Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Q1 2022 Earnings Presentation
28 slides from Citizens Community Bancorp's earnings presentation, Apr 25, 2022
Slide 1: 2022 First Quarter Results Investor Deck
2022 First Quarter Results First Quarter Investor Deck Exhibit 99.1
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 correspo
Slide 3: Investment Summary
Investment Summary Stable Markets Strong earnings and ROATCE profile with capacity and infrastructure to grow organically 3 Returns Asset Quality Diverse stable geographies and industries mitigate risk and enhance steady growth prospects Sound underwriting practices and portfolio administration have
Slide 4: 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% 0.0% 25.0% 50.0% 75.0% 100.0% Overall Role Team Supervisor Compensation Organization Colleague Engagement 2021 Favorable 2022 Favorable Excellent Target Favorable Target 75% 50% Values Our six main values are: integrity, commitm
Slide 5: Performance Objectives
Performance Objectives Increase Tangible Book and Shareholder Value Maintain Strong Asset Quality Metrics Increase Operating Leverage Sustainable Business Practices Targeted growth in TBV of 8-10% and achieve ROA and ROE in the upper half of its peer group Maintain NPAs, classifieds and NCOs at or b
Slide 6: 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 6
Slide 7: Recent Franchise Expansion
Recent Franchise Expansion CZWI has successfully transformed the Company from a consumer bank to a commercial bank, which has strengthened the earnings profile and franchise value through M&A and organic growth. Total Assets Loans Receivable Total Deposits Source: S&P Global Market Intelligence
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 better assessing capital adequacy. The reconciliation of Tangible book value per share c
Slide 10: Return on Average Assets and Return on Average Tangible Common Equity
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 better understanding the underlying business performance trends related to average assets and average tangible equity. Rec
Slide 11: Efficiency Ratio, Net Interest Income (NII) and Net Interest Margin (NIM)
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 better understanding the underlying business performance trends related to non-interest expense. A reconciliation of the effic
Slide 12: Capital Ratios
Capital Ratios Note: 2018 FY represents the completion of the 2018 offering of $65 million, but does not include the acquisition of United Bank Source: S&P Global Market Intelligence, company filings 12 6.6% 12.7% 7.7% 7.7% 7.9% 8.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 2017
Slide 13: Asset Quality
Asset Quality 0.82% 0.89% 0.88% 1.38% 1.29% 1.30%1.25% 1.11% 1.25% 1.55% 1.40% 1.44% 1.77% 1.43% 1.45% 0.00% 0.30% 0.60% 0.90% 1.20% 1.50% 1.80% 2.10% 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY Mar‐22 ALLOWANCE FOR LOAN LOSSES (ALLL) ALL AS A % OF TOTAL LOANS ALL ALLOCATED TO ORIGINATED LOANS AS A % OF
Slide 14: COVID-19 Related Loan Deferrals
COVID-19 Related Loan Deferrals Dollars in Thousands 14 COVID‐19 Deferrals Balance Number of Loans Commercial Deferrals Hotel Loans ‐$ ‐ Other Commercial Loans ‐ ‐ Total Commercial Deferrals ‐ ‐ Residential Deferrals 389 5 Consumer Deferrals ‐ ‐ Total Deferrals 389$ 5 March 31, 2022
Slide 15: Loan Portfolio
CRE, C&I, Ag. Related, C&D 91% Residential & HELOC 7% Consumer 2% Loan Portfolio 9/30/2016 3/31/22 CRE, C&I, Ag. Related, C&D 34% Residential & HELOC 33% Consumer 33% ($000s) Sep‐16 Sep‐17 Sep‐18 Dec‐19 Dec‐20 Dec‐21 Mar‐22 Commercial Real Estate $54,600 $109,024 $156,735 $420,383 $425,283 $610,214
Slide 16: Commercial Loan Portfolio
Commercial Loan Portfolio CZWI has transformed its loan portfolio through organic growth and acquisitions Change has occurred from a primarily consumer focused portfolio to a diversified mix consisting of commercial real estate, agricultural and commercial business loans Credit quality remains
Slide 17: SBA PPP Loans and Net Deferred Loan Fee Accretion
SBA PPP Loans and Net Deferred Loan Fee Accretion 17 Dollars in Millions B alance Net Deferred F ee Income B alance Net Deferred F ee Income B alance Net Deferred F ee Income S B A P P P Loans , December 31, 2020 123.7$ 3.0$ -$ -$ 123.7$ 3.0$ S B A P P P Loan O riginations - - 47.5 1.8 47.5 1.8 S B
Slide 18: 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 3/31/2022 Source: S&P Global Market Intelligence, company filings Non Interest Bearing Deman
Slide 19: Appendix
Appendix 19
Slide 20: Net Interest Margin Analysis
Net Interest Margin Analysis Source: S&P Global Market Intelligence, company filings 20 (1) Fully taxable equivalent. The average yield on tax exempt securities is computed on a tax equivalent basis using a tax rate of 21% for the quarters ended March 31, 2022, December 31, September 30, 2021, and J
Slide 21: Interest Rate Risk
Interest Rate Risk 21 (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. March 31, 2022 December 31, 2021 +300 bp ‐9% ‐5% +200 bp ‐6% ‐3% +100 bp ‐3% ‐1% ‐100 bp 1% ‐1% March 31, 2022 December 31, 2021 +30
Slide 22: Reconciliation of Non-GAAP Financial Measures
22 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$ 6,212$ Merger related costs (1) 1,860$ 463$ 3,880$ ‐$ ‐$ ‐$ Branch closure costs (2) 951$ 26$ 15$ 165$ ‐$ ‐$ Settlement proceeds
Slide 23: 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, $341,000, $350,000, and $565,000 for the three months ended March 31, 2022 and years ended December 31, 2021, December 31, 2020, December
Slide 24: Reconciliation of Non-GAAP Financial Measures
Note: All quarterly periods are annualized for net income / net income as adjusted. 24 Reconciliation of Non-GAAP Financial Measures 2017 2018 2019 2020 2021 Mar‐22 Net Income 2,499$ 4,283$ 9,463$ 12,725$ 21,266$ 4,706$ Net Income as adjusted 4,221$ 4,962$ 10,675$ 12,425$ 21,339$ 4,706$ Average asse
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Note: All quarterly periods are annualized for net income / net income as adjusted 25 2017 2018 2019 2020 2021 Mar‐22 Non‐interest Expense (GAAP) 22,878$ 29,764$ 42,686$ 43,673$ 40,532$ 9,668$ Less amortization of intangibles (219) (644) (1,496) (1,622)
Slide 26: Disciplined Acquisition Strategy
26 Disciplined Acquisition Strategy Strategic consolidation of community banks Provides scale and operating efficiencies Adds experienced and knowledgeable banking talent Opportunity to continue commercial loan growth Opportunity to drive down cost of funds Adds portfolios of seasoned lo
Slide 27: Market Demographics: Eau Claire and Mankato MSAs
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 28: Leadership Team
Leadership Team 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
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