StockNews.AI
CZWI
StockNews.AI
204 days

Citizens Community Bancorp, Inc. Reports Fourth Quarter 2024 Earnings of $0.27 Per Share and Twelve Month 2024 Earnings of $1.34 Per Share; Board of Directors Increases Annual Dividend by 12.5% to $0.36 Per Share

1. CZWI's Q4 2024 earnings fell to $2.7 million from $3.3 million. 2. Net interest income increased by $0.4 million, aided by rising net interest margin. 3. Total loans decreased by $55.8 million; forecasted modest loan growth for 2025. 4. Higher non-interest expenses reported, mainly due to increased compensation and professional fees. 5. Tangible book value per share increased to $14.69, supporting investor confidence.

Earnings
-1.25%Current Return
VS
-0.51%S&P 500
$1601/27 08:33 AM EDTEvent Start
$15.801/28 03:13 PM EDTLatest Updated
46m saved
Insight
Article

FAQ

Why Neutral?

Q4 earnings decline is concerning; however, net interest income shows some resilience. Historical examples show mixed market reactions to similar scenarios.

How important is it?

Q4 results and operational outlook are crucial but not drastically changing overall trajectory.

Why Short Term?

Immediate financial results may impact investor sentiment temporarily. Long-term strategies could stabilize outlook.

Related Companies

CZWI
EAU CLAIRE, Wis., Jan. 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 $2.7 million and earnings per diluted share of $0.27 for the fourth quarter ended December 31, 2024, compared to $3.3 million and earnings per diluted share of $0.32 for the quarter ended September 30, 2024, and $3.7 million and $0.35 earnings per diluted share for the quarter ended December 31, 2023, respectively. The Company’s fourth quarter 2024 operating results reflected the following changes from the third quarter of 2024: (1) increase in net interest income of $0.4 million with net interest margin increased by 16 basis points; (2) a $0.05 million increase in negative provision for credit losses to $0.45 million in the fourth quarter; (3) lower non-interest income of $0.9 million primarily due to $0.5 million lower gain on sale of loans and $0.2 million higher net losses on sale of equity securities in the fourth quarter of 2024; and (4) higher non-interest expense primarily due to higher REO expenses of $0.2 million and higher professional fees of $0.2 million. Book value per share improved to $17.94 at December 31, 2024, compared to $17.88 at September 30, 2024, and $16.60 at December 31, 2023. Tangible book value per share (non-GAAP)1 was $14.69 at December 31, 2024, compared to $14.64 at September 30, 2024, and a 9.5% increase from $13.42 at December 31, 2023. For the fourth quarter of 2024, tangible book value was positively influenced by net income and intangible amortization which was mostly offset by the impact of higher long-term interest rates which increased the net unrealized loss on the available for sale securities portfolio. Stockholders’ equity as a percentage of total assets was 10.24% at December 31, 2024, compared to 10.01% at September 30, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 increased to 8.54% at December 31, 2024, compared to 8.35% at September 30, 2024, largely due to the impact of asset shrinkage. “As we closed 2024, I am pleased with the execution on our strategic objectives, continuing to strengthen franchise value. The quarter reflected our balance sheet optimization efforts, which increased the net interest margin 6%, and increased the tangible common equity ratio for the continued repurchase of shares at prices that were accretive to earnings per share and tangible book value. The TCE ratio increased to 8.54%, from 8.35% in the prior quarter which provides flexibility to grow the loan portfolio and potentially repurchase shares in 2025. Deposits, net of the decrease in wholesale deposits, increased $27 million. Loans decreased $56 million during the quarter, primarily in non-strategic relationships, but we forecast modest loan growth of one to three percent in 2025. Credit metrics improved and we continue to maintain a healthy reserve for credit losses to total loans at 1.50%,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer. December 31, 2024, Highlights: Quarterly earnings were $2.7 million, or $0.27 per diluted share for the quarter ended December 31, 2024, a decrease compared to earnings of $3.3 million, or $0.32 per diluted share for the quarter ended September 30, 2024, and $3.7 million, or $0.35 per diluted share for the quarter ended December 31, 2023.Net interest income increased $0.4 million to $11.7 million for the current quarter ended December 31, 2024, from $11.3 million for the quarter ended September 30, 2024, and flat with $11.7 million for the quarter ended December 31, 2023. The increase in net interest income from the third quarter of 2024 was primarily due to an increase in net interest margin of 16 basis points. The net interest margin increased to 2.79%, primarily due to lower deposit costs, for the quarter ended December 31, 2024, compared to 2.63% for the previous quarter, and 2.69% for the quarter ended December 31, 2023. The net interest margin increase in the fourth quarter of 2024, was also favorably impacted by accelerated deferred fee accretion on loan payoffs of 3 basis points. Negative provision for credit losses of $0.45 million, $0.40 million, and $0.65 million were recorded during the quarters ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The fourth quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.324 million and a $0.126 million decrease in off-balance sheet ACL due to a reduction in unfunded loan commitments. Non-interest income decreased $0.9 million in the fourth quarter of 2024, due to $0.5 million in lower gain on sale of loans, $0.2 million of higher net losses on equity securities and lower loan servicing income and service charges on deposit accounts. Non-interest income decreased by $0.5 million compared to the fourth quarter of 2023, due to higher net losses on equity securities.Non-interest expense increased $0.4 million to $10.8 million in the fourth quarter of 2024 from $10.4 million for the previous quarter and increased $0.6 million from $10.2 million in the fourth quarter one year earlier. The $0.4 million increase in non-interest expense from the third quarter was largely due to $0.2 million increase in professional fees and $0.2 million in losses on repossessed assets. The $0.6 million increase from the fourth quarter of 2023 was due to: (1) a $0.7 million increase in compensation expenses, due to higher incentive compensation and annual merit increases; (2) an increase of $0.2 million on losses on repossessed assets; and (3) higher data processing of $0.2 million, partially offset by lower other expenses of $0.5 million primarily due to 2023 branch closure costs.Loans receivable decreased $55.8 million during the fourth quarter ended December 31, 2024, to $1.369 billion compared to the prior quarter end, due to pay offs of non-strategic relationships as part of the balance sheet optimization plan. Total deposits decreased $32.5 million during the fourth quarter of 2024, compared to three months earlier, as wholesale deposits were reduced with brokered deposits decreasing $47.5 million to $19.1 million at December 31, 2024, compared to three months earlier. Federal Home Loan Bank advances decreased $16.0 million to $5.0 million at December 31, 2024, from $21.0 million at September 30, 2024. The effective tax rate was 19.5% for the quarter ended December 31, 2024, compared to 21.5% for the quarter ended September 30, 2024, and 20.9% for the quarter ended December 31, 2023.Nonperforming assets decreased to $14.3 million at December 31, 2024, compared to $17.1 million at September 30, 2024. The decrease was largely due to a partial paydown on one agricultural real estate loan relationship in forestry services that was placed on nonaccrual status in the third quarter.Net charge-offs remain minimal and were 0.009% of average loans during the fourth quarter and 0.007% over the twelve-month period ending December 31, 2024.Common stock totaling 94 thousand shares were repurchased in the fourth quarter ending December 31, 2024, at an average price of $14.55 per share. For the twelve-month period ending December 31, 2024, approximately 476 thousand shares of common stock were repurchased at an average price of $12.76 per share.In November 2024, the Company notified its customers that it would be closing the Faribault, Minnesota branch on February 3, 2025, with account balances transferred to the nearest branch which is 39 miles away. The branch closure costs recognized in the fourth quarter were minimal. The efficiency ratio was 76% for the quarter ended December 31, 2024, compared to 72% for the quarter ended September 30, 2024.On January 23, 2025, the Board of Directors declared a $0.36 per share annual dividend, an increase of 12.5%, to shareholders of record as of February 7, 2025, and payable February 21, 2025. Balance Sheet and Asset Quality Total assets decreased by $50.6 million during the quarter to $1.749 billion at December 31, 2024. Securities available for sale (AFS”) decreased $6.6 million during the quarter ended December 31, 2024, to $142.8 million from $149.4 million at September 30, 2024. The decrease was due to higher pre-tax unrealized losses of $3.3 million and principal repayments of $3.3 million. Securities held to maturity (“HTM”) decreased $1.5 million to $85.5 million during the quarter ended December 31, 2024, from $87.0 million at September 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 11.75% of total assets at December 31, 2024, compared to 11.46% at September 30, 2024. On-balance sheet liquidity collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $725 million, or 273%, of uninsured and uncollateralized deposits at December 31, 2024, and $718 million, or 269%, at September 30, 2024. Continued balance sheet optimization resulted in loans decreasing by $55.8 million during the fourth quarter ended December 31, 2024, to $1.372 billion, compared to September 30, 2024. A large level of non-strategic relationships were repaid during the quarter as well as a $4.9 million reduction in criticized loans. The office loan portfolio consisting of 71 loans totaled $28 million at December 31, 2024, and decreased $3 million from $31 million at September 30, 2024. Criticized loans in the office loan portfolio for the quarter ended December 31, 2024, totaled $0.5 million and there have been no charge-offs in the trailing twelve months. The allowance for credit losses on loans decreased by $0.45 million to $20.5 million at December 31, 2024, representing 1.50% of total loans receivable compared to 1.47% of total loans receivable at September 30, 2024. For the quarter ended December 31, 2024, the Bank recorded a negative provision of $0.45 million which included a negative provision on ACL for loans of $0.32 million and a negative provision of $0.13 million on ACL for unfunded commitments. Allowance for Credit Losses (“ACL”) - Loans Percentage (in thousands, except ratios)   December 31, 2024 September 30, 2024 June 30, 2024 December 31, 2023Loans, end of period $1,368,981  $1,424,828  $1,428,588  $1,460,792 Allowance for credit losses - Loans $20,549  $21,000  $21,178  $22,908 ACL - Loans as a percentage of loans, end of period  1.50%  1.47%  1.48%  1.57% In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.334 million at December 31, 2024, $0.460 million at September 30, 2024, and $1.250 million at December 31, 2023, classified in other liabilities on the consolidated balance sheets.Allowance for Credit Losses - Unfunded Commitments: (in thousands)   December 31, 2024 and Three Months Ended December 31, 2023 and Three Months Ended December 31, 2024 and Twelve Months Ended December 31, 2023 and Twelve Months EndedACL - Unfunded commitments - beginning of period $460  $1,571  $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  (126)  (321)  (916)  (287)ACL - Unfunded commitments - end of period $334  $1,250  $334  $1,250  Special mention loans decreased by $2.5 million to $8.5 million at December 31, 2024, compared to $11.0 million at September 30, 2024. Over the past 12 months, special mention loans have declined $9.9 million from $18.4 million at December 31, 2023. Substandard loans decreased by $2.3 million to $18.9 million at December 31, 2024, compared to $21.2 million at September 30, 2024, primarily due to a $1.6 million reduction in a nonperforming loan, classified as substandard, agricultural real estate forestry services loan. Nonperforming assets decreased $2.8 million to $14.3 million at December 31, 2024, compared to $17.1 million at September 30, 2024, primarily due to the $1.6 million reduction in nonperforming assets discussed above and the sale of a real estate owned property.   (in thousands)  December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Special mention loan balances $8,480 $11,047 $8,848 $13,737 $18,392Substandard loan balances  18,891  21,202  14,420  14,733  19,596Criticized loans, end of period $27,371 $32,249 $23,268 $28,470 $37,988 Total deposits decreased $32.5 million during the quarter ended December 31, 2024, to $1.49 billion as $59.7 million of wholesale brokered deposits were repaid. Brokered deposits declined $47.5 million to $19.1 million at December 31, 2024, from $66.6 million at September 30, 2024, and declined $79.1 million from $98.2 million at December 31, 2023. Deposit Portfolio Composition(in thousands)   December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023Consumer deposits $852,083 $844,808 $822,665 $827,290 $814,899Commercial deposits  412,355  406,095  395,148  400,910  415,715Public deposits  190,460  176,844  187,698  202,175  182,172Wholesale deposits  33,250  92,920  114,033  97,114  106,306Total deposits $1,488,148 $1,520,667 $1,519,544 $1,527,489 $1,519,092 At December 31, 2024, the deposit portfolio composition was 57% consumer, 28% commercial, 13% public, and 2% wholesale deposits compared to 55% consumer, 27% commercial, 12% public, and 6% wholesale deposits at September 30, 2024. Deposit Composition By Type(in thousands)   December 31,2024 September 30,2024 June 30,2024 March 31,2024 December 31,2023Non-interest-bearing demand deposits $252,656 $256,840 $255,703 $248,537 $265,704Interest-bearing demand deposits  355,750  346,971  353,477  361,278  343,276Savings accounts  159,821  169,096  170,946  177,595  176,548Money market accounts  369,534  366,067  370,164  387,879  374,055Certificate accounts  350,387  381,693  369,254  352,200  359,509Total deposits $1,488,148 $1,520,667 $1,519,544  1,527,489 $1,519,092 Uninsured and uncollateralized deposits were $265.4 million, or 18% of total deposits, at December 31, 2024, and $267.1 million, or 18% of total deposits, at September 30, 2024. Uninsured deposits alone at December 31, 2024, were $428.0 million, or 29% of total deposits, and $413.6 million, or 27% of total deposits at September 30, 2024. As part of the balance sheet optimization plan, $16.0 million in Federal Home Loan Bank advances were repaid during the fourth quarter and totaled $5.0 million at December 31, 2024, compared to $21.0 million one quarter earlier. Common stock totaling approximately 94 thousand shares were repurchased in the fourth quarter of 2024 at an average price of $14.55 per share. For the twelve-month period ending December 31, 2024, approximately 476 thousand shares of common stock were repurchased at an average price of $12.76 per share. There are 238 thousand shares remaining under the July 2024 Board of Director repurchase authorization plan. Review of Operations Net interest income increased $0.4 million for the quarter ended December 31, 2024, from $11.3 million for the quarter ended September 30, 2024, and flat from $11.7 million for the quarter ended December 31, 2023. The increase in net interest income compared to the third quarter of 2024 was primarily due to an increase in net interest margin, partially offsetting the impact of asset shrinkage. The net interest margin increase was favorably impacted by 3 basis points due to deferred fee accretion on loan payoffs. Net interest income and net interest margin analysis:(in thousands, except yields and rates)   Three months ended  December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 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 MarginAs reported $11,708  2.79% $11,285  2.63% $11,576  2.72% $11,905  2.77% $11,747  2.69%Less accretion for PCD loans  (42) (0.01)%  (45) (0.01)%  (62) (0.01)%  (75) (0.02)%  (37) (0.01)%Less scheduled accretion interest  (33) (0.01)%  (33) (0.01)%  (32) (0.01)%  (33) (0.01)%  (33) (0.01)%Without loan purchase accretion $11,633  2.77% $11,207  2.61% $11,482  2.70% $11,797  2.74% $11,677  2.67% The table below shows the impact of certificate, loan and securities contractual fixed rate maturing and repricing. Portfolio Contractual Repricing:(in millions, except yields)   Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2026Maturing Certificate Accounts:          Contractual Balance $95  $177  $43  $14  $13 Contractual Interest Rate  4.63%  4.68%  4.25%  3.07%  3.36%Maturing or Repricing Loans:          Contractual Balance $46  $97  $18  $55  $322 Contractual Interest Rate  5.27%  7.10%  6.15%  4.79%  3.85%Maturing or Repricing Securities:          Contractual Balance $4  $3  $3  $4  $19 Contractual Interest Rate  6.15%  5.12%  4.07%  4.31%  3.49% Non-interest income decreased $0.9 million in the fourth quarter of 2024 to $2.0 million from $2.9 million the prior quarter due to $0.5 million of lower gain on sale of loans, $0.2 million of higher net losses on equity securities and lower loan servicing income and service charges on deposit accounts. Total non-interest income for the quarter ended December 31, 2023, was higher at $2.5 million due to an increase in net losses on equity securities in 4Q 2024. Non-interest expense increased $0.4 million to $10.8 million from $10.4 million for the previous quarter and increased $0.6 million from $10.2 million one year earlier. The $0.4 million increase in non-interest expense compared to the linked quarter was largely due to the $0.2 million increase in professional fees and $0.2 million in losses on repossessed assets. The $0.6 million increase from the fourth quarter of 2023 is due to: (1) a $0.7 million increase in compensation expenses, due to higher incentive compensation and annual merit increases; (2) an increase in the current quarter of $0.2 million on losses on repossessed assets; (3) higher data processing of $0.2 million partially offset by lower other expenses $0.5 million primarily due to 2023 branch closure costs. Provision for income taxes decreased to $0.7 million in the fourth quarter of 2024 from $0.9 million in the third quarter of 2024 largely due to lower pre-tax income. The effective tax rate was 19.5% for the quarter ended December 31, 2024, 21.5% for the quarter ended September 30, 2024, and 20.9% for the quarter ended December 31, 2023. These financial results are preliminary until Form 10-K is filed in March 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 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)  December 31, 2024 (unaudited) September 30, 2024 (unaudited) June 30, 2024 (unaudited) December 31, 2023 (audited)Assets        Cash and cash equivalents $50,172  $36,632  $36,886  $37,138 Securities available for sale “AFS”  142,851   149,432   146,438   155,743 Securities held to maturity “HTM”  85,504   87,033   88,605   91,229 Equity investments  4,702   5,096   5,023   3,284 Other investments  12,500   12,311   13,878   15,725 Loans receivable  1,368,981   1,424,828   1,428,588   1,460,792 Allowance for credit losses  (20,549)  (21,000)  (21,178)  (22,908)Loans receivable, net  1,348,432   1,403,828   1,407,410   1,437,884 Loans held for sale  1,329   697   275   5,773 Mortgage servicing rights, net  3,663   3,696   3,731   3,865 Office properties and equipment, net  17,075   17,365   17,774   18,373 Accrued interest receivable  5,653   6,235   6,289   5,409 Intangible assets  979   1,158   1,336   1,694 Goodwill  31,498   31,498   31,498   31,498 Foreclosed and repossessed assets, net  915   1,572   1,662   1,795 Bank owned life insurance (“BOLI”)  26,102   25,901   25,708   25,647 Other assets  17,144   16,683   15,794   16,334 TOTAL ASSETS $1,748,519  $1,799,137  $1,802,307  $1,851,391 Liabilities and Stockholders’ Equity        Liabilities:        Deposits $1,488,148  $1,520,667  $1,519,544  $1,519,092 Federal Home Loan Bank (“FHLB”) advances  5,000   21,000   31,500   79,530 Other borrowings  61,606   61,548   61,498   67,465 Other liabilities  14,681   15,773   13,720   11,970 Total liabilities  1,569,435   1,618,988   1,626,262   1,678,057 Stockholders’ equity:        Common stock— $0.01 par value, authorized 30,000,000; 9,981,996, 10,074,136, 10,297,341, and 10,440,591 shares issued and outstanding, respectively  100   101   103   104 Additional paid-in capital  114,564   115,455   117,838   119,441 Retained earnings  80,840   78,438   75,501   71,117 Accumulated other comprehensive loss  (16,420)  (13,845)  (17,397)  (17,328)Total stockholders’ equity  179,084   180,149   176,045   173,334 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,748,519  $1,799,137  $1,802,307  $1,851,391                  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 Twelve Months Ended  December 31, 2024 (unaudited) September 30, 2024 (unaudited) December 31, 2023 (unaudited) December 31, 2024 (unaudited) December 31, 2023 (audited)Interest and dividend income:          Interest and fees on loans $19,534  $20,115  $19,408  $79,738  $73,577 Interest on investments  2,427   2,397   2,618   9,877   10,671 Total interest and dividend income  21,961   22,512   22,026   89,615   84,248 Interest expense:          Interest on deposits  9,273   10,165   7,851   37,985   25,749 Interest on FHLB borrowed funds  65   128   1,371   1,281   5,966 Interest on other borrowed funds  915   934   1,057   3,875   4,184 Total interest expense  10,253   11,227   10,279   43,141   35,899 Net interest income before provision for credit losses  11,708   11,285   11,747   46,474   48,349 (Negative) provision for credit losses  (450)  (400)  (650)  (3,175)  (475)Net interest income after provision for credit losses  12,158   11,685   12,397   49,649   48,824 Non-interest income:          Service charges on deposit accounts  450   513   485   1,924   1,949 Interchange income  550   577   581   2,247   2,324 Loan servicing income  520   643   539   2,271   2,218 Gain on sale of loans  218   752   191   2,216   1,692 Loan fees and service charges  292   165   124   996   432 Net realized gains on debt securities  —   —   —   —   12 Net (losses) gains on equity securities  (287)  (78)  277   (856)  447 Bank Owned Life Insurance (BOLI) death benefit  —   —   —   184   — Other  266   349   283   1,125   1,176 Total non-interest income  2,009   2,921   2,480   10,107   10,250 Non-interest expense:          Compensation and related benefits  5,840   5,743   5,139   22,741   21,106 Occupancy  1,217   1,242   1,314   5,159   5,431 Data processing  1,743   1,665   1,511   6,530   5,951 Amortization of intangible assets  179   178   179   715   755 Mortgage servicing rights expense, net  107   163   159   534   615 Advertising, marketing and public relations  218   225   262   793   734 FDIC premium assessment  192   201   204   798   812 Professional services  514   336   371   1,763   1,524 Losses (gains) on repossessed assets, net  247   65   —   294   62 Other  552   603   1,067   2,979   3,152 Total non-interest expense  10,809   10,421   10,206   42,306   40,142 Income before provision for income taxes  3,358   4,185   4,671   17,450   18,932 Provision for income taxes  656   899   978   3,699   5,873 Net income attributable to common stockholders $2,702  $3,286  $3,693  $13,751  $13,059 Per share information:          Basic earnings $0.27  $0.32  $0.35  $1.34  $1.25 Diluted earnings $0.27  $0.32  $0.35  $1.34  $1.25 Cash dividends paid $—  $—  $—  $0.32  $0.29 Book value per share at end of period $17.94  $17.88  $16.60  $17.94  $16.60 Tangible book value per share at end of period (non-GAAP) $14.69  $14.64  $13.42  $14.69  $13.42  Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) (in thousands, except per share data)   Three Months Ended Twelve Months Ended  December 31,2024 September 30,2024 December 31,2023 December 31,2024 December 31,2023          GAAP pretax income $3,358 $4,185 $4,671 $17,450 $18,932Branch closure costs (1)  —  —  380  168  380Pretax income as adjusted (2) $3,358 $4,185 $5,051 $17,618 $19,312Provision for income tax on net income as adjusted (3)  656  899  1,058  3,735  5,991Net income as adjusted (non-GAAP) (2) $2,702 $3,286 $3,993 $13,883 $13,321GAAP diluted earnings per share, net of tax $0.27 $0.32 $0.35 $1.34 $1.25Branch closure costs, net of tax  —  —  0.03  0.01  0.03Diluted earnings per share, as adjusted, net of tax (non-GAAP) $0.27 $0.32 $0.38 $1.35 $1.28           Average diluted shares outstanding  10,033,957  10,204,195  10,457,184  10,262,710  10,470,298 (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)   December 31, 2024 September 30, 2024 June 30, 2024 December 31, 2023Total Loans:        Commercial/Agricultural real estate:        Commercial real estate $709,018  $730,459  $729,236  $750,531 Agricultural real estate  73,130   76,043   78,248   83,350 Multi-family real estate  220,805   239,191   234,758   228,095 Construction and land development  78,489   87,875   87,898   110,941 C&I/Agricultural operating:        Commercial and industrial  115,657   119,619   127,386   121,666 Agricultural operating  31,000   27,550   27,409   25,691 Residential mortgage:        Residential mortgage  132,341   134,944   133,503   129,021 Purchased HELOC loans  2,956   2,932   2,915   2,880 Consumer installment:        Originated indirect paper  3,970   4,405   5,110   6,535 Other consumer  5,012   5,438   5,860   6,187 Gross loans $1,372,378  $1,428,456  $1,432,323  $1,464,897 Unearned net deferred fees and costs and loans in process  (2,547)  (2,703)  (2,733)  (2,900)Unamortized discount on acquired loans  (850)  (925)  (1,002)  (1,205)Total loans receivable $1,368,981  $1,424,828  $1,428,588  $1,460,792  Nonperforming AssetsLoan Balances at Amortized Cost (in thousands, except ratios)   December 31, 2024 September 30, 2024 June 30, 2024 December 31, 2023Nonperforming assets:        Nonaccrual loans        Commercial real estate $4,594  $4,778  $5,350  $10,359 Agricultural real estate  6,222   6,193   382   391 Construction and land development  103   106   —   54 Commercial and industrial (“C&I”)  597   1,956   422   — Agricultural operating  793   901   1,017   1,180 Residential mortgage  858   1,088   1,145   1,167 Consumer installment  1   20   36   33 Total nonaccrual loans $13,168  $15,042  $8,352  $13,184 Accruing loans past due 90 days or more  186   530   256   389 Total nonperforming loans (“NPLs”) at amortized cost  13,354   15,572   8,608   13,573 Foreclosed and repossessed assets, net  915   1,572   1,662   1,795 Total nonperforming assets (“NPAs”) $14,269  $17,144  $10,270  $15,368 Loans, end of period $1,368,981  $1,424,828  $1,428,588  $1,460,792 Total assets, end of period $1,748,519  $1,799,137  $1,802,307  $1,851,391 Ratios:        NPLs to total loans  0.98%  1.09%  0.60%  0.93%NPAs to total assets  0.82%  0.95%  0.57%  0.83% Average Balances, Interest Yields and Rates (in thousands, except yields and rates)   Three Months Ended December 31, 2024 Three Months Ended September 30, 2024 Three Months EndedDecember 31, 2023  AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/RateAverage interest earning assets:                  Cash and cash equivalents $26,197 $327 4.97% $25,187 $360 5.69% $16,699 $241 5.73%Loans receivable  1,396,854  19,534 5.56%  1,429,928  20,115 5.60%  1,458,558  19,408 5.28%Investment securities  235,268  1,940 3.28%  236,960  1,966 3.30%  243,705  2,102 3.42%Other investments  12,318  160 5.17%  12,553  71 2.25%  15,760  275 6.92%Total interest earning assets $1,670,637 $21,961 5.23% $1,704,628 $22,512 5.25% $1,734,722 $22,026 5.04%Average interest-bearing liabilities:                  Savings accounts $162,501 $383 0.94% $170,777 $450 1.05% $175,281 $323 0.73%Demand deposits  346,411  1,891 2.17%  357,201  2,152 2.40%  329,096  1,680 2.03%Money market accounts  351,566  2,720 3.08%  381,369  3,126 3.26%  326,981  2,217 2.69%CD’s  374,087  4,279 4.55%  379,722  4,437 4.65%  368,110  3,631 3.91%Total deposits $1,234,565 $9,273 2.99% $1,289,069 $10,165 3.14% $1,199,468 $7,851 2.60%FHLB advances and other borrowings  72,431  980 5.38%  80,338  1,062 5.26%  191,575  2,428 5.03%Total interest-bearing liabilities $1,306,996 $10,253 3.12% $1,369,407 $11,227 3.26% $1,391,043 $10,279 2.93%Net interest income   $11,708     $11,285     $11,747  Interest rate spread     2.11%     1.99%     2.11%Net interest margin     2.79%     2.63%     2.69%Average interest earning assets to average interest-bearing liabilities     1.28      1.24      1.25    Twelve Months EndedDecember 31, 2024 Twelve Months EndedDecember, 2023  AverageBalance InterestIncome/Expense AverageYield/Rate AverageBalance InterestIncome/Expense AverageYield/RateAverage interest earning assets:            Cash and cash equivalents $20,864 $1,150 5.51% $18,469 $1,010 5.47%Loans receivable  1,430,631  79,738 5.57%  1,430,035  73,577 5.15%Interest bearing deposits  —  — —%  63  1 1.59%Investment securities  238,851  7,977 3.34%  257,020  8,606 3.35%Other investments  12,816  750 5.85%  16,274  1,054 6.48%Total interest earning assets $1,703,162 $89,615 5.26% $1,721,861 $84,248 4.89%Average interest-bearing liabilities:            Savings accounts $171,069 $1,684 0.98% $200,087 $1,427 0.71%Demand deposits  353,107  8,083 2.29%  359,866  6,727 1.87%Money market accounts  371,909  11,725 3.15%  306,020  6,976 2.28%CD’s  366,634  16,493 4.50%  317,376  10,619 3.35%Total deposits $1,262,719 $37,985 3.01% $1,183,349 $25,749 2.18%FHLB advances and other borrowings  99,731  5,156 5.17%  208,373  10,150 4.87%Total interest-bearing liabilities $1,362,450 $43,141 3.17% $1,391,722 $35,899 2.58%Net interest income   $46,474     $48,349  Interest rate spread     2.09%     2.31%Net interest margin     2.73%     2.81%Average interest earning assets to average interest bearing liabilities     1.25      1.24  Wholesale Deposits(in thousands)   Quarter Ended  December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Brokered certificate accounts $14,123 $48,578 $54,123 $43,507 $58,209Brokered money market accounts  5,002  18,076  42,673  40,429  40,050Third party originated reciprocal deposits  14,125  26,266  17,237  13,178  8,047Total $33,250 $92,920 $114,033 $97,114 $106,306 Key Financial Metric Ratios:   Three Months Ended Twelve Months Ended  December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023Ratios based on net income:          Return on average assets (annualized) 0.61% 0.72% 0.79% 0.76% 0.71%Return on average equity (annualized) 6.00% 7.34% 8.72% 7.84% 7.87%Return on average tangible common equity4 (annualized) 7.72% 9.38% 11.29% 10.03% 10.26%Efficiency ratio 76% 72% 72% 72% 68%Net interest margin with loan purchase accretion 2.79% 2.63% 2.69% 2.73% 2.81%Net interest margin without loan purchase accretion 2.77% 2.61% 2.67% 2.69% 2.78%Ratios based on net income as adjusted (non-GAAP)          Return on average assets as adjusted2 (annualized) 0.61% 0.72% 0.86% 0.77% 0.73%Return on average equity as adjusted3 (annualized) 6.00% 7.34% 9.43% 7.91% 8.03% Reconciliation of Return on Average Assets (in thousands, except ratios)   Three Months Ended Twelve Months Ended  December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023    GAAP earnings after income taxes $2,702  $3,286  $3,693  $13,751  $13,059 Net income as adjusted after income taxes (non-GAAP) (1) $2,702  $3,286  $3,993  $13,883  $13,321 Average assets $1,771,351  $1,810,826  $1,843,789  $1,808,256  $1,836,337 Return on average assets (annualized)  0.61%  0.72%  0.79%  0.76%  0.71%Return on average assets as adjusted (non-GAAP) (annualized)  0.61%  0.72%  0.86%  0.77%  0.73% (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 Twelve Months Ended  December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023GAAP earnings after income taxes $2,702  $3,286  $3,693  $13,751  $13,059 Net income as adjusted after income taxes (non-GAAP) (1) $2,702  $3,286  $3,993  $13,883  $13,321 Average equity $179,242  $178,050  $168,058  $175,475  $165,968 Return on average equity (annualized)  6.00%  7.34%  8.72%  7.84%  7.87%Return on average equity as adjusted (non-GAAP) (annualized)  6.00%  7.34%  9.43%  7.91%  8.03% (1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP) Reconciliation of tangible book value per share (non-GAAP) (in thousands, except per share data) Tangible book value per share at end of period December 31, 2024 September 30, 2024 June 30, 2024 December 31, 2023Total stockholders’ equity $179,084  $180,149  $176,045  $173,334 Less: Goodwill  (31,498)  (31,498)  (31,498)  (31,498)Less: Intangible assets  (979)  (1,158)  (1,336)  (1,694)Tangible common equity (non-GAAP) $146,607  $147,493  $143,211  $140,142 Ending common shares outstanding  9,981,996   10,074,136   10,297,341   10,440,591 Book value per share $17.94  $17.88  $17.10  $16.60 Tangible book value per share (non-GAAP) $14.69  $14.64  $13.91  $13.42  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  December 31, 2024 September 30, 2024 June 30, 2024 December 31, 2023Total stockholders’ equity $179,084  $180,149  $176,045  $173,334 Less: Goodwill  (31,498) $(31,498) $(31,498)  (31,498)Less: Intangible assets  (979) $(1,158) $(1,336)  (1,694)Tangible common equity (non-GAAP) $146,607  $147,493  $143,211  $140,142 Total Assets $1,748,519  $1,799,137  $1,802,307  $1,851,391 Less: Goodwill  (31,498)  (31,498)  (31,498)  (31,498)Less: Intangible assets  (979)  (1,158)  (1,336)  (1,694)Tangible Assets (non-GAAP) $1,716,042  $1,766,481  $1,769,473  $1,818,199 Total stockholders’ equity to total assets ratio  10.24%  10.01%  9.77%  9.36%Tangible common equity as a percent of tangible assets (non-GAAP)  8.54%  8.35%  8.09%  7.71% Reconciliation of Return on Average Tangible Common Equity (non-GAAP) (in thousands, except ratios)   Three Months Ended Twelve Months Ended  December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023Total stockholders’ equity $179,084  $180,149  $173,334  $179,084  $173,334 Less: Goodwill  (31,498)  (31,498)  (31,498)  (31,498)  (31,498)Less: Intangible assets  (979)  (1,158)  (1,694)  (979)  (1,694)Tangible common equity (non-GAAP) $146,607  $147,493  $140,142  $146,607  $140,142 Average tangible common equity (non-GAAP) $146,676  $145,305  $134,776  $142,641  $132,409 GAAP earnings after income taxes  2,702   3,286   3,693   13,751   13,059 Amortization of intangible assets, net of tax  144   140   142   563   521 Tangible net income $2,846  $3,426  $3,835  $14,314  $13,580 Return on average tangible common equity (annualized)  7.72%  9.38%  11.29%  10.03%  10.26% Reconciliation of Efficiency Ratio (in thousands, except ratios)  Three Months Ended Twelve Months Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023Non-interest expense (GAAP)$10,809  $10,421  $10,206  $42,306  $40,142 Less amortization of intangibles (179)  (178)  (179)  (715)  (755)Efficiency ratio numerator (GAAP)$10,630  $10,243  $10,027  $41,591  $39,387           Non-interest income$2,009  $2,921  $2,480  $10,107  $10,250 Add back net losses on debt and equity securities (287)  (78)  —   (856)  — Subtract net gains on debt and equity securities —   —   277   —   459 Net interest income 11,708   11,285   11,747   46,474   48,349 Efficiency ratio denominator (GAAP)$14,004  $14,284  $13,950  $57,437  $58,140 Efficiency ratio (GAAP) 76%  72%  72%  72%  68% 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)”.

Related News