Business
Citizens Community Bancorp, Inc. Reports First Quarter 2026 Earnings of $0.39 Per Share; Board Approves Quarterly Dividend at $0.105 per Share
EAU CLAIRE, Wis., April 27, 2026 (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 $3.8 million and earnings per diluted share of $0.39 for the first quarter ended March 31, 2026, compared to $4.3 million and earnings per diluted share of $0.44 for the quarter ended December 31, 2025, and $3.2 million and $0.32 earnings per diluted share for the quarter e

About this update from Citizens Community Bancorp, Inc.
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(the “Bank” or “CCFBank”), today reported earnings of $3.8 million and earnings per diluted share of $0.39 for the first quarter ended March 31, 2026, compared to $4.3 million and earnings per diluted share of $0.44 for the quarter ended December 31, 2025, and $3.2 million and $0.32 earnings per diluted share for the quarter ended March 31, 2025, respectively.","length":534,"tagName":"p"},{"type":"text","content":"The Company’s first quarter 2026 operating results reflected the following changes from the fourth quarter of 2025: (1) loan growth of $17.9 million, or 1.3%; (2) deposit growth of 2.7% to $1.57 billion; (3) an increase in net interest margin of 3 basis points highlighted by a 5 basis points increase in loan yields and an 8 basis point decline in deposit costs partially offset by a decline in cash and investment yields; (4) a slight decrease in net interest income largely due to the impact of 2 fewer business days during the first quarter; (5) increased provision for credit losses of $0.55 million; (6) higher non-interest income of $0.4 million; (7) higher non-interest expense of $0.1 million; and (8) higher tax expense of $0.3 million.","length":746,"tagName":"p"},{"type":"text","content":"Book value per share improved to $19.82 at March 31, 2026, compared to $19.54 at December 31, 2025, and $18.02 at March 31, 2025. Tangible book value per share (non-GAAP) 1 was $16.52 at March 31, 2026, compared to $16.23 at December 31, 2025, and increased 11.7% from $14.79 at March 31, 2025. For the first quarter of 2026, 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, partially offset by payment of the quarterly dividend. Stockholders’ equity as a percentage of total assets was 10.47% at March 31, 2026, compared to 10.55% at December 31, 2025, with the decline largely due to modest asset growth. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP) 1 was 8.88% at March 31, 2026, compared to 8.92% at December 31, 2025.","length":897,"tagName":"p"},{"type":"text","content":"“Loan and deposit growth held strong even during the seasonal low point of our year with loans expanding at an annualized rate of 5.3% from the linked quarter. Mortgage and government guaranteed lending activities were a bright spot during the quarter and expenses were well-managed. Loan pipelines remain solid entering April as we approach balance sheet repricing in the back half of the year. There was no share buyback activity in the quarter, although 113 thousand shares remained under the current buyback authorization. Our capital position remained strong with TCE of 8.9% to support organic growth, dividends, share buybacks and M&A activity,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer. March 31, 2026, Highlights: ","length":758,"tagName":"p"},{"type":"readMore"},{"type":"list","items":[{"val":[{"type":"text","content":"Quarterly earnings were $3.8 million, or $0.39 per diluted share for the quarter ended March 31, 2026, a decrease compared to earnings of $4.3 million, or $0.44 per diluted share for the quarter ended December 31, 2025, and an increase from $3.2 million, or $0.32 per diluted share for the quarter ended March 31, 2025.","length":319,"tagName":"p"}]},{"val":[{"type":"text","content":"Pre-provision net revenue (“PPNR”) increased 5.8% during the quarter ended March 31, 2026, to $5.38 million from $5.09 million for the quarter ended December 31, 2025, and increased 44.5% from $3.72 million over the past year.","length":226,"tagName":"p"}]},{"val":[{"type":"text","content":"Net interest income decreased $0.1 million to $13.0 million for the quarter ended March 31, 2026, from $13.1 million for the quarter ended December 31, 2025, and increased from $11.6 million for the quarter ended March 31, 2025. The decrease in net interest income from the fourth quarter of 2025 was primarily due to a net decrease of $0.25 million due to the impact of 2 fewer business days. Partially offsetting the fewer days was the impact of higher loan yields, lower deposit costs, and a decrease in interest-bearing cash yield.","length":535,"tagName":"p"}]},{"val":[{"type":"text","content":"Net interest margin increased 3 basis points to 3.18% for the quarter ended March 31, 2026, compared to the quarter ended December 31, 2025, and increased 33 basis points from the quarter ended March 31, 2025. The increase in net interest margin from the prior quarter was due to higher loan yields and lower deposit costs, partially offset by lower yields on cash and investment securities and the growth of lower yielding interest-bearing cash.","length":446,"tagName":"p"}]},{"val":[{"type":"text","content":"The provision for credit losses was $0.75 million for the quarter ended March 31, 2026, compared to a provision for credit losses of $0.20 million for the fourth quarter of 2025, and a negative provision for credit losses of $0.25 million during the quarter ended March 31, 2025. Factors affecting the March 31, 2026, provision for credit losses include: (1) a net increase of $0.4 million due to increases in reserves on impaired loans, partially offset by lower loss rates on collectively evaluated loans; (2) modest charge-offs of $0.2 million; (3) an increase in economic scenarios based on information provided by our third-party model provider of $0.1 million; and (4) the net impact of new loan growth, net of a decrease in the portfolio duration of $0.05 million. The allowance for credit losses on loans increased to $23.0 million or 132% of total nonperforming loans and 1.69% of total loans.","length":902,"tagName":"p"}]},{"val":[{"type":"text","content":"Non-interest income increased by $0.4 million in the first quarter of 2026 to $3.1 million from $2.7 million in the prior quarter and increased $0.5 million from $2.6 million in the first quarter of 2025. The increase in the first quarter of 2026 from the fourth quarter of 2025 was primarily due to higher gains on sale of loans due in part to the backlog of SBA loans unable to be sold during the fourth quarter of 2025 due to the government shutdown and sold in the first quarter. The increase of non-interest income in the first quarter of 2026, from the first quarter of 2025, was primarily due to higher gains on the sale of loans.","length":637,"tagName":"p"}]},{"val":[{"type":"text","content":"Non-interest expense increased $55 thousand from the previous quarter and increased $0.2 million from $10.5 million for the first quarter of 2025. The slight increase in non-interest expense compared to the linked quarter was largely due to higher compensation items reflecting higher benefit costs and professional fees. The $0.2 million increase from the first quarter of 2025 was largely due to higher compensation and benefit expenses, partially offset by lower data processing.","length":482,"tagName":"p"}]},{"val":[{"type":"text","content":"The effective tax rate was 18.9% for the quarter ended March 31, 2026, compared to 12.6% for the quarter ended December 31, 2025, and 19.6% for the quarter ended March 31, 2025. The increase in the effective tax rate in the first quarter of 2026 from the fourth quarter of 2025 was largely due to the full year benefit of a new tax credit investment recognized in the fourth quarter of 2025, based on the vast majority of 2025 funding of the tax credit occurring in the fourth quarter. The lower effective tax rate in the quarter ended March 31, 2026 compared to one year earlier reflects the benefit of the purchased tax credit investment.","length":640,"tagName":"p"}]},{"val":[{"type":"text","content":"Loans receivable increased $17.9 million during the first quarter ended March 31, 2026, to $1.358 billion compared to the prior quarter end. The increase was largely due to growth in new C&I loan originations, commercial real estate and construction fundings partially offset by planned runoff of the residential portfolio from the fourth quarter.","length":351,"tagName":"p"}]},{"val":[{"type":"text","content":"Nonperforming assets reflected in government guaranteed and non-guaranteed loans offset by repayments on existing nonperforming loans, resulted in a total increase in nonperforming assets of $1.5 million to $18.2 million at March 31, 2026, compared to $16.7 million at December 31, 2025. The government guaranteed portion of nonperforming assets increased $1.4 million to $2.4 million at March 31, 2026. The non-guaranteed portion of the loans originated with partial government guarantees increased $0.6 million to $1.5 million at March 31, 2026. There are specific reserves of approximately 50% on the non-guaranteed government loans.","length":636,"tagName":"p"}]},{"val":[{"type":"text","content":"Special mention loans increased $1.4 million to $25.9 million at March 31, 2026, from December 31, 2025.","length":104,"tagName":"p"}]},{"val":[{"type":"text","content":"Substandard loans increased $1.1 million to $22.5 million at March 31, 2026, from December 31, 2025, largely due to $1.4 million increase on fully guaranteed government secured non-performing loans.","length":198,"tagName":"p"}]},{"val":[{"type":"text","content":"Total deposits increased $41.5 million during the quarter ended March 31, 2026, to $1.566 billion. This was largely due to seasonal growth in public deposits of $29.6 million and the addition of commercial non-interest bearing deposits totaling $15.7 million received late in the first quarter that were expectedly withdrawn after the quarter ended.","length":349,"tagName":"p"}]},{"val":[{"type":"text","content":"The efficiency ratio was 66% for the quarter ended March 31, 2026, compared to 68% for the quarter ended December 31, 2025 and 73% for the quarter ended March 31, 2025.","length":168,"tagName":"p"}]},{"val":[{"type":"text","content":"On April 24, 2026, the Board of Directors approved a quarterly dividend of $0.105 per share. The dividend will be payable on May 22, 2026, to shareholders of record on May 8, 2026.","length":180,"tagName":"p"}]},{"val":[{"type":"text","content":"The Company did not repurchase any shares during the quarter ended March 31, 2026. Approximately 113 thousand shares remained available to purchase under the current authorization as of March 31, 2026. ","length":201,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":6374,"olType":false},{"type":"text","content":" Balance Sheet and Asset Quality ","length":31,"tagName":"p"},{"type":"text","content":"Total assets increased by $41.2 million during the quarter to $1.823 billion at March 31, 2026.","length":95,"tagName":"p"},{"type":"text","content":"Cash and cash equivalents increased $30.3 million as interest-bearing cash increased due to cash provided by deposit growth, partially offset by loan growth.","length":157,"tagName":"p"},{"type":"text","content":"The on-balance sheet liquidity ratio, which is defined as the fair market value of available-for-sale (“AFS”) and held-to-maturity (“HTM”) securities that are not pledged and cash on deposit with other financial institutions, was 16.2% of total assets at March 31, 2026, compared to 14.8% of total assets at December 31, 2025. On-balance sheet liquidity, collateralized new borrowing capacity, and uncommitted federal funds borrowing availability was $799 million, or 248%, of uninsured and uncollateralized deposits at March 31, 2026, and $792 million, or 243% at December 31, 2025.","length":583,"tagName":"p"},{"type":"text","content":"AFS securities decreased $3.2 million during the quarter ended March 31, 2026, to $130.9 million from $134.1 million at December 31, 2025. The decrease was largely related to principal repayments of $3.0 million, corporate debt security redemptions of $1.3 million, partially offset by purchases of new corporate debt securities of $0.8 million and a decrease in the unrealized loss on AFS securities of $0.3 million.","length":417,"tagName":"p"},{"type":"text","content":"HTM securities decreased $1.2 million to $79.0 million during the quarter ended March 31, 2026, from $80.2 million at December 31, 2025, due to principal repayments.","length":165,"tagName":"p"},{"type":"text","content":"Loans receivable increased $17.9 million, or 1.3% increase during the first quarter ended March 31, 2026, to $1.358 billion compared to the prior quarter end as loan growth was realized in commercial real estate, construction and C&I loans.","length":244,"tagName":"p"},{"type":"text","content":"The office loan portfolio consisted of seventy loans totaling $31 million at March 31, 2026, compared to seventy-one loans totaling $32 million at December 31, 2025. Criticized loans in the office loan portfolio for the quarter ended March 31, 2026, totaled $0.2 million, compared to $0.2 million at December 31, 2025, and there have been no charge-offs in the trailing twelve months. The Company has one bank holding company loan for $5 million which constitutes the only non-depository financial institution exposure.","length":519,"tagName":"p"},{"type":"text","content":"The allowance for credit losses on loans increased by $0.6 million to $23.0 million at March 31, 2026, representing 1.69% of total loans receivable compared to 1.67% of total loans receivable at December 31, 2025, and 132% of total nonperforming loans at March 31, 2026. The provision for credit losses was $0.75 million for the quarter ended March 31, 2026, compared to a provision for credit losses of $0.20 million for the quarter ended December 31, 2025, and a negative provision for credit losses of $0.25 million for the quarter ended March 31, 2025. 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