Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — Q3 2022 Earnings Presentation
25 slides from Citizens Community Bancorp's earnings presentation, Oct 24, 2022
Slide 1: 2022 Third Quarter Results Earnings Release Presentation
2022 Third Quarter Results Earnings Release Presentation EXHIBIT 99.3
Slide 2: Cautionary Notes and Additional Disclosures
Cautionary Notes and Additional Disclosures 2 DATES AND PERIODS PRESENTED 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 corresponding quarter-end date, or the correspo
Slide 3: Investment Summary
Investment Summary Strong Markets Strong earnings and ROATCE profile with capacity and infrastructure to grow organically 3 Returns Asset Quality Strong markets with diverse industries and lower unemployment than national averages mitigate volatility and support steady growth. Sound underwriting pra
Slide 4: Culture & Engagement
89.2% 82.3% 76.1% 87.1% 73.7% 86.5% 87.1% 84.0% 80.8% 89.6% 74.1% 87.4% 0.0% 25.0% 50.0% 75.0% 100.0% Overall Role Team Supervisor Compensation Organization Colleague Engagement 2021 Favorable 2022 Favorable Excellent Target 75% Values Our six main values are: integrity, commitment, innovation, coll
Slide 5: Performance Objectives
Performance Objectives Increase Tangible Book and Shareholder Value Maintain Strong Asset Quality Metrics Increase Operating Leverage Sustainable Business Practices Targeted growth in TBV of 8-10% and achieve ROAA and ROATCE in the upper half of its peer group Maintain NPAs, classifieds and NCOs at
Slide 6: Operating Market Overview
Operating Market Overview CZWI Operates in diverse markets within the northwestern region of Wisconsin, metro Twin Cities and the Mankato, Minnesota MSA Source: S&P Global Market Intelligence 0 0 0 0 0 6
Slide 7: Franchise Expansion
$574 $733 $759 $1,177 $1,238 $1,311 $1,290 $1,347 $1,376 $558 $743 $747 $1,196 $1,295 $1,388 $1,428 $1,400 $1,434 $696 $941 $975 $1,531 $1,649 $1,740 $1,775 $1,764 $1,780 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY Mar-22 Jun-22 Sep-22 Franchise Expansion CZWI has transformed the Company from a
Slide 8: Net Income and Diluted EPS
Net Income and Diluted EPS Source: S&P Global Market Intelligence, company filings Net Income as Adjusted and Diluted EPS Income as Adjusted are non-GAAP financial measures, which management believes may be helpful in understanding the Company's results of operations or financial position and compar
Slide 9: Book Value, Tangible Book Value and Core Net Revenue Detail
Book Value, Tangible Book Value and Core Net Revenue Detail Source: S&P Global Market Intelligence, company filings Tangible book value per share is a non-GAAP measure which management believes may be helpful in better assessing capital adequacy. The reconciliation of Tangible book value per share c
Slide 10: Return on Average Assets and Return on Average Tangible Common Equity
Return on average assets as adjusted, return on average tangible common equity (ROATCE) and ROATCE as adjusted are non-GAAP measures, which management believes may be helpful in better understanding the underlying business performance trends related to average assets and average tangible equity. Rec
Slide 11: Efficiency Ratio, Net Interest Income (NII) and Net Interest Margin (NIM)
Efficiency Ratio, Net Interest Income (NII) and Net Interest Margin (NIM) The efficiency ratio as adjusted is a non-GAAP measure, which management believes may be helpful in better understanding the underlying business performance trends related to non-interest expense. A reconciliation of the effic
Slide 12: Capital Ratios
Capital Ratios Note: 2018 FY represents the completion of the 2018 offering of $65 million, but does not include the acquisition of United Bank Source: S&P Global Market Intelligence, company filings 12 6.6% 12.7% 7.7% 7.7% 7.9% 8.0% 8.2% 8.4% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 2
Slide 13: Asset Quality
Asset Quality 0.82% 0.89% 0.88% 1.38% 1.29% 1.30% 1.25% 1.25% 1.25% 1.11% 1.25% 1.55% 1.40% 1.44% 1.37% 1.34% 1.77% 1.43% 1.45% 1.37% 1.34% 0.00% 0.30% 0.60% 0.90% 1.20% 1.50% 1.80% 2.10% 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY Mar‐22 Jun‐22 Sep‐21 ALLOWANCE FOR LOAN LOSSES (ALLL) ALL AS A % OF TOTA
Slide 14: Loan Portfolio
CRE, C&I, Ag. Related, C&D 91% Residential & HELOC 8% Consumer 1% Loan Portfolio 9/30/2016 9/30/22 CRE, C&I, Ag. Related, C&D 34% Residential & HELOC 33% Consumer 33% ($000s) Sep‐16 Sep‐17 Sep‐18 Dec‐19 Dec‐20 Dec‐21 Mar‐22 Jun‐22 Sep‐22 Commercial Real Estate $54,600 $109,024 $156,735 $420,383 $425
Slide 15: Commercial & Ag Loan Portfolio
Commercial & Ag Loan Portfolio CZWI has transformed its loan portfolio through organic growth and acquisitions Change has occurred from a primarily consumer focused portfolio to a diversified mix consisting of commercial real estate, agricultural and commercial business loans Credit quality re
Slide 16: Deposit Composition
Deposit Composition Focus has been on transforming the deposit composition to core deposits Deposit transformation and growth has been achieved through both acquisitions and organic initiatives 9/30/2016 9/30/2022 Source: S&P Global Market Intelligence, company filings Non Interest Bearing Deman
Slide 17: Appendix
Appendix 17
Slide 18: Net Interest Margin Analysis
Net Interest Margin Analysis Source: S&P Global Market Intelligence, company filings 18 (1) Fully taxable equivalent. The average yield on tax exempt securities is computed on a tax equivalent basis using a tax rate of 21% for the quarters ended September 30, 2022, June 30, 2022, March 31, 2022, and
Slide 19: Interest Rate Risk
Interest Rate Risk 19 (1) Assumes an immediate and parallel shift in the yield curve at all maturities. Note: The tables above may not be indicative of future results. September 30, 2022 December 31, 2021 +300 bp 0% ‐5% +200 bp 0% ‐3% +100 bp 0% ‐1% ‐100 bp 0% ‐1% September 30, 2022 December 31, 202
Slide 20: Reconciliation of Non-GAAP Financial Measures
20 Reconciliation of Non-GAAP Financial Measures Reconciliation of GAAP Earnings and Core Earnings (non‐GAAP): GAAP pre‐tax earnings 3,822$ 6,609$ 12,277$ 17,280$ 28,959$ 6,212$ 5,777$ 5,277$ Merger related costs (1) 1,860$ 463$ 3,880$ ‐$ ‐$ ‐$ ‐$ ‐$ Branch closure costs (2) 951$ 26$ 15$ 165$ ‐$ ‐$
Slide 21: (1) All costs incurred are presented as professional fees and other non-interest expense in
(1) All costs incurred are presented as professional fees and other non-interest expense in the consolidated statement of operations and include costs $0, $0, $0 $0, $0, $341,000, $350,000, and $565,000 for the three months ended September 30, 2022, June 30, 2022 and March 31, 2022 and years ended D
Slide 22: Reconciliation of Non-GAAP Financial Measures
Note: All quarterly periods are annualized for net income / net income as adjusted. 22 Reconciliation of Non-GAAP Financial Measures 2017 2018 2019 2020 2021 Mar‐22 Jun‐22 Sep‐22 Net Income 2,499$ 4,283$ 9,463$ 12,725$ 21,266$ 4,706$ 4,366$ 3,993$ Net Income as adjusted 4,221$ 4,962$ 10,675$ 12,425$
Slide 23: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Note: All quarterly periods are annualized for net income / net income as adjusted 23 2017 2018 2019 2020 2021 Mar‐22 Jun‐22 Sep‐22 Non‐interest Expense (GAAP) 22,878$ 29,764$ 42,686$ 43,673$ 40,532$ 9,668$ 10,462$ 11,277$ Less amortization of intangible
Slide 24: Market Demographics
Source: S&P Global Market Intelligence, eauclairedevelopment.com, greatermankato.com, Google Images, US Bureau of Labor Statistics Eau Claire MSA: Features a broad-based, diverse economy, which is driven by commercial, housing, retail and medical industries. Mankato MSA: The Mankato market also
Slide 25: Leadership Team
Leadership Team Stephen M. Bianchi Chairman of the Board President & CEO Mr. Stephen M. Bianchi, also known as Steve, has been the Chief Executive Officer and President of Citizens Community Bancorp, Inc. and Citizens Community Federal since June 24, 2016. He has been Chairman of Citizens Community
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