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Citizens Community Bancorp, Inc. Reports First Quarter 2025 Earnings of $0.32 Per Share; Book Value Per Share Up 8% and Tangible Book Value Per Share Up 10% Since March 31, 2024, After Annual Dividend Payment of $0.36 Per Share

1. CZWI reported Q1 2025 earnings of $3.2 million. 2. Net interest income decreased to $11.6 million, margin increased to 2.85%. 3. Deposits grew by $35.5 million this quarter, total reaching $1.524 billion. 4. Nonperforming assets slightly rose to $14.5 million, indicating potential credit risk. 5. Book value per share improved to $18.02 from $17.94 in previous quarter.

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FAQ

Why Bullish?

Despite lower net income compared to last year, the improvement in book value and net interest margin signals financial stability and potential for growth. Historically, sustained growth in deposits and improvements in core margins often buoy stock values, as seen in 2020 and 2021 for similar banking stocks during their robust recovery phases.

How important is it?

The earnings report reveals critical financial metrics that impact investor perception and market positioning, especially in light of the competition. With recent improvements in profitability metrics and solid asset quality, the report plays a pivotal role in shaping market discourse around CZWI's sustainability and growth prospects.

Why Long Term?

The positive trends in deposit growth and net interest margin expansion could take time to fully reflect in stock price adjustments. Long-term trends indicate banks that enhance their earnings stability relate to increased market confidence and higher valuations over subsequent quarters.

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EAU CLAIRE, Wis., April 28, 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 $3.2 million and earnings per diluted share of $0.32 for the first quarter ended March 31, 2025, compared to $2.7 million and earnings per diluted share of $0.27 for the fourth quarter ended December 31, 2024, and $4.1 million and $0.39 earnings per diluted share for the quarter ended March 31, 2024, respectively. The Company’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) decrease in net interest income of $0.1 million as two fewer days in the quarter were largely offset by an increase in the net interest margin of 6 basis points; (2) a smaller negative provision for credit losses of $0.3 million compared to $0.5 million in the fourth quarter; (3) higher non-interest income of $0.6 million primarily due to $0.5 million higher gain on sale of loans and $0.3 million higher net gains on sale of equity securities in the first quarter of 2025; and (4) lower non-interest expense primarily due to lower compensation and related benefits of $0.2 million and lower losses on repossessed assets of $0.2 million. Book value per share improved to $18.02 at March 31, 2025, compared to $17.94 at December 31, 2024, and $16.61 at March 31, 2024. Tangible book value per share (non-GAAP)1 was $14.79 at March 31, 2025, compared to $14.69 at December 31, 2024, and a 10.1% increase from $13.43 at March 31, 2024. For the first quarter of 2025, tangible book value was positively impacted by (1) net income, (2) the impact of lower long-term interest rates which decreased the net unrealized loss on the available for sale securities portfolio, and (3) amortization of intangibles which were largely offset by the payment of the annual $0.36 per share dividend. Stockholders’ equity as a percentage of total assets was 10.12% at March 31, 2025, compared to 10.24% at December 31, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 decreased modestly to 8.45% at March 31, 2025, compared to 8.54% at December 31, 2024, largely due to the payment of the dividend. “I am pleased with results in a quarter that is seasonally the slowest for us because of winter. The balance sheet is well positioned for the remainder of 2025 with strong capital and liquidity positions, strong ACL reserves and credit metrics in our historical range. Our TCE at 8.5% provides a cushion for uncertainty like we have seen thus far in 2025 and for share repurchases. Our liquidity position, including the loan to deposit ratio below 90% is expected to support quality, well priced loan growth in the low to mid-single digit percentages with strategic, relationship borrowers. Our markets remain stable with unemployment below national averages and tariff exposure appears to be indirect should this risk persist. We believe loan repricing and originations will benefit our net-interest margin expansion, especially in the second half of 2025, and throughout 2026, as well as will the impact of deposit repricing,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer. March 31, 2025, Highlights: Quarterly earnings were $3.2 million, or $0.32 per diluted share for the quarter ended March 31, 2025, an increase compared to earnings of $2.7 million, or $0.27 per diluted share for the quarter ended December 31, 2024, and a decrease from $4.1 million, or $0.39 per diluted share for the quarter ended March 31, 2024.Net interest income decreased $0.1 million to $11.6 million for the current quarter ended March 31, 2025, from $11.7 million for the quarter ended December 31, 2024, and from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income from the fourth quarter of 2024 was primarily due to two fewer days in the quarter which was mostly offset by an increase in net interest margin of six basis points.The net interest margin increased to 2.85%, primarily due to lower deposit costs. The net interest margin increase in the first quarter of 2025 was negatively impacted by three basis points from lower deferred fee accretion compared to the fourth quarter of 2024 due to lower payoffs in the first quarter of 2025. Negative provision for credit losses of $0.25 million, $0.45 million, and $0.80 million were recorded during the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The first quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.35 million partially offset by a $0.10 million increase in off-balance sheet ACL due to an increase in unfunded loan commitments. Non-interest income increased by $0.6 million in the first quarter of 2025 to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans, $0.3 million of higher net gains on equity securities partially offset by lower loan fees and service charges of $0.2 million due to lower customer activity. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities.Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the fourth quarter of 2024 and the first quarter of 2024. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets, partially offset by higher other expense. The $0.3 million decrease from the first quarter of 2024 was due to a $0.4 million decrease in other expenses resulting from lower SBA recourse reserve expense.Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower activity.Total deposits increased $35.5 million during the quarter ended March 31, 2025, to $1.524 billion. Total deposit growth reflected the seasonal growth in municipal deposits of $20.8 million, which typically decreases in the middle two quarters before increasing in the fourth quarter. Growth in retail and commercial areas was partially offset by the reduction of $6.3 million in wholesale deposits due to reduction in brokered deposits.The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier. The effective tax rate was 19.6% for the quarter ended March 31, 2025, compared to 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024.Nonperforming assets increased $0.3 million during the quarter to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024. Special mention loans increased $6.5 million to $15.0 million at March 31, 2025, from $8.5 million in the previous quarter. The increase was largely due to one C&I relationship that showed weaker cash flow than expected.The efficiency ratio was 73% for the quarter ended March 31, 2025, compared to 76% for the quarter ended December 31, 2024. Balance Sheet and Asset Quality Total assets increased by $31.4 million during the quarter to $1.780 billion at March 31, 2025. Cash increased $50.0 million due to the growth in deposits and loan shrinkage growing our balances at the Federal Reserve. Securities available for sale (“AFS”) decreased $3.2 million during the quarter ended March 31, 2025, to $139.6 million from $142.9 million at December 31, 2024. The decrease was due to principal repayments of $2.6 million, and a corporate debt security maturity of $2.5 million, partially offset by lower pre-tax unrealized losses of $1.9 million. Securities held to maturity (“HTM”) decreased $1.2 million to $84.3 million during the quarter ended March 31, 2025, from $85.5 million at December 31, 2024, due to principal repayments. The on-balance sheet liquidity ratio, which is defined as the fair market value of AFS and HTM securities that are not pledged and cash on deposit with other financial institutions, was 14.38% of total assets at March 31, 2025, compared to 11.75% at December 31, 2024. On-balance sheet liquidity collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $852 million, or 314%, of uninsured and uncollateralized deposits at March 31, 2025, and $725 million, or 273%, at December 31, 2024. Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower origination and funding activity. The office loan portfolio consisting of seventy-two loans totaled $28 million at March 31, 2025, compared to seventy-one loans totaling $28 million at December 31, 2024. Criticized loans in the office loan portfolio for the quarter ended March 31, 2025, totaled $0.5 million, the same amount at December 31, 2024, and there have been no charge-offs in the trailing twelve months. The allowance for credit losses on loans decreased by $0.34 million to $20.2 million at March 31, 2025, representing 1.49% of total loans receivable compared to 1.50% of total loans receivable at December 31, 2024. For the quarter ended March 31, 2025, the Bank recorded a negative provision of $0.25 million which included a negative provision on ACL for loans of $0.35 million, partially offset by a provision of $0.10 million on ACL for unfunded commitments due to an increase in unfunded commitments. 30-89 day loan delinquencies decreased to 0.15% of total loans at March 31, 2025, compared to a 0.33% delinquency ratio at December 31, 2024. The Bank had $0.007 million of net recoveries in the first quarter. Allowance for Credit Losses (“ACL”) - Loans Percentage (in thousands, except ratios)  March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Loans, end of period$1,352,728  $1,368,981  $1,424,828  $1,428,588 Allowance for credit losses - Loans$20,205  $20,549  $21,000  $21,178 ACL - Loans as a percentage of loans, end of period 1.49%  1.50%  1.47%  1.48% In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.435 million at March 31, 2025, $0.334 million at December 31, 2024, and $0.975 million at March 31, 2024, classified in other liabilities on the consolidated balance sheets. Allowance for Credit Losses - Unfunded Commitments: (in thousands)   March 31, 2025 and Three Months Ended December 31, 2024 and Three Months Ended March 31, 2024 and Three Months EndedACL - Unfunded commitments - beginning of period $334 $460  $1,250 (Reductions) additions to ACL - Unfunded commitments via provision for credit losses charged to operations  101  (126)  (275)ACL - Unfunded commitments - end of period $435 $334  $975              Special mention loans increased by $6.5 million to $15.0 million at March 31, 2025, compared to $8.5 million at December 31, 2024. The increase was largely due to one C&I relationship as noted earlier. Substandard loans increased by $0.7 million to $19.6 million at March 31, 2025, compared to $18.9 million at December 31, 2024. Nonperforming assets increased modestly by $0.3 million to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024.  (in thousands) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Special mention loan balances$14,990 $8,480 $11,047 $8,848 $13,737Substandard loan balances 19,591  18,891  21,202  14,420  14,733Criticized loans, end of period$34,581 $27,371 $32,249 $23,268 $28,470                Deposit Portfolio Composition(in thousands)  March 31,2025 December 31,2024 September 30,2024 June 30,2024 March 31,2024Consumer deposits$861,746 $852,083 $844,808 $822,665 $827,290Commercial deposits 423,654  412,355  406,095  395,148  400,910Public deposits 211,261  190,460  176,844  187,698  202,175Wholesale deposits 26,993  33,250  92,920  114,033  97,114Total deposits$1,523,654 $1,488,148 $1,520,667 $1,519,544 $1,527,489                At March 31, 2025, the deposit portfolio composition was 56% consumer, 28% commercial, 14% public, and 2% wholesale deposits compared to 57% consumer, 28% commercial, 13% public, and 2% wholesale deposits at December 31, 2024. Deposit Composition By Type(in thousands)  March 31,2025 December 31,2024 September 30,2024 June 30,2024 March 31,2024Non-interest-bearing demand deposits$253,343 $252,656 $256,840 $255,703 $248,537Interest-bearing demand deposits 386,302  355,750  346,971  353,477  361,278Savings accounts 167,614  159,821  169,096  170,946  177,595Money market accounts 370,741  369,534  366,067  370,164  387,879Certificate accounts 345,654  350,387  381,693  369,254  352,200Total deposits$1,523,654 $1,488,148 $1,520,667 $1,519,544  1,527,489                Uninsured and uncollateralized deposits were $271.7 million, or 18% of total deposits, at March 31, 2025, and $265.4 million, or 18% of total deposits, at December 31, 2024. Uninsured deposits alone at March 31, 2025, were $444.4 million, or 29% of total deposits, and $428.0 million, or 29% of total deposits at December 31, 2024. The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier. No common stock was repurchased in the first quarter of 2025. There are 238 thousand shares remaining available to repurchase under the July 2024 Board of Director repurchase authorization. Review of Operations Net interest income decreased $0.1 million for the quarter ended March 31, 2025, to $11.6 million from $11.7 million for the quarter ended December 31, 2024, and decreased $0.3 million from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income compared to the fourth quarter of 2024 was primarily due to two fewer days of interest income or approximately $0.2 million, the impact of smaller average assets of $0.2 million, offset by an increase in net interest margin of six basis points or $0.3 million. The net interest margin increase was negatively impacted by 3 basis points due to lower deferred fee accretion compared to the fourth quarter resulting from lower loan payoffs. Net interest income and net interest margin analysis:(in thousands, except yields and rates)  Three months ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Net Interest Income Net Interest Margin Net Interest Income Net Interest Margin Net Interest Income Net Interest Margin Net Interest Income Net Interest Margin Net Interest Income Net Interest MarginAs reported$11,594  2.85% $11,708  2.79% $11,285  2.63% $11,576  2.72% $11,905  2.77%Less accretion for PCD loans (36) (0.01)%  (42) (0.01)%  (45) (0.01)%  (62) (0.01)%  (75) (0.02)%Less scheduled accretion interest (33) (0.01)%  (33) (0.01)%  (33) (0.01)%  (32) (0.01)%  (33) (0.01)%Without loan purchase accretion$11,525  2.83% $11,633  2.77% $11,207  2.61% $11,482  2.70% $11,797  2.74% The table below shows the impact of certificate, loan and securities contractual fixed rate maturing and repricing. Portfolio Contractual Repricing:(in millions, except yields)  Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 FY 2027Maturing Certificate Accounts:               Contractual Balance$174  $101  $28  $23  $8  $—  $—  $8 Contractual Interest Rate 4.59%  3.98%  3.72%  3.66%  3.47%  —%  —%  4.01%Maturing or Repricing Loans:               Contractual Balance$52  $18  $55  $45  $51  $120  $98  $243 Contractual Interest Rate 6.62%  6.14%  4.64%  4.53%  4.18%  3.61%  3.72%  4.66%Maturing or Repricing Securities:               Contractual Balance$5  $3  $4  $2  $7  $7  $3  $6 Contractual Interest Rate 5.64%  4.07%  4.31%  3.72%  3.57%  3.44%  3.27%  4.47%                                 Non-interest income increased by $0.6 million in the first quarter of 2025, to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans and $0.3 million of higher net gains on equity securities. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities. Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the previous quarter and the quarter one year earlier. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets. The $0.3 million decrease from the first quarter of 2024 was largely due to a $0.4 million decrease in other expense due to lower SBA recourse reserve expense. Provision for income taxes increased to $0.8 million in the first quarter of 2025, from $0.7 million in the fourth quarter of 2024, largely due to higher pre-tax income. The effective tax rate was 19.6% for the quarter ended March 31, 2025, 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024. These financial results are preliminary until the Form 10-Q is filed in May 2025. About the Company Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of the Bank, a national bank based in Altoona, Wisconsin, currently serving customers primarily in Wisconsin and Minnesota through 21 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, ag operators and consumers, including residential mortgage loans. Cautionary Statement Regarding Forward-Looking Statements Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “on pace,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our ability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 13, 2025 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release. 1 Non-GAAP Financial Measures This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity, which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods. Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. Tangible book value, tangible book value per share, tangible common equity as a percentage of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions. Contact: Steve Bianchi, CEO(715)-836-9994 (CZWI-ER) CITIZENS COMMUNITY BANCORP, INC.Consolidated Balance Sheets(in thousands, except share data)  March 31, 2025 (unaudited) December 31, 2024 (audited) September 30, 2024 (unaudited) March 31, 2024 (unaudited)Assets       Cash and cash equivalents$100,199  $50,172  $36,632  $28,638 Securities available for sale “AFS” 139,642   142,851   149,432   151,672 Securities held to maturity “HTM” 84,301   85,504   87,033   89,942 Equity investments 5,462   4,702   5,096   3,281 Other investments 12,496   12,500   12,311   13,022 Loans receivable 1,352,728   1,368,981   1,424,828   1,450,159 Allowance for credit losses (20,205)  (20,549)  (21,000)  (22,436)Loans receivable, net 1,332,523   1,348,432   1,403,828   1,427,723 Loans held for sale 3,296   1,329   697   — Mortgage servicing rights, net 3,583   3,663   3,696   3,774 Office properties and equipment, net 16,649   17,075   17,365   18,026 Accrued interest receivable 5,926   5,653   6,235   6,324 Intangible assets 800   979   1,158   1,515 Goodwill 31,498   31,498   31,498   31,498 Foreclosed and repossessed assets, net 876   915   1,572   1,845 Bank owned life insurance (“BOLI”) 26,296   26,102   25,901   25,836 Other assets 16,416   17,144   16,683   16,219 TOTAL ASSETS$1,779,963  $1,748,519  $1,799,137  $1,819,315 Liabilities and Stockholders’ Equity       Liabilities:       Deposits$1,523,654  $1,488,148  $1,520,667  $1,527,489 Federal Home Loan Bank (“FHLB”) advances —   5,000   21,000   39,500 Other borrowings 61,664   61,606   61,548   67,523 Other liabilities 14,594   14,681   15,773   11,982 Total liabilities 1,599,912   1,569,435   1,618,988   1,646,494 Stockholders’ Equity:       Common stock— $0.01 par value, authorized 30,000,000; 9,989,536, 9,981,996, 10,074,136, and 10,406,880 shares issued and outstanding, respectively 100   100   101   104 Additional paid-in capital 114,477   114,564   115,455   118,916 Retained earnings 80,439   80,840   78,438   71,831 Accumulated other comprehensive loss (14,965)  (16,420)  (13,845)  (18,030)Total stockholders’ equity 180,051   179,084   180,149   172,821 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$1,779,963  $1,748,519  $1,799,137  $1,819,315                  Note: Certain items previously reported were reclassified for consistency with the current presentation. CITIZENS COMMUNITY BANCORP, INC.Consolidated Statements of Operations(in thousands, except per share data)  Three Months Ended March 31, 2025 (unaudited) December 31, 2024 (unaudited) March 31, 2024 (unaudited)Interest and dividend income:     Interest and fees on loans$18,602  $19,534  $20,168 Interest on investments 2,501   2,427   2,511 Total interest and dividend income 21,103   21,961   22,679 Interest expense:     Interest on deposits 8,597   9,273   9,209 Interest on FHLB borrowed funds 11   65   512 Interest on other borrowed funds 901   915   1,053 Total interest expense 9,509   10,253   10,774 Net interest income before provision for credit losses 11,594   11,708   11,905 (Negative) provision for credit losses (250)  (450)  (800)Net interest income after provision for credit losses 11,844   12,158   12,705 Non-interest income:     Service charges on deposit accounts 423   450   471 Interchange income 518   550   541 Loan servicing income 559   520   582 Gain on sale of loans 720   218   1,020 Loan fees and service charges 120   292   230 Net realized gains on debt securities —   —   — Net gains (losses) on equity securities 10   (287)  167 Other 243   266   253 Total non-interest income 2,593   2,009   3,264 Non-interest expense:     Compensation and related benefits 5,597   5,840   5,483 Occupancy 1,287   1,217   1,367 Data processing 1,719   1,743   1,597 Amortization of intangible assets 179   179   179 Mortgage servicing rights expense, net 140   107   148 Advertising, marketing and public relations 167   218   164 FDIC premium assessment 198   192   205 Professional services 508   514   566 Losses on repossessed assets, net 4   247   — Other 664   552   1,068 Total non-interest expense 10,463   10,809   10,777 Income before provision for income taxes 3,974   3,358   5,192 Provision for income taxes 777   656   1,104 Net income attributable to common stockholders$3,197  $2,702  $4,088 Per share information:     Basic earnings$0.32  $0.27  $0.39 Diluted earnings$0.32  $0.27  $0.39 Cash dividends paid$0.36  $—  $0.32 Book value per share at end of period$18.02  $17.94  $16.61 Tangible book value per share at end of period (non-GAAP)$14.79  $14.69  $13.43  Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) (in thousands, except per share data)  Three Months Ended March 31,2025 December 31,2024 March 31,2024      GAAP pretax income$3,974 $3,358 $5,192Branch closure costs (1) —  —  —Pretax income as adjusted (2)$3,974 $3,358 $5,192Provision for income tax on net income as adjusted (3) 777  656  1,104Net income as adjusted (non-GAAP) (2)$3,197 $2,702 $4,088GAAP diluted earnings per share, net of tax$0.32 $0.27 $0.39Branch closure costs, net of tax —  —  —Diluted earnings per share, as adjusted, net of tax (non-GAAP)$0.32 $0.27 $0.39      Average diluted shares outstanding 10,000,818  10,033,957  10,443,267 (1) Branch closure costs include severance pay recorded in compensation and benefits and depreciation and right of use lease asset accelerated expense included in other non-interest expense in the consolidated statement of operations.(2) Pretax income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.(3) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented. Loan Composition (in thousands)  March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Total Loans:       Commercial/Agricultural real estate:       Commercial real estate$709,975  $709,018  $730,459  $729,236 Agricultural real estate 71,071   73,130   76,043   78,248 Multi-family real estate 237,872   220,805   239,191   234,758 Construction and land development 58,461   78,489   87,875   87,898 C&I/Agricultural operating:       Commercial and industrial 109,620   115,657   119,619   127,386 Agricultural operating 29,310   31,000   27,550   27,409 Residential mortgage:       Residential mortgage 129,070   132,341   134,944   133,503 Purchased HELOC loans 2,560   2,956   2,932   2,915 Consumer installment:       Originated indirect paper 3,434   3,970   4,405   5,110 Other consumer 4,679   5,012   5,438   5,860 Gross loans$1,356,052  $1,372,378  $1,428,456  $1,432,323 Unearned net deferred fees and costs and loans in process (2,542)  (2,547)  (2,703)  (2,733)Unamortized discount on acquired loans (782)  (850)  (925)  (1,002)Total loans receivable$1,352,728  $1,368,981  $1,424,828  $1,428,588                  Nonperforming AssetsLoan Balances at Amortized Cost (in thousands, except ratios)  March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024Nonperforming assets:       Nonaccrual loans       Commercial real estate$4,948  $4,594  $4,778  $5,350 Agricultural real estate 5,934   6,222   6,193   382 Construction and land development —   103   106   — Commercial and industrial (“C&I”) 701   597   1,956   422 Agricultural operating 725   793   901   1,017 Residential mortgage 782   858   1,088   1,145 Consumer installment 1   1   20   36 Total nonaccrual loans$13,091  $13,168  $15,042  $8,352 Accruing loans past due 90 days or more 568   186   530   256 Total nonperforming loans (“NPLs”) at amortized cost 13,659   13,354   15,572   8,608 Foreclosed and repossessed assets, net 876   915   1,572   1,662 Total nonperforming assets (“NPAs”)$14,535  $14,269  $17,144  $10,270 Loans, end of period$1,352,728  $1,368,981  $1,424,828  $1,428,588 Total assets, end of period$1,779,963  $1,748,519  $1,799,137  $1,802,307 Ratios:       NPLs to total loans 1.01%  0.98%  1.09%  0.60%NPAs to total assets 0.82%  0.82%  0.95%  0.57% Average Balances, Interest Yields and Rates (in thousands, except yields and rates)   Three Months EndedMarch 31, 2025 Three Months EndedDecember 31, 2024 Three Months EndedMarch 31, 2024  AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/RateAverage interest earning assets:                  Cash and cash equivalents $47,835 $524 4.44% $26,197 $327 4.97% $13,071 $191 5.88%Loans receivable  1,363,352  18,602 5.53%  1,396,854  19,534 5.56%  1,456,586  20,168 5.57%Investment securities  228,514  1,808 3.21%  235,268  1,940 3.28%  243,991  2,060 3.40%Other investments  12,498  169 5.48%  12,318  160 5.17%  13,350  260 7.83%Total interest earning assets $1,652,199 $21,103 5.18% $1,670,637 $21,961 5.23% $1,726,998 $22,679 5.28%Average interest-bearing liabilities:                  Savings accounts $167,001 $407 0.99% $162,501 $383 0.94% $176,838 $421 0.96%Demand deposits  382,355  2,033 2.16%  346,411  1,891 2.17%  353,995  2,017 2.29%Money market accounts  365,528  2,535 2.81%  351,566  2,720 3.08%  377,475  2,920 3.11%CD’s  343,751  3,622 4.27%  374,087  4,279 4.55%  360,177  3,851 4.30%Total deposits $1,258,635 $8,597 2.77% $1,234,565 $9,273 2.99% $1,268,485 $9,209 2.92%FHLB advances and other borrowings  64,635  912 5.72%  72,431  980 5.38%  124,701  1,565 5.05%Total interest-bearing liabilities $1,323,270 $9,509 2.91% $1,306,996 $10,253 3.12% $1,393,186 $10,774 3.11%Net interest income   $11,594     $11,708     $11,905  Interest rate spread     2.27%     2.11%     2.17%Net interest margin     2.85%     2.79%     2.77%Average interest earning assets to average interest-bearing liabilities     1.25      1.28      1.24                        Wholesale Deposits(in thousands)  Quarter Ended March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Brokered certificate accounts$5,489 $14,123 $48,578 $54,123 $43,507Brokered money market accounts 5,053  5,002  18,076  42,673  40,429Third party originated reciprocal deposits 16,451  14,125  26,266  17,237  13,178Total$26,993 $33,250 $92,920 $114,033 $97,114                Key Financial Metric Ratios:  Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Ratios based on net income:     Return on average assets (annualized)0.74% 0.61% 0.90%Return on average equity (annualized)7.26% 6.00% 9.57%Return on average tangible common equity4(annualized)9.28% 7.72% 12.26%Efficiency ratio73% 76% 71%Net interest margin with loan purchase accretion2.85% 2.79% 2.77%Net interest margin without loan purchase accretion2.83% 2.77% 2.74%Ratios based on net income as adjusted (non-GAAP)     Return on average assets as adjusted2(annualized)0.74% 0.61% 0.90%Return on average equity as adjusted3(annualized)7.26% 6.00% 9.57%          Reconciliation of Return on Average Assets (in thousands, except ratios)  Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024    GAAP earnings after income taxes$3,197  $2,702  $4,088 Net income as adjusted after income taxes (non-GAAP) (1)$3,197  $2,702  $4,088 Average assets$1,763,191  $1,771,351  $1,834,152 Return on average assets (annualized) 0.74%  0.61%  0.90%Return on average assets as adjusted (non-GAAP) (annualized) 0.74%  0.61%  0.90%             (1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) Reconciliation of Return on Average Equity (in thousands, except ratios)  Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024GAAP earnings after income taxes$3,197  $2,702  $4,088 Net income as adjusted after income taxes (non-GAAP) (1)$3,197  $2,702  $4,088 Average equity$178,470  $179,242  $171,794 Return on average equity (annualized) 7.26%  6.00%  9.57%Return on average equity as adjusted (non-GAAP) (annualized) 7.26%  6.00%  9.57%             (1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) Reconciliation of Return on Average Tangible Common Equity (non-GAAP) (in thousands, except ratios)  Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Total stockholders’ equity$180,051  $179,084  $172,821 Less: Goodwill (31,498)  (31,498)  (31,498)Less: Intangible assets (800)  (979)  (1,515)Tangible common equity (non-GAAP)$147,753  $146,607  $139,808 Average tangible common equity (non-GAAP)$146,083  $146,676  $138,692 GAAP earnings after income taxes 3,197   2,702   4,088 Amortization of intangible assets, net of tax 144   144   141 Tangible net income$3,341  $2,846  $4,229 Return on average tangible common equity (annualized) 9.28%  7.72%  12.26%             Reconciliation of Efficiency Ratio (in thousands, except ratios)  Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Non-interest expense (GAAP)$10,463  $10,809  $10,777 Less amortization of intangibles (179)  (179)  (179)Efficiency ratio numerator (GAAP)$10,284  $10,630  $10,598       Non-interest income$2,593  $2,009  $3,264 Add back net losses on debt and equity securities —   (287)  — Subtract net gains on debt and equity securities 10   —   167 Net interest income 11,594   11,708   11,905 Efficiency ratio denominator (GAAP)$14,177  $14,004  $15,002 Efficiency ratio (GAAP) 73%  76%  71%             Reconciliation of tangible book value per share (non-GAAP) (in thousands, except per share data) Tangible book value per share at end of periodMarch 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Total stockholders’ equity$180,051  $179,084  $180,149  $176,045  $172,821 Less: Goodwill (31,498)  (31,498)  (31,498)  (31,498)  (31,498)Less: Intangible assets (800)  (979)  (1,158)  (1,336)  (1,515)Tangible common equity (non-GAAP)$147,753  $146,607  $147,493  $143,211  $139,808 Ending common shares outstanding 9,989,536   9,981,996   10,074,136   10,297,341   10,406,880 Book value per share$18.02  $17.94  $17.88  $17.10  $16.61 Tangible book value per share (non-GAAP)$14.79  $14.69  $14.64  $13.91  $13.43                      Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP) (in thousands, except ratios) Tangible common equity as a percent of tangible assets at end of periodMarch 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024Total stockholders’ equity$180,051  $179,084  $180,149  $176,045  $172,821 Less: Goodwill (31,498) $(31,498) $(31,498) $(31,498)  (31,498)Less: Intangible assets (800) $(979) $(1,158) $(1,336)  (1,515)Tangible common equity (non-GAAP)$147,753  $146,607  $147,493  $143,211  $139,808 Total Assets$1,779,963  $1,748,519  $1,799,137  $1,802,307  $1,819,315 Less: Goodwill (31,498)  (31,498)  (31,498)  (31,498)  (31,498)Less: Intangible assets (800)  (979)  (1,158)  (1,336)  (1,515)Tangible Assets (non-GAAP)$1,747,665  $1,716,042  $1,766,481  $1,769,473  $1,786,302 Total stockholders’ equity to total assets ratio 10.12%  10.24%  10.01%  9.77%  9.50%Tangible common equity as a percent of tangible assets (non-GAAP) 8.45%  8.54%  8.35%  8.09%  7.83%                     1Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”. 2Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”. 3Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”. 4Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on tangible common equity are non-GAAP measures that management believes enhances investors’ ability to understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of tangible book value per share (non-GAAP)”, “Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)”, and “Reconciliation of return on average tangible common equity)”.

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