,354	0.47	%	$	1,118,950	$	1,521	0.55	%	$	1,064,077	$	2,255	0.84	%
FHLB advances and other borrowings	169,891		1,133		2.65	%	171,261		1,126		2.64	%	173,758		1,054		2.41	%
Total interest bearing liabilities	$	1,301,876	$	2,487	0.76	%	$	1,290,211	$	2,647	0.82	%	$	1,237,835	$	3,309	1.06	%
Net interest income			$	13,688					$	12,831					$	11,909
Interest rate spread					3.19	%					3.06	%					2.92	%
Net interest margin (1)					3.34	%					3.22	%					3.11	%
Average interest earning assets to average interest bearing liabilities					1.25						1.24						1.23


	Nine months ended September 30, 2021						Nine months ended September 30, 2020
	Average Balance		Interest Income/ Expense		Average Yield/ Rate (1)		Average Balance		Interest Income/ Expense		Average Yield/ Rate (1)
Average interest earning assets:
Cash and cash equivalents	$	118,064	$	107	0.12	%	$	42,946	$	141	0.44	%
Loans receivable	1,197,469		43,014		4.80	%	1,232,678		44,300		4.80	%
Interest bearing deposits	2,227		37		2.22	%	3,967		73		2.46	%
Investment securities (1)	263,655		3,606		1.83	%	173,595		2,965		2.28	%
Other investments	15,006		510		4.54	%	15,104		533		4.71	%
Total interest earning assets (1)	$	1,596,421	$	47,274	3.96	%	$	1,468,290	$	48,012	4.37	%
Average interest bearing liabilities:
Savings accounts	$	211,320	$	277	0.18	%	$	169,754	$	348	0.27	%
Demand deposits	361,248		788		0.29	%	262,748		865		0.44	%
Money market accounts	263,195		577		0.29	%	244,965		1,240		0.68	%
CD’s	237,706		2,592		1.46	%	326,776		5,021		2.05	%
IRA’s	40,119		355		1.18	%	42,221		568		1.80	%
Total deposits	$	1,113,588	$	4,589	0.55	%	$	1,046,464	$	8,042	1.03	%
FHLB advances and other borrowings	173,889		3,400		2.61	%	185,256		3,087		2.23	%
Total interest bearing liabilities	$	1,287,477	$	7,989	0.83	%	$	1,231,720	$	11,129	1.21	%
Net interest income			$	39,285					$	36,883
Interest rate spread					3.13	%					3.16	%
Net interest margin (1)					3.29	%					3.36	%
Average interest earning assets to average interest bearing liabilities					1.24						1.19


Tangible common equity as a percent of tangible assets at end of period	September 30, 2021			June 30, 2021			September 30, 2020
Total stockholders’ equity	$	165,926		$	164,016		$	157,323

Less: Goodwill	(31,498)			(31,498)			(31,498)
Less: Intangible assets	(4,297)			(4,696)			(5,893)
Tangible common equity (non-GAAP)	$	130,131		$	127,822		$	119,932
Total Assets	$	1,753,477		$	1,714,472		$	1,622,593
Less: Goodwill	(31,498)			(31,498)			(31,498)
Less: Intangible assets	(4,297)			(4,696)			(5,893)
Tangible Assets (non-GAAP)	$	1,717,682		$	1,678,278		$	1,585,202


Total stockholders’ equity to total assets ratio	9.46		%	9.57		%	9.70		%
Tangible common equity as a percent of tangible assets (non-GAAP)	7.58		%	7.62		%	7.57		%