Net Interest Income and Margin - Net interest income for Q3 2022 was $14.5 million, up from $13.7 million in Q3 2021, representing a 5.8% increase[241] - For the nine months ended September 30, 2022, net interest income was $41.9 million, compared to $39.3 million for the same period in 2021, reflecting a 6.6% increase[241] - The net interest margin for Q3 2022 was 3.43%, an increase from 3.34% in Q3 2021, driven by higher loan and investment yields[242] - The net interest margin for the nine months ended September 30, 2022, was 3.38%, compared to 3.29% for the same period in 2021, indicating a 2.7% increase[243] - The interest rate spread for the nine months ended September 30, 2022, was 3.21%, compared to 3.13% for the same period in 2021, indicating a slight improvement[250] - The net interest margin for the nine months ended September 30, 2022, was 3.38%, compared to 3.29% for the same period in 2021, showing an improvement in profitability[250] Loan Loss Allowance and Provision - The allowance for loan losses is based on ongoing assessments of estimated probable incurred losses in the loan portfolio[228] - The company emphasizes refining its allowance for loan losses methodology, focusing on historical performance adjusted for economic factors[229] - Total provision for loan losses for the three and nine months ended September 30, 2022, was $0.4 million and $0.8 million, respectively, compared to no provision in the same periods of 2021[259] - The allowance for loan losses was $17.4 million as of September 30, 2022, compared to $16.9 million at December 31, 2021[286] - The allowance for loan losses increased by $0.3 million to $17.2 million at September 30, 2022, representing 1.25% of loans receivable[291] - The allowance for loan losses to net charge-offs ratio was 2,734.05% for the current period, compared to 13,010.00% for the previous period[298] Nonperforming Loans and Assets - Nonperforming loans totaled $11,020 as of September 30, 2022, compared to $11,825 at December 31, 2021, indicating a decrease in nonperforming loans[298] - The total nonperforming assets decreased to $12,604 at September 30, 2022, from $13,233 at December 31, 2021[298] - The ratio of nonperforming loans to total loans was 0.80% at September 30, 2022, down from 0.90% at December 31, 2021[294] - The company recorded net loans charged off of $471,000 for the period, compared to $130,000 for the previous period[298] - Nonperforming loans decreased by $0.8 million to $11.0 million at September 30, 2022, from $13.2 million at December 31, 2021, representing a decline from 0.76% to 0.71% of total assets[304] Deposits and Funding - Total deposits for the three months ended September 30, 2022, amounted to $1,143,557 thousand, with an interest expense of $1,681 thousand, resulting in an average cost of 0.58%[247] - Total deposits increased by $46.8 million to $1.43 billion at September 30, 2022, compared to $1.39 billion at December 31, 2021[319] - Non-interest bearing demand deposits increased to $285.7 million at September 30, 2022, from $276.6 million at December 31, 2021[320] - Federal Home Loan Bank (FHLB) advances decreased by $9.0 million to $102.5 million as of September 30, 2022, compared to $111.5 million as of December 31, 2021[331] - The Bank's available and unused portion under the FHLB borrowing arrangement was approximately $278.0 million as of September 30, 2022, up from $204.2 million at December 31, 2021[339] Financial Condition and Equity - The total assets at the end of the period were $1,780,202, an increase from $1,739,628 at the end of the previous period[298] - Total stockholders' equity was $163.3 million at September 30, 2022, down from $170.9 million at December 31, 2021, primarily due to a $17.4 million decrease in accumulated other comprehensive (loss) income[334] - The Bank repurchased approximately 71 thousand shares of common stock, reducing equity by $1.0 million, as part of the share repurchase program initiated in July 2021[335] Capital Ratios and Compliance - The Bank's Tier 1 and Risk-based capital levels exceeded the necessary levels to be considered "Well Capitalized" under Prompt Corrective Action provisions as of September 30, 2022[344] - As of September 30, 2022, the total capital to risk-weighted assets ratio was 14.4%, with total capital amounting to $219,988 million[345] - The Tier 1 capital to risk-weighted assets ratio was 13.3%, with Tier 1 capital at $202,771 million as of September 30, 2022[345] - The common equity Tier 1 capital to risk-weighted assets ratio was also 13.3%, with common equity Tier 1 capital at $202,771 million[345] - The Tier 1 leverage ratio stood at 11.6%, with adjusted total assets of $202,771 million as of September 30, 2022[345] Economic Value and Interest Rate Risk - The estimated change in Economic Value of Equity (EVE) at September 30, 2022, showed a 0% change for a +300 basis points rate shock[352] - For a -200 basis points rate shock, the percent change in net interest income over one year at September 30, 2022, was -4%[354] - The Asset and Liability Management Committee (ALCO) regularly reviews economic conditions and interest rate outlook to manage interest rate risk exposure limits[349]
Citizens munity Bancorp(CZWI) - 2022 Q3 - Quarterly Report