Company Overview - Citizens Community Bancorp, Inc. (CZWI) is headquartered in Eau Claire and operates in the Finance sector, specifically within the Savings and Loan industry [3] - The company has experienced a price change of 4.6% so far this year [3] Dividend Information - CZWI currently pays a dividend of $0.10 per share, resulting in a dividend yield of 2.25%, which is lower than the industry average yield of 2.63% but higher than the S&P 500's yield of 1.46% [3] - The annualized dividend of $0.42 represents a 16.7% increase from the previous year [4] - Over the past five years, CZWI has increased its dividend five times, achieving an average annual increase of 11.77% [4] - The current payout ratio is 25%, indicating that the company pays out 25% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, CZWI anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $1.75 per share, reflecting a year-over-year growth rate of 19.86% [5] Investment Considerations - The company is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - Income investors are particularly attracted to dividends for various reasons, including improving stock investing profits and providing tax advantages [5]

Financial Performance - As of December 31, 2025, total gross outstanding loans amounted to $1.343 billion, with $1.074 billion in commercial/agricultural real estate loans, $139.3 million in C&I/agricultural operating loans, $123.8 million in residential mortgage loans, and $6.2 million in consumer installment loans [26]. - Total deposits reached $1.524 billion, including interest-bearing deposits of $1.260 billion and non-interest-bearing deposits of $0.264 billion as of December 31, 2025 [29]. - The company maintains a portfolio of investments primarily in mortgage-backed securities, asset-backed securities, U.S. Government sponsored agency securities, and corporate debt securities [27]. Lending Activities - The company focuses its lending activities on individual consumers and small commercial borrowers, primarily in Wisconsin and Minnesota, facing competitive and economic pressures [25]. - The company’s lending policies are established by management and approved by the Board of Directors, focusing on maintaining credit quality in its loan portfolio [25]. - The company focuses on originating shorter-term secured loans and variable rate loans to manage interest rate risk [262]. Regulatory Environment - The capital conservation buffer requires a CET1 capital of 2.5% of risk-weighted assets, effectively increasing minimum capital ratios to 7.0% for CET1, 8.5% for Tier 1, and 10.5% for total capital [45]. - The company is subject to extensive regulation and supervision by the Federal Reserve and the OCC, impacting its growth and earnings performance [39]. - The company is subject to various anti-money laundering laws and regulations, including the Bank Secrecy Act and the Patriot Act [54][55]. - The Community Reinvestment Act requires banks to meet the credit needs of their communities, including low- and moderate-income neighborhoods [68]. - The Federal Reserve requires a total risk-based capital ratio of at least 10% for a "well-capitalized" bank [61]. - The Federal Reserve may impose higher capital requirements for holding companies experiencing internal growth or making acquisitions [62]. - The Federal Reserve, FDIC, and OCC issued a final rule to amend CRA regulations, with most provisions applicable from January 1, 2026 [70]. Competition - The company competes for deposits and loans based on interest rates, personalized services, and the quality of financial services, facing competition from banks, credit unions, and non-bank entities [31]. - The company was selected for inclusion in the Russell 3000 Index as part of the 2025 annual reconstitution [36]. Risk Management - The company's interest rate risk is its most significant market risk, influenced by changes in market interest rates and economic conditions [258]. - The Asset and Liability Management Committee (ALCO) regularly reviews economic conditions and interest rate outlook to manage interest rate risk exposure [260]. - The estimated changes in Economic Value of Equity (EVE) at December 31, 2025, show a 6% increase with a +300 basis point shift in interest rates, compared to a 2% increase at December 31, 2024 [264]. - Projected change in net interest income at December 31, 2025, indicates a decrease of 4% with a +300 basis point shift in interest rates, compared to a decrease of 8% at December 31, 2024 [267]. - The analysis of interest rate risk includes assumptions on interest rates, loan prepayment rates, and deposit decay rates, which may vary from actual market conditions [268]. - The ALCO's objectives include managing assets and funding sources to align with liquidity, cash flow, capital adequacy, and profitability goals [260]. - The company has adopted policies to align the maturities and re-pricing terms of interest-earning assets and interest-bearing liabilities [260]. - The company utilizes brokered certificates of deposits and borrowings to manage funding needs, which may have fixed rates with varying maturities [262]. Employment - As of March 5, 2026, the company had 217 full-time employees and a total of 238 employees, with no unionized workforce [78]. Insurance and Ratings - The current maximum per depositor FDIC insurance amount is $250,000 [63]. - The Bank's CRA rating was "Satisfactory" as of its most recent regulatory examination [69]. - The FDIC applies a risk-based system for setting deposit insurance assessments based on capital levels and supervisory ratings [63]. Corporate Governance - The company has adopted a clawback policy consistent with Section 10D of the Securities Exchange Act of 1934, as mandated by the Dodd-Frank Act [41].

Company Overview - Citizens Community Bancorp, Inc. (CZWI) is headquartered in Eau Claire and operates in the Finance sector [3] - The stock has experienced a price change of 3.65% since the beginning of the year [3] Dividend Information - The company currently pays a dividend of $0.10 per share, resulting in a dividend yield of 2.27% [3] - This yield is lower than the Financial - Savings and Loan industry's yield of 2.63% and higher than the S&P 500's yield of 1.38% [3] - The annualized dividend of $0.42 represents a 16.7% increase from the previous year [4] - Over the past 5 years, CZWI has increased its dividend 5 times, averaging an annual increase of 11.77% [4] - The current payout ratio is 25%, indicating that the company pays out 25% of its trailing 12-month EPS as dividends [4] Earnings Growth Expectations - For the fiscal year, CZWI anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 at $1.75 per share, reflecting a year-over-year growth rate of 19.86% [5] Investment Considerations - High-growth firms or tech start-ups typically do not offer dividends, while established companies with secure profits are preferred for dividend investments [6] - CZWI is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6]

Core Insights - Citizens Community Bancorp, Inc. (CZWI) reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and showing an increase from $0.27 per share a year ago, resulting in an earnings surprise of +18.92% [1] - The company achieved revenues of $15.76 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.01% and up from $13.72 million year-over-year [2] - The stock has gained approximately 2.1% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $16 million, and for the current fiscal year, it is $1.75 on revenues of $68.2 million [7] - The estimate revisions trend for Citizens Community Bancorp was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Savings and Loan industry, to which Citizens Community Bancorp belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Earnings Performance - Fourth quarter 2025 earnings were $4.3 million, or $0.44 per diluted share, up from $3.7 million, or $0.37 per diluted share in Q3 2025, and $2.7 million, or $0.27 per diluted share in Q4 2024[5] - For the twelve months ended December 31, 2025, earnings totaled $14.4 million, or $1.46 per diluted share, compared to $13.8 million, or $1.34 per diluted share for the prior year[5] - Net income attributable to common stockholders for the twelve months ended December 31, 2025, was $14,420 thousand, up from $13,751 thousand in 2024, reflecting a growth of 4.9%[37] - Basic earnings per share for the three months ended December 31, 2025, were $0.44, compared to $0.27 for the same period in 2024, an increase of 62.9%[37] Asset and Deposit Growth - Total assets increased by $54.8 million to $1.782 billion at December 31, 2025[6] - Total deposits increased by $43.5 million to $1.524 billion, driven by retail consumer deposits growth of $33.9 million and seasonal public deposits growth of $12.1 million[11] - Total deposits reached $1.524 billion as of December 31, 2025, up from $1.481 billion on September 30, 2025, reflecting a growth of 2.9%[17] - Consumer deposits accounted for 58% of the total deposit portfolio, with a balance of $889.1 million as of December 31, 2025[17] - Cash and cash equivalents increased to $118,853 thousand as of December 31, 2025, from $82,431 thousand as of September 30, 2025, a growth of 43.9%[35] Loan Performance - Loan growth of $17.3 million, or 1.3%, and deposit growth of $43.5 million, or 2.9%, were reported in Q4 2025 compared to Q3 2025[3] - Loans receivable, net, stood at $1,317,924 thousand as of December 31, 2025, compared to $1,300,828 thousand as of September 30, 2025, indicating a growth of 1.6%[35] - Total loans receivable as of December 31, 2025, amounted to $1,340,325, showing a slight increase from $1,323,010 in the previous quarter[38] - Nonperforming loans (NPLs) to total loans ratio was 1.18% as of December 31, 2025, compared to 1.19% in the prior quarter[38] - Total nonperforming assets (NPAs) reached $16,711 as of December 31, 2025, up from $16,661 in the previous quarter[38] Interest Income and Margin - The net interest margin decreased by 5 basis points to 3.15% in Q4 2025, but increased by 36 basis points from Q4 2024[5] - Net interest income decreased slightly to $13.1 million for the quarter ended December 31, 2025, compared to $13.2 million for the previous quarter, but increased from $11.7 million year-over-year[21] - Net interest income for the quarter ended December 31, 2025, was $13,065, with a net interest margin of 3.15%[39] - Average interest-earning assets for the quarter ended December 31, 2025, were $1,644,729, generating interest income of $21,771, resulting in a yield of 5.25%[39] - The average interest rate spread for the quarter ended December 31, 2025, was 2.56%[39] Expenses and Efficiency - Non-interest income decreased by $0.3 million to $2.7 million in the fourth quarter of 2025, primarily due to lower gains on the sale of loans[23] - Non-interest expense decreased to $10.7 million in the fourth quarter of 2025, down from $11.1 million in the previous quarter[24] - Efficiency ratio improved to 68% for the twelve months ended December 31, 2025, compared to 72% in the previous year[45] Capital and Dividends - The Board approved a quarterly dividend of $0.105 per share, intended to replace the previous annual dividend structure[11] - Tangible book value per share at the end of the period was $16.23, up from $15.71 at the end of the previous quarter, an increase of 3.3%[37] - Total stockholders' equity was $187,939,000 as of December 31, 2025, compared to $186,815,000 in the previous quarter and $179,084,000 a year ago[48] - Tangible common equity (non-GAAP) was $156,046,000 as of December 31, 2025, compared to $154,809,000 in the previous quarter and $146,607,000 a year ago[44] Share Repurchase - The company repurchased approximately 250,000 shares at an average price of $15.99 per share during the quarter[20] - The company has approximately 113,000 shares remaining for repurchase under the current buyback authorization plan as of December 31, 2025[20] Tax and Provisions - The effective tax rate decreased to 12.6% in Q4 2025 from 18.8% in Q3 2025[5] - The provision for credit losses was $0.20 million in Q4 2025, down from $0.65 million in Q3 2025, and a negative provision of $0.45 million in Q4 2024[5] - The allowance for credit losses on loans was $22.4 million, representing 1.67% of total loans[11] - The allowance for credit losses was $22,401 thousand as of December 31, 2025, compared to $22,182 thousand as of September 30, 2025, reflecting a slight increase of 1.0%[35]

2025 Fourth Quarter Results Cautionary Notes and Additional Disclosures Earnings Release Presentation DATES AND PERIODS PRESENTED Unless otherwise noted, "20YY" refers to either the corresponding fiscal year-end date or the corresponding 12-months (i.e., fiscal year) then ended. "MMM-YY" refers to either the corresponding quarter-end date, or the corresponding three-month period then ended. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This presentation may contain certain forward-looking statements ...

Core Viewpoint - Citizens Community Bancorp, Inc. reported improved earnings for the fourth quarter of 2025, with a net income of $4.3 million and earnings per diluted share of $0.44, reflecting growth compared to previous quarters and the same quarter last year [1][5]. Financial Performance - The fourth quarter of 2025 saw earnings of $4.3 million, up from $3.7 million in Q3 2025 and $2.7 million in Q4 2024. For the full year, earnings reached $14.4 million, compared to $13.8 million in the previous year [1][5]. - Net interest income decreased slightly by $0.1 million to $13.1 million in Q4 2025, but increased from $11.7 million in Q4 2024. The net interest margin decreased by 5 basis points to 3.15% compared to Q3 2025, but increased by 36 basis points from Q4 2024 [5][21]. Balance Sheet and Asset Quality - Total assets increased by $54.8 million to $1.782 billion as of December 31, 2025. Loans receivable rose by $17.3 million to $1.340 billion, driven by growth in multi-family and commercial loans [6][10]. - The allowance for credit losses on loans was $22.4 million, representing 1.67% of total loans, with a provision for credit losses of $0.20 million in Q4 2025, down from $0.65 million in Q3 2025 [12][15]. Shareholder Value and Capital Management - The company repurchased approximately 250,000 shares at an average price of $15.99 per share during Q4 2025, with about 113,000 shares remaining under the current buyback authorization [20][4]. - A quarterly dividend of $0.105 per share was declared, intended to replace the previous annual dividend structure [4][6]. Deposit Growth - Total deposits increased by $43.5 million to $1.524 billion, primarily due to growth in retail consumer deposits and seasonal public deposits [6][17]. - The deposit portfolio composition remained stable, with 58% in consumer deposits, 28% in commercial deposits, 12% in public deposits, and 2% in wholesale deposits [17][18].

Core Insights - The Zacks Savings and Loan industry is benefiting from an improving lending environment due to recent Federal Reserve rate cuts, which are expected to stabilize funding costs and enhance net interest income (NII) and net interest margin (NIM) [1][4]. Industry Overview - The Zacks Savings and Loan industry comprises specialized U.S. banks focused on residential mortgage finance, offering various loan products and funding mortgages with FDIC-insured savings [3]. - The industry has seen a shift in regulations, allowing institutions to invest more flexibly, which can enhance their lending capabilities [3]. Trends and Developments - Lower interest rates are anticipated to boost loan demand, with the Federal Reserve cutting rates by 50 basis points this year and a further 100 basis points expected in 2024 [4]. - Recent declines in mortgage rates are improving purchase originations and refinancing activities, which is likely to increase borrower confidence [5]. - The industry is undergoing digital transformation to enhance operational efficiency and competitiveness, despite initial cost increases [6][7]. Asset Quality and Performance - Declining interest rates are helping borrowers maintain timely payments, potentially reducing the need for large reserves against defaults [7]. - However, a slight increase in non-performing loans is expected, with some credit quality metrics remaining elevated compared to pre-pandemic levels [8]. Market Position and Valuation - The Zacks Savings and Loan industry ranks 96 among over 243 Zacks industries, placing it in the top 40% and indicating solid near-term prospects [9][10]. - The industry's current-year earnings estimate has increased by 43.2% over the past year, reflecting growing analyst confidence [11]. - The industry has underperformed the broader Zacks Finance sector and the S&P 500, with a collective decline of 12.2% over the past year [13]. Valuation Metrics - The industry has a trailing 12-month price-to-tangible book (P/TB) ratio of 1.97X, below the five-year median of 2.13X, indicating a discount compared to the broader market [17][19]. - The Zacks Finance sector's P/TB ratio stands at 5.93X, further highlighting the relative valuation attractiveness of the savings and loan industry [19]. Company Highlights - **Northpointe Bancshares Inc. (NPB)**: Focused on mortgage lending, with a 6.8% sequential growth in gross loans in Q3 2025. The bank's total deposits increased by $295.6 million, indicating strong funding stability [20][21][22]. NPB has a Zacks Rank 2 (Buy) with earnings estimates indicating growth of 19.7% and 24.4% for 2025 and 2026, respectively [24]. - **West Bancorporation (WTBA)**: A community bank emphasizing stable funding sources and digital banking enhancements. Total loans increased by 1.4% in Q3 2025, with NII rising around 25% year-over-year [27][28]. WTBA holds a Zacks Rank 1 (Strong Buy) with earnings estimates showing increases of 43.7% and 17.7% for 2025 and 2026, respectively [30]. - **Citizens Community Bancorp, Inc. (CZWI)**: Focuses on organic growth and acquisitions, with a strategy to improve its loan portfolio and deposit mix. As of Q3 2025, non-performing assets were 0.96% of total assets, slightly up from the previous year [33][35]. CZWI has a Zacks Rank 2 with earnings estimates indicating growth of 2.2% and 26.8% for 2025 and 2026, respectively [36].

Interest Income and Margin - Net interest income for Q3 2025 was $13.2 million, an increase of $1.9 million compared to Q3 2024, primarily due to lower liability expenses and higher asset yields[212][232]. - The net interest margin for Q3 2025 increased to 3.20%, up from 2.63% in Q3 2024, driven by a decrease in liability costs and favorable impacts from loan payoffs[233]. - For the nine months ended September 30, 2025, net interest income rose to $38.1 million, a $3.3 million increase from the same period in 2024, attributed to lower liability costs and income from loan payoffs[234]. - For the three months ended September 30, 2025, net interest income was $13,214 thousand, compared to $11,285 thousand for the same period in 2024, reflecting an increase in the interest rate spread from 1.99% to 2.61%[238]. - The net interest margin for the nine-month period ended September 30, 2025, increased to 3.11%, up from 2.71% for the same period in 2024, primarily due to a decrease in liability costs of 33 basis points and favorable impacts from loan payoffs[235][241]. - The company reported a net interest income increase of $3,353 thousand for the nine months ended September 30, 2025, compared to the same period in 2024, driven by favorable rate changes[247]. Credit Loss Provision - The total provision for credit losses for Q3 2025 was $0.650 million, compared to a negative provision of $0.400 million in Q3 2024, reflecting changes in credit quality and delinquent loans[213]. - For the nine months ended September 30, 2025, the provision for credit losses was $1.750 million, a significant increase from a negative provision of $2.725 million in the same period in 2024[217]. - The provision for credit losses is determined based on estimated lifetime losses in the loan portfolio, using a third-party model to evaluate and estimate the Allowance for Credit Losses[249]. - For the nine months ended September 30, 2025, the total provision for credit losses was $1.750 million, compared to a negative provision of $2.725 million for the same period in 2024, driven by higher reserves on impaired loans and increased delinquencies[251]. Non-Interest Income and Expense - Non-interest income for Q3 2025 increased by $0.1 million, mainly due to higher gains on loan sales[214]. - Non-interest expense for Q3 2025 rose to $11.1 million, an increase of $0.7 million from Q3 2024, primarily due to higher compensation expenses[214]. - Non-interest income for Q3 2025 increased by 3.46% to $3.022 million compared to Q3 2024, while for the nine months ended September 30, 2025, it rose by 4.36% to $8.451 million[257]. - The gain on sale of loans increased by 31.91% in Q3 2025 compared to Q3 2024, with a 60% increase in SBA loan sales contributing significantly[259]. - Total non-interest expense for Q3 2025 was $11.051 million, a 6.05% increase from $10.421 million in Q3 2024, primarily due to higher compensation and related benefits[263]. Income and Earnings - The company reported net income of $3.7 million for Q3 2025, compared to $3.3 million for Q3 2024, with diluted earnings per share increasing to $0.37 from $0.32[224]. - For the nine months ended September 30, 2025, net income was $10.1 million, down from $11.0 million in the same period in 2024, with diluted earnings per share decreasing to $1.02 from $1.07[224]. Loans and Loan Portfolio - As of September 30, 2025, total loans outstanding decreased by $0.05 billion to $1.32 billion from $1.37 billion at December 31, 2024[274]. - The composition of the loan portfolio shows that commercial real estate loans accounted for $683.9 million (51.7%) as of September 30, 2025, compared to $709.0 million (51.8%) at December 31, 2024[274]. - The total outstanding loan balance in the commercial real estate (CRE) portfolio is $1,008 million, with a weighted average loan-to-value (LTV) ratio of 52% for non-owner occupied CRE and 51% for owner-occupied CRE[276]. - The average loan size for non-owner occupied commercial real estate loans was $0.6 million with a weighted average loan-to-value (LTV) ratio of 52% as of September 30, 2025[275]. - Criticized loans in the commercial real estate portfolio amounted to $5.8 million, representing 1.3% of total non-owner occupied loans as of September 30, 2025[275]. - The average outstanding loan balance was $1,342,635 thousand for the three months ended September 30, 2025[283]. - Total loans at the end of the period decreased to $1,323,010 thousand as of September 30, 2025, from $1,368,981 thousand at December 31, 2024, representing a decline of approximately 3.9%[286]. Deposits - The total deposits for the nine months ended September 30, 2025, were $1,243,294 thousand, with an interest expense of $25,104 thousand, compared to $1,272,173 thousand and $28,712 thousand in 2024[241]. - Total deposits decreased by $7.6 million to $1,480,554 thousand during the nine months ended September 30, 2025, largely due to a reduction in brokered deposits[296]. - The composition of the deposit portfolio as of September 30, 2025, was 58% consumer, 28% commercial, 12% public, and 2% wholesale deposits[296]. - Uninsured deposits accounted for 28% of total deposits at September 30, 2025, amounting to $421.5 million, compared to 29% at December 31, 2024[298]. Capital and Liquidity - Stockholders' equity increased to $186.8 million at September 30, 2025, from $179.1 million at December 31, 2024, driven by net income of $10.1 million and a decrease in net unrealized losses of $3.2 million[310]. - The liquidity ratio increased by 1.69% to 13.44% at September 30, 2025, compared to December 31, 2024[312]. - On-balance sheet liquidity, collateralized new borrowing capacity, and uncommitted federal funds borrowing availability was $741 million, or 267% of uninsured and uncollateralized deposits at September 30, 2025[315]. - The Company had approximately $191.5 million in unused loan commitments as of September 30, 2025, compared to $137.0 million at December 31, 2024[320]. - The Bank's available and unused portion under the FHLB borrowing arrangement was approximately $414.4 million as of September 30, 2025, compared to $424.7 million as of December 31, 2024[301]. Risk Management - The ALCO is responsible for managing interest rate risk and meets regularly to review economic conditions and interest rate outlook[325]. - The estimated change in Economic Value of Equity (EVE) for a +300 basis points shift in interest rates at September 30, 2025, was an increase of 6%[329]. - The projected change in net interest income for a +300 basis points shift in interest rates at September 30, 2025, was a decrease of 4%[331].

Group 1: Earnings Performance - Citizens Community Bancorp reported quarterly earnings of $0.37 per share, matching the Zacks Consensus Estimate, and an increase from $0.32 per share a year ago [1] - The company posted revenues of $16.24 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 5.43% and up from $14.21 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [1][2] Group 2: Stock Performance and Outlook - Citizens Community Bancorp shares have declined approximately 2.3% since the beginning of the year, while the S&P 500 has gained 15.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $15.7 million, and for the current fiscal year, it is $1.38 on revenues of $61.3 million [7] - The estimate revisions trend for Citizens Community Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Financial - Savings and Loan industry, to which Citizens Community Bancorp belongs, is currently in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]