Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Q2 2020 Earnings Presentation
19 slides from Citizens Community Bancorp's earnings presentation, Jul 30, 2020
Slide 1: Earnings Release Supplement Second Quarter 2020
Exhibit 99.2 Earnings Release Supplement Second Quarter 2020
Slide 2: Table of Contents
Citizens Community Bancorp, Inc. Table of Contents Segment Profiles Page(s) CZWI Focus Items 2 COVID-19 Related Loan Deferrals 3 Non-Owner Occupied CRE 4 Owner Occupied CRE 5 Multi-family 6 Construction and Development Loans 7 Commercial and Industrial Loans 8 Agricultural Real Estate and Operating
Slide 3: CZWI Focus Items
CZWI Focus Items INCREASE TANGIBLE BOOK AND SHAREHOLDER VALUE Grow TBV >10% annually, increase TCE to Total Assets >8% and achieve ROA and ROE in the upper half of its peer group. REDUCE NPA’S & CLASSIFIED LOANS TO PEER GROUP MEDIAN Aggressively reduce problem assets from acquired banks, manage the
Slide 4: COVID-19 Related Loan Deferrals
Dollars In Thousands Modification Types Balances of Loans Interest Only P&I Payments % of Total Category Loan Category Modified Payment Deferred Loans Commercial Real Estate $ 147,235 34.1% 40.5% 11.4% Agricultural Real Estate $ 2,289 0.0% 1.2% 0.2% Multi-family $ 14,835 3.5% 4.0% 1.2% Construction
Slide 5: Non-Owner Occupied CRE
Non – Owner Occupied CRE Non – Owner Portfolio Characteristics 9% Occupied 4% 27% Non - Owner Occupied CRE CRE 4% 5% 5% Loan Balance Outstanding - In Millions $303 5% Number of Loans 850 6% 7% 28% Average Loan Size - In Thousands $356 Approximate Weighted Average LTV 55% Investor Residential Hotel R
Slide 6: Owner Occupied CRE
Owner Occupied CRE Owner Occupied Portfolio Characteristics 15% 20% CRE Owner Occupied 6% 7% 13% Loan Balance Outstanding In Millions $207 8% Number of Loans 427 9% 11% 11% Average Loan Size In Thousands $356 CRE Campground Restaurant Approximate Weighted Average LTV 47% Mixed Use industrial/Manufac
Slide 7: Multi-family
Multi-family Multi-family Portfolio Characteristics - Multi-family Loan Balance Outstanding In Millions $104 100% Number of Loans 93 Average Loan Size In Millions $1.1 Approximate Weighted Average LTV 59% Approximate Weighted Average DSCR 1.77x Seasoning In Months 27 Multi-family Net Charge-Offs 0.0
Slide 8: Construction & Development Loans
Construction & Development Loans Commercial & 3% 3% 7% Development 3% Portfolio Characteristics - Construction & Development 4% 37% 6% Loan Balance Outstanding In Millions $110 9% Number of Loans 278 11% 17% Average Loan Size In Millions $396 Multi-family CRE Hospitality Approximate Weighted Average
Slide 9: Commercial & Industrial Loans
Commercial & Industrial Loans 2% 2% 3% Commercial & 3% Industrial Portfolio Characteristics - Commercial & Industrial 4% 14% 4% 5% 12% 6% Loan Balance In Millions $110 7% 11% Number of Loans 864 8% 10% Average Loan Size In Thousands $127 8% Approximate Weighted Average DSCR 2.6 Manufacturing Public
Slide 10: Agricultural RE & Operating Loans
Agricultural RE & Operating Loans Agricultural Portfolio Characteristics - Agricultural 22% 36% Loan Balance Outstanding - In Millions $110 13% Number of Loans 664 Average Loan Size - In Thousands $165 29% Approximate Weighted Average DSCR 1.9x Seasoning In Months 52 Crop Dairy Other Farming Owned L
Slide 11: Commercial Real Estate by Vintage and Risk Rating
Dollars In Thousands 2015 & 2016 2017 2018 2019 2020 Total Pass Rated Prior Commercial Real Estate $33,663 $75,501 $117,981 $134,109 $56,550 $70,832 $488,636 Agricultural Real Estate $4,438 $8,980 $16,383 $9,842 $9,857 $18,804 $68,304 Multi-family $6,034 $6,032 $26,761 $22,493 $38,655 $3,516 $103,49
Slide 12: Residential Loans
Residential Loans Dollars In Thousands Year Of Origination By FICO Score Band 2016 2017 2018 2019 2020 2015 & Prior Grand Total Greater than 740 $5,926 $5,442 $8,708 $9,701 $1,558 $52,015 $83,350 >680-740 $2,325 $1,189 $3,834 $3,198 $1,006 $21,651 $33,203 580-680 $1,192 $745 $1,897 $1,829 $372 $18,4
Slide 13: Hotel Loans
Hotel Loans Hotels Portfolio Characteristics - Hotels 8% 12% Loan Balance Outstanding In Millions $109 Number of Loans 43 Average Loan Size In Millions $2.3 21% 59% Approximate Weighted Average LTV 64% Approximate DSCR - Non-Construction 1.6x Net Charge Offs 0.00% Construction Loan Balance 19 Flagge
Slide 14: Restaurant Loans
Restaurant Loans 6% Restaurants 8% Portfolio Characteristics - Restaurants 9% 44% 12% Loan Balance Outstanding In Millions $42 Number of Loans 99 21% Average Loan Size In Thousands $426 Culver's - Limited Service Restaurants Approximate Weighted Average LTV 54% Lessors of RE for Restaurant use Micro
Slide 15: 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 16: Loans by Risk Rating as of June 30, 2020
Below is a breakdown of loans by risk rating as of June 30, 2020: 1 to 5 6 7 8 9 TOTAL Originated Loans: Commercial/Agricultural real estate: Commercial real estate $ 308,633 $ 4,952 $ 805 $ — $ — $ 314,390 Agricultural real estate 32,592 469 2,077 — — 35,138 Multi-family real estate 90,617 — — — —
Slide 17: Loans by Risk Rating as of March 31, 2020
Below is a breakdown of loans by risk rating as of March 31, 2020: 1 to 5 6 7 8 9 TOTAL Originated Loans: Commercial/Agricultural real estate: Commercial real estate $ 307,313 $ 4,978 $ 856 $ — $ — $ 313,147 Agricultural real estate 33,069 469 2,114 — — 35,652 Multi-family real estate 89,474 — — — —
Slide 18: Loans by Risk Rating as of December 31, 2019
Below is a breakdown of loans by risk rating as of December 31, 2019: 1 to 5 6 7 8 9 TOTAL Originated Loans: Commercial/Agricultural real estate: Commercial real estate $ 301,381 $ 266 $ 899 $ — $ — $ 302,546 Agricultural real estate 31,129 829 2,068 — — 34,026 Multi-family real estate 71,877 — — —
Slide 19: Loans by Risk Rating as of June 30, 2019
Below is a breakdown of loans by risk rating as of June 30, 2019: 1 to 5 6 7 8 9 TOTAL Originated Loans: Commercial/Agricultural real estate: Commercial real estate $ 237,548 $ 349 $ 1,154 $ — $ — $ 239,051 Agricultural real estate 32,681 111 2,135 — — 34,927 Multi-family real estate 75,663 — 1 — —
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