Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Investor Presentation (January 2020)
24 slides from Citizens Community Bancorp's investor presentation, Jan 28, 2020
Slide 1: Citizens Community Bancorp Inc. Investor Conference 2019 Fourth Quarter
Filed Pursuant to Rule 433 Registration Statement No. __________ Issuer Free Writing Prospectus Dated October __, 2015 Relating to Preliminary Prospectus Supplement Dated October __, 2015 Citizens Community Bancorp Inc. Investor Conference 2019 Fourth Quarter 1
Slide 2: Cautionary Notes and Additional Disclosures
Cautionary Notes and Additional Disclosures CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements inc
Slide 3: Cautionary Notes and Additional Disclosures (Cont'd)
Cautionary Notes and Additional Disclosures (Cont’d) Additional Information and Where to Find It This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any j
Slide 4: CZWI Focus Items
CZWI Focus Items ENHANCING THE QUANTITY AND QUALITY OF EARNINGS We are enhancing shareholder value by improving the loan and deposit mix, deepening customer relationships and strengthening other sources of revenue. EXPERTISE IN COMMERCIAL & AG BANKING We take pride in serving small and mid-sized bus
Slide 5: Key Market Differentiators
Key Market Differentiators • Serving small to mid-sized • Experienced, energetic entrepreneurs leadership team • Responsive professionals • Accountability for doing the • Products to compete vs. right thing and getting results BUSINESS CULTURE big banks, superior to MODEL • Entrepreneurial spirit, s
Slide 6: Mission, Vision and Values
Mission, Vision and Values Mission Provide the best products, service, and ideas to our customers every interaction every day. Vision Values Make more possible for our Our six main values are: customers, colleagues, integrity, commitment, communities, and shareholders! innovation, collaboration, foc
Slide 7: Execution of Current Business Strategy
Execution of Current Business Strategy Net Interest Margin 4.00% 3.75% 3.56% 3.50% 3.42% 3.43% 3.41% 3.37% 3.34% 3.31% 3.30% 3.25% 3.00% 2017 2018 2019 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 (1) Nonperforming assets include nonaccrual loans, accruing loans past due 90 days or more, other real estate own
Slide 8: Net Income and Diluted EPS
Net Income and Diluted EPS Net Income Diluted EPS $1.00 $0.96 $12,000 $10,675 $0.85 $0.78 $9,463 $10,000 $0.75 $0.68 $8,000 $0.58 $0.46 $4,962 $0.50 $6,000 $0.37 $4,221 $4,283 $4,107 $3,395 $2,956 $0.30 $0.28 $4,000 $2,094 $2,575 $3,169 $0.23 $0.26 $2,499 $0.25 $0.19 $1,261 $2,000 $1,234 $0.12 $0.11
Slide 9: Return on Average Assets and Return on Average Tangible Common Equity
Return on Average Assets and Return on Average Tangible Common Equity ROAA ROATCE 20.0% 1.40% 1.23% 16.1% 1.20% 15.0% 0.93% 12.6% 1.00% 0.84% 11.5%10.8% 0.77% 0.79% 10.1% 10.1% 0.80% 0.73% 10.0% 9.0% 7.3% 7.9% 0.58% 0.53% 0.58% 0.60% 5.6% 0.45% 0.42% 4.3% 4.8% 4.6% 4.6% 0.46% 5.0% 0.40% 0.34% 0.34%
Slide 10: Efficiency Ratio and Tangible Book Value
Efficiency Ratio and Tangible Book Value Tangible Book Value Per Share $16.00 $13.36 $14.00 $12.45 $13.36 $12.62 $13.04 $13.13 $12.48 $11.05 $12.00 $9.89 $9.78 $9.56 $9.89 $10.00 $9.06 $9.60 $8.00 $6.00 $4.00 $2.00 $0.00 2017 2018 2019 Dec-18 Jun-19 Sep-19 Dec-19 Book Value Per Share Tangible Book V
Slide 11: Loan Portfolio
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 a focus in
Slide 12: Commercial Loan Detail
Commercial Loan Detail . Commercial loan portfolio well diversified C&I C&D . Total portfolio of $933.4 million at 12/31/2019. 14.5% 8.0% . Strong growth in all commercial loan categories Non-Owner Occ. CRE 20.3% Owner-Occ. CRE . Average note size is under $340 thousand 24.7% Investor 1-4 CRE 10.1%
Slide 13: Deposit Composition
Deposit Composition . September 2019 Quarter reflects the purchase of $148.5 million due to F&M acquisition. . June 2019 Quarter reflects the sale of $34.1 million of Michigan Branch deposits. Deposit Composition - Quarter Lookback ($000) 2017 FQ4 2018 FQ1 2018 FQ2 2018 FQ3* 2018 FQ4 Dec-18 Jun-19 S
Slide 14: Agricultural Loan Detail
Agricultural Loan Detail Agricultural Loans as % of Total Loan Classified Loans by Loan Type Portfolio Residential RE Consumer C&I 1% Residential 5% 13% AG RE RE 26% 16% AG 10% AG Operating 5% Commercial CRE 69% 39% REsidential RE 16% Agricultural Loans by Major Product Type Agricultural Loans by In
Slide 15: Market Demographics
Market Demographics CZWI operates in diverse markets within the northwestern region of Wisconsin, metro Twin Cities and the Mankato, Minnesota MSA Eau Claire: . Features a broad-based, diverse economy, which is driven by commercial, retail and medical industries Mankato: . The Mankato market also
Slide 16: Net Interest Margin Analysis
Net Interest Margin Analysis Quarter ended December 31, 2019 Quarter ended September 30, 2019 Interest Average Interest Average Average Income/ Yield/ Average Income/ Yield/ ($ Dollars in Thousands) Balance Expense Rate Balance Expense Rate Average interest earning assets: Cash and cash equivalents
Slide 17: Recent Franchise Expansion
Recent Franchise Expansion CZWI has been focused on transforming the Company away from a consumer based bank into a commercial focused operation, creating a strengthened franchise value through this process 2016 Acquisition of 2 Central Bank branches in Northwestern WI: $27.1 million deposits 2016
Slide 18: Branch Locations
Branch Locations CZWI Locations Source: S&P Global Market Intelligence 18
Slide 19: Disciplined Acquisition Strategy
Disciplined Acquisition Strategy Areas of Potential Acquisition Opportunities Duluth Superior Rice Lake Eau Claire Minneapolis Wausau St. Paul Mankato Mason City La Crosse Winona Rochester Source: FIG Partners, S&P Global Market Intelligence 19
Slide 20: Appendix
Citizens Community Bancorp Inc. aA Appendix
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Reconciliation of GAAP Earnings and Core Earnings (non-GAAP): FY 2017 FY 2018 FY 2019 Dec-18 Jun-19 Sep-19 Dec-19 GAAP pre-tax earnings $ 3,822 $ 6,609 $ 12,277 $ 1,822 $ 5,607 $ 1,664 $ 3,731 Merger related costs (1) 1,860 463 3,880 1,057 206 2,911 104
Slide 22: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures (1) Costs incurred are included as professional fees and other non-interest expense in the consolidated statement of operations and include costs of $0, $61,000, $160,000, and $461,000 for the quarters ended December 31, 2019, September 30, 2019, June 30
Slide 23: Reconciliation of Non-GAAP Financial Measures: ROAA and ROATCE
Reconciliation of Non-GAAP Financial Measures Return on Average Assets (ROAA) as Adjusted (In thousands except ROAA and ROAA as adjusted) 2017 2018 2019 Dec-18 Jun-19 Sep-19 Dec-19 Net Income $ 2,499 $ 4,283 $ 9,463 $ 5,044 $ 16,473 $ 4,896 $ 12,573 Net Income as adjusted $ 4,260 $ 5,021 $ 10,675 $
Slide 24: Reconciliation of Non-GAAP Financial Measures: Efficiency Ratio
Reconciliation of Non-GAAP Financial Measures Effiency Ratio as Adjusted (In thousands except Efficiency Ratio and Efficiency Ratio as adjusted) 2017 2018 2019 Dec-18 Jun-19 Sep-19 Dec-19 Non-interest Expense (GAAP) $ 22,878 $ 29,764 $ 42,686 $ 9,794 $ 9,389 $ 12,975 $ 10,428 Merger related costs (1
Citizens Community Bancorp — Investor Presentation (January 2020) on 6ix