Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Q3 2024 Earnings Presentation
30 slides from Citizens Community Bancorp's earnings presentation, Oct 28, 2024
Slide 1: Earnings Release Supplement Third Quarter 2024
EXHIBIT 99.2 Earnings Release Supplement Third Quarter 2024
Slide 2: Table of Contents
Citizens Community Bancorp, Inc. Table of Contents Cautionary Notes and Additional Disclosures Portfolio Contractual Repricing Deposit Composition Commercial Deposit Concentrations Top 100 Depositors Liquidity Non-Owner Occupied CRE Owner Occupied CRE Multi-family Commercial & Industrial Loans Const
Slide 3: Cautionary Notes and Additional Disclosures
Cautionary Notes and Additional Disclosures DATES AND PERIODS PRESENTED In this earnings release financial supplement, 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 co
Slide 4: Portfolio Contractual Repricing
2 Portfolio Contractual Repricing (Contractual Dollars shown in millions) September 30, 2024 • Current contractual principal amounts shown are at maturity or repricing period • Current contractual interest rates shown 3
Slide 5: Deposit Composition
Deposit Composition September 30, 2024 Average Account Size (In Thousands) Type Amount Retail $17 Commercial $70 Public $404 $1.52 Billion 82% of deposits insured or collateralized Top 10 Depositors Rank % of Deposits Industry Coverage Beyond FDIC(1) 1 2.3% Public Administration ICS 2 2.2% Health Ca
Slide 6: Commercial Deposit Concentrations
Commercial Deposit Concentrations September 30, 2024 Source: Internal Company Documents Diverse commercial deposit base with no industry concentration over 10% 5
Slide 7: Top Depositors $395 Million
Top 100 Depositors September 30, 2024 $395 Million 6
Slide 8: Liquidity $718 Million
Liquidity September 30, 2024 $718 Million 7
Slide 9: Non-Owner Occupied CRE Portfolio Fundamentals
Portfolio Fundamentals 52% 22% 26% Wisconsin Minnesota Other By Geography As of 9/30/24 • Typically, well seasoned investors with multiple projects, track record of success and personal financial strength (Net Worth/Liquidity) • Maximum LTV =<80% with recourse to owners with >20% interest • Term of
Slide 10: Owner Occupied CRE Portfolio Fundamentals
20% 19% 17% 14% 10% 5% 1% 14% CRE Warehouse/Mini Storage CRE Restaurant CRE Industrial/Manufacturing CRE Retail CRE Mixed Use CRE Office Residential Lot Other Owner Occupied CRE As of 9/30/24 Portfolio Fundamentals 78% 18% 4% Wisconsin Minnesota Other By Geography As of 9/30/24 • Underwritten to <80
Slide 11: Multi-family Portfolio Fundamentals
Portfolio Fundamentals 62% 33% 5% Wisconsin Minnesota Other By Geography As of 9/30/24 3%4% 23% 43% 18% 1% 7% 1% 2024 2023 2022 2021 2020 2019 2018 Prior By Vintage As of 9/30/24 • Robust housing markets in Eau Claire and Mankato markets supported by student populations at state universities, techni
Slide 12: Commercial & Industrial Loans
92% 7% 1% Wisconsin Minnesota Other By Geography As of 9/30/24 21% 14% 13% 9% 7% 7% 5% 5% 3% 3% 2% 11% Finance and Insurance Transportation and Warehousing Manufacturing Public Admin Wholesale Trade Construction Administrative Support Real Estate, Rental and Leasing Agriculture Retail Trade Educatio
Slide 13: Construction & Development Portfolio Fundamentals
Portfolio Fundamentals 30% 26% 12% 10% 7% 6% 4% 5% Multi-Family Campgrounds Land 1-4 Family Hospitality Warehouse Retail Other Construction & Development As of 9/30/24 50% 19% 11% 8% 7% 5% Wisconsin South Dakota Utah Minnesota Tennessee Colorado By Geography As of 9/30/24 • Underwritten to 75-80% LT
Slide 14: Agricultural Real Estate & Operating Loans
36% 26% 20% 18% Crop Other Farming Dairy Other Agricultural As of 9/30/24 Portfolio Fundamentals 80% 19% 1% Wisconsin Minnesota Other By Geography As of 9/30/24 • Producers required to have marketing plans to mitigate volatility of commodities • Appropriate crop/revenue insurance and/or dairy margin
Slide 15: Hotel Loans
54% 30% 16% Limited Service Full Service Other Hotels As of 9/30/24 Portfolio Fundamentals 40% 39% 16% 5% Minnesota Wisconsin Illinois Colorado By Geography As of 9/30/24 • Mainly experienced multi project hoteliers and guarantors with strong personal financial statements (net worth and liquidity) •
Slide 16: Restaurant Loans
59% 20% 11% 4% 4% 2% Culver's - Limited Service Restaurants Bowling Centers Other National Limited Services Drinking Establishments Other Restaurants As of 9/30/24 Portfolio Fundamentals 53% 29% 18% Wisconsin Minnesota Other By Geography As of 9/30/24 • Experienced developers/operators of national L
Slide 17: Campground Loans
6% 27% 18% 23% 19% 2%2% 3% 2024 2023 2022 2021 2020 2017 2016 Prior By Vintage As 9/30/24 Portfolio Fundamentals 21% 12% 10% 8%8% 7% 6% 5% 3% 3% 3% 14% Wisconsin Utah Alabama Ohio Tennessee Illinois Pennsylvania Maryland Kentucky New York North Carolina Other By Geography As of 9/30/24 • Experienced
Slide 18: Office Loans
2% 9% 43% 46% 2024 2025 2026 2027 & Beyond Maturity or Next Repricing Date As of 9/30/24 Portfolio Fundamentals 84% 8% 8% Wisconsin Minnesota Other By Geography As of 9/30/24 • Properties financed are generally in Wisconsin and Minnesota and 98% of properties are located outside of large cities • Pr
Slide 19: Credit Quality/Risk Ratings
Credit Quality/Risk Ratings: Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its loan portfolio. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant. Ratings range from the highest
Slide 20: Loans by Risk Rating
Below is a breakdown of loans by risk rating as of September 30, 2024: (in thousands) 1 to 5 6 7 TOTAL Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 720,771 $ 1,589 $ 8,099 $ 730,459 Agricultural real estate 69,621 200 6,222 76,043 Multi-family real estate 230,455 8,736
Slide 21: Loans by Risk Rating as of December 31, 2023
Below is a breakdown of loans by risk rating as of December 31, 2023: (in thousands) 1 to 5 6 7 TOTAL Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 726,075 $ 9,832 $ 14,624 $ 750,531 Agricultural real estate 76,715 6,245 390 83,350 Multi-family real estate 228,095 — — 22
Slide 22: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans (in thousand, except ratios) September 30, 2024 and Three Months Ended June 30, 2024 and Three Months Ended December 31, 2023 and Three Months Ended September 30, 2023 and Three Months Ended Allowance for Credit Losses (“ACL”) ACL - Loans, at beginning of period $
Slide 23: Delinquency Detail
Delinquency Detail Loan balances at amortized cost (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans September 30, 2024 Commercial/Agricultural real estate: Commercial real estate $ 125 $ — $ 232 $ 357 $ 728,090 $ 728,447 Agricult
Slide 24: Delinquency Detail (Continued)
Delinquency Detail (Continued) Loan balances at amortized cost (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Current Total Loans December 31, 2023 Commercial/Agricultural real estate: Commercial real estate $ 50 $ 308 $ 5,579 $ 5,937 $ 742,510 $
Slide 25: Nonaccrual Loans Roll forward
Nonaccrual Loans Roll forward Loan balances at amortized cost (in thousands) Quarter Ended September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Balance, beginning of period $ 8,352 $ 8,413 $ 13,184 $ 13,456 $ 15,663 Additions 7,486 352 961 538 33 Charge offs — — — — (
Slide 26: Investments – Amortized Cost and Fair Value
The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of September 30, 2024 and December 31, 2023, respectively, were as follows: (in thousands) Available for sale securities Amortized Cost Gross Unrealized Gains Gro
Slide 27: Investments – Credit Ratings and Earnings Per Share
The composition of our held to maturity portfolio by credit rating as of the dates indicated was as follows: (in thousands) September 30, 2024 December 31, 2023 Held to maturity securities Amortized Cost Fair Value Amortized Cost Fair Value U.S. government agency $ 86,533 $ 70,565 $ 90,629 $ 72,697
Slide 28: Economic Value of Equity and Net Interest Income
Economic Value of Equity Percent Change in Economic Value of Equity (EVE) Change in Interest Rates in Basis Points (“bp”) Rate Shock in Rates (1) At September 30, 2024 At December 31, 2023 +300 bp 0 % 0 % +200 bp 0 % 0 % +100 bp 0 % 0 % -100 bp 0 % 0 % -200 bp (2) % (2) % Net Interest Income Over On
Slide 29: Selected Capital Composition Highlights
CITIZENS COMMUNITY FEDERAL N.A. Selected Capital Composition Highlights September 30, 2024 (unaudited) June 30, 2024 (unaudited) December 31, 2023 (audited) September 30, 2023 (unaudited) To Be Well Capitalized Under Prompt Corrective Action Provisions Tier 1 leverage ratio (to adjusted total assets
Slide 30: Fair Value Accounting
Fair Value Accounting ASC Topic 820-10, “Fair Value Measurements and Disclosures” establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The topic describes three levels of inputs tha
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