Citizens Community Bancorp Inc.
2026 CEO FORUM
2025FourthQuarterResults
Investment SummaryMarkets
Modest growth markets with diverse industries support steady balance sheet growth
Returns
EPS expansion, quarterly dividend, and share buyback authorization in place
Balance Sheet
Strong capital ratios, solid liquidity and funding to support organic loan growth
Asset Quality
Historical charge offs less than 5 bps during the last five years, while maintaining strong ACL reserves
M & A
Fiduciary duty to enhance shareholder value
Insider Ownership
Board and Executive Management, including former chairperson, beneficially own 6% of outstanding shares
3
Performance Objectives
Financial Performance
Exceed 1% ROA and 12% ROATCE through modest organic loan and deposit growth and efficiency ratio in the low to mid 60% range
Capital Management
Maintain TCE>8% to support organic loan growth, quarterly dividend and share buybacks, and for M&A activity
Credit
Diversification
Consumer deposit to business deposit at approximately 50%-50%, broad industry loan exposure, and granularity of individual loan and deposit accounts
Minimize net charge offs to less than 5 bps
Culture
Leadership that engages and empowers colleagues to execute our business strategy with accountability for results
4
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 5
Franchise Expansion
CZWI has transformed the Company from a consumer bank to a commercial bank to strengthen the earnings profile and franchise.
2 Central Bank branches
February 2016
Deposits: $27mm Northwestern WI
October 2018
July 2019
Assets: $192mm Tomah, WI
Assets: $269mm
$1,816
$1,851
$1,740
$1,780
$1,782
Osseo, WI
$1,649
$1,425
$1,519
$1,749
$1,488
$1,735
$1,727
May 2016
August 2017
Assets: $269mm
$1,524
$1,531
Assets: $154mm
Rice Lake, WI
Wells, MN
$1,196
$1,177
$1,295
$1,238
$1,388
$1,311
$1,478
$1,412
$1,461
$1,369
$1,353
$1,346
$1,481
$1,323
$1,524
$1,340
$941
$975
$743
$696 $733
$558
$759
$747
$574
2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY Mar-25 Jun-25 Sep-25 Dec-25
Loans Receivable  Total Deposits  Total Assets
Source: S&P Global Market Intelligence, company filings 6
Culture & Engagement
Mission
Provide the best products, service, and ideas to our customers every interaction every day.
Vision
Make more possible for our customers, colleagues, communities, and shareholders!
Values
Our six main values are: integrity, commitment, innovation, collaboration, focus, and sustainability.
Participation Rate:
2022
91.4%2023
84.8%2024
95.1%2025
95.0%100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
87.4%
Colleague Satisfaction Score
87.1%
86.0%
86.0%
84.0%
84.2%
82.9%
82.6%
76.8%
84.9%
87.0%
84.8%
87.8%
87.4% 89.2%
81.4% 80.8%
82.1%
70.2%
74.1%
69.4%
66.5%
89.6%
90.9%
Overall Role Team Supervisor Compensation Organization
2022 2023 2024 2025 Excellent Target7
Pre-Provision Net Revenue (PPNR)
Pre-Provision Net Revenue (PPNR) | |||||
Quarter Ended | |||||
(000s) | Dec-25 | Sep-25 | Jun-25 | Mar-25 | Dec-24 |
Pre-tax income | $ 4,885 | $ 4,535 | $ 4,047 | $ 3,974 | $ 3,358 |
Add back provision for credit losses | 200 | 650 | 1,350 | - | - |
Subtract negative provision for credit losses | - | - | - | (250) | (450) |
Pre-Provision Net Revenue | $ 5,085 | $ 5,185 | $ 5,397 | $ 3,724 | $ 2,908 |
Pre-Provision Net Revenue ("PPNR") is defined as net interest income plus total non-interest income minus total non-interest expense. This measure is a non-GAAP financial measure since it excludes the provision for (recovery of) credit losses included in net income. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP.
Pre-provision net revenue includes net interest income recognized on the payoff of nonaccrual loans and loans with purchase credit discounts of $0.3 million and $1.1 million for the three-month periods ended September 30, 2025, and June 30, 2025, respectively.
8
Net Income and Diluted EPS
$5,000
Annual vs. Quarterly
$3,197
$3,270 $3,682 $4,271
$4,271
$3,197
$3,270
$3,682
$0
2020 2021 2022 2023 2024 2025 Mar-25 Jun-25 Sep-25 Dec-25
Net Income
Net Income as Adjusted
$10,000
$13,321 $13,883
$13,059
$14,420
$14,420
$13,751
$12,725
$12,425
$15,000
$18,500
$17,761
$20,000
$21,339
$21,266
$25,000
Net Income
Diluted EPS Income as Adjusted
Diluted EPS
Annual vs. Quarterly
2020 2021 2022 2023 2024 2025 Mar-25 Jun-25 Sep-25 Dec-25
$0.00
$0.44
$0.37
$0.44
$0.37
$0.33
$0.33
$0.32
$0.32
$0.50
$1.00
$1.14 $1.25 $1.28
$1.11
$1.46
$1.35 $1.46
$1.34
$1.50
$1.76
$1.69
$1.98
$1.99
$2.00
Diluted EPS
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 comparing results over different periods. Reconciliation of Net Income and Diluted EPS Income as Adjusted to the comparable GAAP financial measure can be found in the appendix of this presentation. These measures should not be viewed as a substitute for operating results determined in accordance with GAAP.
Source: S&P Global Market Intelligence, company filings 9
Book Value, Tangible Book Value and Core Net Revenue Detail
BOOK VALUE AND TANGIBLE BOOK VALUE PER SHARE
$20.00
$18.95
$19.54
$17.94
$18.02
$18.36
$16.27
$16.03
$16.60
$15.71
$16.23
$15.00
$14.52
$14.69
$14.79 $15.15
$12.90
$13.42
$12.77
$11.18
$10.00
$5.00
$0.00
2020 FY 2021 FY 2022 FY 2023 FY 2024 FY Mar-25 Jun-25 Sep-25 Dec-25
TANGIBLE BOOK VALUE PER SHARE
BOOK VALUE PER SHARE
2025
2024
2023
2022
2021
2020
$50,000
$40,000
$30,000
$20,000
$10,000
$-
$56,581
$58,599
$60,000
$62,327
$66,799
$69,491
$68,703
$70,000
CORE NET REVENUE DETAIL ($000)
NET INTEREST INCOME NON-INTEREST INCOME NON-INTEREST EXPENSE
$42,936
$42,306
$40,142
$41,743
$40,532
$43,673
Tangible book value per share is a non-GAAP measure which management believes may be helpful in assessing capital adequacy. The reconciliation of Tangible book value per share can be found in the appendix of this presentation. These measures should not be viewed as substitutes for operating results determined in accordance with GAAP.
Source: S&P Global Market Intelligence, company filings 10
Return on Average Assets and Return on Average Tangible Common Equity
ROAA INCOME AS ADJUSTED
ROAA
2020 2021 2022 2023 2024 2025 Mar-25 Jun-25 Sep-25 Dec-25
0.60%
0.40%
0.20%
0.00%
0.84%
0.75% 0.84%
0.74% 0.75%
0.73%
0.82%
0.82% 0.74%
0.77%
0.76%
0.71%
0.80%
0.78%
0.80%
0.97%
0.97%
1.04%
1.00%
1.20%
1.00%
1.24%
1.23%
1.40%
ROAA
ROATCE INCOME AS ADJUSTED
ROATCE
2020 2021 2022 2023 2024 2025 Mar-25 Jun-25 Sep-25 Dec-25
0.0%
5.0%
9.8% 11.2%
9.2% 9.8%
9.2%
9.3%
9.3%
9.9%
9.9%
10.1%
10.0%
10.0%
11.2%
10.5%
10.3%
12.1%
11.8%
14.9%
14.4%
15.0%
17.6% 17.6%
20.0%
ROATCE
Quarterly data is annualized for the quarterly 2025 information.
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 understanding the underlying business performance trends related to average assets and average tangible equity. Reconciliations of ROAA as adjusted, ROTCE, and ROTCE as adjusted can be found in the appendix of this presentation. These measures should not be viewed as substitutes for operating results determined in accordance with GAAP.
Source: SEC filings and Company documents
11
Efficiency Ratio, Net Interest Income (NII) and Net Interest Margin (NIM)
EFFICIENCY RATIO AS ADJUSTED
EFFICIENCY RATIO
2020 2021 2022 2023 2024 2025 Mar-25 Jun-25 Sep-25 Dec-25
55%
50%
45%
40%
61%
57% 59%
57%
60%
61%62%
65%
66% 67%
66%
68%
67%
68%
67% 68%
68%
68%
70%
73%
73%
72%
72%
75%
EFFICIENCY RATIO
3.34%
NET INTEREST MARGIN
NET INTEREST INCOME
2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY
2.50%
$-
2.73%
2.81%
3.00%
3.12%
$10,000
3.39%
$60,000
3.50%
3.40%
5.00%
$40,000
4.50%
$30,000
4.00%
$20,000
$46,474
5.50%
$48,349
$50,000
$50,255 $51,184
6.00%
NII AND NIM ($000)
$56,369
$53,667
The efficiency ratio as adjusted is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to non-interest expense. A reconciliation of the efficiency ratio as adjusted to its comparable GAAP financial measure can be found in the appendix of this presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP.
12
Citizens Community Bancorp, Inc. Capital Ratios
Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
6.0%
4.0%
2.0%
0.0%
7.5% 7.7%
7.9%
7.7%
8.0%
8.9%
9.1%
8.9%
8.5% 8.5%
10.0%
TANGIBLE COMMON EQUITY / TANGIBLE ASSETS
Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
6.0%
4.0%
2.0%
0.0%
7.9%
7.7%
8.0%
8.9%
8.5%
9.8%
9.5%
9.5%
10.0%
9.9% 9.9%
12.0%
LEVERAGE RATIO
Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
0.0%
4.0%
8.0%
9.7% 9.7%
10.3%
10.5%
11.6%
11.8%
11.6%
11.3%
11.4%
12.0%
COMMON EQUITY TIER 1 RATIO
Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25
12.0%
9.0%
6.0%
3.0%
0.0%
14.0%
13.1%
15.3%
14.7%
14.3%
15.0%
15.5%
16.3%
16.0%
16.1%
18.0%
TOTAL CAPITAL RATIO
Tangible common equity/tangible assets is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to tangible assets and tangible common equity. A reconciliation of tangible common equity and tangible assets to its comparable financial measure can be found in the appendix of the presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP.
13
CZWI Shares Repurchased and Tangible Common Equity (TCE) as a Percent of Tangible Assets (non-GAAP)
SHARES REPURCHASED
TCE RATIO
2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY
-
0.0%
41,646
1.0%
100,000
128,923
2.0%
200,000
3.0%
253,431
300,000
5.0%
4.0%
400,000
8.0%
SHARES REPURCHASED AND TCE/TANGIBLE ASSETS
10.0%
700,000
9.0%
8.9%
620,197
8.5%
600,000
6.0%
7.7%
7.9%
7.5%
7.7%
7.0%
476,099
500,000
385,252
Tangible common equity/tangible assets is a non-GAAP measure, which management believes may be helpful in understanding the underlying business performance trends related to tangible assets and tangible common equity. A reconciliation of tangible common equity and tangible assets to its comparable financial measure can be found in the appendix of the presentation. This measure should not be viewed as a substitute for operating results determined in accordance with GAAP.
14
Asset Quality
2.00%
ALLOWANCE FOR CREDIT LOSSES (ACL) - LOANS
1.68%
1.57%
1.67%
1.50%
1.49%
1.59%
1.50%
1.38%
1.29% 1.27%
1.00%
0.50%
0.00%
0.00%
0.50%
0.75%
0.70%
0.76%
0.70%
0.83% 0.82% 0.82%
0.94%
0.96%
1.00%
1.50%
NON-PERFORMING ASSETS (NPA) / ASSETS
-0.03%
-0.02%
0.00%
0.00% 0.00%
0.01%
0.01%
0.02%
0.00%
-0.02%
-0.04%
0.03%
0.06%
0.04%
0.08%
0.08%
NET (RECOVERIES) CHARGE-OFFS/AVERAGE LOANS
0.10%
100%
50%
0%
141% 141%
154% 148%
157%
143%
150%
150%
176%
169%
300%
250%
200%
ACL-LOANS / NON-PERFORMING LOANS (NPL)
Quarterly data is annualized for the quarterly 2025 information.
15
HELOC
9%
Consumer
1%
CRE, C&I, Ag.
Related, C&D 90%
Loan Portfolio9/30/2016
Residential &
12/31/2025
Consumer
33%
CRE, C&I, Ag.
Related, C&D 34%
Residential
& HELOC 33%
($000) | Sep-16 | Dec-20 | Dec-21 | Dec-22 | Dec-23 | Dec-24 | Dec-25 |
Commercial Real Estate | $54,600 | $425,283 | $610,214 | $630,857 | $653,437 | $621,251 | $596,063 |
Housing related CRE | $53,475 | $204,544 | $266,600 | $304,022 | $325,189 | $308,572 | $332,733 |
Commercial & Industrial | $31,001 | $116,553 | $122,167 | $136,013 | $121,666 | $115,657 | $105,907 |
Ag. Real Estate / Ag. Operating | $42,845 | $101,580 | $110,083 | $116,714 | $109,041 | $104,130 | $102,511 |
Construction & Development | $16,580 | $98,517 | $79,520 | $102,492 | $110,941 | $78,489 | $75,767 |
Residential mortgage and | |||||||
Purchased HELOC loans | $187,738 | $137,646 | $94,861 | $108,651 | $131,901 | $135,297 | $123,764 |
Indirect Consumer Installment | $168,294 | $25,851 | $15,971 | $10,236 | $6,535 | $3,970 | $2,224 |
Consumer Installment | $19,715 | $13,213 | $8,874 | $7,150 | $6,187 | $5,012 | $3,997 |
Gross Loans Ex SBA PPP Loans | $574,248 | $1,123,187 | $1,308,290 | $1,416,135 | $1,464,897 | $1,372,378 | $1,342,966 |
SBA PPP Loans | $0 | $123,702 | $8,755 | $0 | $0 | $0 | $0 |
Total Gross Loans | $574,248 | $1,246,889 | $1,317,045 | $1,416,135 | $1,464,897 | $1,372,378 | $1,342,966 |
Company has no credit card loans.
Company has one $5.5 million NDFI loan, which is the senior loan for the Bank Holding Company of an FDIC insured Bank.
Average loan yield for Q4 2025 was 5.68%
16
Deposit Composition
9/30/2016
Non Interest Bearing Demand
8%
Interest Bearing Demand 9%
12/31/2025
CDs 49%
CDs
23%
Non Interest
Bearing Demand 17%
MMDA &
Savings 36%
Interest
Bearing Demand 24%
MMDA &
Savings 34%
Deposit Composition - Quarter Lookback ($000) Sep-16 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 | ||||||||
Non-interest-bearing demand deposits | $45,408 | $238,348 | $276,631 | $284,726 | $265,704 | $252,656 | $264,394 | |
Interest-bearing demand deposits | $48,934 | $301,764 | $396,231 | $371,210 | $343,276 | $355,750 | $367,958 | Q4 2025 |
Savings accounts | $52,153 | $196,348 | $222,674 | $220,019 | $176,548 | $159,821 | $151,525 | Cost of Deposits |
Money market accounts | $137,234 | $245,549 | $288,985 | $323,435 | $374,055 | $369,534 | $392,900 | 2.12% |
Certificate accounts | $273,948 | $313,247 | $203,014 | $225,334 | $359,509 | $350,387 | $347,322 | |
Total Deposits | $557,677 | $1,295,256 | $1,387,535 | $1,424,724 | $1,519,092 | $1,488,148 | $1,524,099 | |
Source: S&P Global Market Intelligence, company filings 17
Branch Deposit Growth & Efficiency
25
28
27
23
20
$200,000
$20,000
$27,565
$400,000
$30,000
$35,266
$30,653
$40,000
$557,677
$40,904
25
23
23
22
21
21
21
21
$10,000
$0
$0
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Mar-25 Jun-25 Sep-25 Dec-25
Wholesale Deposits
Branch Deposits
Average Branch Deposits
$71,270
TOTAL DEPOSITS, WHOLESALE, AND BRANCH DEPOSITS ($000)
$1,600,000
$1,524,099
$100,000
$1,387,535 $1,424,724
$1,519,092 $1,488,148
$1,523,654
$1,478,416 $1,480,554
$1,400,000
$90,000
$1,295,256
$80,000
$1,200,000
$1,195,702
$600,000
$71,404
$70,000
$1,000,000
$1,007,512
$66,132
$69,238 $69,266
$60,212
$61,425
$60,000
$800,000
$742,504
$51,710
$55,501
$50,000
Includes branch acquisitions and consolidations
The number of branches has increased by one since 2016
17 branches purchased
2 branches opened
18 branches closed, consolidated, or sold
White Numbers
Indicate Branch Count
Source: S&P Global Market Intelligence, company filings 18
Net Interest Margin Analysis
Quarter ended December 31, 2025 Quarter ended September 30, 2025 Quarter ended June 30, 2025 Quarter ended March 31, 2025 | |||||||||||||
Interest | Average | Interest | Average | Interest | Average | Interest | Average | ||||||
Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||
($ Dollars in Thousands) | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | |
Average interest earning assets: | |||||||||||||
Cash and cash equivalents | $ 84,678 | $ 842 | 3.94% | $ 62,395 | $ 693 | 4.41% | $ 44,377 | $ 493 | 4.46% | $ 47,835 | $ 524 | 4.44% | |
Loans receivable | 1,329,456 | 19,034 | 5.68% | 1,342,635 | 19,759 | 5.84% | 1,353,332 | 20,105 | 5.96% | 1,363,352 | 18,602 | 5.53% | |
Investment securities | 218,205 | 1,739 | 3.16% | 220,213 | 1,738 | 3.13% | 223,318 | 1,735 | 3.12% | 228,514 | 1,808 | 3.21% | |
Non-marketable equity securities, at cost | 12,390 156 | 5.00% | 12,373 64 | 2.05% | 12,400 169 | 5.47% | 12,498 169 | 5.48% | |||||
Total interest earning assets | $ 1,644,729 $ 21,771 | 5.25% | $ 1,637,616 $ 22,254 | 5.39% | $ 1,633,427 $ 22,502 | 5.53% | $ 1,652,199 $ 21,103 | 5.18% | |||||
Average interest-bearing liabilities: | |||||||||||||
Total deposits | $ 1,233,678 | $ | 7,998 | 2.57% | $ 1,233,572 | $ 8,220 | 2.64% | $ 1,237,951 | $ 8,287 | 2.69% | $ 1,258,635 | $ 8,597 | 2.77% |
FHLB Advances & Other Borrowings | 50,941 708 | 5.51% | 54,389 820 | 5.98% | 61,781 904 | 5.87% | 64,635 912 | 5.72% | |||||
Total interest bearing liabilities | $ 1,284,619 $ 8,706 | 2.69% | $ 1,287,961 $ 9,040 | 2.78% | $ 1,299,732 $ 9,191 | 2.84% | $ 1,323,270 $ 9,509 | 2.91% | |||||
Net interest income | $ 13,065 | $ 13,214 | $ 13,311 | $ 11,594 | |||||||||
Interest Rate Spread | 2.56% | 2.61% | 2.69% | 2.27% | |||||||||
Net interest margin | 3.15% | 3.20% | 3.27% | 2.85% | |||||||||
Source: S&P Global Market Intelligence, company filings
20
Interest Rate Risk
Economic Value of Equity (EVE) December 31, 2025 December 31, 2024 Change in Interest Rates In Change in Interest Rates In Basis Points ("bp") Percent Change Basis Points ("bp") Percent Change Rate Shock in Rates (1) Rate Shock in Rates (1) | ||||
+300 bp | 6% | +300 bp | 2% | |
+200 bp | 4% | +200 bp | 2% | |
+100 bp | 2% | +100 bp | 1% | |
-100 bp | -4% | -100 bp | -1% | |
-200 bp | -8% | -200 bp | -4% | |
Net Interest Income Over One Year Horizon December 31, 2025 December 31, 2024 Change in Interest Rates In Change in Interest Rates In Basis Points ("bp") Percent Change Basis Points ("bp") Percent Change Rate Shock in Rates (1) Rate Shock in Rates (1) | ||||
+300 bp | -4% | +300 bp | -8% | |
+200 bp | -2% | +200 bp | -5% | |
+100 bp | -1% | +100 bp | -3% | |
-100 bp | -1% | -100 bp | 2% | |
-200 bp | -1% | -200 bp | 3% | |
(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.
21
Reconciliation of Non-GAAP Financial Measures
Reconciliation of GAAP Earnings and Core Earnings (non-GAAP):
FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | |
GAAP pre-tax earnings | $ 17,280 | $ 28,959 | $ 23,581 | $ 18,932 | $ 17,450 | $ 17,441 | $ 3,974 | $ 4,047 | $ 4,535 | $ 4,885 |
Merger related costs (1) | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
Branch closure costs (2) | $ 165 | $ - | $ 981 | $ 380 | $ 168 | $ - | $ - | $ - | $ - | $ - |
Settlement proceeds (3) | $ (131) | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
FHLB borrowings prepayment fee (4) | $ - | $ 102 | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
Net gain on sale of acquired business lines (5) | $ (432) | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
Income before provision for income taxes as adjusted (6) | $ 16,882 | $ 29,061 | $ 24,562 | $ 19,312 | $ 17,618 | $ 17,441 | $ 3,974 | $ 4,047 | $ 4,535 | $ 4,885 |
Provision for income tax on pre-tax earnings as adjusted (7) | $ 4,457 | $ 7,722 | $ 6,062 | $ 5,991 | $ 3,735 | $ 3,021 | $ 777 | $ 777 | $ 853 | $ 614 |
Total provision for income tax as adjusted | $ 4,457 | $ 7,722 | $ 6,062 | $ 5,991 | $ 3,735 | $ 3,021 | $ 777 | $ 777 | $ 853 | $ 614 |
Net income as adjusted (non-GAAP) (6) | $ 12,425 | $ 21,339 | $ 18,500 | $ 13,321 | $ 13,883 | $ 14,420 | $ 3,197 | $ 3,270 | $ 3,682 | $ 4,271 |
GAAP diluted earnings per share, net of tax | $ 1.14 | $ 1.98 | $ 1.69 | $ 1.25 | $ 1.34 | $ 1.46 | $ 0.32 | $ 0.33 | $ 0.37 | $ 0.44 |
Merger related costs, net of tax | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
Branch related costs, net of tax | $ 0.01 | $ - | $ 0.07 | $ 0.03 | $ 0.01 | $ - | $ - | $ - | $ - | $ - |
Settlement proceeds | $ (0.01) | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
FHLB borrowings prepayment fee | $ - | $ 0.01 | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
Net gain on sale of acquired business lines | $ (0.03) | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
Diluted earnings per share, as adjusted, net of tax (non-GAAP) | $ 1.11 | $ 1.99 | $ 1.76 | $ 1.28 | $ 1.35 | $ 1.46 | $ 0.32 | $ 0.33 | $ 0.37 | $ 0.44 |
Average diluted shares outstanding | 11,161,811 | 10,726,539 | 10,513,773 | 10,470,298 | 10,262,710 | 9,906,893 | 10,000,818 | 9,997,229 | 9,920,907 | 9,719,052 |
22
Reconciliation of Non-GAAP Financial Measures
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, $0, $0, $0, and $0, for the three months ended December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and years ended December 31,
2024, December 31, 2023, December 31, 2022, December 31, 2021, and December 31, 2020, respectively, which are nondeductible expenses for federal income tax purposes.
Branch closure costs include severance pay recorded in compensation and benefits, accelerated depreciation expense and lease termination fees included in occupancy and other costs included in other non-interest expense in the consolidated statement of operations. In addition, other non-interest expense includes costs related to the reduction in valuation of a closed branch office in the fourth quarter of fiscal 2017 and costs associated with three branch closures during the quarter ended December 31, 2020, one branch closure in the quarter ended September 30, 2022, two branch closures in the quarter ended December 31, 2022, and one branch office closure in the quarter ended December 31, 2023. Professional services includes legal costs related to the sale of the Michigan branch included in these Branch closure costs during the quarter ended March 31, 2019.
Settlement proceeds includes litigation income from a JP Morgan Residential Mortgage-Backed Security (RMBS) claim. This JP Morgan RMBS was previously owned by the Bank and sold in 2011.
The prepayment fee to restructure our FHLB borrowings is included in other non-interest expense in the consolidated statement of operations.
Net gain on sale of acquired business lines resulted from (1) the sale of Wells Insurance Agency and (2) the termination and sale of the wealth management business line sales contract acquired in a former acquisition.
Pretax net income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market's ability to assess the underlying business performance and trends related to core business activities.
Provision for income tax on pre-tax income as adjusted is calculated at our effective tax rate for each respective period presented.
23
Reconciliation of Non-GAAP Financial Measures
Return on Average Assets (ROAA) as Adjusted
(In thousands except ROAA and ROAA as adjusted)
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | |
Net Income | $ 12,725 | $ 21,266 | $ 17,761 | $ 13,059 | $ 13,751 | $ 14,420 | $ 3,197 | $ 3,270 | $ 3,682 | $ 4,271 |
Net Income as adjusted | $ 12,425 | $ 21,339 | $ 18,500 | $ 13,321 | $ 13,883 | $ 14,420 | $ 3,197 | $ 3,270 | $ 3,682 | $ 4,271 |
Average assets | $ 1,594,053 | $ 1,722,483 | $ 1,775,049 | $ 1,836,337 | $ 1,808,256 | $ 1,749,437 | $ 1,763,191 | $ 1,745,897 | $ 1,735,752 | $ 1,751,360 |
Return on average assets | 0.80% | 1.23% | 1.00% | 0.71% | 0.76% | 0.82% | 0.74% | 0.75% | 0.84% | 0.97% |
Return on average assets as adjusted | 0.78% | 1.24% | 1.04% | 0.73% | 0.77% | 0.82% | 0.74% | 0.75% | 0.84% | 0.97% |
Return on Average Tangible Common Equity (ROATCE) as Adjusted | ||||||||||
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Mar-25 | Jun-25 | Sep-25 | Dec-25 |
$ 160,564 | $ 170,866 | $ 167,088 | $ 173,334 | $ 179,084 | $ 187,939 | $ 180,051 | $ 183,462 | $ 186,815 | $ 187,939 |
(31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) |
(5,494) | (3,898) | (2,449) | (1,694) | (979) | (395) | (800) | (621) | (508) | (395) |
$ 123,572 | $ 135,470 | $ 133,141 | $ 140,142 | $ 146,607 | $ 156,046 | $ 147,753 | $ 151,343 | $ 154,809 | $ 156,046 |
$ 115,313 | $ 127,793 | $ 131,305 | $ 132,409 | $ 142,641 | $ 150,722 | $ 146,083 | $ 149,161 | $ 152,759 | $ 155,320 |
$ 12,725 | $ 21,266 | $ 17,761 | $ 13,059 | $ 13,751 | $ 14,420 | $ 3,197 | $ 3,270 | $ 3,682 | $ 4,271 |
1,194 | 1,171 | 1,095 | 521 | 563 | 483 | 144 | 145 | 92 | 99 |
$ 13,919 | $ 22,437 | $ 18,856 | $ 13,580 | $ 14,314 | $ 14,903 | $ 3,341 | $ 3,415 | $ 3,774 | $ 4,370 |
$ 12,425 | $ 21,339 | $ 18,500 | $ 13,321 | $ 13,883 | $ 14,420 | $ 3,197 | $ 3,270 | $ 3,682 | $ 4,271 |
1,194 | 1,171 | 1,095 | 521 | 563 | 483 | 144 | 145 | 92 | 99 |
$ 13,619 | $ 22,510 | $ 19,595 | $ 13,842 | $ 14,446 | $ 14,903 | $ 3,341 | $ 3,415 | $ 3,774 | $ 4,370 |
12.1% | 17.6% | 14.4% | 10.3% | 10.0% | 9.9% | 9.3% | 9.2% | 9.8% | 11.2% |
11.8% | 17.6% | 14.9% | 10.5% | 10.1% | 9.9% | 9.3% | 9.2% | 9.8% | 11.2% |
(In thousands except ROATCE and ROATCE as adjusted)
Common Equity Less: Goodwill
Less: Core Deposit and other intangibles Tangible Common Equity (TCE)
Average Tangible Common Equity
Net Income
Intangible amortization, net of tax Tangible Net Income
Net Income as adjusted Intangible amortization, net of tax Tangible Net Income as adjusted
ROATCE
ROATCE as adjusted
Note: All quarterly period ratios are annualized for net income / net income as adjusted.
24
Reconciliation of Non-GAAP Financial Measures
Efficiency Ratio as Adjusted
(In thousands except Efficiency Ratio and Efficiency Ratio as adjusted)
Non-interest Expense (GAAP) Less amortization of intangibles | 2020 2021 2022 2023 2024 2025 $ 43,673 $ 40,532 $ 41,743 $ 40,142 $ 42,306 $ 42,936 (1,622) (1,596) (1,449) (755) (715) (584) | Mar-25 Jun-25 Sep-25 Dec-25 $ 10,463 $ 10,750 $ 11,051 $ 10,672 (179) (179) (113) (113) |
Efficiency ratio numerator Merger related costs Branch Closure costs Audit and financial reporting Prepayment fee Efficiency ratio numerator as adjusted | 42,051 38,936 40,294 39,387 41,591 42,352 - - - - - - (165) - (981) (380) (168) - - - - - - - - (102) - - - - | 10,284 10,571 10,938 10,559 - - - - - - - - - - - - - - - - |
$ 41,886 $ 38,834 $ 39,313 $ 39,007 $ 41,423 $ 42,352 | $ 10,284 $ 10,571 $ 10,938 $ 10,559 | |
Non-interest income $ 18,448 $ 15,824 $ 10,430 $ 10,250 $ 10,107 $ 11,143 Net interest income 50,255 53,667 56,369 48,349 46,474 51,184 Add back net losses on debt and equity securiti - - - - (856) -Subtract net gains on debt and equity securities 110 1,224 541 459 - 234 | $ 2,593 $ 2,836 $ 3,022 $ 2,692 11,594 13,311 13,214 13,065 - - (66) - 10 99 - 191 | |
Efficiency ratio denominator (GAAP) Net gain on sale of branch Net gain on sale of acquired business lines Settlement proceeds Efficiency ratio denominator as adjusted Efficiency ratio Efficiency ratio as adjusted | 68,593 68,267 66,258 58,140 57,437 62,093 - - - - - - (432) - - - - - (131) - - - - - | 14,177 16,048 16,302 15,566 - - - - - - - - - - - - |
$ 68,030 $ 68,267 $ 66,258 $ 58,140 $ 57,437 $ 62,093 | $ 14,177 $ 16,048 $ 16,302 $ 15,566 | |
61% 57% 61% 68% 72% 68% 62% 57% 59% 67% 72% 68% | 73% 66% 67% 68% 73% 66% 67% 68% | |
Tangible Book Value Per Share (TBVPS) as Adjusted | ||
(In thousands except Shares Outstanding, Book Value and TBVPS)
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Mar-25 | Jun-25 | Sep-25 | Dec-25 | |
Total Stockholders' equity | $ 160,564 $ | 170,866 $ | 167,088 $ | 173,334 $ | 179,084 $ | 187,939 $ | 180,051 $ | 183,462 $ | 186,815 $ | 187,939 |
Less: Goodwill | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) | (31,498) |
Less: Core deposit and intangibles | (5,494) | (3,898) | (2,449) | (1,694) | (979) | (395) | (800) | (621) | (508) | (395) |
Tangible book value (non-GAAP) | $ 123,572 $ | 135,470 $ | 133,141 $ | 140,142 $ | 146,607 $ | 156,046 $ | 147,753 $ | 151,343 $ | 154,809 $ | 156,046 |
Shares outstanding | 11,056,349 | 10,502,442 | 10,425,119 | 10,440,591 | 9,981,996 | 9,617,245 | 9,989,536 | 9,991,997 | 9,856,745 | 9,617,245 |
Book Value | $ 14.52 $ | 16.27 $ | 16.03 $ | 16.60 $ | 17.94 $ | 19.54 | $ 18.02 $ | 18.36 $ | 18.95 $ | 19.54 |
TBVPS | $ 11.18 $ | 12.90 $ | 12.77 $ | 13.42 $ | 14.69 $ | 16.23 | $ 14.79 $ | 15.15 $ | 15.71 $ | 16.23 |
Tangible Common Equity / Tangible Assets | ||||||||||
2020 2021 2022 2023 2024 2025 | Mar-25 Jun-25 Sep-25 Dec-25 |
$ 1,649,095 $ 1,739,628 $ 1,816,367 $ 1,851,391 $ 1,748,519 $ 1,781,755 | $ 1,779,963 $ 1,735,164 $ 1,726,987 $ 1,781,755 |
(31,498) (31,498) (31,498) (31,498) (31,498) (31,498) | (31,498) (31,498) (31,498) (31,498) |
(5,494) (3,898) (2,449) (1,694) (979) (395) | (800) (621) (508) (395) |
$ 1,612,103 $ 1,704,232 $ 1,782,420 $ 1,818,199 $ 1,716,042 $ 1,749,862 | $ 1,747,665 $ 1,703,045 $ 1,694,981 $ 1,749,862 |
9.7% 9.8% 9.2% 9.4% 10.2% 10.5% | 10.1% 10.6% 10.8% 10.6% |
7.7% 7.9% 7.5% 7.7% 8.5% 8.9% | 8.5% 8.9% 9.1% 8.9% |
(In thousands except Tangible Common Equity / Tangible Asets)
Total Assets Less: Goodwill
Less: Core deposit and intangibles Tangible Assets (non-GAAP)
Total Stockhoders' Equity/Total Assets Tangible Common Equity / Tangible Assets
Note: All quarterly period ratios are annualized for net income / net income as adjusted 25
Market Demographics
Mankato MSA
Eau Claire MSA
Nov-20 Nov-21 Nov-22 Nov-23 Nov-24 Nov-25
1.0%
0.0%
1.9%
1.6%
2.2%
1.8%
2.1%
2.0%
2.0%
2.5%
2.5%
2.1%
2.9%
3.6%
4.0%
3.0%
4.0%
5.0%
MSA Unemployment Rates
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 possesses a broad-based, diverse economy, which is driven by manufacturing, agribusiness, health care and education.
Eau Claire Area Employers
Mankato Area Employers
Source: S&P Global Market Intelligence, eauclairedevelopment.com, greatermankato.com, Google Images, US Bureau of Labor Statistics 26
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 Bancorp, Inc. since October 2018 and Citizens Community Federal National Association. As a banking veteran with 40 years of experience, Mr. Bianchi served in several senior management positions at Wells Fargo Bank and with Associated Bank. He served as the Chief Executive Officer at HF Financial Corp. from October 2011 and its President from April 2010 to May 2015. Mr. Bianchi served as the Chief Executive Officer and President of Home Federal Bank, a subsidiary of HF Financial Corp. from August 2012 to May 2015. He served as the Interim Chief Executive Officer and Interim President of HF Financial Corp. from October 2011 until July 2012. Mr. Bianchi served as Senior Vice President at Associated Bank, where he served as Minnesota Regional President and Minnesota Regional Commercial Banking Manager from July 2006 to April 2010. Before that, he served as Twin Cities Business Banking Manager for Wells Fargo Bank, where he held several other management positions over 14 years. He has been a Director of Citizens Community Bancorp, Inc. since May 25, 2017. He has been a Director of Citizens Community Federal since June 24, 2016. Mr. Bianchi received his B.S. degree in Finance and M.B.A. from Providence College. |
James S. Broucek Executive VP, CFO Principal Accounting Officer, Treasurer & Secretary | Mr. James S. Broucek, also known as Jim, has been Chief Financial Officer and Principal Accounting Officer at Citizens Community Bancorp, Inc and Citizens Community Federal since October 31, 2017. He serves as Executive Vice President, CFO, Treasurer, and Secretary of Citizens Community Bancorp, Inc. and of Citizens Community Federal National Association. He served as a Senior Manager of Wipfli LLP ("Wipfli") from December 2013 to October 2017. Before joining Wipfli, Mr. Broucek held several positions with TCF Financial Corporation ("TCF Financial") and its subsidiaries from 1995 to 2013, with his last position being Treasurer of TCF Financial. Prior to joining TCF Financial, Mr. Broucek served as the Controller of Great Lakes Bancorp. Mr. Broucek is a banking veteran with 40 years of experience. Mr. Broucek holds a B.A. in mathematics and business administration with a concentration in accounting from Hope College. |
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