Citizens Community Bancorp, Inc. (CZWI) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +18.92%. A quarter ago, it was expected that this company would post earnings of $0.37 per share when it actually produced earnings of $0.37, delivering no surprise.Over the last four quarters, the ...

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 ...

EAU CLAIRE, Wis., Jan. 26, 2026 (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 $4.3 million and earnings per diluted share of $0.44 for the fourth quarter ended December 31, 2025, compared to $3.7 million and earnings per diluted share of $0.37 for the third quarter ended September 30, 2025, and $2.7 million and $0.27 earnings per diluted share for the quarter end ...

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]

Financial Performance - The Company reported third quarter 2025 earnings of $3.7 million, or $0.37 per diluted share, an increase from $3.3 million, or $0.33 per diluted share in the second quarter of 2025[3]. - For the nine months ended September 30, 2025, earnings were $10.1 million, or $1.02 per diluted share, compared to $11.0 million, or $1.07 per diluted share for the same period in 2024[6]. - Net interest income decreased by $0.1 million to $13.2 million for the third quarter of 2025, compared to $13.3 million in the previous quarter, but increased from $11.3 million in the same quarter of 2024[6]. - Non-interest income increased by $0.2 million to $3.0 million in the third quarter of 2025, driven by higher gains on loan sales[6]. - Net income attributable to common stockholders for the three months ended September 30, 2025, was $3,682 million, an increase of 12.6% from $3,270 million in the previous quarter[39]. - Basic earnings per share for the three months ended September 30, 2025, were $0.37, up from $0.33 in the previous quarter, reflecting a growth of 12.1%[39]. - Net interest income for the nine months ended September 30, 2025, was $38,119,000, compared to $34,766,000 for the same period last year, reflecting a year-over-year increase of 9.5%[47]. Asset and Liability Management - Total assets decreased by $8.2 million to $1.727 billion at September 30, 2025[7]. - The Company reported a decrease in total liabilities to $1,540.172 million as of September 30, 2025, from $1,551.702 million in the previous quarter[37]. - Total loans receivable decreased to $1,323,010 million as of September 30, 2025, from $1,345,620 million in the previous quarter, a decline of 1.7%[40]. - Loans receivable net amounted to $1,300.828 million as of September 30, 2025, compared to $1,324.273 million in the previous quarter[37]. - Total deposits increased slightly to $1,480,554,000 at September 30, 2025, from $1,478,416,000 at June 30, 2025, with consumer deposits comprising 58% of the total[19]. Credit Quality - The provision for credit losses was $0.65 million for the third quarter of 2025, down from $1.35 million in the previous quarter and a negative provision of $0.4 million in the same quarter of 2024[6]. - The allowance for credit losses on loans increased to $22.2 million, representing 1.68% of total loans receivable, compared to 1.59% at June 30, 2025[13]. - Nonperforming assets increased by $3.7 million to $16.7 million at September 30, 2025, compared to $13.0 million at June 30, 2025, due to a $9 million multi-family loan placed on nonaccrual[17]. - Nonperforming loans (NPLs) at amortized cost increased to $15,751 million as of September 30, 2025, compared to $12,130 million in the previous quarter, representing a rise of 29.0%[40]. - The ratio of NPLs to total loans was 1.19% as of September 30, 2025, up from 0.90% in the previous quarter, indicating a deterioration in loan quality[40]. Operational Efficiency - The efficiency ratio was 67% for the quarter ended September 30, 2025, compared to 66% in the previous quarter[12]. - Non-interest expense rose by $0.3 million to $11.1 million from the previous quarter, attributed to higher compensation and medical costs[28]. - Total non-interest expense increased to $11,051 million for the three months ended September 30, 2025, compared to $10,750 million in the previous quarter, an increase of 2.8%[39]. - The efficiency ratio improved to 67% for the three months ended September 30, 2025, down from 72% in the same period last year[43]. Capital Management - The company repurchased approximately 136,000 shares at an average price of $14.93 per share, with 363,000 shares remaining under the current buyback authorization[22]. - Retained earnings rose to $86.913 million as of September 30, 2025, compared to $83.709 million in the previous quarter[37]. - Total stockholders' equity rose to $186,815,000 as of September 30, 2025, from $183,462,000 in the previous quarter, marking an increase of 1.8%[49]. - Tangible book value per share increased to $15.71 as of September 30, 2025, up from $15.15 in the previous quarter, representing a growth of 3.7%[49]. Market and Economic Conditions - The company is focused on maintaining its market share and adapting to technological changes in the banking sector[32]. - Forward-looking statements indicate potential risks including economic conditions, interest rate risk, and competitive pressures[31].

Deposit & Liquidity - 81% of deposits are insured or collateralized, totaling $1.48 billion[11, 17] - The average account sizes are $16 thousand for retail, $66 thousand for commercial, and $406 thousand for public deposits[13] - The company has a diverse commercial deposit base with no industry concentration exceeding 10%[15] Loan Portfolio - Non-Owner Occupied CRE loan balance outstanding is $447 million as of September 30, 2025, with an approximate weighted average LTV of 52%[24] - Owner Occupied CRE loan balance outstanding is $237 million as of September 30, 2025, with an approximate weighted average LTV of 50%[30] - Multi-family loan balance outstanding is $237 million as of September 30, 2025, with an approximate weighted average LTV of 61%[36] - Commercial & Industrial loan balance is $102 million as of September 30, 2025[42] - Construction & Development loan balance outstanding is $75 million as of September 30, 2025, with an approximate weighted average LTV of 73%[49] Capital & Stock Repurchase - As of September 30, 2025, approximately 136 thousand shares were repurchased under the stock repurchase program, with 363 thousand shares remaining available for repurchase[102] Financial Performance - Basic earnings per share for the three months ended September 30, 2025, was $0.37[103]

Core Viewpoint - Citizens Community Bancorp, Inc. reported improved earnings for the third quarter of 2025, with net income of $3.7 million and earnings per diluted share of $0.37, reflecting growth compared to previous quarters and the same period last year [1][5]. Financial Performance - Earnings for the nine months ended September 30, 2025, were $10.1 million or $1.02 per diluted share, down from $11.0 million or $1.07 per diluted share in the prior year [5]. - The third quarter's net interest income decreased by $0.1 million to $13.2 million compared to the second quarter of 2025, but increased from $11.3 million in the same quarter of 2024 [5][25]. - Non-interest income rose by $0.2 million to $3.0 million in the third quarter of 2025, driven by higher gains on loan sales [8][29]. Balance Sheet and Asset Quality - Book value per share increased to $18.95 at September 30, 2025, from $18.36 at June 30, 2025, and $17.88 at September 30, 2024 [3]. - Total assets decreased by $8.2 million to $1.727 billion at September 30, 2025 [6]. - The allowance for credit losses on loans increased to $22.2 million, representing 1.68% of total loans receivable [12][13]. Capital and Liquidity - The tangible capital ratio exceeded 9.1%, with tangible book value increasing by 3.7% from the previous quarter [4]. - On-balance sheet liquidity ratio improved to 13.4% of total assets at September 30, 2025, compared to 12.2% at June 30, 2025 [7]. Loan and Deposit Trends - Loans receivable decreased by $22.6 million to $1.323 billion during the third quarter [10]. - Total deposits increased by $2.1 million to $1.48 billion, primarily due to growth in commercial deposits [19]. - Nonperforming assets rose by $3.7 million to $16.7 million, largely due to a multi-family loan moving to substandard status [17][18]. Shareholder Actions - The Company repurchased approximately 136 thousand shares at an average price of $14.93 per share during the quarter, with 363 thousand shares remaining under the buyback authorization [22].