Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Investor Presentation (August 2012)
28 slides from Citizens Community Bancorp's investor presentation, Aug 13, 2012
Slide 1: Investors Conference
Investors Conference August 14, 2012
Slide 2: Introduction
Introduction *Edward H. Schaefer President and CEO *Mark Oldenberg Chief Financial Officer
Slide 3: Forward Looking Statements
Forward Looking Statements Cautionary Note Regarding Forward Looking Statements This presentation includes forward-looking statements about the financial condition, results of operations and business of Citizens Community Bancorp, Inc. Forward-looking statements can be identified by the fact that th
Slide 4: Staying the Course Through Challenging Times
Staying the Course Through Challenging Times * Credit * Financial Management * Risk Management, Internal Audit and Compliance * Sales Culture * Outlook for 2012/2013 * Questions
Slide 5: Credit
CREDIT The Freedom to Simply Bank™ ee ee
Slide 6: Credit Update (2011)
Credit Update 2011 Represented the first complete year under revised underwriting standards. ● Underwriting process was standardized and well defined procedures were implemented for loan approvals outside of policy. ● A centralized loan support function was created to ensure proper underwriting and
Slide 7: Credit Update (2012)
Credit Update 2012 Results reflect the benefits of the processes implemented during 2011. ● Significant improvements in delinquencies has occurred. ● Enhanced reporting in the areas of Concentrations and Risk Ratings have been implemented. ● Consistent underwriting has lead to better loan decisions.
Slide 8: Credit Delinquency
Credit Delinquency June 2012 September 2011 December 2010 91 Plus $3,438,222 $4,400,025 $7,219,179 (without OREO and OCO) 0.80% 1.02% 1.60% OREO $904,576 $1,153,489 $240,300 OCO $97,062 $207,025 $278,977 90 Plus $4,439,860 $5,760,539 $7,738,456 (including OREO and OCO) 1.03% 1.33% 1.59% Net Charge O
Slide 9: Financial Management
FINANCIAL MANAGEMENT The Freedom to Simply Bank Ee ;
Slide 10: 2011 Initiatives
Financial Management 2011 Initiatives * Strengthened Capital * Maintained Balance Sheet Liquidity * Reduced Risk * Earnings
Slide 11: 2012 Initiatives
Financial Management 2012 Initiatives Balance Sheet Management: ● Capital Preservation ● Cash Management ● Reduce Cost of Funds ● Interest Rate Risk Management ● Earnings
Slide 12: Capital
Financial Management Capital September 2011 compared June 2012 Maintain Asset Size ● $537 million compared to $534 million Tier 1 Capital ● 10.1% compared to 10.0% Regulatory well capitalized is 8.0% Risk Based Capital ● 14.1% compared to 15.0% Equity to Assets ● 9.86% compared to 10.14%
Slide 13: Cash Management
Financial Management Cash Management September 2011 compared to June 2012 Cash & Cash Equivalents ● $31.8 million compared to $20.9 million Shortened Asset Duration Liquidity Ratio ● 11.54% versus Minimum of 10.0%
Slide 14: Cost of Funds / Net Interest Income
Financial Management Cost of Funds / Net Interest Income Concentrate on Relationships vs. Accounts ● Cost of Deposits declined from 1.45% to 1.19% from June 30, 2011 to June 30, 2012 Borrowed Funds ● FHLB Advances declined from 4.43% to 3.04% from June 30, 2011 to June 30, 2012 Net Interest Margin h
Slide 15: Earnings
Financial Management Earnings Three Months Ended 30-June-12 30-June-11 Net Income $ 349 $ 176 Income Tax $ 237 $ 127 Provision Loan Loss $ 900 $ 1,364 Gain on Sale of AFS Securities $ (11) $ (281) Net Inc. / Less One Time Items $ 1,475 $ 1,386
Slide 16: Risk Management, Internal Audit & Compliance
RISK MANAGEMENT, INTERNAL AUDIT & COMPLIANCE
Slide 17: Enterprise Risk Management (ERM)
Risk Management, Internal Audit and Compliance Enterprise Risk Management (ERM) Revised and Improved ERM Program ● Identify Risk & Opportunities ● Assess Vulnerabilities & Strengths ● Add Value ● Mitigating Losses ● Maximizing Income
Slide 18: Audit
Risk Management, Internal Audit and Compliance Audit Completed New Risk Assessment ● Partnering with External Consulting Firm to develop audit plan for the next three years Reporting Results ● Issue Audit Reports as Planned ● Addressed all Examination Findings
Slide 19: Compliance
Risk Management, Internal Audit and Compliance Compliance Audit Committee Driven Initiatives ● Established Separate Department ● Hired Two Full Time Compliance Professionals ● Updated policies, procedures and charter ● Implemented Training Task Force
Slide 20: Sales Culture
SALES CULTURE The Freedom to Simply Bank™ ee ee
Slide 21: Restructure Sales Team
Sales Culture Restructure Sales Team Reorganized and consolidated branch management hierarchy based on geographic location Created better efficiencies with District manager system Reassigned supervision responsibilities for branch network to Divisional Managers
Slide 22: Introduce Sales and Service Model
Sales Culture Introduce Sales and Service Model Applies to all branch management, personal bankers and tellers Provides uniform, structured and goal-oriented approach to every customer interaction Identifies potential cross-selling opportunities Allows for accountability metrics to all sales personn
Slide 23: Redefined Metrics
Sales Culture Redefined Metrics Monthly sales goals outlined by Personal Banker/Branch/District & Division Goals for personal and real estate loans Goals for deposit account openings and core deposit gathering Metrics outlined for increasing products/services per customer
Slide 24: New Products and Services Introduced
Sales Culture New Products and Services Introduced E-Statements Mobile Banking New Freedom and Traditional Accounts CCF Website upgraded and enhanced Pop-Money
Slide 25: Outlook for 2012 / 2013
Outlook for 2012 / 2013 The Freedom to Simply Bank™ eee _
Slide 26: Outlook for 2012/2013: Risk, Growth and Margin
Outlook for 2012/2013 Maintain or enhance policies and procedures to minimalize risk throughout our enterprise. Attempt to generate modest loan and deposit growth, fully implementing our sales and service model. ● Showing an emphasis on indirect loan program and cross selling opportunities ● Add sma
Slide 27: Outlook for 2012/2013: Investments, Income and Expenses
Outlook for 2012/2013 Effectively manage our investment portfolios and FHLB borrowing ● $10.85 million of high rate FHLB bonds roll off by December 2013 Enhance our non-interest income ● Better management of depository accounts ● Secondary market lending Focus on Expense Reduction Explore and evalua
Slide 28: Questions
Questions The Freedom to Simply Bank™ ee ee
Citizens Community Bancorp — Investor Presentation (August 2012) on 6ix