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Citizens Community Bancorp, Inc. Reports Third Quarter 2024 Earnings of $0.32 Per Share; Nine Month 2024 Earnings of $1.07 Per Share

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Citizens Community Bancorp reported Q3 2024 earnings of $3.3 million ($0.32 per diluted share), compared to $3.7 million ($0.35 per share) in Q2 2024 and $2.5 million ($0.24 per share) in Q3 2023. Book value per share improved to $17.88, with tangible book value reaching $14.64. Key highlights include: net interest income decreased $0.3 million from Q2, deposits increased $1.1 million despite a $30.1 million decrease in brokered deposits, and nonperforming assets rose to $17.1 million. The company maintained a healthy reserve for credit losses at 1.47% of total loans and repurchased 223,000 shares at an average price of $12.91.

Citizens Community Bancorp ha riportato utili per il terzo trimestre del 2024 pari a 3,3 milioni di dollari (0,32 dollari per azione diluita), rispetto ai 3,7 milioni di dollari (0,35 dollari per azione) del secondo trimestre del 2024 e ai 2,5 milioni di dollari (0,24 dollari per azione) del terzo trimestre del 2023. Il valore contabile per azione è migliorato a 17,88 dollari, con il valore contabile tangibile che ha raggiunto 14,64 dollari. I principali punti salienti includono: il reddito netto dagli interessi è diminuito di 0,3 milioni di dollari rispetto al secondo trimestre, i depositi sono aumentati di 1,1 milioni di dollari nonostante una diminuzione di 30,1 milioni di dollari nei depositi intermediati, e gli attivi non performanti sono aumentati a 17,1 milioni di dollari. L'azienda ha mantenuto una riserva sana per le perdite creditizie pari all'1,47% dei prestiti totali e ha riacquistato 223.000 azioni a un prezzo medio di 12,91 dollari.

Citizens Community Bancorp reportó ganancias de 3.3 millones de dólares (0.32 dólares por acción diluida) en el tercer trimestre de 2024, en comparación con 3.7 millones de dólares (0.35 dólares por acción) en el segundo trimestre de 2024 y 2.5 millones de dólares (0.24 dólares por acción) en el tercer trimestre de 2023. El valor contable por acción mejoró a 17.88 dólares, con un valor contable tangible que alcanzó 14.64 dólares. Los puntos clave incluyen: los ingresos por intereses netos disminuyeron en 0.3 millones de dólares en comparación con el segundo trimestre, los depósitos aumentaron en 1.1 millones de dólares a pesar de una disminución de 30.1 millones de dólares en depósitos intermediaros, y los activos no productivos aumentaron a 17.1 millones de dólares. La compañía mantuvo una reserva saludable para pérdidas crediticias del 1.47% de los préstamos totales y recompró 223,000 acciones a un precio promedio de 12.91 dólares.

Citizens Community Bancorp는 2024년 3분기 수익이 330만 달러(희석 주당 0.32달러)에 달했다고 보고했으며, 이는 2024년 2분기의 370만 달러(주당 0.35달러) 및 2023년 3분기의 250만 달러(주당 0.24달러)와 비교됩니다. 주당 장부 가치는 17.88달러로 개선되었으며, 유형 장부 가치는 14.64달러에 도달했습니다. 주요 내용으로는: 2분기에 비해 순이자 수익이 30만 달러 감소하였고, 중개예금이 3010만 달러 감소했음에도 불구하고 예금이 110만 달러 증가하였으며, 부실 자산은 1710만 달러로 증가했습니다. 회사는 총 대출의 1.47%에 해당하는 신용 손실 여유금을 유지했으며, 평균 12.91달러에 223,000주를 재매입했습니다.

Citizens Community Bancorp a annoncé un bénéfice de 3,3 millions de dollars (0,32 dollar par action diluée) pour le troisième trimestre 2024, contre 3,7 millions de dollars (0,35 dollar par action) au deuxième trimestre 2024 et 2,5 millions de dollars (0,24 dollar par action) au troisième trimestre 2023. La valeur comptable par action a été améliorée à 17,88 dollars, avec une valeur comptable tangible atteignant 14,64 dollars. Les points clés incluent : le revenu net d'intérêts a diminué de 0,3 million de dollars par rapport au deuxième trimestre, les dépôts ont augmenté de 1,1 million de dollars malgré une baisse de 30,1 millions de dollars des dépôts intermédiaires, et les actifs non performants ont augmenté à 17,1 millions de dollars. L'entreprise a maintenu une réserve saine pour les pertes de crédit de 1,47 % des prêts totaux et a racheté 223 000 actions à un prix moyen de 12,91 dollars.

Citizens Community Bancorp berichtete im 3. Quartal 2024 von einem Gewinn von 3,3 Millionen US-Dollar (0,32 US-Dollar pro verwässerter Aktie), verglichen mit 3,7 Millionen US-Dollar (0,35 US-Dollar pro Aktie) im 2. Quartal 2024 und 2,5 Millionen US-Dollar (0,24 US-Dollar pro Aktie) im 3. Quartal 2023. Der Buchwert pro Aktie verbesserte sich auf 17,88 US-Dollar, während der tangible Buchwert 14,64 US-Dollar erreichte. Zu den wichtigsten Highlights gehören: Das Nettozinseinkommen sank um 0,3 Millionen US-Dollar im Vergleich zum 2. Quartal, die Einlagen stiegen um 1,1 Millionen US-Dollar trotz eines Rückgangs der vermittelte Einlagen um 30,1 Millionen US-Dollar und die notleidenden Vermögenswerte stiegen auf 17,1 Millionen US-Dollar. Das Unternehmen hielt eine gesunde Rücklage für Kreditverluste von 1,47% der Gesamtdarlehen und kaufte 223.000 Aktien zu einem Durchschnittspreis von 12,91 US-Dollar zurück.

Positive
  • Book value per share increased to $17.88 from $17.10 in previous quarter
  • Tangible book value increased 16.1% year-over-year to $14.64
  • Stockholders' equity as percentage of total assets improved to 10.01%
  • Consumer deposits increased by $22.1 million
  • Commercial deposits grew by $20.0 million
Negative
  • Earnings decreased to $0.32 per share from $0.35 in previous quarter
  • Net interest margin declined to 2.63% from 2.72% in previous quarter
  • Nonperforming assets increased to $17.1 million from $10.3 million
  • Net interest income decreased by $0.3 million from previous quarter
  • Gross loans decreased by $3.9 million

Insights

CZWI's Q3 2024 results show mixed performance with $3.3 million in earnings ($0.32 EPS), down from $3.7 million in Q2 but up from $2.5 million YoY. Key metrics reveal: tangible book value per share increased by 16.1% YoY, while maintaining a healthy 1.47% reserve for credit losses.

Concerning trends include: rising nonperforming assets ($17.1 million vs $10.3 million QoQ), largely due to one forestry services loan and declining net interest margin (2.63% vs 2.72% QoQ). However, deposit growth remains stable with 82% of deposits insured or collateralized, indicating strong liquidity position.

EAU CLAIRE, Wis., Oct. 28, 2024 (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 $3.3 million and earnings per diluted share of $0.32 for the third quarter ended September 30, 2024, compared to $3.7 million and earnings per diluted share of $0.35 for the quarter ended June 30, 2024, and $2.5 million and $0.24 earnings per diluted share for the quarter ended September 30, 2023, respectively.

The Company’s third quarter 2024 operating results reflected the following changes from the second quarter of 2024: (1) no loan forbearance interest income in the third quarter compared to $0.2 million in the second quarter; (2) a $1.1 million decrease in negative provision for credit losses to $0.4 million in the third quarter; and (3) higher non-interest income of $1.0 million due to $0.5 million higher gain on sale of loans and $0.6 million lower net losses on sale of equity securities in the third quarter of 2024.

Book value per share improved to $17.88 at September 30, 2024, compared to $17.10 at June 30, 2024, and $15.80 at September 30, 2023. Tangible book value per share (non-GAAP)1 was $14.64 at September 30, 2024, compared to $13.91 at June 30, 2024, and a 16.1% increase from $12.61 at September 30, 2023. For the third quarter of 2024, tangible book value was positively influenced by net income, net unrealized gains on the available for sale securities portfolio and intangible amortization. Stockholders’ equity as a percentage of total assets was 10.01% at September 30, 2024, compared to 9.77% at June 30, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 was 8.35% at September 30, 2024, compared to 8.09% at June 30, 2024, with the changes above impacted favorably by asset shrinkage.

“We continued to execute on our strategic objectives during the third quarter that further strengthened franchise value. The quarter reflected our balance sheet optimization efforts, which increased tangible common equity levels and allowed for the continued repurchase of shares at prices that were accretive to tangible book value per share and earnings per share. The TCE ratio increased to 8.35%, from 8.09% in the prior quarter, which included the impact of repurchasing 223 thousand shares. Deposits, net of the decrease in brokered deposits, increased $31 million. While credit metrics were impacted by an increase in nonperforming loans, the increase largely reflected one lending relationship. Meanwhile, we continue to maintain a healthy reserve for credit losses to total loans at 1.47%,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.

September 30, 2024, Highlights:

  • Quarterly earnings were $3.3 million, or $0.32 per diluted share for the quarter ended September 30, 2024, a decrease from the quarter ended June 30, 2024, earnings of $3.7 million, or $0.35 per diluted share, and an increase from the quarter ended September 30, 2023, earnings of $2.5 million, or $0.24 per diluted share.

  • Net interest income decreased $0.3 million for the current quarter ended September 30, 2024, from $11.6 million for the quarter ended June 30, 2024, and decreased from $12.1 million for the quarter ended September 30, 2023. The decrease in net interest income from the second quarter of 2024 was primarily due to lower non-recurring interest income of $0.2 million recognized in the second quarter from curing technical defaults on performing loans.

  • The net interest margin was 2.63% for the quarter ended September 30, 2024, compared to 2.72% for the previous quarter, and 2.79% for the quarter ended September 30, 2023. The net interest margin declined nine basis points in the third quarter, of which five basis points were due to no interest income recognition from curing technical defaults.

  • In the third quarter ended September 30, 2024, a negative provision for credit losses of $0.4 million was recorded compared to a negative provision for credit losses of $1.525 million in the quarter ended June 30, 2024, and a negative provision for credit losses of $0.30 million for the quarter ended September 30, 2023. The third quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.1 million and a $0.3 million decrease in off-balance sheet ACL due to a reduction in unfunded loan commitments.

  • Non-interest income increased $1.0 million in the third quarter of 2024, due to $0.5 million of higher gain on sale of loans and $0.6 million of lower net losses on equity securities and was $0.4 million higher compared to the third quarter of 2023, due to higher gain on sale of loans.

  • Non-interest expense increased $122 thousand to $10.4 million from $10.3 million for the previous quarter and increased $452 thousand from $10.0 million one year earlier.

  • Gross loans decreased by $3.9 million during the third quarter ended September 30, 2024, to $1.43 billion, compared to June 30, 2024.

  • Total deposits increased $1.1 million, more than offsetting the $30.1 million decrease in brokered deposits during the quarter ended September 30, 2024, to $1.52 billion, compared to June 30, 2024.

  • Federal Home Loan Bank advances decreased $10.5 million to $21.0 million at September 30, 2024, from $31.5 million at June 30, 2024.

  • The effective tax rate was 21.48% for the quarter ended September 30, 2024, compared to 22.1% for the quarter ended June 30, 2024, and 50.5% for the quarter ended September 30, 2023. The change in tax rate from 2023 is largely due to the Wisconsin state legislation in the third quarter of 2023, eliminating the Company’s state income tax in Wisconsin.

  • Nonperforming assets increased to $17.1 million at September 30, 2024, compared to $10.3 million at June 30, 2024. The increase was largely due to one agricultural real estate loan relationship in forestry services that moved from special mention to substandard and was placed on nonaccrual in the third quarter.

  • Common stock totaling 223 thousand shares were repurchased in the third quarter of 2024 at an average price of $12.91 per share.

  • The efficiency ratio was 72% for the quarters ended September 30, 2024 and June 30, 2024.

Balance Sheet and Asset Quality

Total assets decreased by $3.2 million during the quarter to $1.80 billion at September 30, 2024.

Securities available for sale (“AFS”) increased $3.0 million during the quarter ended September 30, 2024, to $149.4 million from $146.4 million at June 30, 2024. The increase was due to: (1) pre-tax unrealized gains of $4.6 million; and (2) a purchase of $2.9 million of agency MBS to support the Bank’s CRA program partially offset by principal repayments of $4.5 million.

Securities held to maturity (“HTM”) decreased $1.6 million to $87.0 million during the quarter ended September 30, 2024, from $88.6 million at June 30, 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 11.46% of total assets at September 30, 2024, compared to 11.48% at June 30, 2024. On-balance sheet liquidity, collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $718 million, or 269%, of uninsured and uncollateralized deposits at September 30, 2024, and $714 million, or 289%, at June 30, 2024.

Gross loans decreased by $3.9 million during the third quarter ended September 30, 2024, due to loan payoffs exceeding origination activity and construction loan fundings.

The office loan portfolio totaled $31.0 million at quarter end and consists of 71 loans. There was one criticized loan in this portfolio during the quarter ended September 30, 2024, totaling $0.2 million and there have been no charge-offs in the trailing twelve months.

The allowance for credit losses on loans decreased by $0.2 million to $21.0 million at September 30, 2024, representing 1.47% of total loans receivable compared to 1.48% of total loans receivable at June 30, 2024. For the quarter ended September 30, 2024, the Bank recorded negative provision of $0.4 million which included a negative provision on ACL for loans of $0.1 million and a negative provision of $0.3 million on ACL for unfunded commitments.

Allowance for Credit Losses (“ACL”) - Loans Percentage

(in thousands, except ratios)

 September 30, 2024 June 30, 2024 December 31, 2023 September 30, 2023
Loans, end of period$1,424,828  $1,428,588  $1,460,792  $1,447,529 
Allowance for credit losses - Loans$21,000  $21,178  $22,908  $22,973 
ACL - Loans as a percentage of loans, end of period 1.47%  1.48%  1.57%  1.59%


In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.460 million at September 30, 2024, $0.712 million at June 30, 2024, and $1.571 million at September 30, 2023, classified in other liabilities on the consolidated balance sheets.

Allowance for Credit Losses - Unfunded Commitments:
(in thousands)

 September 30, 2024
and Three Months
Ended		 September 30, 2023
and Three Months
Ended		 September 30, 2024
and Nine Months
Ended		 September 30, 2023
and Nine Months
Ended
ACL - Unfunded commitments - beginning of period$712  $1,544 $1,250  $—
Cumulative effect of ASU 2016-13 adoption —   —  —   1,537
(Reductions) additions to ACL - Unfunded commitments via provision for credit losses charged to operations (252)  27  (790)  34
ACL - Unfunded commitments - end of period$460  $1,571 $460  $1,571


Special mention loans increased by $2.2 million to $11.0 million at September 30, 2024, compared to $8.8 million at June 30, 2024. The increase is largely due to one loan of $8.7 million, which is secured by a multi-family unit. The addition of the multi-family unit to special mention was partially offset by the movement of a $7.7 million agricultural real estate loan relationship in forestry services that moved to substandard and was placed on nonaccrual.

Substandard loans increased by $6.8 million to $21.2 million at September 30, 2024, compared to $14.4 million at June 30, 2024, due to the addition of the forestry services loan relationship noted above.

Nonperforming assets increased to $17.1 million at September 30, 2024, compared to $10.3 million at June 30, 2024 largely due to the previously mentioned forestry services loan relationship.

 (in thousands)
 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
Special mention loan balances$11,047 $8,848 $13,737 $18,392 $20,043
Substandard loan balances 21,202  14,420  14,733  19,596  16,171
Criticized loans, end of period$32,249 $23,268 $28,470 $37,988 $36,214


Total deposits increased $1.1 million during the quarter ended September 30, 2024, to $1.52 billion. Consumer deposits increased $22.1 million, including an increase in CDs of $17.9 million. Commercial deposits increased by $20.0 million. Brokered deposits decreased $30.1 million as the company decreased brokered MMDAs by $24.6 million and $5.5 million in brokered CDs matured and were not replaced. Public deposits decreased $10.9 million, largely due to expected seasonal outflows.

Deposit Portfolio Composition
(in thousands)

 September 30,
2024		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023
Consumer deposits$844,808 $822,665 $827,290 $814,899 $794,970
Commercial deposits 432,361  412,385  414,088  423,762  429,358
Public deposits 176,844  187,698  202,175  182,172  163,734
Brokered deposits 66,654  96,796  83,936  98,259  85,173
Total deposits$1,520,667 $1,519,544 $1,527,489 $1,519,092 $1,473,235


Deposit Composition
(in thousands)

 September 30,
2024		 June 30,
2024		 March 31,
2024		 December 31,
2023		 September 30,
2023
Non-interest-bearing demand deposits$256,840 $255,703 $248,537 $265,704 $275,790
Interest-bearing demand deposits 346,971  353,477  361,278  343,276  336,962
Savings accounts 169,096  170,946  177,595  176,548  183,702
Money market accounts 366,067  370,164  387,879  374,055  312,689
Certificate accounts 381,693  369,254  352,200  359,509  364,092
Total deposits$1,520,667 $1,519,544  1,527,489 $1,519,092 $1,473,235


At September 30, 2024, the deposit portfolio composition was 56% consumer, 28% commercial, 12% public, and 4% brokered deposits compared to 54% consumer, 27% commercial, 12% public, and 7% brokered deposits at June 30, 2024.

Uninsured and uncollateralized deposits were $267.1 million, or 18% of total deposits, at September 30, 2024, and $246.7 million, or 16% of total deposits, at June 30, 2024. Uninsured deposits alone at September 30, 2024, were $413.6 million, or 27% of total deposits, and $401.6 million, or 26% of total deposits at June 30, 2024.

Federal Home Loan Bank advances decreased $10.5 million to $21.0 million at September 30, 2024, from $31.5 million one quarter earlier.

Common stock totaling 223 thousand shares were repurchased in the third quarter of 2024 at an average price of $12.91 per share. For the nine-month period ended September 30, 2024, 382 thousand shares of common stock were repurchased at an average price of $12.32 per share. There are 333 thousand shares remaining under the July 2024 Board of Director repurchase authorization plan.

Review of Operations

Net interest income decreased $0.3 million for the current quarter ended September 30, 2024, from $11.6 million for the quarter ended June 30, 2024, and decreased from $12.1 million for the quarter ended September 30, 2023. The decrease in net interest income from the second quarter of 2024 was primarily due to lower non-recurring interest income of $0.2 million recognized from curing technical defaults on performing loans during the prior quarter. The net interest margin declined nine basis points in the third quarter, of which five basis points were due to no interest income recognition from curing technical defaults.

Net interest income and net interest margin analysis:
(in thousands, except yields and rates)

 Three months ended
 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
 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$11,285  2.63% $11,576  2.72% $11,905  2.77% $11,747  2.69% $12,121  2.79%
Less accretion for PCD loans (45) (0.01)%  (62) (0.01)%  (75) (0.02)%  (37) (0.01)%  (39) (0.01)%
Less scheduled accretion interest (33) (0.01)%  (32) (0.01)%  (33) (0.01)%  (33) (0.01)%  (77) (0.02)%
Without loan purchase accretion$11,207  2.61% $11,482  2.70% $11,797  2.74% $11,677  2.67% $12,005  2.76%


Non-interest income increased $1.0 million in the third quarter of 2024, due to $0.5 million of higher gain on sale of loans and $0.6 million of lower net losses on equity securities. Non-interest income was $0.4 million higher compared to the third quarter of 2023 due to higher gain on sale of loans.

Non-interest expense increased $122 thousand to $10.4 million in the third quarter of 2024 from $10.3 million for the previous quarter and increased $452 thousand from $10.0 million one year earlier. The increase in the current quarter relative to the second quarter was primarily related to one-time data processing costs, modest REO losses and higher quarterly marketing spending, partially offset by $0.2 million in branch closure costs in the second quarter.

Provision for income taxes decreased to $0.9 million in the third quarter of 2024 from $1.0 million in the second quarter of 2024 largely due to lower pre-tax income. The effective tax rate was 21.48% for the quarter ended September 30, 2024, 22.1% for the quarter ended June 30, 2024, and 50.5% for the quarter ended September 30, 2023. The change in tax rate from 2023 is largely due to the Wisconsin state legislation in the third quarter of 2023, eliminating the Company’s state income tax in Wisconsin.

These financial results are preliminary until Form 10-Q is filed in November 2024.

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 22 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 inability 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, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024 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 shares and per share data)
 
 September 30, 2024
(unaudited)		 June 30, 2024
(unaudited)		 December 31, 2023
(audited)		 September 30, 2023
(unaudited)
Assets       
Cash and cash equivalents$36,632  $36,886  $37,138  $32,532 
Securities available for sale “AFS” 149,432   146,438   155,743   153,414 
Securities held to maturity “HTM” 87,033   88,605   91,229   92,336 
Equity investments 5,096   5,023   3,284   2,433 
Other investments 12,311   13,878   15,725   15,109 
Loans receivable 1,424,828   1,428,588   1,460,792   1,447,529 
Allowance for credit losses (21,000)  (21,178)  (22,908)  (22,973)
Loans receivable, net 1,403,828   1,407,410   1,437,884   1,424,556 
Loans held for sale 697   275   5,773   2,737 
Mortgage servicing rights, net 3,696   3,731   3,865   3,944 
Office properties and equipment, net 17,365   17,774   18,373   19,465 
Accrued interest receivable 6,235   6,289   5,409   5,936 
Intangible assets 1,158   1,336   1,694   1,873 
Goodwill 31,498   31,498   31,498   31,498 
Foreclosed and repossessed assets, net 1,572   1,662   1,795   1,046 
Bank owned life insurance (“BOLI”) 25,901   25,708   25,647   25,467 
Other assets 16,683   15,794   16,334   18,741 
TOTAL ASSETS$1,799,137  $1,802,307  $1,851,391  $1,831,087 
Liabilities and Stockholders’ Equity       
Liabilities:       
Deposits$1,520,667  $1,519,544  $1,519,092  $1,473,235 
Federal Home Loan Bank (“FHLB”) advances 21,000   31,500   79,530   114,530 
Other borrowings 61,548   61,498   67,465   67,407 
Other liabilities 15,773   13,720   11,970   10,513 
Total liabilities 1,618,988   1,626,262   1,678,057   1,665,685 
Stockholders’ equity:       
Common stock— $0.01 par value, authorized 30,000,000; 10,074,136, 10,297,341, 10,440,591, and 10,468,091 shares issued and outstanding, respectively 101   103   104   105 
Additional paid-in capital 115,455   117,838   119,441   119,612 
Retained earnings 78,438   75,501   71,117   67,424 
Accumulated other comprehensive loss (13,845)  (17,397)  (17,328)  (21,739)
Total stockholders’ equity 180,149   176,045   173,334   165,402 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$1,799,137  $1,802,307  $1,851,391  $1,831,087 

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 Nine Months Ended
 September 30, 2024 (unaudited) June 30, 2024 (unaudited) September 30, 2023 (unaudited) September 30, 2024 (unaudited) September 30, 2023 (unaudited)
Interest and dividend income:         
Interest and fees on loans$20,115  $19,921  $19,083  $60,204  $54,169
Interest on investments 2,397   2,542   2,689   7,450   8,053
Total interest and dividend income 22,512   22,463   21,772   67,654   62,222
Interest expense:         
Interest on deposits 10,165   9,338   7,388   28,712   17,898
Interest on FHLB borrowed funds 128   576   1,210   1,216   4,595
Interest on other borrowed funds 934   973   1,053   2,960   3,127
Total interest expense 11,227   10,887   9,651   32,888   25,620
Net interest income before provision for credit losses 11,285   11,576   12,121   34,766   36,602
(Negative) provision for credit losses (400)  (1,525)  (325)  (2,725)  175
Net interest income after provision for credit losses 11,685   13,101   12,446   37,491   36,427
Non-interest income:         
Service charges on deposit accounts 513   490   491   1,474   1,464
Interchange income 577   579   601   1,697   1,743
Loan servicing income 643   526   611   1,751   1,679
Gain on sale of loans 752   226   299   1,998   1,501
Loan fees and service charges 165   309   140   704   308
Net realized gains on debt securities —   —   —   —   12
Net (losses) gains on equity securities (78)  (658)  116   (569)  170
Bank Owned Life Insurance (BOLI) death benefit —   184   —   184   —
Other 349   257   307   859   893
Total non-interest income 2,921   1,913   2,565   8,098   7,770
Non-interest expense:         
Compensation and related benefits 5,743   5,675   5,293   16,901   15,967
Occupancy 1,242   1,333   1,335   3,942   4,117
Data processing 1,665   1,525   1,536   4,787   4,440
Amortization of intangible assets 178   179   179   536   576
Mortgage servicing rights expense, net 163   116   150   427   456
Advertising, marketing and public relations 225   186   185   575   472
FDIC premium assessment 201   200   204   606   608
Professional services 336   347   342   1,249   1,153
Losses (gains) on repossessed assets, net 65   (18)  100   47   62
Other 603   756   645   2,427   2,085
Total non-interest expense 10,421   10,299   9,969   31,497   29,936
Income before provision for income taxes 4,185   4,715   5,042   14,092   14,261
Provision for income taxes 899   1,040   2,544   3,043   4,895
Net income attributable to common stockholders$3,286  $3,675  $2,498  $11,049  $9,366
Per share information:         
Basic earnings$0.32  $0.35  $0.24  $1.07  $0.89
Diluted earnings$0.32  $0.35  $0.24  $1.07  $0.89
Cash dividends paid$—  $—  $—  $0.32  $0.29
Book value per share at end of period$17.88  $17.10  $15.80  $17.88  $15.80
Tangible book value per share at end of period (non-GAAP)$14.64  $13.91  $12.61  $14.64  $12.61


Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

(in thousands, except per share data)

 Three Months Ended Nine Months Ended
 September 30,
2024		 June 30,
2024		 September 30,
2023		 September 30,
2024		 September 30,
2023
          
GAAP pretax income$4,185 $4,715 $5,042 $14,092 $14,261
Branch closure costs (1) —  168  —  168  —
Pretax income as adjusted (2)$4,185 $4,883 $5,042 $14,260 $14,261
Provision for income tax on net income as adjusted (3) 899  1,077  2,544  3,079  4,895
Net income as adjusted (non-GAAP) (2)$3,286 $3,806 $2,498 $11,181 $9,366
GAAP diluted earnings per share, net of tax$0.32 $0.35 $0.24 $1.07 $0.89
Branch closure costs, net of tax —  0.01  —  0.01  —
Diluted earnings per share, as adjusted, net of tax (non-GAAP)$0.32 $0.36 $0.24 $1.08 $0.89
          
Average diluted shares outstanding 10,204,195  10,373,089  10,470,098  10,339,802  10,474,685

(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)

 September 30, 2024 June 30, 2024 December 31, 2023 September 30, 2023
Total Loans:       
Commercial/Agricultural real estate:       
Commercial real estate$730,459  $729,236  $750,531  $750,282 
Agricultural real estate 76,043   78,248   83,350   84,558 
Multi-family real estate 239,191   234,758   228,095   219,193 
Construction and land development 87,875   87,898   110,941   109,799 
C&I/Agricultural operating:       
Commercial and industrial 119,619   127,386   121,666   121,033 
Agricultural operating 27,550   27,409   25,691   24,552 
Residential mortgage:       
Residential mortgage 134,944   133,503   129,021   125,939 
Purchased HELOC loans 2,932   2,915   2,880   2,881 
Consumer installment:       
Originated indirect paper 4,405   5,110   6,535   7,175 
Other consumer 5,438   5,860   6,187   6,440 
Gross loans$1,428,456  $1,432,323  $1,464,897  $1,451,852 
Unearned net deferred fees and costs and loans in process (2,703)  (2,733)  (2,900)  (3,048)
Unamortized discount on acquired loans (925)  (1,002)  (1,205)  (1,275)
Total loans receivable$1,424,828  $1,428,588  $1,460,792  $1,447,529 


Nonperforming Assets
Loan Balances at Amortized Cost

(in thousands, except ratios)

 September 30, 2024 June 30, 2024 December 31, 2023 September 30, 2023
Nonperforming assets:       
Nonaccrual loans       
Commercial real estate$4,778  $5,350  $10,359  $10,570 
Agricultural real estate 6,193   382   391   469 
Construction and land development 106   —   54   94 
Commercial and industrial (“C&I”) 1,956   422   —   — 
Agricultural operating 901   1,017   1,180   1,373 
Residential mortgage 1,088   1,145   1,167   923 
Consumer installment 20   36   33   27 
Total nonaccrual loans$15,042  $8,352  $13,184  $13,456 
Accruing loans past due 90 days or more 530   256   389   971 
Total nonperforming loans (“NPLs”) at amortized cost 15,572   8,608   13,573   14,427 
Foreclosed and repossessed assets, net 1,572   1,662   1,795   1,046 
Total nonperforming assets (“NPAs”)$17,144  $10,270  $15,368  $15,473 
Loans, end of period$1,424,828  $1,428,588  $1,460,792  $1,447,529 
Total assets, end of period$1,799,137  $1,802,307  $1,851,391  $1,831,087 
Ratios:       
NPLs to total loans 1.09%  0.60%  0.93%  1.00%
NPAs to total assets 0.95%  0.57%  0.83%  0.85%


Average Balances, Interest Yields and Rates

(in thousands, except yields and rates)

 Three Months Ended
September 30, 2024		 Three Months Ended
June 30, 2024		 Three Months Ended
September 30, 2023
 Average
Balance		 Interest
Income/
Expense		 Average
Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Average
Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Average
Yield/
Rate
Average interest earning assets:                 
Cash and cash equivalents$25,187 $360 5.69% $18,894 $272 5.79% $21,298 $302 5.63%
Loans receivable 1,429,928  20,115 5.60%  1,439,535  19,921 5.57%  1,435,284  19,083 5.27%
Investment securities 236,960  1,966 3.30%  238,147  2,012 3.40%  252,226  2,119 3.33%
Other investments 12,553  71 2.25%  13,051  258 7.95%  15,511  268 6.85%
Total interest earning assets$1,704,628 $22,512 5.25% $1,709,627 $22,463 5.28% $1,724,319 $21,772 5.01%
Average interest-bearing liabilities:                 
Savings accounts$170,777 $450 1.05%  174,259 $429 0.99% $199,279 $328 0.65%
Demand deposits 357,201  2,152 2.40%  354,850 $2,023 2.29%  354,073  1,863 2.09%
Money market accounts 381,369  3,126 3.26%  377,346 $2,958 3.15%  298,098  1,889 2.51%
CD’s 379,722  4,437 4.65%  352,323 $3,928 4.48%  358,238  3,308 3.66%
Total deposits$1,289,069 $10,165 3.14% $1,258,778 $9,338 2.98% $1,209,688 $7,388 2.42%
FHLB advances and other borrowings 80,338  1,062 5.26%  121,967 $1,549 5.11%  182,967  2,263 4.91%
Total interest-bearing liabilities$1,369,407 $11,227 3.26% $1,380,745 $10,887 3.17% $1,392,655 $9,651 2.75%
Net interest income  $11,285     $11,576     $12,121  
Interest rate spread    1.99%     2.11%     2.26%
Net interest margin    2.63%     2.72%     2.79%
Average interest earning assets to average interest-bearing liabilities    1.24      1.24      1.24 


 Nine Months Ended
September 30, 2024		 Nine Months Ended
September 30, 2023
 Average
Balance		 Interest
Income/
Expense		 Average
Yield/
Rate		 Average
Balance		 Interest
Income/
Expense		 Average
Yield/
Rate
Average interest earning assets:           
Cash and cash equivalents$19,073 $823 5.76% $19,066 $768 5.39%
Loans receivable 1,441,972  60,204 5.58%  1,420,423  54,169 5.10%
Interest bearing deposits —  — —%  84  1 1.59%
Investment securities 240,054  6,038 3.36%  261,507  6,505 3.33%
Other investments 12,983  589 6.06%  16,447  779 6.33%
Total interest earning assets$1,714,082 $67,654 5.27% $1,717,527 $62,222 4.84%
Average interest-bearing liabilities:           
Savings accounts$173,946 $1,300 1.00% $208,446 $1,103 0.71%
Demand deposits 355,356  6,192 2.33%  370,235  5,047 1.82%
Money market accounts 378,740  9,005 3.18%  298,957  4,759 2.13%
CD’s 364,131  12,215 4.48%  300,279  6,989 3.11%
Total deposits$1,272,173 $28,712 3.01% $1,177,917 $17,898 2.03%
FHLB advances and other borrowings 108,897  4,176 5.12%  214,034  7,722 4.82%
Total interest-bearing liabilities$1,381,070 $32,888 3.18% $1,391,951 $25,620 2.46%
Net interest income  $34,766     $36,602  
Interest rate spread    2.09%     2.38%
Net interest margin    2.71%     2.85%
Average interest earning assets to average interest bearing liabilities    1.24      1.23 


Key Financial Metric Ratios:

 Three Months Ended Nine Months Ended
 September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Ratios based on net income:         
Return on average assets (annualized)0.72% 0.81% 0.54% 0.81% 0.68%
Return on average equity (annualized)7.34% 8.52% 5.97% 8.46% 7.59%
Return on average tangible common equity4 (annualized)9.38% 10.92% 7.74% 10.78% 9.91%
Efficiency ratio72% 72% 67% 71% 66%
Net interest margin with loan purchase accretion2.63% 2.72% 2.79% 2.71% 2.85%
Net interest margin without loan purchase accretion2.61% 2.70% 2.76% 2.69% 2.82%
Ratios based on net income as adjusted (non-GAAP)         
Return on average assets as adjusted2 (annualized)0.72% 0.84% 0.54% 0.82% 0.68%
Return on average equity as adjusted3 (annualized)7.34% 8.82% 5.97% 8.56% 7.59%


Reconciliation of Return on Average Assets

(in thousands, except ratios)

 Three Months Ended Nine Months Ended
 September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
    
GAAP earnings after income taxes$3,286  $3,675  $2,498  $11,049  $9,366 
Net income as adjusted after income taxes (non-GAAP) (1)$3,286  $3,806  $2,498  $11,181  $9,366 
Average assets$1,810,826  $1,815,693  $1,836,775  $1,822,106  $1,832,832 
Return on average assets (annualized) 0.72%  0.81%  0.54%  0.81%  0.68%
Return on average assets as adjusted (non-GAAP) (annualized) 0.72%  0.84%  0.54%  0.82%  0.68%

(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 Nine Months Ended
 September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
GAAP earnings after income taxes$3,286  $3,675  $2,498  $11,049  $9,366 
Net income as adjusted after income taxes (non-GAAP) (1)$3,286  $3,806  $2,498  $11,181  $9,366 
Average equity$178,050  $173,462  $166,131  $174,436  $165,075 
Return on average equity (annualized) 7.34%  8.52%  5.97%  8.46%  7.59%
Return on average equity as adjusted (non-GAAP) (annualized) 7.34%  8.82%  5.97%  8.56%  7.59%

(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)


Reconciliation of Efficiency Ratio

(in thousands, except ratios)

 Three Months Ended Nine Months Ended
 September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Non-interest expense (GAAP)$10,421  $10,299  $9,969  $31,497  $29,936 
Less amortization of intangibles (178)  (179)  (179)  (536)  (576)
Efficiency ratio numerator (GAAP)$10,243  $10,120  $9,790  $30,961  $29,360 
          
Non-interest income$2,921  $1,913  $2,565  $8,098  $7,770 
Add back net losses on debt and equity securities (78)  (658)  —   (569)  — 
Subtract net gains on debt and equity securities —   —   116   —   182 
Net interest income 11,285   11,576   12,121   34,766   36,602 
Efficiency ratio denominator (GAAP)$14,284  $14,147  $14,570  $43,433  $44,190 
Efficiency ratio (GAAP) 72%  72%  67%  71%  66%


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, 2024 June 30, 2024 December 31, 2023 September 30, 2023
Total stockholders’ equity$180,149  $176,045  $173,334  $165,402 
Less: Goodwill (31,498)  (31,498)  (31,498)  (31,498)
Less: Intangible assets (1,158)  (1,336)  (1,694)  (1,873)
Tangible common equity (non-GAAP)$147,493  $143,211  $140,142  $132,031 
Ending common shares outstanding 10,074,136   10,297,341   10,440,591   10,468,091 
Book value per share$17.88  $17.10  $16.60  $15.80 
Tangible book value per share (non-GAAP)$14.64  $13.91  $13.42  $12.61 


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 September 30, 2024 June 30, 2024 December 31, 2023 September 30, 2023
Total stockholders’ equity$180,149  $176,045  $173,334  $165,402 
Less: Goodwill (31,498) $(31,498)  (31,498) $(31,498)
Less: Intangible assets (1,158) $(1,336)  (1,694) $(1,873)
Tangible common equity (non-GAAP)$147,493  $143,211  $140,142  $132,031 
Total Assets$1,799,137  $1,802,307  $1,851,391  $1,831,087 
Less: Goodwill (31,498)  (31,498)  (31,498) $(31,498)
Less: Intangible assets (1,158)  (1,336)  (1,694) $(1,873)
Tangible Assets (non-GAAP)$1,766,481  $1,769,473  $1,818,199  $1,797,716 
Total stockholders’ equity to total assets ratio 10.01%  9.77%  9.36%  9.03%
Tangible common equity as a percent of tangible assets (non-GAAP) 8.35%  8.09%  7.71%  7.34%


Reconciliation of Return on Average Tangible Common Equity (non-GAAP)

(in thousands, except ratios)

 Three Months Ended Nine Months Ended
 September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Total stockholders’ equity$180,149  $176,045  $165,402  $180,149  $165,402 
Less: Goodwill (31,498)  (31,498)  (31,498)  (31,498)  (31,498)
Less: Intangible assets (1,158)  (1,336)  (1,873)  (1,158)  (1,873)
Tangible common equity (non-GAAP)$147,493  $143,211  $132,031  $147,493  $132,031 
Average tangible common equity (non-GAAP)$145,305  $140,539  $132,671  $141,512  $131,425 
GAAP earnings after income taxes 3,286   3,675   2,498   11,049   9,366 
Amortization of intangible assets, net of tax 140   140   89   374   378 
Tangible net income$3,426  $3,815  $2,587  $11,423  $9,744 
Return on average tangible common equity (annualized) 9.38%  10.92%  7.74%  10.78%  9.91%


1Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to better 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 better 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 better 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 better 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)”.


FAQ

What was Citizens Community Bancorp's (CZWI) earnings per share in Q3 2024?

Citizens Community Bancorp reported earnings of $0.32 per diluted share in Q3 2024.

How did CZWI's nonperforming assets change in Q3 2024?

Nonperforming assets increased to $17.1 million at September 30, 2024, from $10.3 million at June 30, 2024, largely due to one agricultural real estate loan relationship in forestry services.

What was CZWI's book value per share as of September 30, 2024?

The book value per share was $17.88 as of September 30, 2024, compared to $17.10 at June 30, 2024.

How many shares did CZWI repurchase in Q3 2024?

The company repurchased 223,000 shares at an average price of $12.91 per share in Q3 2024.

Stock CZWI logo
Citizens Community Bancorp, Inc.

NASDAQ:CZWI

CZWI Rankings

#4064 Ranked by Market Cap
#1348 Ranked by Dividends

CZWI Latest News

Jul 29, 2024
Citizens Community Bancorp, Inc. Reports Second Quarter 2024 Earnings of $0.35 Per Share; Board of Directors Approves Additional 5% Stock Buyback Authorization; Criticized Assets Decreased 18%
Apr 29, 2024
Citizens Community Bancorp, Inc. Reports First Quarter 2024 Earnings of $0.39 Per Share; Nonperforming Assets Decreased 31%; Criticized Assets Decreased 25%
Jan 29, 2024
Citizens Community Bancorp, Inc. Reports 4Q2023 Earnings of $0.35 Per Share;
Oct 24, 2023
Citizens Community Bancorp, Inc. Reports 3Q2023 Earnings of $0.24 Per Share Reflecting Tax Changes; Lower Future Effective Tax Rate Expected; Non-Performing Assets Decline: Net Interest Margin Expands
Jul 24, 2023
Citizens Community Bancorp, Inc. Reports Earnings of $0.31 Per Share in 2Q23; Tangible Book Value Increases, Specific Reserve Declines

CZWI Stock Data

150.29M
10.03M
4.91%
55.66%
0.37%
Banks - Regional
Savings Institution, Federally Chartered
Link
United States of America
EAU CLAIRE