Business
Citizens Community Bancorp, Inc. Reports Third Quarter 2025 Earnings of $0.37 Per Share; Redeems $15 Million of Subordinated Debt
EAU CLAIRE, Wis., Oct. 27, 2025 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $3.7 million and earnings per diluted share of $0.37 for the third quarter ended September 30, 2025, compared to $3.3 million and earnings per diluted share of $0.33 for the second quarter ended June 30, 2025, and $3.3 million and $0.32 earnings per diluted share for the qua
About this update from Citizens Community Bancorp, Inc.
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(the “Bank” or “CCFBank”), today reported earnings of $3.7 million and earnings per diluted share of $0.37 for the third quarter ended September 30, 2025, compared to $3.3 million and earnings per diluted share of $0.33 for the second quarter ended June 30, 2025, and $3.3 million and $0.32 earnings per diluted share for the quarter ended September 30, 2024, respectively. For the nine months ended September 30, 2025, the Company reported earnings of $10.1 million and earnings per diluted share of $1.02 compared to the prior year period of $11.0 million and earnings per diluted share of $1.07.","length":774,"tagName":"p"},{"type":"text","content":"The Company’s improved third quarter 2025 operating results reflected the following changes from the second quarter of 2025: (1) a decrease in net interest income of $0.1 million, due to a decrease of $0.7 million in the recognition of interest income from loan payoffs, partially offset by a $0.4 million increase from higher asset yields and lower deposit costs and one more day of interest income; (2) lower provision for credit losses of $0.65 million compared to a $1.35 million provision in the second quarter; (3) higher non-interest income of $0.2 million; and (4) higher non-interest expense of $0.3 million.","length":617,"tagName":"p"},{"type":"text","content":"Book value per share improved to $18.95 at September 30, 2025, compared to $18.36 at June 30, 2025, and $17.88 at September 30, 2024. Tangible book value per share (non-GAAP) 1 was $15.71 at September 30, 2025, compared to $15.15 at June 30, 2025, and a 7.3% increase from $14.64 at September 30, 2024, with dividends paid of 2.44% of the September 30, 2024 tangible book value. Since September 30, 2024, the Company has paid dividends to shareholders totaling $0.36 per share. For the third quarter of 2025, the increase in tangible book value was primarily due to the increase in net income in the quarter, along with the impact of lower unrealized losses on the available for sale investment portfolio. Stockholders’ equity as a percentage of total assets was 10.82% at September 30, 2025, compared to 10.57% at June 30, 2025. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP) 1 increased to 9.13% at September 30, 2025, compared to 8.89% at June 30, 2025.","length":981,"tagName":"p"},{"type":"text","content":"“Earnings met expectations, and capital grew in the quarter strengthening our balance sheet for share buybacks and strategic opportunities. Our tangible capital ratio now exceeds 9.1% and tangible book value increased 3.7% from the linked quarter to $15.71 per share. There was continued expansion in the net interest margin and strong non-interest income was driven by mortgage and SBA gains on sale. Strong credit practices resulted in net loan recoveries of $51 thousand and a $7 million decrease in criticized assets, offset partially by a $3.4 million increase in substandard loans. The ACL, which increased from 1.59% to 1.68% from last quarter, provides 141% coverage of non-performing loans. Unemployment remains below national averages, but middle-income consumers and smaller businesses, who are facing the pressure of higher costs (real estate taxes, insurance) and slowing income growth, are exhibiting increasing stress,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.","length":1008,"tagName":"p"},{"type":"readMore"},{"type":"text","content":" September 30, 2025, Highlights: ","length":31,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":"Quarterly earnings were $3.7 million, or $0.37 per diluted share for the quarter ended September 30, 2025, an increase compared to earnings of $3.3 million, or $0.33 per diluted share for the quarter ended June 30, 2025, and an increase from $3.3 million, or $0.32 per diluted share for the quarter ended September 30, 2024.","length":324,"tagName":"p"}]},{"val":[{"type":"text","content":"For the nine months ended September 30, 2025, earnings were $10.1 million or $1.02 per diluted share compared to $11.0 million or $1.07 per diluted share for the nine-month period ending September 30, 2024. The decline in earnings for the nine-month period primarily relates to provisions for credit losses for the most recent nine-month period versus negative provisions for credit losses during the nine-month period ending September 30, 2024, as economic variables used by our third-party provider in the calculation of the allowance for credit losses (“ACL”) have begun to normalize in the most recent periods.","length":614,"tagName":"p"}]},{"val":[{"type":"text","content":"Net interest income decreased $0.1 million to $13.2 million for the current quarter ended September 30, 2025, from $13.3 million for the quarter ended June 30, 2025, and increased from $11.3 million for the quarter ended September 30, 2024. The decrease in net interest income from the second quarter of 2025 was primarily due to: (1) a net decrease of $0.5 million (11 bps) of interest income recognized on the payoffs of nonperforming loans to $0.2 million; (2) a decrease in purchase accretion of $0.3 million (7 bps) to $0.1 million as a result of loan payoffs; (3) the impact of one more day in the quarter on interest income, net of interest expense or $0.1 million, with these impacts removed from items 4 and 5 which follow: (4) higher interest income of $0.2 million (5 bps) on loans and investments due to loans repricing, the impact of new loan originations and mix of investments; (5) a decrease in deposit and borrowing costs of $0.2 million (4 bps); and (6) the impact of an increase in non-interest-bearing deposits (3bp).","length":1037,"tagName":"p"}]},{"val":[{"type":"text","content":"The net interest margin decreased 7 basis points (“bps”) to 3.20% for the quarter ended September 30, 2025, compared to the quarter ended June 30, 2025, and increased 57 bps from the quarter ended September 30, 2024. The basis for the changes in the net interest margin is noted above.","length":285,"tagName":"p"}]},{"val":[{"type":"text","content":"The provision for credit losses was $0.65 million for the quarter ended September 30, 2025, compared to a provision for credit losses of $1.35 million, and a negative provision for credit losses of $0.4 million during the quarters ended June 30, 2025, and September 30, 2024, respectively. Factors affecting the September 30, 2025, provision for credit losses include: (1) the impact of changes in credit quality, i.e., changes in reserves on impaired loans, and the impact of delinquent loans at June 30, 2025, becoming current at September 30, 2025, of $0.9 million; partially offset by: (2) the net shrinkage in the loan portfolio of approximately $0.1 million; (3) $51 thousand of net recoveries; and (4) a decrease in off-balance sheet commitments from new construction originations of $0.1 million. The allowance for credit losses on loans was $22.2 million or 141% of total nonperforming loans of $15.8 million at September 30, 2025.","length":940,"tagName":"p"}]},{"val":[{"type":"text","content":"Non-interest income increased by $0.2 million in the third quarter of 2025 to $3.0 million from $2.8 million the prior quarter and $0.1 million from the third quarter of 2024 of $2.9 million. The increase in the third quarter of 2025 from the second quarter was primarily due to higher gains on sale of loans, partially offset by a net loss on the sale of equity securities.","length":374,"tagName":"p"}]},{"val":[{"type":"text","content":"Non-interest expense increased $0.3 million to $11.1 million from $10.8 million for the previous quarter and increased $0.7 million from $10.4 million for the third quarter of 2024. The increase in non-interest expense compared to the linked quarter was largely due to compensation items, including higher medical costs and modestly higher incentive costs. The $0.7 million increase from the third quarter of 2024 was largely due to higher compensation expense, which includes the annual merit increase impact, higher medical costs and incentive costs along with inflation factors impacting non-interest expense.","length":612,"tagName":"p"}]},{"val":[{"type":"text","content":"The effective tax rate was 18.8% for the quarter ended September 30, 2025, compared to 19.2% for the quarter ended June 30, 2025, and 21.5% for the quarter ended September 30, 2024.","length":181,"tagName":"p"}]},{"val":[{"type":"text","content":"Loans receivable decreased $22.6 million during the third quarter ended September 30, 2025, to $1.323 billion compared to the prior quarter end. The decrease was largely due to a reduction in loan originations from the second quarter.","length":234,"tagName":"p"}]},{"val":[{"type":"text","content":"Nonperforming assets increased $3.7 million during the quarter to $16.7 million at September 30, 2025, compared to $13.0 million at June 30, 2025, largely due to a $9 million multifamily loan moving from special mention to substandard which was partially offset by a $5 million payoff of an agricultural loan relationship.","length":322,"tagName":"p"}]},{"val":[{"type":"text","content":"Special mention loans decreased $10.3 million to $12.9 million at September 30, 2025, from $23.2 million at June 30, 2025. The decrease was largely due to a $9 million multi-family loan moving to substandard.","length":208,"tagName":"p"}]},{"val":[{"type":"text","content":"Substandard loans increased $3.4 million largely due to the $9 million multi-family loan moving to substandard and nonaccrual, partially offset by the payoff of a $5 million agricultural loan that was substandard and nonaccrual.","length":228,"tagName":"p"}]},{"val":[{"type":"text","content":"Total deposits increased $2.1 million during the quarter ended September 30, 2025, to $1.48 billion. This was largely due to growth in commercial deposits of $17.1 million, partially offset by the seasonal shrinkage in public deposits of $15.2 million, with historical growth expected in the fourth quarter.","length":307,"tagName":"p"}]},{"val":[{"type":"text","content":"On September 1, 2025, the Company redeemed a 6% subordinated debt totaling $15 million.","length":87,"tagName":"p"}]},{"val":[{"type":"text","content":"The efficiency ratio was 67% for the quarter ended September 30, 2025, compared to 66% for the quarter ended June 30, 2025.","length":123,"tagName":"p"}]},{"val":[{"type":"text","content":"On July 24, 2025, the Board of Directors authorized a new 5% common stock buyback authorization, or 499 thousand shares. The Company repurchased approximately 136 thousand shares at an average all in price of $14.93 per share during the quarter ended September 30, 2025. There remain approximately 363 thousand shares under this authorization.","length":343,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":6219,"olType":false},{"type":"text","content":" Balance Sheet and Asset Quality ","length":31,"tagName":"p"},{"type":"text","content":"Total assets decreased by $8.2 million during the quarter to $1.727 billion at September 30, 2025.","length":98,"tagName":"p"},{"type":"text","content":"Cash and cash equivalents increased $15.0 million as interest-bearing cash increased due to loan principal repayments and deposit increases.","length":140,"tagName":"p"},{"type":"text","content":"The on-balance sheet liquidity ratio, which is defined as the fair market value of AFS and HTM securities that are not pledged and cash on deposit with other financial institutions, was 13.4% of total assets at September 30, 2025, compared to 12.2% at June 30, 2025. On-balance sheet liquidity, collateralized new borrowing capacity, and uncommitted federal funds borrowing availability was $741 million, or 267%, of uninsured and uncollateralized deposits at September 30, 2025, and $730 million, or 277% at June 30, 2025.","length":523,"tagName":"p"},{"type":"text","content":"Securities available for sale (“AFS”) increased $2.9 million during the quarter ended September 30, 2025, to $137.6 million from $134.8 million at June 30, 2025. The increase was due to the purchase of new corporate debt securities of $5 million, a decrease in the unrealized loss on AFS securities of $2.1 million partially offset by principal repayments of $32.8 million, and corporate debt security redemptions of $1.8 million.","length":430,"tagName":"p"},{"type":"text","content":"Securities held to maturity (“HTM”) decreased $1.5 million to $81.5 million during the quarter ended September 30, 2025, from $83.0 million at June 30, 2025, due to principal repayments.","length":186,"tagName":"p"},{"type":"text","content":"Loans receivable decreased $22.6 million during the third quarter ended September 30, 2025, to $1.323 billion compared to the prior quarter end, as loan payoffs and scheduled principal payments outpaced new loan originations.","length":225,"tagName":"p"},{"type":"text","content":"The office loan portfolio consisting of seventy-one loans totaled $26 million at September 30, 2025, compared to seventy loans totaling $26 million at June 30, 2025. Criticized loans in the office loan portfolio for the quarter ended September 30, 2025, totaled $0.2 million, compared to $0.5 million at June 30, 2025, and there have been no charge-offs in the trailing twelve months.","length":384,"tagName":"p"},{"type":"text","content":"The allowance for credit losses on loans increased by $0.8 million to $22.2 million at September 30, 2025, representing 1.68% of total loans receivable compared to 1.59% of total loans receivable at June 30, 2025.The provision for credit losses was $0.65 million for the quarter ended September 30, 2025, compared to a provision for credit losses of $1.35 million, and a negative provision for credit losses of $0.4 million during the quarters ended June 30, 2025, and September 30, 2024, respectively. 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