Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — FIG Partners Community Bank Forum 2017
23 slides from Citizens Community Bancorp's conference presentation, Jun 26, 2017
Slide 1: FIG Partners Community Bank Forum
J u n e 2 6 - 2 7 , 2 0 1 7 NASDAQ: CZWI 1 FIG Partners Community Bank Forum Nashville, TN Exhibit 99.1
Slide 2: Forward-looking statements
This presentation includes forward-looking statements about the financial condition, results of operations and business of Citizens Community Bancorp, Inc. (“Citizens”) and its wholly owned subsidiary, Citizens Community Federal N.A. (“CCFBank”) Forward-looking statements can be identified by the fa
Slide 3: Executive Management
Executive Management Stephen M. Bianchi is President and CEO of Citizens Community Bancorp, Inc. Prior to joining the Bank, he was President and CEO of HF Financial Corp in Sioux Falls, SD. Prior experience includes Senior Vice President at Associated Bank, where he served as Minnesota Regional Pres
Slide 4: Overview
Overview • Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of Citizens Community Federal N.A., a national bank based in Altoona, Wisconsin, serving more than 14,000 customers in Wisconsin, Minnesota and Michigan through 16 branch locations (14 branch locations after June 30,
Slide 5: Current Branch Locations
Current Branch Locations 9 ear B SS Q wma ged ioe — Q mtn ora = . Q onus © ee ate Q cwouwe-wsie GY 9 3 Q amen sum: om urease Om ® we muss ; wisansin— sr MM 9 xan 1°) -w 3! < National Forest c. 6 ae ars nccume-soumt Vf ee NN { nani, MICHIGAN 2 i a o “a Z Citizens Community Bancorp Inc
Slide 6: Investment Considerations
• Repositioning balance sheet and business model to relationship based community banking through organic growth and acquisitions from a transactional, indirect lending orientation. • Acquired assets have accelerated earnings growth. • Recent branch closures, lending platform efficiency and FTE ratio
Slide 7: Enhancing Performance and Franchise Value
• Remix loan and deposit composition, focused on commercial, ag and municipal relationships. • Improve efficiencies and control expenses by leveraging technology and simplifying workflows. • Generate organic growth in core and acquired markets. • Attract new Commercial/Ag bankers and reposition exis
Slide 8: Net Income and Diluted EPS
$206 $1,047 $2,510 $2,806 $2,573 (1) $1,874 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 FY2012 FY2013 FY2014 FY2015 FY2016 FYTD 3-31-17 (In $000) Diluted E P S 8 (As Restated) (1) Fiscal 2016 Net Income includes acquisition costs of $701 $0.13 $0.16 $0.04 $0.18 $0.17 $- $0.02 $0.04 $0.06 $0.08 $0.10
Slide 9: Net Interest Margin
Net Interest Margin 9 3.28% 3.27% 3.32% 3.36% 3.31% 2.82% 2.77% 2.78% 2.79% 2.82% 4.06% 4.07% 4.17% 4.19% 4.13% 0.90% 0.92% 0.97% 0.96% 0.94% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% FQ2-16 FQ3-16 FQ4-16 FQ1-17 FQ2-17 Net Interest Margin SNL Bank & Thrift Index Yield on Earning As
Slide 10: Revenue Summary
Revenue Summary 10 $4.63 $5.18 $5.72 $5.56 $5.23 $0.81 $1.01 $1.14 $1.31 $1.20 $- $1 $2 $3 $4 $5 $6 $7 $8 FQ2-16 FQ3-16 FQ4-16 FQ1-17 FQ2-17 Net Interest Income Noninterest Income Millions $5.44 $6.19 $6.86 $6.87 $6.43
Slide 11: Noninterest Expense + FTE
Noninterest Expense + FTE 11 $- $1 $2 $3 $4 $5 $6 $7 $8 FQ2-16 FQ3-16 FQ4-16 FQ1-17 FQ2-17 Other Expenses Amrt of Core Deposit Intangible Data Processing Professional Services Advertising, Marketing & Public Relations Occupancy & Office Expense Compensation & Benefits Millions 147 185 177 161 154
Slide 12: Asset Quality
Asset Quality 12 0.38% 0.71% 0.62% 1.08% 1.05% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% FQ2 16 FQ3 16 FQ4 16 FQ1 17 FQ2 17 1.35% 1.07% 1.06% 1.08% 1.09% 0.12% 0.05% 0.12% 0.11% 0.06% 0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% FQ2 16 FQ3 16
Slide 13: NPAs/Total Assets Ratio Remain Low
0.95% 0.66% 0.46% 0.37% 0.62%(1) 0.29% 0.67% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% FY2012 FY2013 FY2014 FY2015 FY2016 FY2Q 2017 1.05%(2) NPAs/Total Assets Ratio Remain Low 13 (1) Total nonperforming assets increased due to the CBN acquisition in Fiscal 2016: NPLs = $1,778;REO = $212;NPAs =
Slide 14: Citizens Community Bancorp, Inc. and Wells Financial Corp. to Merge
Citizens Community Bancorp, Inc. and Wells Financial Corp. to Merge 14
Slide 15: Transactions Highlights
Transactions Highlights 15 Wells Financial Corporation Transaction Value $39.8 million Consideration 81% Cash, 19% Stock Price/TBV 124.6% Price/LTM EPS 16.7x Required Approvals Customary regulatory and shareholder approval Expected Closing Q3 2017 Total Assets (3/31/17 Call Report) $268.5 million To
Slide 16: Transactions Rationale
Transactions Rationale 16 Strategic Rationale Financially Attractive Low Risk Integration Acquisition helps CZWI bridge “valuation gap” as its pro forma franchise will be nearly $1.0 billion in assets Consistent with CZWI’s strategy of “re-formulating” its deposit base – core deposits vs. super
Slide 17: Branch Locations – Pro Forma Update
Branch Locations – Pro Forma Update 17 Source: SNL Financial Note: CZWI’s MI Branches are not shown
Slide 18: Pro Forma Loans
18 Pro Forma Loans CZWI WEFP Combined Note: Financial Data as of 3/31/17, Regulatory data shown, does not include purchase accounting adjustments Source: SNL Financial Composition Composition Composition Loan Type ($000) % of Total Loan Type ($000) % of Total Loan Type ($000) % of Total Constr & Dev
Slide 19: Pro Forma Deposits
19 Pro Forma Deposits CZWI WEFP Combined Note: Financial Data as of 3/31/17, Regulatory data shown, does not include purchase accounting adjustments Source: SNL Financial Composition Composition Composition Deposit Type ($000) % of Total Deposit Type ($000) % of Total Deposit Type ($000) % of Total
Slide 20: Investing Opportunity Remains; Stock Price to Tangible Book Value
Investing Opportunity Remains; Stock Price to Tangible Book Value $5.00 $5.90 $7.25 $8.85 $8.84 $11.18 $13.85 $10.21 $10.68 $10.47 $11.20 $11.72 $11.22 $11.19 $0.00 $3.00 $6.00 $9.00 $12.00 $15.00 FY2011 FY2012 FY2013 FY2014 (As Restated) FY2015 (As Restated) FY2016 3/31/2017 Price Reported Tangible
Slide 21: CZWI Total Return has Outpaced Bank Index
CZWI Total Return has Outpaced Bank Index 21 Total return includes stock appreciation plus dividends, as of June 9, 2017.
Slide 22: Building Franchise and Shareholder Value
Building Franchise and Shareholder Value • Improve the quantity and quality of earnings through growth, efficiencies recognized from acquisitions and technology enhancements, and branch rationalization. • Accelerate the commercial banking business while maintaining strong asset quality metrics to re
Slide 23: No Offer or Solicitation and Additional Information
No Offer or Solicitation and Additional Information 23 No Offer or Solicitation This presentation is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, any securities in any jurisdiction pursuant to the proposed transaction or otherwise, nor
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