Earnings Release Presentation for Hovde Group Financial Services Conference - Third Quarter

Pre-Provision Net Revenue (PPNR)

Quarter Ended

(000s)

Sep-25

Jun-25

Mar-25

Dec-24

Sep-24

Pre-tax income

$ 4,535

$ 4,047

$ 3,974

$ 3,358

$ 4,185

Add back provision for credit losses

650

1,350

-

-

-

Subtract negative provision for credit losses

-

-

(250)

(450)

(400)

Pre-Provision Net Revenue

$ 5,185

$ 5,397

$ 3,724

$ 2,908

$ 3,785

($000)

Sep-16

Sep-17

Sep-18

Dec-19

Dec-20

Dec-21

Dec-22

Dec-23

Dec-24

Mar-25

Jun-25

Sep-25

Commercial Real Estate

$54,600

$109,024

$156,735

$420,383

$425,283

$610,214

$630,857

$653,437

$621,251

$623,621

$606,083

$596,117

Housing related CRE

$53,475

$77,166

$108,029

$181,084

$204,544

$266,600

$304,022

$325,189

$308,572

$324,226

$326,252

$325,005

Commercial & Industrial

$31,001

$55,251

$76,254

$133,734

$116,553

$122,167

$136,013

$121,666

$115,657

$109,620

$109,202

$101,700

Ag. Real Estate / Ag. Operating

$42,845

$91,875

$97,066

$123,143

$101,580

$110,083

$116,714

$109,041

$104,130

$100,381

$101,113

$94,181

Q3 2025

Construction & Development

$16,580

$19,708

$17,739

$86,410

$98,517

$79,520

$102,492

$110,941

$78,489

$58,461

$70,477

$74,789

5.84%

Residential mortgage and

Purchased HELOC loans

$187,738

$247,634

$209,781

$184,739

$137,646

$94,861

$108,651

$131,901

$135,297

$131,630

$128,186

$127,177

Yield

Indirect Consumer Installment

$168,294

$115,287

$78,245

$39,585

$25,851

$15,971

$10,236

$6,535

$3,970

$3,434

$2,959

$2,567

Consumer Installment

$19,715

$20,668

$18,844

$18,186

$13,213

$8,874

$7,150

$6,187

$5,012

$4,679

$4,275

$4,155

Gross Loans Ex SBA PPP Loans

$574,248

$736,613

$762,693

$1,187,264

$1,123,187

$1,308,290

$1,416,135

$1,464,897

$1,372,378

$1,356,052

$1,348,547

$1,325,691

SBA PPP Loans

$0

$0

$0

$0

$123,702

$8,755

$0

$0

$0

$0

$0

$0

Total Gross Loans

$574,248

$736,613

$762,693

$1,187,264

$1,246,889

$1,317,045

$1,416,135

$1,464,897

$1,372,378

$1,356,052

$1,348,547

$1,325,691

Quarter ended September 30, 2025 Quarter ended June 30, 2025 Quarter ended March 31, 2025 Quarter ended December 31, 2024

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

$ 62,395

$ 693

4.41%

$ 44,377

$ 493

4.46%

$ 47,835

$ 524

4.44%

$ 26,197

$ 327

4.97%

Loans receivable

1,342,635

19,759

5.84%

1,353,332

20,105

5.96%

1,363,352

18,602

5.53%

1,396,854

19,534

5.56%

Investment securities

220,213

1,738

3.13%

223,318

1,735

3.12%

228,514

1,808

3.21%

235,268

1,940

3.28%

Non-marketable equity securities, at cost

12,373 64

2.05%

12,400 169

5.47%

12,498 169

5.48%

12,318 160

5.17%

Total interest earning assets

$ 1,637,616 $ 22,254

5.39%

$ 1,633,427 $ 22,502

5.53%

$ 1,652,199 $ 21,103

5.18%

$ 1,670,637 $ 21,961

5.23%

Average interest-bearing liabilities:

Total deposits

$ 1,233,572

$

8,220

2.64%

$ 1,237,951

$ 8,287

2.69%

$ 1,258,635

$ 8,597

2.77%

$ 1,234,565

$ 9,273

2.99%

FHLB Advances & Other Borrowings

54,389 820

5.98%

61,781 904

5.87%

64,635 912

5.72%

72,431 980

5.38%

Total interest bearing liabilities

$ 1,287,961 $ 9,040

2.78%

$ 1,299,732 $ 9,191

2.84%

$ 1,323,270 $ 9,509

2.91%

$ 1,306,996 $ 10,253

3.12%

Net interest income

$ 13,214

$ 13,311

$ 11,594

$ 11,708

Interest Rate Spread

2.61%

2.69%

2.27%

2.11%

Net interest margin

3.20%

3.27%

2.85%

2.79%

Economic Value of Equity (EVE)

September 30, 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

September 30, 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

0%

-100 bp

2%

-200 bp

-1%

-200 bp

3%

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2024

Mar-25

Jun-25

Sep-25

GAAP pre-tax earnings

$ 3,822

$ 6,609

$ 12,277

$ 17,280

$ 28,959

$ 23,581

$ 18,932

$ 17,450

$ 3,974

$ 4,047

$ 4,535

Merger related costs (1)

$ 1,860

$ 463

$ 3,880

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Branch closure costs (2)

$ 951

$ 26

$ 15

$ 165

$ -

$ 981

$ 380

$ 168

$ -

$ -

$ -

Settlement proceeds (3)

$ (283)

$ -

$ -

$ (131)

$ -

$ -

$ -

$ -

$ -

$ -

$ -

FHLB borrowings prepayment fee (4)

$ 104

$ -

$ -

$ -

$ 102

$ -

$ -

$ -

$ -

$ -

$ -

Audit and Financial Reporting (5)

$ -

$ -

$ 358

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Net gain on sale of branch

$ -

$ -

$ (2,295)

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Net gain on sale of acquired business lines (6)

$ -

$ -

$ -

$ (432)

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Income before provision for income taxes as adjusted (7)

$ 6,454

$ 7,098

$ 14,235

$ 16,882

$ 29,061

$ 24,562

$ 19,312

$ 17,618

$ 3,974

$ 4,047

$ 4,535

Provision for income tax on pre-tax earnings as adjusted (8)

$ 2,233

$ 1,798

$ 3,260

$ 4,457

$ 7,722

$ 6,062

$ 5,991

$ 3,735

$ 777

$ 777

$ 853

Tax impact of certain acquired BOLI policies (9)

$ -

$ -

$ 300

$ -

$ -

$ -

$ -

$ -

$ -

Tax cuts and Jobs Act of 2017 (10)

$ -

$ 338

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Total provision for income tax as adjusted

$ 2,233

$ 2,136

$ 3,560

$ 4,457

$ 7,722

$ 6,062

$ 5,991

$ 3,735

$ 777

$ 777

$ 853

Net income as adjusted (non-GAAP) (7)

$ 4,221

$ 4,962

$ 10,675

$ 12,425

$ 21,339

$ 18,500

$ 13,321

$ 13,883

$ 3,197

$ 3,270

$ 3,682

GAAP diluted earnings per share, net of tax

$ 0.46

$ 0.58

$ 0.85

$ 1.14

$ 1.98

$ 1.69

$ 1.25

$ 1.34

$ 0.32

$ 0.33

$ 0.37

Merger related costs, net of tax

$ 0.22

$ 0.06

$ 0.27

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Branch related costs, net of tax

$ 0.12

$ -

$ -

$ 0.01

$ -

$ 0.07

$ 0.03

$ 0.01

$ -

$ -

$ -

Settlement proceeds

$ (0.03)

$ -

$ -

$ (0.01)

$ -

$ -

$ -

$ -

$ -

$ -

$ -

FHLB borrowings prepayment fee

$ 0.01

$ -

$ -

$ -

$ 0.01

$ -

$ -

$ -

$ -

$ -

$ -

Tax impact of certain acquired BOLI policies (9)

$ -

$ -

$ (0.03)

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Tax Cuts and Jobs Act of 2017 tax provision (10)

$ -

$ 0.04

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Audit and Financial Reporting, net of tax

$ -

$ -

$ 0.02

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Net gain on sale of branch

$ -

$ -

$ (0.15)

$ -

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Net gain on sale of acquired business lines

$ -

$ -

$ -

$ (0.03)

$ -

$ -

$ -

$ -

$ -

$ -

$ -

Diluted earnings per share, as adjusted, net of tax (non-GAAP)

$ 0.78

$ 0.68

$ 0.96

$ 1.11

$ 1.99

$ 1.76

$ 1.28

$ 1.35

$ 0.32

$ 0.33

$ 0.37

Average diluted shares outstanding

5,378,548

7,335,247

11,121,435

11,161,811

10,726,539

10,513,773

10,470,298

10,262,710

10,000,818

9,997,229

9,920,907

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

Jun-25

Sep-25

Net Income

$ 2,499

$ 4,283

$ 9,463

$ 12,725

$ 21,266

$ 17,761

$ 13,059

$ 13,751

$ 3,197

$ 3,270

$ 3,682

Net Income as adjusted

$ 4,221

$ 4,962

$ 10,675

$ 12,425

$ 21,339

$ 18,500

$ 13,321

$ 13,883

$ 3,197

$ 3,270

$ 3,682

Average assets

$ 731,407

$ 954,912

$ 1,398,482

$ 1,594,053

$ 1,722,483

$ 1,775,049

$ 1,836,337

$ 1,808,256

$ 1,763,191

$ 1,745,897

$ 1,735,752

Return on average assets

0.34%

0.45%

0.68%

0.80%

1.23%

1.00%

0.71%

0.76%

0.74%

0.75%

0.84%

Return on average assets as adjusted

0.58%

0.52%

0.76%

0.78%

1.24%

1.04%

0.73%

0.77%

0.74%

0.75%

0.84%

Return on Average Tangible Common Equity (ROATCE) as Adjusted

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

Jun-25

Sep-25

$ 73,483

$ 135,847

$ 150,553

$ 160,564

$ 170,866

$ 167,088

$ 173,334

$ 179,084

$ 180,051

$ 183,462

$ 186,815

(10,444)

(10,444)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(5,449)

(4,805)

(7,587)

(5,494)

(3,898)

(2,449)

(1,694)

(979)

(800)

(621)

(508)

$ 57,590

$ 120,598

$ 111,468

$ 123,572

$ 135,470

$ 133,141

$ 140,142

$ 146,607

$ 147,753

$ 151,343

$ 154,809

$ 58,300

$ 89,094

$ 105,340

$ 115,313

$ 127,793

$ 131,305

$ 132,409

$ 142,641

$ 146,083

$ 149,161

$ 152,759

$ 2,499

$ 4,283

$ 9,463

$ 12,725

$ 21,266

$ 17,761

$ 13,059

$ 13,751

$ 3,197

$ 3,270

$ 3,682

143

417

1,153

1,194

1,171

1,095

521

563

144

145

92

$ 2,642

$ 4,700

$ 10,616

$ 13,919

$ 22,437

$ 18,856

$ 13,580

$ 14,314

$ 3,341

$ 3,415

$ 3,774

$ 4,221

$ 4,962

$ 10,675

$ 12,425

$ 21,339

$ 18,500

$ 13,321

$ 13,883

$ 3,197

$ 3,270

$ 3,682

143

417

1,153

1,194

1,171

1,095

521

563

144

145

92

$ 4,364

$ 5,379

$ 11,828

$ 13,619

$ 22,510

$ 19,595

$ 13,842

$ 14,446

$ 3,341

$ 3,415

$ 3,774

4.5%

5.3%

10.1%

12.1%

17.6%

14.4%

10.3%

10.0%

9.3%

9.2%

9.8%

7.5%

6.0%

11.2%

11.8%

17.6%

14.9%

10.5%

10.1%

9.3%

9.2%

9.8%

Non-interest Expense (GAAP)

Less amortization of intangibles

2017 2018 2019 2020 2021 2022 2023 2024

$ 22,878 $ 29,764 $ 42,686 $ 43,673 $ 40,532 $ 41,743 $ 40,142 $ 42,306

(219) (644) (1,496) (1,622) (1,596) (1,449) (755) (715)

Mar-25 Jun-25 Sep-25

$ 10,463 $ 10,750 $ 11,051

(179) (179) (113)

Efficiency ratio numerator

Merger related costs Branch Closure costs

Audit and financial reporting Prepayment fee

Efficiency ratio numerator as adjusted

22,659 29,120 41,190 42,051 38,936 40,294 39,387 41,591

(1,860) (463) (3,880) - - - - -

(951) (26) (15) (165) - (981) (380) (168)

- - (358) - - - - -

(104) - - - (102) - - -

10,284 10,571 10,938

- - -

- - -

- - -

- - -

$ 19,744 $ 28,631 $ 36,937 $ 41,886 $ 38,834 $ 39,313 $ 39,007 $ 41,423

$ 10,284 $ 10,571 $ 10,938

Non-interest income $ 4,751 $ 7,370 $ 14,975 $ 18,448 $ 15,824 $ 10,430 $ 10,250 $ 10,107

Net interest margin 22,268 30,303 43,513 50,255 53,667 56,369 48,349 46,474

Add back net losses on debt and equity securiti - (17) - - - - - (856) Subtract net gains on debt and equity securities 111 - 271 110 1,224 541 459 -

$ 2,593 $ 2,836 $ 3,022

11,594 13,311 13,214

- - (66)

10 99 -

Efficiency ratio denominator (GAAP)

Net gain on sale of branch

Net gain on sale of acquired business l ines Settlement proceeds

Efficiency ratio denominator as adjusted

Efficiency ratio

Efficiency ratio as adjusted

26,908 37,690 58,217 68,593 68,267 66,258 58,140 57,437

- - (2,295) - - - - -

- - - (432) - - - -

(283) - - (131) - - - -

14,177 16,048 16,302

- - -

- - -

- - -

$ 26,625 $ 37,690 $ 55,922 $ 68,030 $ 68,267 $ 66,258 $ 58,140 $ 57,437

$ 14,177 $ 16,048 $ 16,302

84% 77% 71% 61% 57% 61% 68% 72%

74% 76% 66% 62% 57% 59% 67% 72%

73% 66% 67%

73% 66% 67%

Tangible Book Value Per Share (TBVPS) as Adjusted

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

Jun-25

Sep-25

Total Stockholders' equity

$ 73,483

$ 135,847

$ 150,553

$ 160,564

$ 170,866

$ 167,088

$ 173,334

$ 179,084

$ 180,051

$ 183,462

$ 186,815

Less: Goodwill

(10,444)

(10,444)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

Less: Core deposit and intangibles

(5,449)

(4,805)

(7,587)

(5,494)

(3,898)

(2,449)

(1,694)

(979)

(800)

(621)

(508)

Tangible book value (non-GAAP)

$ 57,590

$ 120,598

$ 111,468

$ 123,572

$ 135,470

$ 133,141

$ 140,142

$ 146,607

$ 147,753

$ 151,343

$ 154,809

Shares outstanding

5,888,816

10,913,853

11,266,954

11,056,349

10,502,442

10,425,119

10,440,591

9,981,996

9,989,536

9,991,997

9,856,745

Book Value

$ 12.48

$ 12.45

$ 13.36

$ 14.52

$ 16.27

$ 16.03

$ 16.60

$ 17.94

$ 18.02

$ 18.36

$ 18.95

TBVPS

$ 9.78

$ 11.05

$ 9.89

$ 11.18

$ 12.90

$ 12.77

$ 13.42

$ 14.69

$ 14.79

$ 15.15

$ 15.71

Tangible Common Equity / Tangible Assets

2017

2018

2019

2020

2021

2022

2023

2024

Mar-25

Jun-25

Sep-25

$ 940,664

$ 975,409

$ 1,531,249

$ 1,649,095

$ 1,739,628

$ 1,816,367

$ 1,851,391

$ 1,748,519

$ 1,779,963

$ 1,735,164

$ 1,726,987

(10,444)

(10,444)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(31,498)

(5,449)

(4,805)

(7,587)

(5,494)

(3,898)

(2,449)

(1,694)

(979)

(800)

(621)

(508)

$ 924,771

$ 960,160

$ 1,492,164

$ 1,612,103

$ 1,704,232

$ 1,782,420

$ 1,818,199

$ 1,716,042

$ 1,747,665

$ 1,703,045

$ 1,694,981

7.8%

13.9%

9.8%

9.7%

9.8%

9.2%

9.4%

10.2%

10.1%

10.6%

10.8%

6.2%

12.6%

7.5%

7.7%

7.9%

7.5%

7.7%

8.5%

8.5%

8.9%

9.1%

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.