Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Q1 2025 Earnings Presentation
26 slides from Citizens Community Bancorp's earnings presentation, Apr 28, 2025
Slide 1: 2025 First Quarter Results Earnings Release Presentation
2025 First Quarter Results Earnings Release Presentation Exhibit 99.3
Slide 2: Cautionary Notes and Additional Disclosures
Cautionary Notes and Additional Disclosures 2 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 corresp
Slide 3: Investment Summary
Investment Summary Markets Earnings and TCE profile supports double digit percentage dividend growth and share buyback activity 3 Returns Asset Quality Growing markets with diverse industries mitigate volatility and support steady growth Sound underwriting practices and portfolio administration have
Slide 4: Performance Objectives
Performance Objectives Capital Management Strong Credit Culture Operating Leverage Culture Optimize balance sheet and earnings to support share buybacks and maintain TCE >8% to weather economic shocks Strength of credit culture demonstrated by prudent underwriting, disciplined loan administration, a
Slide 5: Operating Market Overview
Operating Market Overview 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 0 0 0 0 0 5
Slide 6: Franchise Expansion
$574 $733 $759 $1,177 $1,238 $1,311 $1,412 $1,461 $1,369 $1,353 $558 $743 $747 $1,196 $1,295 $1,388 $1,425 $1,519 $1,488 $1,524 $696 $941 $975 $1,531 $1,649 $1,740 $1,816 $1,851 $1,749 $1,780 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY Mar-25 Franchise Expansion CZWI has
Slide 7: Culture & Engagement
89.2% 82.3% 76.1% 87.1% 73.7% 86.5% 87.1% 84.0% 80.8% 89.6% 74.1% 87.4% 87.4% 84.2% 76.8% 84.9% 70.2% 90.9% 86.0% 82.9% 82.6% 87.0% 69.4% 87.8% 75% 0.0% 25.0% 50.0% 75.0% 100.0% Overall Role Team Supervisor Compensation Organization Colleague Engagement 2021 Favorable 2022 Favorable 2023 Favorable 2
Slide 8: Net Income and Diluted EPS
Net Income and Diluted EPS Source: S&P Global Market Intelligence, company filings 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 compar
Slide 9: Book Value, Tangible Book Value and Core Net Revenue Detail
Book Value, Tangible Book Value and Core Net Revenue Detail Source: S&P Global Market Intelligence, company filings 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 f
Slide 10: Return on Average Assets and Return on Average Tangible Common Equity
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
Slide 11: Efficiency Ratio, Net Interest Income and Net Interest Margin
Efficiency Ratio, Net Interest Income (NII) and Net Interest Margin (NIM) 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 r
Slide 12: Capital Ratios
Citizens Community Bancorp, Inc. Capital Ratios 12 6.6% 8.3% 7.7% 7.7% 7.9% 8.5% 8.9% 9.5% 9.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 LEVERAGE RATIO 8.9% 10.2% 9.1% 10.5% 9.7% 9.7% 10.3% 11.4% 11.3% 0.0% 4.0% 8.0% 12.0% Dec-17 Dec-18 Dec-19 Dec
Slide 13: Shares Repurchased and TCE as a Percent of Tangible Assets
CZWI Shares Repurchased and Tangible Common Equity (TCE) as a Percent of Tangible Assets (non-GAAP) 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 tangib
Slide 14: Asset Quality
Asset Quality 0.82% 0.89% 0.88% 1.38% 1.29% 1.27% 1.57% 1.50% 1.49% 0.00% 0.50% 1.00% 1.50% 2.00% ALLOWANCE FOR CREDIT LOSSES (ACL) - LOANS 1.49% 1.14% 1.41% 0.70% 0.76% 0.70% 0.83% 0.82% 0.82% 0.00% 0.50% 1.00% 1.50% 2.00% NON-PERFORMING ASSETS (NPA) / ASSETS 14 74% 81% 51% 150% 143% 157% 169% 154%
Slide 15: Loan Portfolio
CRE, C&I, Ag. Related, C&D 90% Residential & HELOC 9% Consumer 1% Loan Portfolio 09/30/2016 03/31/2025 CRE, C&I, Ag. Related, C&D 34% Residential & HELOC 33% Consumer 33% 15 ($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
Slide 16: Deposit Composition
Deposit Composition Focus has been on transforming the deposit composition to core deposits Deposit transformation and growth has been achieved through both acquisitions and organic initiatives 9/30/2016 03/31/2025 Source: S&P Global Market Intelligence, company filings Non Interest Bearing Dema
Slide 17: Branch Deposit Growth & Efficiency
$27,565 $30,653 $35,266 $40,904 $51,710 $55,501 $60,212 $61,425 $66,132 $71,270 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 20
Slide 18: Appendix
Appendix 18
Slide 19: Net Interest Margin Analysis
Net Interest Margin Analysis Source: S&P Global Market Intelligence, company filings 19 Quarter ended March 31, 2025 Quarter ended December 31, 2024 Quarter ended September 30, 2024 Quarter ended June 30, 2024 Interest Average Interest Average Interest Average Interest Average Average Income/ Yield/
Slide 20: Interest Rate Risk
Interest Rate Risk 20 (1) Assumes an immediate and parallel shift in the yield curve at all maturities. Note: The tables above may not be indicative of future results. Change in Interest Rates In Basis Points ("bp") Rate Shock in Rates (1) Percent Change Change in Interest Rates In Basis Points ("bp
Slide 21: Reconciliation of Non-GAAP Financial Measures
21 Reconciliation of Non-GAAP Financial Measures Reconciliation of GAAP Earnings and Core Earnings (non-GAAP): GAAP pre-tax earnings 3,822$ 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
Slide 22: Reconciliation Footnotes
(1) 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 $565,000 for the three months ended March 31, 2025, and years ended December 31, 2024, December 31, 2
Slide 23: Reconciliation of Non-GAAP Financial Measures
Note: All quarterly period ratios are annualized for net income / net income as adjusted. 23 Reconciliation of Non-GAAP Financial Measures 2017 2018 2019 2020 2021 2022 2023 2024 Mar-25 Net Income 2,499$ 4,283$ 9,463$ 12,725$ 21,266$ 17,761$ 13,059$ 13,751$ 3,197$ Net Income as adjusted 4,221$ 4,962
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Note: All quarterly period ratios are annualized for net income / net income as adjusted 24 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 amortizati
Slide 25: Market Demographics
Source: S&P Global Market Intelligence, eauclairedevelopment.com, greatermankato.com, Google Images, US Bureau of Labor Statistics Eau Claire MSA: Features a broad-based, diverse economy, which is driven by commercial, housing, retail and medical industries. Mankato MSA: The Mankato market also
Slide 26: Leadership Team
Leadership Team 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 F
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