Citizens Community Bancorp, Inc. Reports Second Quarter 2025 Earnings of $0.33 Per Share; Board of Directors Authorize 5% Stock Buyback Authorization

Core Viewpoint - Citizens Community Bancorp, Inc. reported a solid performance in Q2 2025 with earnings of $3.3 million, reflecting a slight increase from the previous quarter but a decrease compared to the same quarter last year. The company experienced improvements in net interest income and tangible book value, although provisions for credit losses increased significantly due to rising delinquencies and changes in macroeconomic assumptions. Financial Performance - Earnings for Q2 2025 were $3.3 million, or $0.33 per diluted share, compared to $3.2 million and $0.32 per diluted share in Q1 2025, and $3.7 million and $0.35 per diluted share in Q2 2024 [1][5] - For the first half of 2025, earnings totaled $6.5 million, down from $7.8 million in the same period last year [5] - Net interest income increased by $1.7 million to $13.3 million in Q2 2025, driven by interest income from loan payoffs and lower deposit costs [2][24] Balance Sheet and Asset Quality - Book value per share improved to $18.36 at June 30, 2025, from $18.02 at March 31, 2025, and $17.10 at June 30, 2024 [3] - The provision for credit losses was $1.35 million in Q2 2025, compared to a negative provision of $0.25 million in Q1 2025, largely due to a $9.3 million increase in delinquencies [2][8] - Nonperforming assets decreased by $1.5 million to $13.0 million at June 30, 2025, while special mention loans increased by $8.2 million to $23.2 million [17][19] Deposits and Liquidity - Total deposits decreased by $45.2 million to $1.48 billion during Q2 2025, reflecting seasonal shrinkage in public deposits and a decline in commercial deposits [9][19] - The on-balance sheet liquidity ratio was 12.17% of total assets at June 30, 2025, down from 14.38% at March 31, 2025 [10] Non-Interest Income and Expenses - Non-interest income increased by $0.2 million to $2.8 million in Q2 2025, primarily due to loan fees and gains on equity securities [6][31] - Non-interest expense rose by $0.3 million to $10.8 million, attributed to higher compensation costs [31] Efficiency and Capital Management - The efficiency ratio improved to 66% in Q2 2025 from 73% in Q1 2025, aided by recognized interest income from loan payoffs [9] - The Board of Directors authorized a new 5% common stock buyback program for 499,000 shares [23]