Citizens Community Bancorp : Earnings Release Presentation – First Quarter 2025

Published: 2025-04-28 09:30:06 ET CZWI

Earnings Release Presentation

2025FirstQuarterResults

Growing markets with diverse industries mitigate volatility and support steady growth

Earnings and TCE profile supports double digit percentage dividend growth and share buyback activity

Sound underwriting practices and portfolio administration have produced strong credit performance

Capital Ratios Strong bank capital ratios and holding company TCE ratio of 8.5%

Board and Executive Management, including former chairperson, beneficially own 6% of outstanding shares

Optimize balance sheet and earnings to support share buybacks and maintain TCE >8% to weather economic shocks

Broad industry exposure in deposit and loan portfolios provides stability in earnings, capital and asset quality in various economic cycles

Strength of credit culture demonstrated by prudent underwriting, disciplined loan administration, and net charge offs averaging <5 bps since 2017

Management track record of holding expense growth below the rate of inflation by utilizing technology to reduce operating and occupancy costs and improve productivity

Accountability for executing business strategy that engages customers, colleagues, and our communities to generate strong results and increase franchise value

CZWI Operates in diverse markets within the northwestern region of Wisconsin, metro Twin Cities and the Mankato, Minnesota MSA

Source: S&P Global Market Intelligence 5

CZWI has transformed the Company from a consumer bank to a commercial bank to strengthen the earnings profile and franchise.

2 Central Bank branches February 2016 Deposits: $27mm Northwestern WI

October 2018

July 2019 Assets: $192mm Tomah, WI

$1,740

$1,816 $1,851

$1,749 $1,780

Assets: $269mm

$1,649

$1,425

$1,519

$1,488

$1,524

May 2016

Assets: $154mm

August 2017 Assets: $269mm Wells, MN

Osseo, WI

$1,531

$1,295

$1,196 $1,238

$1,177

$1,388

$1,311

$1,412

$1,461

$1,369

$1,353

Rice Lake, WI

$696

$733

$743

$941 $975

$759 $747

$574 $558

2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY Mar-25

Loans Receivable ▪ Total Deposits ▪ Total Assets

Source: S&P Global Market Intelligence, company filings 6

Participation Rate:

2021 2022 2023 2024

71.8% 91.4% 84.8% 95.1%

100.0%

87.4%

87.1%

84.2%

Colleague Engagement

84.9%

90.9%

87.4%

89.2%

86.0%

84.0%

76.8%

82.3%

82.9%

80.8%

89.6%

87.1%

70.2%

87.0%

82.6%

75.0%

76.1%

74.1% t

73.7%'

86.5%

69.4/

87.8%

50.0%

25.0%

0.0%

Overall

Role

Team

Supervisor Compensation Organization

2021 Favorable

2022 Favorable

2023 Favorable

2024 Favorable •••• • Excellent Target

Net Income

$25,000

$21,339

$21,266 $18,500

$20,000

$17,761

$13,883

$15,000

$12,425

$12,725

$10,675

$9,463

$13,321

$13,059

$13,751

$10,000

$2,499

$4,962

$4,283

$5,000

$4,221

$3,197

2017 2018 2019 2020 2021 2022 2023 2024 Mar-25

Net Income

Net Income as Adjusted

Annual vs. Quarterly

$2.00

Diluted EPS

$1.99

$1.98

$1.76

$1.69

$1.50

$1.14

$1.11

$1.28

$1.25

$1.34

$1.35

$1.00

$0.46

$0.78

$0.96

$0.85

$0.68

$0.58

$0.50

$0.32

$0.00

2017 2018 2019 2020 2021 2022 2023 2024 Mar-25

Diluted EPS

Annual vs. Quarterly

Diluted EPS Income as Adjusted

Net Income as Adjusted and Diluted EPS Income as Adjusted are non-GAAP financial measures, which management believes may be helpful in understanding the Company's results of operations or financial position and comparing results over

different periods. Reconciliation of Net Income and Diluted EPS Income as Adjusted to the comparable GAAP financial measure can be found in the appendix of this presentation. These measures should not be viewed as a substitute for operating

results determined in accordance with GAAP.

Source: S&P Global Market Intelligence, company filings 8

BOOK VALUE AND TANGIBLE BOOK VALUE PER SHARE

$20.00

$17.94

$18.02

$16.27

$16.03

$16.60

$15.00

$14.52

$14.69 $14.79

$13.36

$13.42

$12.48

$12.46

$12.90 $12.77

$11.05

$11.18

$10.00

$9.78

$9.89

$5.00

$0.00

2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY Mar-25

TANGIBLE BOOK VALUE PER SHARE

BOOK VALUE PER SHARE

CORE NET REVENUE DETAIL ($000)

NET INTEREST INCOME

NON-INTEREST INCOME

$69,491

NON-INTEREST EXPENSE

$70,000

$68,703

$66,799

$60,000

$58,488

$58,599

$56,581

$50,000

$40,000

$37,673

$30,000 $27,019

$20,000

$14,187

$10,000

2017 2018 2019 2020 2021 2022 2023 2024 2025

YTD

$10,463

$42,306

$40,142

$41,743

$40,532

$43,673

$42,686

$29,764

$22,878

Tangible book value per share is a non-GAAP measure which management believes may be helpful in assessing capital adequacy.

The reconciliation of Tangible book value per share can be found in the appendix of this presentation. These measures should not be viewed as substitutes for operating results determined in accordance with GAAP.

Source: S&P Global Market Intelligence, company filings 9

1.40%

ROAA

1.24%

1.23%

1.20%

1.04%

1.00%

0.80%

0.76% 0.78%

0.68%

0.73%

0.76%

0.71%

0.77%

0.74%

0.60%

0.34%

0.58%

0.52%

0.45%

0.40%

0.20%

0.00%

2017 2018 2019 2020 2021 2022 2023 2024 Mar-25

ROAA

ROAA INCOME AS ADJUSTED

ROATCE

20.0%

17.6%

14.9%

15.0%

14.4%

12.1%

11.2%

11.8%

10.0%

10.1%

10.5%

10.3%

10.1%

10.0%

9.3%

7.5%

6.0%

5.0%

4.5%

5.3%

0.0%

2017 2018 2019 2020 2021 2022 2023 2024 Mar-25

ROATCE

ROATCE INCOME AS ADJUSTED

Quarterly data is annualized for the quarterly 2025 information.

Return on average assets as adjusted, return on average tangible common equity (ROATCE) and ROATCE as adjusted are non-GAAP measures, which management believes may be helpful in understanding the underlying business performance trends related to average assets and average tangible equity. Reconciliations of ROAA as adjusted, ROTCE, and ROTCE as adjusted can be found in the appendix of this presentation. These measures should not be viewed as substitutes for operating results determined in accordance with GAAP.

Source: SEC filings and Company documents

EFFICIENCY RATIO

90%

85%

80%

75%

70%

65%

60%

55%

50%

45%

40%

84%

74%

77%

76%

71%

72% 73%

73%

68%

72%

66%

67%

62%

61%

57%

61%

59%

2017 2018 2019 2020 2021 2022 2023 2024 Mar-25

EFFICIENCY RATIO

EFFICIENCY RATIO AS ADJUSTED

$60,000

$50,000

NII AND NIM ($000)

$56,369

$53,667

$50,255

$48,349

$46,474

$43,513

6.00%

5.50%

$40,000

5.00%

$30,303

4.50%

$30,000

$20,000

$22,268

$20,077

4.00%

3.50%

3.27% 3.31%

3.42% 3.37% 3.40% 3.34% 3.39%

$11,594

$10,000

2.81% 2.73% 2.85%

3.00%

2.50%

2016 2017 2018 2019 2020

FY FY

2021 2022

FY FY

2023 2024 2025

YTD

NET INTEREST INCOME

NET INTEREST MARGIN

The efficiency ratio as adjusted is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to non-interest expense. A reconciliation of the efficiency ratio as adjusted to its comparable GAAP financial measure can be found in the appendix of this presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP.

TANGIBLE COMMON EQUITY / TANGIBLE ASSETS

10.0%

7.9%

8.5% 8.5%

8.0%

7.5%

7.7%

7.9%

7.5%

7.7%

6.3%

6.0%

4.0%

2.0%

0.0%

Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25

LEVERAGE RATIO

10.0%

9.5% 9.5%

8.3%

8.5%

8.9%

7.9%

8.0%

7.7% 7.7%

6.6%

6.0%

4.0%

2.0%

0.0%

Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25

COMMON EQUITY TIER 1 RATIO

12.0%

11.4%

11.3%

10.2%

10.5%

10.3%

9.7%

8.9%

9.1%

8.0%

4.0%

0.0%

Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25

TOTAL CAPITAL RATIO

18.0%

16.1% 16.0%

15.0%

14.3%

14.0%

14.7%

12.0%

12.4%

13.1%

12.0%

11.2%

9.0%

6.0%

3.0%

0.0%

Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25

Tangible common equity/tangible assets is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to tangible assets and tangible common equity. A reconciliation of tangible common equity and tangible assets to its comparable financial measure can be found in the appendix of the presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP.

SHARES REPURCHASED AND TCE/TANGIBLE ASSETS

9.0%

700,000

8.5% 8.5%

7.9%

8.0%

7.7%

7.5%

7.7%

600,000

7.0%

500,000

6.0%

5.0%

400,000

4.0%

300,000

3.0%

253,431

200,000

2.0%

1.0%

100,000

0.0%

NONE

2025 YTD

2020 FY

2021 FY

2022 FY

2023 FY

2024 FY

TCE RATIO

SHARES REPURCHASED

41,646

128,923

476,099

620,197

2.00%

ALLOWANCE FOR CREDIT LOSSES (ACL) - LOANS

1.57%

1.50% 1.49%

1.50%

1.38%

1.29% 1.27%

1.00%

0.82%

0.89% 0.88%

0.50%

0.00%

NON-PERFORMING ASSETS (NPA) / ASSETS

2.00%

1.50%

1.49%

1.41%

1.14%

1.00%

0.70%

0.76%

0.83% 0.82% 0.82%

0.70%

0.50%

0.00%

0.10%

NET (RECOVERIES) CHARGE-OFFS/AVERAGE LOANS

0.08%

0.07%

0.08% 0.08%

0.06%

0.04%

0.03%

0.01%

0.02%

0.00%

-0.02%

-0.04%

0.01%

-0.03%

0.00%

ACL-LOANS / NON-PERFORMING LOANS (NPL)

300%

250%

200%

169%

150%

157%

154%

150%

143%

148%

100%

74%

81%

50%

51%

Quarterly data is annualized for the quarterly 2025 information.

09/30/2016 03/31/2025

Residential & HELOC 9%

Consumer

Consumer 33%

CRE, C&I, Ag.

Related, C&D 34%

Residential & HELOC 33%

CRE, C&I, Ag.

Related, C&D 90%

($000s)

Sep-16

Sep-17

Sep-18

Dec-19

Dec-20

Dec-21

Dec-22

Dec-23

Dec-24

Mar-25

Commercial Real Estate

$54,600

$109,024

$156,735

$420,383

$425,283

$610,214

$630,857

$653,437

$621,251

$623,621

Housing related CRE

$53,475

$77,166

$108,029

$181,084

$204,544

$266,600

$304,022

$325,189

$308,572

$324,226

Commercial & Industrial

$31,001

$55,251

$76,254

$133,734

$116,553

$122,167

$136,013

$121,666

$115,657

$109,620

Ag. Real Estate / Ag. Operating

$42,845

$91,875

$97,066

$123,143

$101,580

$110,083

$116,714

$109,041

$104,130

$100,381

Q1 2025

Construction & Development

$16,580

$19,708

$17,739

$86,410

$98,517

$79,520

$102,492

$110,941

$78,489

$58,461

5.53%

Residential mortgage and

Purchased HELOC loans

$187,738

$247,634

$209,781

$184,739

$137,646

$94,861

$108,651

$131,901

$135,297

$131,630

Yield

Indirect Consumer Installment

$168,294

$115,287

$78,245

$39,585

$25,851

$15,971

$10,236

$6,535

$3,970

$3,434

Consumer Installment

$19,715

$20,668

$18,844

$18,186

$13,213

$8,874

$7,150

$6,187

$5,012

$4,679

Gross Loans Ex SBA PPP Loans

$574,248

$736,613

$762,693

$1,187,264

$1,123,187

$1,308,290

$1,416,135

$1,464,897

$1,372,378

$1,356,052

SBA PPP Loans

$123,702

$8,755

Total Gross Loans

$574,248

$736,613

$762,693

$1,187,264

$1,246,889

$1,317,045

$1,416,135

$1,464,897

$1,372,378

$1,356,052

Focus has been on transforming the deposit

9/30/2016 03/31/2025

Non Interest Bearing Demand 8%

Non

composition to core deposits

Deposit transformation and growth has been achieved through both acquisitions and organic initiatives

CDs 49%

MMDA &

Savings 34%

Interest

Bearing Demand 9%

CDs 23%

MMDA &

Savings 35%

Interest Bearing Demand 17%

Interest Bearing Demand 25%

Deposit Composition - Quarter Lookback

($000) Sep-16 Sep-17 Sep-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25

Non-interest-bearing demand deposits

$45,408

$75,318

$87,495

$168,157

$238,348

$276,631

$284,726

$265,704

$252,656

$253,343

Interest-bearing demand deposits

$48,934

$147,912

$139,276

$223,102

$301,764

$396,231

$371,210

$343,276

$355,750

$386,302

Q1 2025

Savings accounts

$52,153

$102,756

$97,329

$156,599

$196,348

$222,674

$220,019

$176,548

$159,821

$167,614

Cost of Deposits

Money market accounts

$137,234

$125,749

$109,314

$246,430

$245,549

$288,985

$323,435

$374,055

$369,534

$370,741

2.33%

Certificate accounts

$273,948

$290,769

$313,115

$401,414

$313,247

$203,014

$225,334

$359,509

$350,387

$345,654

Total Deposits

$557,677

$742,504

$746,529

$1,195,702

$1,295,256

$1,387,535

$1,424,724

$1,519,092

$1,488,148

$1,523,654

Source: S&P Global Market Intelligence, company filings 16

TOTAL DEPOSITS, WHOLESALE, AND BRANCH DEPOSITS

($000)

$1,600,000 $1,527,489

$1,400,000

$1,519,092

$1,424,724

$1,387,535

$1,295,256

$1,195,702

$1,523,654 $100,000

$1,519,544

$90,000

$80,000

$1,200,000

$71,270 $70,000

$1,007,512

$66,132

$1,000,000

$61,425

$60,000

$60,212

$55,501

$800,000

$742,504

$50,000

$600,000

$557,677

$40,904

$35,266

$30,653

$40,000

$400,000

$27,565

$30,000

$20,000

$200,000

$10,000

FY FY FY FY FY FY FY FY

2016 2017 2018 2019 2020 2021 2022 2023

2024

Mar-25

Wholesale Deposits

Branch Deposits

Average Branch Deposits

$51,710

Significant increase in deposits per branch since FY2016

Organic growth and M&A

$27.6 million to $71.3 million

The number of branches has increased by one since 2016

17 branches purchased

2 branches opened

18 branches closed, consolidated or sold

Includes branch acquisitions and consolidations

White Numbers Indicate Branch Count

Source: S&P Global Market Intelligence, company filings 17

Quarter ended March 31, 2025 Quarter ended December 31, 2024 Quarter ended September 30, 2024 Quarter ended June 30, 2024

($ Dollars in Thousands)

Average Balance

Interest

Income/ Expense

Average

Yield/ Rate

Average Balance

Interest

Income/ Expense

Average

Yield/ Rate

Average Balance

Interest

Income/ Expense

Average

Yield/ Rate

Average Balance

Interest

Income/ Expense

Average

Yield/ Rate

Average interest earning assets:

Cash and cash equivalents

$ 47,835

$ 524

4.44%

$ 26,197

$ 327

4.97%

$ 25,187

$ 360

5.69%

$ 18,894

$ 272

5.79%

Loans receivable

1,363,352

18,602

5.53%

1,396,854

19,534

5.56%

1,429,928

20,115

5.60%

1,439,535

19,921

5.57%

Investment securities

228,514

1,808

3.21%

235,268

1,940

3.28%

236,960

1,966

3.30%

238,147

2,012

3.40%

Non-marketable equity securities, at cost

12,498 169

5.48%

12,318 160

5.17%

12,553 71

2.25%

13,051 258

7.95%

Total interest earning assets

$ 1,652,199 $ 21,103

5.18%

$ 1,670,637 $ 21,961

5.23%

$ 1,704,628 $ 22,512

5.25%

$ 1,709,627 $ 22,463

5.28%

Average interest-bearing liabilities:

Total deposits

$ 1,258,635 $ 8,597

2.77%

$ 1,234,565 $ 9,273

2.99%

$ 1,289,069 $ 10,165

3.14%

$ 1,258,778 $ 9,338

2.98%

FHLB Advances & Other Borrowings

64,635 912

5.72%

72,431 980

5.38%

80,338 1,062

5.26%

121,967 1,549

5.11%

Total interest bearing liabilities

$ 1,323,270 $ 9,509

2.91%

$ 1,306,996

$ 10,253

3.12%

$ 1,369,407

$ 11,227

3.26%

$ 1,380,745

$ 10,887

3.17%

Net interest income

$ 11,594

$ 11,708

$ 11,285

$ 11,576

Interest Rate Spread

2.27%

2.11%

1.99%

2.11%

Net interest margin

2.85%

2.79%

2.63%

2.72%

Source: S&P Global Market Intelligence, company filings

Economic Value of Equity (EVE)

March 31, 2025 Change in Interest Rates In

Basis Points ("bp") Percent Change

Rate Shock in Rates (1)

December 31, 2024 Change in Interest Rates In

Basis Points ("bp") Percent Change

Rate Shock in Rates (1)

+300 bp

+200 bp

+100 bp

-100 bp

-1%

-100 bp

-1%

-200 bp

-4%

-200 bp

-4%

Net Interest Income Over One Year Horizon

March 31, 2025 Change in Interest Rates In

Basis Points ("bp") Percent Change

Rate Shock in Rates (1)

December 31, 2024 Change in Interest Rates In

Basis Points ("bp") Percent Change

Rate Shock in Rates (1)

+300 bp

-8%

+300 bp

-8%

+200 bp

-5%

+200 bp

-5%

+100 bp

-2%

+100 bp

-3%

-100 bp

-200 bp

(1) Assumes an immediate and parallel shift in the yield curve at all maturities.

Note: The tables above may not be indicative of future results.

Reconciliation of GAAP Earnings and Core Earnings (non-GAAP):

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

Mar-25

GAAP pre-tax earnings

$ 3,822

$ 6,609

$ 12,277

$ 17,280

$ 28,959

$ 23,581

$ 18,932

$ 17,450

$ 3,974

Merger related costs (1)

$ 1,860

$ 463

$ 3,880

$ -

Branch closure costs (2)

$ 951

$ 26

$ 15

$ 165

$ -

$ 981

$ 380

$ 168

$ -

Settlement proceeds (3)

$ (283)

$ -

$ (131)

$ -

FHLB borrowings prepayment fee (4)

$ 104

$ -

$ 102

$ -

Audit and Financial Reporting (5)

$ -

$ 358

$ -

Net gain on sale of branch

$ -

$ (2,295)

$ -

Net gain on sale of acquired business lines (6)

$ -

$ (432)

$ -

Income before provision for income taxes as adjusted (7)

$ 6,454

$ 7,098

$ 14,235

$ 16,882

$ 29,061

$ 24,562

$ 19,312

$ 17,618

$ 3,974

Provision for income tax on pre-tax earnings as adjusted (8)

$ 2,233

$ 1,798

$ 3,260

$ 4,457

$ 7,722

$ 6,062

$ 5,991

$ 3,735

$ 777

Tax impact of certain acquired BOLI policies (9)

$ -

$ 300

$ -

Tax cuts and Jobs Act of 2017 (10)

$ -

$ 338

$ -

Total provision for income tax as adjusted

$ 2,233

$ 2,136

$ 3,560

$ 4,457

$ 7,722

$ 6,062

$ 5,991

$ 3,735

$ 777

Net income as adjusted (non-GAAP) (7)

$ 4,221

$ 4,962

$ 10,675

$ 12,425

$ 21,339

$ 18,500

$ 13,321

$ 13,883

$ 3,197

GAAP diluted earnings per share, net of tax

$ 0.46

$ 0.58

$ 0.85

$ 1.14

$ 1.98

$ 1.69

$ 1.25

$ 1.34

$ 0.32

Merger related costs, net of tax

$ 0.22

$ 0.06

$ 0.27

$ -

Branch related costs, net of tax

$ 0.12

$ -

$ 0.01

$ -

$ 0.07

$ 0.03

$ 0.01

$ -

Settlement proceeds

$ (0.03)

$ -

$ (0.01)

$ -

FHLB borrowings prepayment fee

$ 0.01

$ -

$ 0.01

$ -

Tax impact of certain acquired BOLI policies (9)

$ -

$ (0.03)

$ -

Tax Cuts and Jobs Act of 2017 tax provision (10)

$ -

$ 0.04

$ -

Audit and Financial Reporting, net of tax

$ -

$ 0.02

$ -

Net gain on sale of branch

$ -

$ (0.15)

$ -

Net gain on sale of acquired business lines

$ -

$ (0.03)

$ -

Diluted earnings per share, as adjusted, net of tax (non-GAAP)

$ 0.78

$ 0.68

$ 0.96

$ 1.11

$ 1.99

$ 1.76

$ 1.28

$ 1.35

$ 0.32

Average diluted shares outstanding

5,378,548

7,335,247

11,121,435

11,161,811

10,726,539

10,513,773

10,470,298

10,262,710

10,000,818

All costs incurred are presented as professional fees and other non-interest expense in the consolidated statement of operations and include costs $0, $0, $0,

$0, $0, $0, $341,000, $350,000, and $565,000 for the three months ended March 31, 2025, and years ended December 31, 2024, December 31, 2023, December 31, 2022, December 31, 2021, December 31, 2020, December 31, 2019, September 30, 2018, and September 30, 2017, respectively, which are nondeductible expenses for federal income tax purposes.

Branch closure costs include severance pay recorded in compensation and benefits, accelerated depreciation expense and lease termination fees included in occupancy and other costs included in other non-interest expense in the consolidated statement of operations. In addition, other non-interest expense includes costs related to the reduction in valuation of a closed branch office in the fourth quarter of fiscal 2017 and costs associated with three branch closures during the quarter ended December 31, 2020, one branch closure in the quarter ended September 30, 2022, two branch closures in the quarter ended December 31, 2022, and one branch office closure in the quarter ended December 31, 2023. Professional services includes legal costs related to the sale of the Michigan branch included in these Branch closure costs during the quarter ended March 31, 2019.

Settlement proceeds includes litigation income from a JP Morgan Residential Mortgage-Backed Security (RMBS) claim. This JP Morgan RMBS was previously owned by the Bank and sold in 2011.

The prepayment fee to restructure our FHLB borrowings is included in other non-interest expense in the consolidated statement of operations.

Audit and financial reporting costs include additional audit and professional fees related to the change in our year end from September 30 to December 31, effective December 31, 2018.

Net gain on sale of acquired business lines resulted from (1) the sale of Wells Insurance Agency and (2) the termination and sale of the wealth management business line sales contract acquired in a former acquisition.

Pretax net 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.

Provision for income tax on pre-tax income as adjusted is calculated at our effective tax rate for each respective period presented.

Tax impact of certain acquired BOLI policies from United Bank.

As a result of the Tax Cuts and Jobs Act of 2017, we recorded a one-time net tax provision of $338,000 in 2018, which is included in

provision for income taxes expense in the consolidated statement of operations. 22

Return on Average Assets (ROAA) as Adjusted

(In thousands except ROAA and ROAA as adjusted)

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

Net Income

$ 2,499

$ 4,283

$ 9,463

$ 12,725

$ 21,266

$ 17,761

$ 13,059

$ 13,751

$ 3,197

Net Income as adjusted

$ 4,221

$ 4,962

$ 10,675

$ 12,425

$ 21,339

$ 18,500

$ 13,321

$ 13,883

$ 3,197

Average assets

$ 731,407

$ 954,912

$ 1,398,482

$ 1,594,053

$ 1,722,483

$ 1,775,049

$ 1,836,337

$ 1,808,256

$ 1,763,191

Return on average assets

0.34%

0.45%

0.68%

0.80%

1.23%

1.00%

0.71%

0.76%

0.74%

Return on average assets as adjusted

0.58%

0.52%

0.76%

0.78%

1.24%

1.04%

0.73%

0.77%

0.74%

Return on Average Tangible Common Equity (ROATCE) as Adjusted

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

$ 73,483

$ 135,847

$ 150,553

$ 160,564

$ 170,866

$ 167,088

$ 173,334

$ 179,084

$ 180,051

(10,444)

(31,498)

(5,449)

(4,805)

(7,587)

(5,494)

(3,898)

(2,449)

(1,694)

(979)

(800)

$ 57,590 $ 120,598 $ 111,468 $ 123,572 $ 135,470 $ 133,141 $ 140,142 $ 146,607

$ 147,753

$ 58,300 $ 89,094 $ 105,340 $ 115,313 $ 127,793 $ 131,305 $ 132,409 $ 142,641

$ 146,083

$ 2,499 $ 4,283 $ 9,463 $ 12,725 $ 21,266 $ 17,761 $ 13,059 $ 13,751

$ 3,197

143 417 1,153 1,194 1,171 1,095 521 563

144

$ 2,642

$ 4,700

$ 10,616

$ 13,919

$ 22,437

$ 18,856

$ 13,580

$ 14,314

$ 3,341

$ 4,221

$ 4,962

$ 10,675

$ 12,425

$ 21,339

$ 18,500

$ 13,321

$ 13,883

$ 3,197

143

417

1,153

1,194

1,171

1,095

521

563

144

$ 4,364

$ 5,379

$ 11,828

$ 13,619

$ 22,510

$ 19,595

$ 13,842

$ 14,446

$ 3,341

4.5%

5.3%

10.1%

12.1%

17.6%

14.4%

10.3%

10.0%

9.3%

7.5%

6.0%

11.2%

11.8%

17.6%

14.9%

10.5%

10.1%

9.3%

(In thousands except ROATCE and ROATCE as adjusted)

Common Equity Less: Goodwill

Less: Core Deposit and other intangibles Tangible Common Equity (TCE)

Average Tangible Common Equity

Net Income

Intangible amortization, net of tax Tangible Net Income

Net Income as adjusted Intangible amortization, net of tax Tangible Net Income as adjusted

ROATCE

ROATCE as adjusted

Note: All quarterly period ratios are annualized for net income / net income as adjusted.

Efficiency Ratio as Adjusted

(In thousands except Efficiency Ratio and Efficiency Ratio as adjusted)

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

Non-interest Expense (GAAP)

$ 22,878

$ 29,764

$ 42,686

$ 43,673

$ 40,532

$ 41,743

$ 40,142

$ 42,306

$ 10,463

Less amortization of intangibles

(219)

(644)

(1,496)

(1,622)

(1,596)

(1,449)

(755)

(715)

(179)

Efficiency ratio numerator

22,659

29,120

41,190

42,051

38,936

40,294

39,387

41,591

10,284

Merger related costs

(1,860)

(463)

(3,880)

Branch Closure costs

(951)

(26)

(15)

(165)

(981)

(380)

(168)

Audit and financial reporting

(358)

Prepayment fee

(104) -

(102)

Efficiency ratio numerator as adjusted

$ 19,744

$ 28,631

$ 36,937

$ 41,886

$ 38,834

$ 39,313

$ 39,007

$ 41,423

$ 10,284

Non-interest income $ 4,751

$ 7,370

$ 14,975

$ 18,448

$ 15,824

$ 10,430

$ 10,250

$ 10,107

$ 2,593

Net interest margin 22,268

30,303

43,513

50,255

53,667

56,369

48,349

46,474

11,594

Add back net losses on debt and equity securities

(17)

(856)

Subtract net gains on debt and equity securities 111

271

110

1,224

541

459

Efficiency ratio denominator (GAAP)

26,908

37,690

58,217

68,593

68,267

66,258

58,140

57,437

14,174

Net gain on sale of branch

(2,295)

Net gain on sale of acquired business l ines

(432)

Settlement proceeds

(283) -

(131)

Efficiency ratio denominator as adjusted

$ 26,625

$ 37,690

$ 55,922

$ 68,030

$ 68,267

$ 66,258

$ 58,140

$ 57,437

$ 14,174

Efficiency ratio

84%

77%

71%

61%

57%

61%

68%

72%

73%

Efficiency ratio as adjusted

74%

76%

66%

62%

57%

59%

67%

72%

73%

Tangible Book Value Per Share (TBVPS) as Adjusted

Shares outstanding

5,888,816

10,913,853

11,266,954

11,056,349

10,502,442

10,425,119

10,440,591

9,981,996

9,989,536

Book Value

$ 12.48

$ 12.45

$ 13.36

$ 14.52

$ 16.27

$ 16.03

$ 16.60

$ 17.94

$ 18.02

TBVPS

$ 9.78

$ 11.05

$ 9.89

$ 11.18

$ 12.90

$ 12.77

$ 13.42

$ 14.69

$ 14.79

(In thousands except Shares Outstanding, Book Value and TBVPS)

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

Total Stockholders' equity

$ 73,483

$ 135,847

$ 150,553 $

160,564 $

170,866 $

167,088 $

173,334 $

179,084

$ 180,081

Less: Goodwill

(10,444)

(31,498)

Less: Core deposit and intangibles

(5,449)

(4,805)

(7,587)

(5,494)

(3,898)

(2,449)

(1,694)

(979)

(800)

Tangible book value (non-GAAP)

$ 57,590

$ 120,598

$ 111,468 $

123,572 $

135,470 $

133,141 $

140,142 $

146,607

$ 147,783

Tangible Common Equity / Tangible Assets

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

$ 940,664

$ 975,409

$ 1,531,249

$ 1,649,095

$ 1,739,628

$ 1,816,367

$ 1,851,391

$ 1,748,519

$ 1,779,963

(10,444)

(31,498)

(5,449)

(4,805)

(7,587)

(5,494)

(3,898)

(2,449)

(1,694)

(979)

(800)

$ 924,771

$ 960,160

$ 1,492,164

$ 1,612,103

$ 1,704,232

$ 1,782,420

$ 1,818,199

$ 1,716,042

$ 1,747,665

7.8%

13.9%

9.8%

9.7%

9.8%

9.2%

9.4%

10.2%

10.1%

6.2%

12.6%

7.5%

7.7%

7.9%

7.5%

7.7%

8.5%

(In thousands except Tangible Common Equity / Tangible Asets)

Total Assets Less: Goodwill

Less: Core deposit and intangibles Tangible Assets (non-GAAP)

Total Stockhoders' Equity/Total Assets Tangible Common Equity / Tangible Assets

Note: All quarterly period ratios are annualized for net income / net income as adjusted 24

6.0%

MSA Unemployment Rates

5.3%

4.0% 3.6%

3.1%

3.9%

3.2%

3.7%

3.1%

4.1% 3.7%

3.6%

3.1%

3.9%

3.2%

2.5%

3.5%

2.8%

2.0%

0.0%

Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24 Feb-25

Eau Claire MSA

Mankato MSA

Features a broad-based, diverse economy, which is driven by commercial, housing, retail and medical industries.

The Mankato market also possesses a broad-based, diverse economy, which is driven by manufacturing, agribusiness, health care and education.

Source: S&P Global Market Intelligence, eauclairedevelopment.com, greatermankato.com, Google Images, US Bureau of Labor Statistics 25

Stephen M. Bianchi Chairman of the Board President & CEO

Mr. Stephen M. Bianchi, also known as Steve, has been the Chief Executive Officer and President of Citizens Community Bancorp, Inc. and Citizens Community Federal since June 24, 2016. He has been Chairman of Citizens Community Bancorp, Inc. since October 2018 and Citizens Community Federal National Association. As a banking veteran with 40 years of experience, Mr. Bianchi served in several senior management positions at Wells Fargo Bank and with Associated Bank. He served as the Chief Executive Officer at HF Financial Corp. from October 2011 and its President from April 2010 to May 2015. Mr. Bianchi served as the Chief Executive Officer and President of Home Federal Bank, a subsidiary of HF Financial Corp. from August 2012 to May 2015. He served as the Interim Chief Executive Officer and Interim President of HF Financial Corp. from October 2011 until July 2012. Mr. Bianchi served as Senior Vice President at Associated Bank, where he served as Minnesota Regional President and Minnesota Regional Commercial Banking Manager from July 2006 to April 2010. Before that, he served as Twin Cities Business Banking Manager for Wells Fargo Bank, where he held several other management positions over 14 years. He has been a Director of Citizens Community Bancorp, Inc. since May 25, 2017. He has been a Director of Citizens Community Federal since June 24, 2016. Mr. Bianchi received his B.S. degree in Finance and M.B.A. from Providence College.

James S. Broucek Executive VP, CFO Principal Accounting Officer, Treasurer

& Secretary

Mr. James S. Broucek, also known as Jim, has been Chief Financial Officer and Principal Accounting Officer at Citizens Community Bancorp, Inc and Citizens Community Federal since October 31, 2017. He serves as Executive Vice President, CFO, Treasurer, and Secretary of Citizens Community Bancorp, Inc. and of Citizens Community Federal National Association. He served as a Senior Manager of Wipfli LLP ("Wipfli") from December 2013 to October 2017. Before joining Wipfli, Mr. Broucek held several positions with TCF Financial Corporation ("TCF Financial") and its subsidiaries from 1995 to 2013, with his last position being Treasurer of TCF Financial. Prior to joining TCF Financial, Mr. Broucek served as the Controller of Great Lakes Bancorp. Mr. Broucek is a banking veteran with 40 years of experience. Mr. Broucek holds a B.A. in mathematics and business administration with a concentration in accounting from Hope College.

Disclaimer

Citizens Community Bancorp Inc. published this content on April 28, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 28, 2025 at 13:29 UTC.