Citizens Community Bancorp, Inc. Reports Third Quarter 2025 Earnings of $0.37 Per Share; Redeems $15 Million of Subordinated Debt

Citizens Community Bancorp, Inc. Reports Third Quarter 2025 Earnings of $0.37 Per Share; Redeems $15 Million of Subordinated Debt EAU CLAIRE, Wis., Oct. 27, 2025 (GLOBE NEWSWIRE) -- 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 $3.7 million and earnings per diluted share of $0.37 for the third quarter ended September 30, 2025, compared to $3.3 million and earnings per diluted share of $0.33 for the second quarter ended June 30, 2025, and $3.3 million and $0.32 earnings per diluted share for the quarter ended September 30, 2024, respectively. For the nine months ended September 30, 2025, the Company reported earnings of $10.1 million and earnings per diluted share of $1.02 compared to the prior year period of $11.0 million and earnings per diluted share of $1.07. The Company’s improved third quarter 2025 operating results reflected the following changes from the second quarter of 2025: (1) a decrease in net interest income of $0.1 million, due to a decrease of $0.7 million in the recognition of interest income from loan payoffs, partially offset by a $0.4 million increase from higher asset yields and lower deposit costs and one more day of interest income; (2) lower provision for credit losses of $0.65 million compared to a $1.35 million provision in the second quarter; (3) higher non-interest income of $0.2 million; and (4) higher non-interest expense of $0.3 million. Book value per share improved to $18.95 at September 30, 2025, compared to $18.36 at June 30, 2025, and $17.88 at September 30, 2024. Tangible book value per share (non-GAAP)1 was $15.71 at September 30, 2025, compared to $15.15 at June 30, 2025, and a 7.3% increase from $14.64 at September 30, 2024, with dividends paid of 2.44% of the September 30, 2024 tangible book value. Since September 30, 2024, the Company has paid dividends to shareholders totaling $0.36 per share. For the third quarter of 2025, the increase in tangible book value was primarily due to the increase in net income in the quarter, along with the impact of lower unrealized losses on the available for sale investment portfolio. Stockholders’ equity as a percentage of total assets was 10.82% at September 30, 2025, compared to 10.57% at June 30, 2025. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 increased to 9.13% at September 30, 2025, compared to 8.89% at June 30, 2025. “Earnings met expectations, and capital grew in the quarter strengthening our balance sheet for share buybacks and strategic opportunities. Our tangible capital ratio now exceeds 9.1% and tangible book value increased 3.7% from the linked quarter to $15.71 per share. There was continued expansion in the net interest margin and strong non-interest income was driven by mortgage and SBA gains on sale. Strong credit practices resulted in net loan recoveries of $51 thousand and a $7 million decrease in criticized assets, offset partially by a $3.4 million increase in substandard loans. The ACL, which increased from 1.59% to 1.68% from last quarter, provides 141% coverage of non-performing loans. Unemployment remains below national averages, but middle-income consumers and smaller businesses, who are facing the pressure of higher costs (real estate taxes, insurance) and slowing income growth, are exhibiting increasing stress,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer. September 30, 2025, Highlights: Quarterly earnings were $3.7 million, or $0.37 per diluted share for the quarter ended September 30, 2025, an increase compared to earnings of $3.3 million, or $0.33 per diluted share for the quarter ended June 30, 2025, and an increase from $3.3 million, or $0.32 per diluted share for the quarter ended September 30, 2024.For the nine months ended September 30, 2025, earnings were $10.1 million or $1.02 per diluted share compared to $11.0 million or $1.07 per diluted share for the nine-month period ending September 30, 2024. The decline in earnings for the nine-month period primarily relates to provisions for credit losses for the most recent nine-month period versus negative provisions for credit losses during the nine-month period ending September 30, 2024, as economic variables used by our third-party provider in the calculation of the allowance for credit losses (“ACL”) have begun to normalize in the most recent periods.Net interest income decreased $0.1 million to $13.2 million for the current quarter ended September 30, 2025, from $13.3 million for the quarter ended June 30, 2025, and increased from $11.3 million for the quarter ended September 30, 2024. The decrease in net interest income from the second quarter of 2025 was primarily due to: (1) a net decrease of $0.5 million (11 bps) of interest income recognized on the payoffs of nonperforming loans to $0.2 million; (2) a decrease in purchase accretion of $0.3 million (7 bps) to $0.1 million as a result of loan payoffs; (3) the impact of one more day in the quarter on interest income, net of interest expense or $0.1 million, with these impacts removed from items 4 and 5 which follow: (4) higher interest income of $0.2 million (5 bps) on loans and investments due to loans repricing, the impact of new loan originations and mix of investments; (5) a decrease in deposit and borrowing costs of $0.2 million (4 bps); and (6) the impact of an increase in non-interest-bearing deposits (3bp).The net interest margin decreased 7 basis points (“bps”) to 3.20% for the quarter ended September 30, 2025, compared to the quarter ended June 30, 2025, and increased 57 bps from the quarter ended September 30, 2024. The basis for the changes in the net interest margin is noted above.The provision for credit losses was $0.65 million for the quarter ended September 30, 2025, compared to a provision for credit losses of $1.35 million, and a negative provision for credit losses of $0.4 million during the quarters ended June 30, 2025, and September 30, 2024, respectively. Factors affecting the September 30, 2025, provision for credit losses include: (1) the impact of changes in credit quality, i.e., changes in reserves on impaired loans, and the impact of delinquent loans at June 30, 2025, becoming current at September 30, 2025, of $0.9 million; partially offset by: (2) the net shrinkage in the loan portfolio of approximately $0.1 million; (3) $51 thousand of net recoveries; and (4) a decrease in off-balance sheet commitments from new construction originations of $0.1 million. The allowance for credit losses on loans was $22.2 million or 141% of total nonperforming loans of $15.8 million at September 30, 2025.Non-interest income increased by $0.2 million in the third quarter of 2025 to $3.0 million from $2.8 million the prior quarter and $0.1 million from the third quarter of 2024 of $2.9 million. The increase in the third quarter of 2025 from the second quarter was primarily due to higher gains on sale of loans, partially offset by a net loss on the sale of equity securities.Non-interest expense increased $0.3 million to $11.1 million from $10.8 million for the previous quarter and increased $0.7 million from $10.4 million for the third quarter of 2024. The increase in non-interest expense compared to the linked quarter was largely due to compensation items, including higher medical costs and modestly higher incentive costs. The $0.7 million increase from the third quarter of 2024 was largely due to higher compensation expense, which includes the annual merit increase impact, higher medical costs and incentive costs along with inflation factors impacting non-interest expense.The effective tax rate was 18.8% for the quarter ended September 30, 2025, compared to 19.2% for the quarter ended June 30, 2025, and 21.5% for the quarter ended September 30, 2024.Loans receivable decreased $22.6 million during the third quarter ended September 30, 2025, to $1.323 billion compared to the prior quarter end. The decrease was largely due to a reduction in loan originations from the second quarter.Nonperforming assets increased $3.7 million during the quarter to $16.7 million at September 30, 2025, compared to $13.0 million at June 30, 2025, largely due to a $9 million multifamily loan moving from special mention to substandard which was partially offset by a $5 million payoff of an agricultural loan relationship.Special mention loans decreased $10.3 million to $12.9 million at September 30, 2025, from $23.2 million at June 30, 2025. The decrease was largely due to a $9 million multi-family loan moving to substandard.Substandard loans increased $3.4 million largely due to the $9 million multi-family loan moving to substandard and nonaccrual, partially offset by the payoff of a $5 million agricultural loan that was substandard and nonaccrual.Total deposits increased $2.1 million during the quarter ended September 30, 2025, to $1.48 billion. This was largely due to growth in commercial deposits of $17.1 million, partially offset by the seasonal shrinkage in public deposits of $15.2 million, with historical growth expected in the fourth quarter.On September 1, 2025, the Company redeemed a 6% subordinated debt totaling $15 million.The efficiency ratio was 67% for the quarter ended September 30, 2025, compared to 66% for the quarter ended June 30, 2025.On July 24, 2025, the Board of Directors authorized a new 5% common stock buyback authorization, or 499 thousand shares. The Company repurchased approximately 136 thousand shares at an average all in price of $14.93 per share during the quarter ended September 30, 2025. There remain approximately 363 thousand shares under this authorization. Balance Sheet and Asset Quality Total assets decreased by $8.2 million during the quarter to $1.727 billion at September 30, 2025. Cash and cash equivalents increased $15.0 million as interest-bearing cash increased due to loan principal repayments and deposit increases. 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 13.4% of total assets at September 30, 2025, compared to 12.2% at June 30, 2025. On-balance sheet liquidity, collateralized new borrowing capacity, and uncommitted federal funds borrowing availability was $741 million, or 267%, of uninsured and uncollateralized deposits at September 30, 2025, and $730 million, or 277% at June 30, 2025. Securities available for sale (“AFS”) increased $2.9 million during the quarter ended September 30, 2025, to $137.6 million from $134.8 million at June 30, 2025. The increase was due to the purchase of new corporate debt securities of $5 million, a decrease in the unrealized loss on AFS securities of $2.1 million partially offset by principal repayments of $32.8 million, and corporate debt security redemptions of $1.8 million. Securities held to maturity (“HTM”) decreased $1.5 million to $81.5 million during the quarter ended September 30, 2025, from $83.0 million at June 30, 2025, due to principal repayments. Loans receivable decreased $22.6 million during the third quarter ended September 30, 2025, to $1.323 billion compared to the prior quarter end, as loan payoffs and scheduled principal payments outpaced new loan originations. The office loan portfolio consisting of seventy-one loans totaled $26 million at September 30, 2025, compared to seventy loans totaling $26 million at June 30, 2025. Criticized loans in the office loan portfolio for the quarter ended September 30, 2025, totaled $0.2 million, compared to $0.5 million at June 30, 2025, and there have been no charge-offs in the trailing twelve months. The allowance for credit losses on loans increased by $0.8 million to $22.2 million at September 30, 2025, representing 1.68% of total loans receivable compared to 1.59% of total loans receivable at June 30, 2025.The provision for credit losses was $0.65 million for the quarter ended September 30, 2025, compared to a provision for credit losses of $1.35 million, and a negative provision for credit losses of $0.4 million during the quarters ended June 30, 2025, and September 30, 2024, respectively. Factors affecting the September 30, 2025 provision for credit losses include: (1) the impact of changes in credit quality, i.e., changes in reserves on impaired loans, and the impact of delinquent loans at June 30, 2025, being current at September 30, 2025, of $0.9 million; partially offset by: (2) the net of shrinkage in the loan portfolio of approximately $0.1 million; (3) $51 thousand of net recoveries; and (4) a decrease in off-balance sheet commitments from new construction originations of $0.1 million. Allowance for Credit Losses (“ACL”) - Loans Percentage (in thousands, except ratios) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024Loans, end of period$1,323,010 $1,345,620 $1,352,728 $1,368,981 Allowance for credit losses - Loans$22,182 $21,347 $20,205 $20,549 ACL - Loans as a percentage of loans, end of period 1.68% 1.59% 1.49% 1.50%  In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.493 million at September 30, 2025, $0.627 million at June 30, 2025, and $0.460 million at September 30, 2024, classified in other liabilities on the consolidated balance sheets. Allowance for Credit Losses - Unfunded Commitments: (in thousands) September 30, 2025 and Three Months Ended September 30, 2024 and Three Months Ended September 30, 2025 and Nine Months Ended September 30, 2024 and Nine Months EndedACL - Unfunded commitments - beginning of period$627 $712 $334 $1,250 Additions (reductions) to ACL - Unfunded commitments via provision for credit losses charged to operations (134) (252) 159 (790)ACL - Unfunded commitments - end of period$493 $460 $493 $460  Special mention loans decreased $10.3 million to $12.9 million at September 30, 2025, from $23.2 million in the previous quarter. The decrease was largely due to the transfer of one multi-family loan to substandard and nonperforming, which is experiencing slower leasing activity than expected. Substandard loans increased $3.4 million to $21.3 million at September 30, 2025, compared to $17.9 million at June 30, 2025, largely due to the transfer from special mention of a multi-family loan totaling $9.0 million, partially offset by the payoff of one nonperforming loan relationship of $5 million. Nonperforming assets increased by $3.7 million to $16.7 million at September 30, 2025, compared to $13.0 million at June 30, 2025. As described above, a $9 million multi-family loan that is experiencing slower leasing activity than expected was placed on nonaccrual in the third quarter, which was partially offset by the payoff of an agricultural nonperforming loan relationship of $5 million. (in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Special mention loan balances$12,920 $23,201 $14,990 $8,480 $11,047Substandard loan balances 21,310 17,922 19,591 18,891 21,202Criticized loans, end of period$34,230 $41,123 $34,581 $27,371 $32,249  Deposit Portfolio Composition (in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Consumer deposits$855,226 $856,467 $861,746 $852,083 $844,808Commercial deposits 423,662 406,608 423,654 412,355 406,095Public deposits 175,689 190,933 211,261 190,460 176,844Wholesale deposits 25,977 24,408 26,993 33,250 92,920Total deposits$1,480,554 $1,478,416 $1,523,654 $1,488,148 $1,520,667  At September 30, 2025, the deposit portfolio composition was 58% consumer, 28% commercial, 12% public, and 2% wholesale deposits compared to 58% consumer, 27% commercial, 13% public, and 2% wholesale deposits at June 30, 2025. Deposit Composition By Type (in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Non-interest-bearing demand deposits$262,535 $260,248 $253,343 $252,656 $256,840Interest-bearing demand deposits 360,475 366,481 386,302 355,750 346,971Savings accounts 157,317 159,340 167,614 159,821 169,096Money market accounts 354,290 357,518 370,741 369,534 366,067Certificate accounts 345,937 334,829 345,654 350,387 381,693Total deposits$1,480,554 $1,478,416 $1,523,654 $1,488,148 $1,520,667  Uninsured and uncollateralized deposits were $277.7 million, or 19% of total deposits at September 30, 2025, and $263.2 million, or 18% of total deposits at June 30, 2025. Uninsured deposits alone at September 30, 2025, were $421.5 million, or 28% of total deposits and $419.6 million, or 28% of total deposits at June 30, 2025. Federal Home Loan Bank advances remained at $0 at September 30, 2025, and at June 30, 2025, and decreased $5.0 million from December 31, 2024. On August 29, 2025, the Company redeemed a 6% subordinated debt totaling $15 million. The Company repurchased approximately 136 thousand shares at an average all in price of $14.93 per share. There remain approximately 363 thousand shares under the current buyback authorization plan. This share repurchase authorization does not oblige the Company to repurchase any shares of its common stock. Review of Operations Pre-Provision Net Revenue (PPNR) (in thousands, except yields and rates) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Pre-tax income$4,535 $4,047 $3,974 $3,358 $4,185 Add back provision for credit losses 650 1,350 — — — Subtract negative provision for credit losses — — (250) (450) (400)Pre-Provision Net Revenue$5,185 $5,397 $3,724 $2,908 $3,785  Pre-Provision Net Revenue (“PPNR”) is defined as net interest income plus total non-interest income minus total non-interest expense. This measure is a non-GAAP financial measure since it excludes the provision for (recovery of) credit losses included in net income. Pre-provision net revenue includes net interest income recognized on the payoff of nonaccrual loans and loans with purchase credit discounts of $0.3 million and $1.1 million for the three-month periods ended September 30, 2025, and June 30, 2025, respectively. Net interest income decreased $0.1 million to $13.2 million for the current quarter ended September 30, 2025, from $13.3 million for the quarter ended June 30, 2025, and increased from $11.3 million for the quarter ended September 30, 2024. The decrease in net interest income from the second quarter of 2025 was primarily due to: (1) a net decrease of $0.5 million (11 bps) of interest income recognized on the payoffs of nonperforming loans to $0.2 million; (2) a decrease in purchase accretion of $0.3 million (7 bps) to $0.1 million as a result of loan payoffs; (3) the impact of one more day in the quarter on interest income, net of interest expense or $0.1 million, with these impacts removed from items 4 and 5 which follow: (4) higher interest income of $0.2 million (5 bps) on loans and investments due to loans repricing, the impact of new loan originations and mix of investments; (5) a decrease in deposit and borrowing costs of $0.2 million (4 bps); and (6) the impact of an increase in non-interest-bearing deposits (3bp). Net interest income and net interest margin analysis: (in thousands, except yields and rates) Three months ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 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 MarginAs reported$13,214 3.20% $13,311 3.27% $11,594 2.85% $11,708 2.79% $11,285 2.63%Less scheduled accretion for PCD loans (17) —% (23) (0.01)% (36) (0.01)% (42) (0.01)% (45) (0.01)%Less paid loan accretion for PCD loans (133) (0.03)% (416) (0.10)% — —% — —% — —%Less scheduled accretion interest (30) (0.01)% (33) (0.01)% (33) (0.01)% (33) (0.01)% (33) (0.01)%Without loan purchase accretion$13,034 3.16% $12,839 3.15% $11,525 2.83% $11,633 2.77% $11,207 2.61%  The table below shows the impact of certificate, loan and securities contractual fixed rate maturing and repricing. Portfolio Contractual Repricing: (in millions, except yields) Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2027Maturing Certificate Accounts: Contractual Balance$95 $138 $63 $36 $10 $3 Contractual Interest Rate 3.90% 3.98% 3.97% 3.93% 3.85% 0.84%Maturing or Repricing Loans: Contractual Balance$42 $40 $55 $117 $98 $233 Contractual Interest Rate 4.95% 4.59% 4.71% 3.70% 3.84% 4.64%Maturing or Repricing Securities: Contractual Balance$7 $2 $7 $7 $3 $7 Contractual Interest Rate 4.45% 3.72% 3.57% 3.44% 3.27% 4.76%  Non-interest income increased by $0.2 million in the third quarter of 2025, to $3.0 million from $2.8 million the prior quarter and $0.1 million from the third quarter of 2024 of $2.9 million. The increase in the third quarter of 2025 was due to higher gains on sale of loans, partially offset by lower gains on sale of equity securities and lower loan fees due to lower nonaccrual loan payoffs. Non-interest expense increased $0.3 million to $11.1 million from $10.8 million for the previous quarter and increased $0.7 million from $10.4 million the third quarter of 2024. The increase in non-interest expense compared to the linked quarter was largely due to compensation items, including higher medical costs and modestly higher incentive costs. The $0.7 million increase from the third quarter of 2024 was largely due to higher compensation expense, which includes the annual merit increase impact, higher medical costs, incentive costs, and inflation factors impacting non-interest expense. Provision for income taxes was $0.9 million in the third quarter of 2025 compared to $0.8 million in the second quarter of 2025. The effective tax rate was 18.8% for the quarter ended September 30, 2025, 19.2% for the quarter ended June 30, 2025, and 21.5% for the quarter ended September 30, 2024. Certain items previously reported may be reclassified for consistency with the current presentation. These financial results are preliminary until the Form 10-Q is filed in November 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) September 30, 2025 (unaudited) June 30, 2025 (unaudited) December 31, 2024 (audited) September 30, 2024 (unaudited)Assets Cash and cash equivalents$82,431 $67,454 $50,172 $36,632 Securities available for sale “AFS” 137,639 134,773 142,851 149,432 Securities held to maturity “HTM” 81,526 83,029 85,504 87,033 Equity investments 5,675 5,741 4,702 5,096 Other investments 12,370 12,379 12,500 12,311 Loans receivable 1,323,010 1,345,620 1,368,981 1,424,828 Allowance for credit losses (22,182) (21,347) (20,549) (21,000)Loans receivable, net 1,300,828 1,324,273 1,348,432 1,403,828 Loans held for sale 5,346 6,063 1,329 697 Mortgage servicing rights, net 3,532 3,548 3,663 3,696 Office properties and equipment, net 16,244 16,357 17,075 17,365 Accrued interest receivable 6,159 6,123 5,653 6,235 Intangible assets 508 621 979 1,158 Goodwill 31,498 31,498 31,498 31,498 Foreclosed and repossessed assets, net 911 895 915 1,572 Bank owned life insurance (“BOLI”) 26,700 26,494 26,102 25,901 Other assets 15,620 15,916 17,144 16,683 TOTAL ASSETS$1,726,987 $1,735,164 $1,748,519 $1,799,137 Liabilities and Stockholders’ Equity Liabilities: Deposits$1,480,554 $1,478,416 $1,488,148 $1,520,667 Federal Home Loan Bank (“FHLB”) advances — — 5,000 21,000 Other borrowings 46,762 61,722 61,606 61,548 Other liabilities 12,856 11,564 14,681 15,773 Total liabilities 1,540,172 1,551,702 1,569,435 1,618,988 Stockholders’ Equity: Common stock— $0.01 par value, authorized 30,000,000; 9,856,745, 9,991,997, 9,981,996, and 10,074,136 shares issued and outstanding, respectively 99 100 100 101 Additional paid-in capital 113,030 114,537 114,564 115,455 Retained earnings 86,913 83,709 80,840 78,438 Accumulated other comprehensive loss (13,227) (14,884) (16,420) (13,845)Total stockholders’ equity 186,815 183,462 179,084 180,149 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$1,726,987 $1,735,164 $1,748,519 $1,799,137 CITIZENS COMMUNITY BANCORP, INC. Consolidated Statements of Operations (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, 2025 (unaudited) June 30, 2025 (unaudited) September 30, 2024 (unaudited) September 30, 2025 (unaudited) September 30, 2024 (unaudited)Interest and dividend income: Interest and fees on loans$19,759 $20,105 $20,115 $58,466 $60,204 Interest on investments 2,495 2,397 2,397 7,393 7,450 Total interest and dividend income 22,254 22,502 22,512 65,859 67,654 Interest expense: Interest on deposits 8,220 8,287 10,165 25,104 28,712 Interest on FHLB borrowed funds 1 1 128 13 1,216 Interest on other borrowed funds 819 903 934 2,623 2,960 Total interest expense 9,040 9,191 11,227 27,740 32,888 Net interest income before provision for credit losses 13,214 13,311 11,285 38,119 34,766 Provision for credit losses 650 1,350 (400) 1,750 (2,725)Net interest income after provision for credit losses 12,564 11,961 11,685 36,369 37,491 Non-interest income: Service charges on deposit accounts 449 432 513 1,304 1,474 Interchange income 565 564 577 1,647 1,697 Loan servicing income 649 565 643 1,773 1,751 Gain on sale of loans 992 699 752 2,411 1,998 Loan fees and service charges 173 237 165 530 704 Net gains (losses) on equity securities (66) 99 (78) 43 (569)Bank Owned Life Insurance (BOLI) death benefit — — — — 184 Other 260 240 349 743 859 Total non-interest income 3,022 2,836 2,921 8,451 8,098 Non-interest expense: Compensation and related benefits 6,341 6,008 5,743 17,946 16,901 Occupancy 1,266 1,196 1,242 3,749 3,942 Data processing 1,811 1,753 1,665 5,283 4,787 Amortization of intangible assets 113 179 178 471 536 Mortgage servicing rights expense, net 161 148 163 449 427 Advertising, marketing and public relations 201 194 225 562 575 FDIC premium assessment 195 191 201 584 606 Professional services 359 432 336 1,299 1,249 Losses (gains) on repossessed assets, net (4) — 65 — 47 Other 608 649 603 1,921 2,427 Total non-interest expense 11,051 10,750 10,421 32,264 31,497 Income before provision for income taxes 4,535 4,047 4,185 12,556 14,092 Provision for income taxes 853 777 899 2,407 3,043 Net income attributable to common stockholders$3,682 $3,270 $3,286 $10,149 $11,049 Per share information: Basic earnings$0.37 $0.33 $0.32 $1.02 $1.07 Diluted earnings$0.37 $0.33 $0.32 $1.02 $1.07 Cash dividends paid$— $— $— $0.36 $0.32 Book value per share at end of period$18.95 $18.36 $17.88 $18.95 $17.88 Tangible book value per share at end of period (non-GAAP)$15.71 $15.15 $14.64 $15.71 $14.64  Loan Composition (in thousands) September 30, 2025 June 30, 2025 December 31, 2024 September 30, 2024Total Loans: Commercial/Agricultural real estate: Commercial real estate$683,931 $693,382 $709,018 $730,459 Agricultural real estate 64,096 69,237 73,130 76,043 Multi-family real estate 237,191 238,953 220,805 239,191 Construction and land development 74,789 70,477 78,489 87,875 C&I/Agricultural operating: Commercial and industrial 101,700 109,202 115,657 119,619 Agricultural operating 30,085 31,876 31,000 27,550 Residential mortgage: Residential mortgage 125,198 125,818 132,341 134,944 Purchased HELOC loans 1,979 2,368 2,956 2,932 Consumer installment: Originated indirect paper 2,567 2,959 3,970 4,405 Other consumer 4,155 4,275 5,012 5,438 Gross loans$1,325,691 $1,348,547 $1,372,378 $1,428,456 Unearned net deferred fees and costs and loans in process (2,563) (2,629) (2,547) (2,703)Unamortized discount on acquired loans (118) (298) (850) (925)Total loans receivable$1,323,010 $1,345,620 $1,368,981 $1,424,828  Nonperforming Assets Loan Balances at Amortized Cost (in thousands, except ratios) September 30, 2025 June 30, 2025 December 31, 2024 September 30, 2024Nonperforming assets: Nonaccrual loans Commercial real estate$4,592 $5,013 $4,594 $4,778 Agricultural real estate 220 5,447 6,222 6,193 Multi-family real estate 8,970 — — — Construction and land development — — 103 106 Commercial and industrial (“C&I”) 1,312 600 597 1,956 Agricultural operating — — 793 901 Residential mortgage 520 549 858 1,088 Consumer installment — — 1 20 Total nonaccrual loans$15,614 $11,609 $13,168 $15,042 Accruing loans past due 90 days or more 137 521 186 530 Total nonperforming loans (“NPLs”) at amortized cost 15,751 12,130 13,354 15,572 Foreclosed and repossessed assets, net 911 895 915 1,572 Total nonperforming assets (“NPAs”)$16,662 $13,025 $14,269 $17,144 Loans, end of period$1,323,010 $1,345,620 $1,368,981 $1,424,828 Total assets, end of period$1,726,987 $1,735,164 $1,748,519 $1,799,137 Ratios: NPLs to total loans 1.19% 0.90% 0.98% 1.09%NPAs to total assets 0.96% 0.75% 0.82% 0.95%  Average Balances, Interest Yields and Rates (in thousands, except yields and rates) Three Months Ended September 30, 2025 Three Months Ended June 30, 2025 Three Months Ended September 30, 2024 Average Balance Interest Income/ Expense Average Yield/ Rate Average Balance Interest Income/ Expense Average Yield/ Rate Average Balance Interest Income/ Expense Average Yield/ RateAverage interest earning assets: Cash and cash equivalents$62,395 $693 4.41% $44,377 $493 4.46% $25,187 $360 5.69%Loans receivable 1,342,635 19,759 5.84% 1,353,332 20,105 5.96% 1,429,928 20,115 5.60%Investment securities 220,213 1,738 3.13% 223,318 1,735 3.12% 236,960 1,966 3.30%Other investments 12,373 64 2.05% 12,400 169 5.47% 12,553 71 2.25%Total interest earning assets$1,637,616 $22,254 5.39% $1,633,427 $22,502 5.53% $1,704,628 $22,512 5.25%Average interest-bearing liabilities: Savings accounts$158,905 $306 0.76% $160,849 $335 0.84% $170,777 $450 1.05%Demand deposits 376,145 2,061 2.17% 372,723 1,986 2.14% 357,201 2,152 2.40%Money market accounts 358,956 2,512 2.78% 361,420 2,510 2.79% 381,369 3,126 3.26%CD’s 339,566 3,341 3.90% 342,959 3,456 4.04% 379,722 4,437 4.65%Total deposits$1,233,572 $8,220 2.64% $1,237,951 $8,287 2.69% $1,289,069 $10,165 3.14%FHLB advances and other borrowings 54,389 820 5.98% 61,781 904 5.87% 80,338 1,062 5.26%Total interest-bearing liabilities$1,287,961 $9,040 2.78% $1,299,732 $9,191 2.84% $1,369,407 $11,227 3.26%Net interest income $13,214 $13,311 $11,285 Interest rate spread 2.61% 2.69% 1.99%Net interest margin 3.20% 3.27% 2.63%Average interest earning assets to average interest-bearing liabilities 1.27 1.26 1.24 Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Average Balance Interest Income/ Expense Average Yield/ Rate Average Balance Interest Income/ Expense Average Yield/ RateAverage interest earning assets: Cash and cash equivalents$51,589 $1,710 4.43% $19,073 $823 5.76%Loans receivable 1,353,030 58,466 5.78% 1,441,972 60,204 5.58%Investment securities 223,985 5,282 3.15% 240,054 6,038 3.36%Other investments 12,423 401 4.32% 12,983 589 6.06%Total interest earning assets$1,641,027 $65,859 5.37% $1,714,082 $67,654 5.27%Average interest-bearing liabilities: Savings accounts$162,222 $1,048 0.86% $173,946 $1,300 1.00%Demand deposits 377,051 6,079 2.16% 355,356 6,192 2.33%Money market accounts 361,944 7,557 2.79% 378,740 9,005 3.18%CD’s 342,077 10,420 4.07% 364,131 12,215 4.48%Total deposits$1,243,294 $25,104 2.70% $1,272,173 $28,712 3.01%FHLB advances and other borrowings 60,231 2,636 5.85% 108,897 4,176 5.12%Total interest-bearing liabilities$1,303,525 $27,740 2.85% $1,381,070 $32,888 3.18%Net interest income $38,119 $34,766 Interest rate spread 2.52% 2.09%Net interest margin 3.11% 2.71%Average interest earning assets to average interest bearing liabilities 1.26 1.24  Wholesale Deposits (in thousands) Quarter Ended September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Brokered certificate accounts$— $— $5,489 $14,123 $48,578Brokered money market accounts 5,131 5,092 5,053 5,002 18,076Third party originated reciprocal deposits 20,846 19,316 16,451 14,125 26,266Total$25,977 $24,408 $26,993 $33,250 $92,920  Key Financial Metric Ratios: Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024Ratios based on net income: Return on average assets (annualized)0.84% 0.75% 0.72% 0.78% 0.81%Return on average equity (annualized)7.90% 7.23% 7.34% 7.48% 8.46%Return on average tangible common equity4 (annualized)9.80% 9.18% 9.38% 9.43% 10.78%Efficiency ratio67% 66% 72% 68% 71%Net interest margin with loan purchase accretion3.20% 3.27% 2.63% 3.11% 2.71%Net interest margin without loan purchase accretion3.16% 3.15% 2.61% 3.05% 2.69%  Reconciliation of Return on Average Assets (in thousands, except ratios) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 GAAP earnings after income taxes$3,682 $3,270 $3,286 $10,149 $11,049 Average assets$1,735,752 $1,745,897 $1,810,826 $1,746,423 $1,822,106 Return on average assets (annualized) 0.84% 0.75% 0.72% 0.78% 0.81%  Reconciliation of Return on Average Equity (in thousands, except ratios) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024GAAP earnings after income taxes$3,682 $3,270 $3,286 $10,149 $11,049 Average equity$184,822 $181,370 $178,050 $181,513 $174,436 Return on average equity (annualized) 7.90% 7.23% 7.34% 7.48% 8.46%  Reconciliation of Return on Average Tangible Common Equity (non-GAAP) (in thousands, except ratios) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024Total stockholders’ equity$186,815 $183,462 $180,149 $186,815 $180,149 Less: Goodwill (31,498) (31,498) (31,498) (31,498) (31,498)Less: Intangible assets (508) (621) (1,158) (508) (1,158)Tangible common equity (non-GAAP)$154,809 $151,343 $147,493 $154,809 $147,493 Average tangible common equity (non-GAAP)$152,759 $149,161 $145,305 $149,292 $141,512 GAAP earnings after income taxes 3,682 3,270 3,286 10,149 11,049 Amortization of intangible assets, net of tax 92 145 140 381 374 Tangible net income$3,774 $3,415 $3,426 $10,530 $11,423 Return on average tangible common equity (annualized) 9.80% 9.18% 9.38% 9.43% 10.78%  Reconciliation of Efficiency Ratio (in thousands, except ratios) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024Non-interest expense (GAAP)$11,051 $10,750 $10,421 $32,264 $31,497 Less amortization of intangibles (113) (179) (178) (471) (536)Efficiency ratio numerator (GAAP)$10,938 $10,571 $10,243 $31,793 $30,961 Non-interest income$3,022 $2,836 $2,921 $8,451 $8,098 Add back net losses on debt and equity securities (66) — (78) — (569)Subtract net gains on debt and equity securities — 99 — 43 — Net interest income 13,214 13,311 11,285 38,119 34,766 Efficiency ratio denominator (GAAP)$16,302 $16,048 $14,284 $46,527 $43,433 Efficiency ratio (GAAP) 67% 66% 72% 68% 71%  Reconciliation of tangible book value per share (non-GAAP) (in thousands, except per share data) Tangible book value per share at end of periodSeptember 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Total stockholders’ equity$ 186,815 $ 183,462 $ 180,051 $ 179,084 $ 180,149 Less: Goodwill (31,498) (31,498) (31,498) (31,498) (31,498)Less: Intangible assets (508) (621) (800) (979) (1,158)Tangible common equity (non-GAAP)$ 154,809 $ 151,343 $ 147,753 $ 146,607 $ 147,493 Ending common shares outstanding 9,856,745 9,991,997 9,989,536 9,981,996 10,074,136 Book value per share$ 18.95 $ 18.36 $ 18.02 $ 17.94 $ 17.88 Tangible book value per share (non-GAAP)$ 15.71 $ 15.15 $ 14.79 $ 14.69 $ 14.64  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 periodSeptember 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024Total stockholders’ equity$186,815 $183,462 $180,051 $179,084 $180,149 Less: Goodwill (31,498) (31,498) (31,498) $(31,498) $(31,498)Less: Intangible assets (508) (621) (800) $(979) $(1,158)Tangible common equity (non-GAAP)$154,809 $151,343 $147,753 $146,607 $147,493 Total Assets$1,726,987 $1,735,164 $1,779,963 $1,748,519 $1,799,137 Less: Goodwill (31,498) (31,498) (31,498) (31,498) (31,498)Less: Intangible assets (508) (621) (800) (979) (1,158)Tangible Assets (non-GAAP)$1,694,981 $1,703,045 $1,747,665 $1,716,042 $1,766,481 Total stockholders’ equity to total assets ratio 10.82% 10.57% 10.12% 10.24% 10.01%Tangible common equity as a percent of tangible assets (non-GAAP) 9.13% 8.89% 8.45% 8.54% 8.35%  1Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhance 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 enhance 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 enhance 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 enhance 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)”. Source: Citizens Community Bancorp, Inc.