Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Q3 2023 Earnings Presentation
28 slides from Citizens Community Bancorp's earnings presentation, Oct 24, 2023
Slide 1: Earnings Release Supplement Third Quarter 2023
EXHIBIT 99.2 Earnings Release Supplement Third Quarter 2023
Slide 2: Table of Contents
Citizens Community Bancorp, Inc. Table of Contents Cautionary Notes and Additional Disclosures Deposit Composition Commercial Deposit Concentrations Top 100 Depositors Liquidity Non‐Owner Occupied CRE Owner Occupied CRE Multi‐family Commercial & Industrial Loans Construction & Development Loans Agri
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: Deposit Composition
Deposit Composition September 30, 2023 Average Account Size (In Thousands) Type Amount Retail $14 Commercial $77 Public $372 $1.47 Billion 81% of deposits insured or collateralized Top 10 Depositors Rank % of Deposits Industry Coverage Beyond FDIC(1) 1 2.3% Public Administration ICS 2 1.8% Education
Slide 5: Commercial Deposit Concentrations
Commercial Deposit Concentrations September 30, 2023 Source: Internal Company Documents Diverse commercial deposit base with no industry concentration over 11% 4
Slide 6: Top Depositors
Top 100 Depositors September 30, 2023 $379 Million 5
Slide 7: Liquidity
Liquidity September 30, 2023 $614.9 Million 6
Slide 8: Non-Owner Occupied CRE
Portfolio Fundamentals 58% 31% 11% Wisconsin Minnesota Other By Geography As of 9/30/23 • 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 9: Owner Occupied CRE
18% 16% 14% 10% 9% 9% 8% 3% 13% CRE Campground CRE Restaurant CRE Industrial/Manufacturing CRE Warehouse/Mini Storage CRE Senior Living CRE Retail CRE Mixed Use CRE Office Other Owner Occupied CRE As of 9/30/23 Portfolio Fundamentals 72% 11% 17% Wisconsin Minnesota Other By Geography As of 9/30/23 •
Slide 10: Multi-family
Portfolio Fundamentals 66% 33% 1% Wisconsin Minnesota Other By Geography As of 9/30/23 2% 22% 41% 21% 4% 8% 2% 2023 2022 2021 2020 2019 2018 Prior By Vintage As of 9/30/23 • Robust housing markets in Eau Claire and Mankato markets supported by student populations at state universities, technical col
Slide 11: Commercial & Industrial Loans
93% 6% 1% Wisconsin Minnesota Other By Geography As of 9/30/23 20% 16% 12% 8% 7% 7% 6% 5% 4% 3% 2% 10% Finance and Insurance Manufacturing Transportation and Warehousing Construction Wholesale Trade Public Admin Administrative Support Real Estate, Rental and Leasing Agriculture Retail Trade Educatio
Slide 12: Construction & Development Loans
Portfolio Fundamentals 31% 26% 24% 8% 5% 4% 2% Campgrounds Multi-Family 1-4 Family Retail Land Hospitality Other Commercial & Development As of 9/30/23 32% 29% 6% 6% 10% 8% 5% 4% Wisconsin Minnesota South Dakota Utah Illinois Florida Ohio Tennessee By Geography As of 9/30/23 • Underwritten to 75-80%
Slide 13: Agricultural Real Estate & Operating Loans
33% 25% 20% 22% Crop Other Farming Dairy Other Agricultural As of 9/30/23 Portfolio Fundamentals 80% 19% 1% Wisconsin Minnesota Other By Geography As of 9/30/23 • Producers required to have marketing plans to mitigate volatility of commodities • Appropriate crop/revenue insurance and/or dairy margin
Slide 14: Hotel Loans
62% 26% 12% Limited Service Full Service Other Hotels As of 9/30/23 Portfolio Fundamentals 48% 41% 11% Minnesota Wisconsin Illinois By Geography As of 9/30/23 • Mainly experienced multi project hoteliers and guarantors with strong personal financial statements (net worth and liquidity) • Mainly flag
Slide 15: Restaurant Loans
70% 14% 5% 4% 3% 4% Culver's - Limited Service Restaurants Other National Limited Services Drinking Establishments Bowling Centers Other Restaurants As of 9/30/23 Portfolio Fundamentals 50% 30% 20% Wisconsin Minnesota Other By Geography As of 9/30/23 • Experienced developers/operators of national Li
Slide 16: Campground Loans
24% 19% 25% 23% 3% 2% 4% 2023 2022 2021 2020 2017 2016 Prior By Vintage As 9/30/23 Portfolio Fundamentals 19% 12% 12% 10%9% 7% 6% 4% 4% 3% 3% 11% Wisconsin Utah Alabama Ohio Illinois Maryland Pennsylvania Kentucky New York North Carolina Tennessee Other By Geography As of 9/30/23 • Experienced multi
Slide 17: Office Loans
1% 33% 4%36% 26% 2023 2024 2025 2026 2027 & Beyond Maturity or Next Repricing Date As of 9/30/23 Portfolio Fundamentals 59% 35% 6% Wisconsin Minnesota Other By Geography As of 9/30/23 • Properties financed are generally in Wisconsin and Minnesota and 98% of properties are located outside of large ci
Slide 18: 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 19: Loans by Risk Rating
Below is a breakdown of loans by risk rating as of September 30, 2023: (in thousands) 1 to 5 6 7 8 9 TOTAL Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 729,891 $ 9,313 $ 11,078 $ — $ — $ 750,282 Agricultural real estate 77,462 6,611 485 — — 84,558 Multi-family real esta
Slide 20: Loans by Risk Rating as of December 31, 2022
Below is a breakdown of loans by risk rating as of December 31, 2022: (in thousands) 1 to 5 6 7 8 9 TOTAL Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 712,658 $ 5,771 $ 7,542 $ — $ — $ 725,971 Agricultural real estate 84,215 549 3,144 — — 87,908 Multi-family real estate
Slide 21: Allowance for Credit Losses - Loans
Allowance for Credit Losses - Loans (in thousand, except ratios) September 30, 2023 and Three Months Ended June 30, 2023 and Three Months Ended December 31, 2022 and Three Months Ended September 30, 2022 and Three Months Ended Allowance for Credit Losses (“ACL”) ACL - Loans, at beginning of period $
Slide 22: Delinquency Detail
Delinquency Detail (in thousands) 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 89 Days Past Due and Accruing Total Past Due and Accruing Nonaccrual Loans Total Past Due Accruing and Nonaccrual Loans Current Total Loans September 30, 2023 (1) Commercial/Agricultural
Slide 23: Delinquency Detail (Continued)
Delinquency Detail (Continued) (in thousands) 30-59 Days Past Due and Accruing 60-89 Days Past Due and Accruing Greater Than 89 Days Past Due and Accruing Total Past Due and Accruing Nonaccrual Loans Total Past Due Accruing and Nonaccrual Loans Current Total Loans December 31, 2022 Commercial/Agricu
Slide 24: Nonaccrual Loans and Other Real Estate Owned Roll forward
Nonaccrual Loans Roll forward (in thousands) Quarter Ended September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 Balance, beginning of period $ 15,663 $ 10,410 $ 11,204 $ 10,772 $ 10,434 Additions 33 7,826 154 1,039 257 Acquired nonaccrual loans — — — — — Charge offs (
Slide 25: 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, 2023 and December 31, 2022, respectively, were as follows: (in thousands) Available for sale securities Amortized Cost Gross Unrealized Gains Gro
Slide 26: Investments - Credit Ratings
The composition of our held to maturity portfolio by credit rating as of the dates indicated was as follows: (in thousands) September 30, 2023 December 31, 2022 Held to maturity securities Amortized Cost Fair Value Amortized Cost Fair Value U.S. government agency $ 91,736 $ 68,200 $ 95,779 $ 76,233
Slide 27: 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, 2023 At December 31, 2022 +300 bp (2) % 0 % +200 bp (1) % 0 % +100 bp 0 % 0 % -100 bp 0 % (1) % -200 bp (2) % (4) % Net Interest Income O
Slide 28: Selected Capital Composition Highlights
CITIZENS COMMUNITY FEDERAL N.A. Selected Capital Composition Highlights September 30, 2023 (unaudited) June 30, 2023 (unaudited) December 31, 2022 (audited) September 30, 2022 (unaudited) To Be Well Capitalized Under Prompt Corrective Action Provisions Tier 1 leverage ratio (to adjusted total assets
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