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 $2.7
million and earnings per diluted share of $0.27 for the fourth
quarter ended December 31, 2024, compared to $3.3 million and
earnings per diluted share of $0.32 for the quarter ended September
30, 2024, and $3.7 million and $0.35 earnings per diluted share for
the quarter ended December 31, 2023, respectively.
The Company’s fourth quarter 2024 operating results reflected
the following changes from the third quarter of 2024: (1) increase
in net interest income of $0.4 million with net interest margin
increased by 16 basis points; (2) a $0.05 million increase in
negative provision for credit losses to $0.45 million in the fourth
quarter; (3) lower non-interest income of $0.9 million primarily
due to $0.5 million lower gain on sale of loans and $0.2 million
higher net losses on sale of equity securities in the fourth
quarter of 2024; and (4) higher non-interest expense primarily due
to higher REO expenses of $0.2 million and higher professional fees
of $0.2 million.
Book value per share improved to $17.94 at December 31, 2024,
compared to $17.88 at September 30, 2024, and $16.60 at December
31, 2023. Tangible book value per share (non-GAAP)1 was $14.69 at
December 31, 2024, compared to $14.64 at September 30, 2024, and a
9.5% increase from $13.42 at December 31, 2023. For the fourth
quarter of 2024, tangible book value was positively influenced by
net income and intangible amortization which was mostly offset by
the impact of higher long-term interest rates which increased the
net unrealized loss on the available for sale securities portfolio.
Stockholders’ equity as a percentage of total assets was 10.24% at
December 31, 2024, compared to 10.01% at September 30, 2024.
Tangible common equity (“TCE”) as a percent of tangible assets
(non-GAAP)1 increased to 8.54% at December 31, 2024, compared to
8.35% at September 30, 2024, largely due to the impact of asset
shrinkage.
“As we closed 2024, I am pleased with the execution on our
strategic objectives, continuing to strengthen franchise value. The
quarter reflected our balance sheet optimization efforts, which
increased the net interest margin 6%, and increased the tangible
common equity ratio for the continued repurchase of shares at
prices that were accretive to earnings per share and tangible book
value. The TCE ratio increased to 8.54%, from 8.35% in the prior
quarter which provides flexibility to grow the loan portfolio and
potentially repurchase shares in 2025. Deposits, net of the
decrease in wholesale deposits, increased $27 million. Loans
decreased $56 million during the quarter, primarily in
non-strategic relationships, but we forecast modest loan growth of
one to three percent in 2025. Credit metrics improved and we
continue to maintain a healthy reserve for credit losses to total
loans at 1.50%,” stated Stephen Bianchi, Chairman, President, and
Chief Executive Officer.
December 31, 2024, Highlights:
- Quarterly earnings were $2.7 million,
or $0.27 per diluted share for the quarter ended December 31, 2024,
a decrease compared to earnings of $3.3 million, or $0.32 per
diluted share for the quarter ended September 30, 2024, and $3.7
million, or $0.35 per diluted share for the quarter ended December
31, 2023.
- Net interest income increased $0.4 million to $11.7 million for
the current quarter ended December 31, 2024, from $11.3 million for
the quarter ended September 30, 2024, and flat with $11.7 million
for the quarter ended December 31, 2023. The increase in net
interest income from the third quarter of 2024 was primarily due to
an increase in net interest margin of 16 basis points.
- The net interest margin increased to 2.79%, primarily due to
lower deposit costs, for the quarter ended December 31, 2024,
compared to 2.63% for the previous quarter, and 2.69% for the
quarter ended December 31, 2023. The net interest margin increase
in the fourth quarter of 2024, was also favorably impacted by
accelerated deferred fee accretion on loan payoffs of 3 basis
points.
- Negative provision for credit losses of $0.45 million, $0.40
million, and $0.65 million were recorded during the quarters ended
December 31, 2024, September 30, 2024, and December 31, 2023,
respectively. The fourth quarter’s negative provision was due to
decreases in on-balance sheet allowance for credit losses (“ACL”)
of $0.324 million and a $0.126 million decrease in off-balance
sheet ACL due to a reduction in unfunded loan commitments.
- Non-interest income decreased $0.9 million in the fourth
quarter of 2024, due to $0.5 million in lower gain on sale of
loans, $0.2 million of higher net losses on equity securities and
lower loan servicing income and service charges on deposit
accounts. Non-interest income decreased by $0.5 million compared to
the fourth quarter of 2023, due to higher net losses on equity
securities.
- Non-interest expense increased $0.4 million to $10.8 million in
the fourth quarter of 2024 from $10.4 million for the previous
quarter and increased $0.6 million from $10.2 million in the fourth
quarter one year earlier. The $0.4 million increase in non-interest
expense from the third quarter was largely due to $0.2 million
increase in professional fees and $0.2 million in losses on
repossessed assets. The $0.6 million increase from the fourth
quarter of 2023 was due to: (1) a $0.7 million increase in
compensation expenses, due to higher incentive compensation and
annual merit increases; (2) an increase of $0.2 million on losses
on repossessed assets; and (3) higher data processing of $0.2
million, partially offset by lower other expenses of $0.5 million
primarily due to 2023 branch closure costs.
- Loans receivable decreased $55.8 million during the fourth
quarter ended December 31, 2024, to $1.369 billion compared to the
prior quarter end, due to pay offs of non-strategic relationships
as part of the balance sheet optimization plan.
- Total deposits decreased $32.5 million during the fourth
quarter of 2024, compared to three months earlier, as wholesale
deposits were reduced with brokered deposits decreasing $47.5
million to $19.1 million at December 31, 2024, compared to three
months earlier.
- Federal Home Loan Bank advances decreased $16.0 million to $5.0
million at December 31, 2024, from $21.0 million at September 30,
2024.
- The effective tax rate was 19.5% for the quarter ended December
31, 2024, compared to 21.5% for the quarter ended September 30,
2024, and 20.9% for the quarter ended December 31, 2023.
- Nonperforming assets decreased to $14.3 million at December 31,
2024, compared to $17.1 million at September 30, 2024. The decrease
was largely due to a partial paydown on one agricultural real
estate loan relationship in forestry services that was placed on
nonaccrual status in the third quarter.
- Net charge-offs remain minimal and were 0.009% of average loans
during the fourth quarter and 0.007% over the twelve-month period
ending December 31, 2024.
- Common stock totaling 94 thousand shares were repurchased in
the fourth quarter ending December 31, 2024, at an average price of
$14.55 per share. For the twelve-month period ending December 31,
2024, approximately 476 thousand shares of common stock were
repurchased at an average price of $12.76 per share.
- In November 2024, the Company notified
its customers that it would be closing the Faribault, Minnesota
branch on February 3, 2025, with account balances transferred to
the nearest branch which is 39 miles away. The branch closure costs
recognized in the fourth quarter were minimal.
- The efficiency ratio was 76% for the quarter ended December 31,
2024, compared to 72% for the quarter ended September 30,
2024.
- On January 23, 2025, the Board of Directors declared a $0.36
per share annual dividend, an increase of 12.5%, to shareholders of
record as of February 7, 2025, and payable February 21, 2025.
Balance Sheet and Asset Quality
Total assets decreased by $50.6 million during the quarter to
$1.749 billion at December 31, 2024.
Securities available for sale (AFS”) decreased $6.6 million
during the quarter ended December 31, 2024, to $142.8 million from
$149.4 million at September 30, 2024. The decrease was due to
higher pre-tax unrealized losses of $3.3 million and principal
repayments of $3.3 million.
Securities held to maturity (“HTM”) decreased $1.5 million to
$85.5 million during the quarter ended December 31, 2024, from
$87.0 million at September 30, 2024, due to principal
repayments.
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 11.75%
of total assets at December 31, 2024, compared to 11.46% at
September 30, 2024. On-balance sheet liquidity collateralized new
borrowing capacity and uncommitted federal funds borrowing
availability was $725 million, or 273%, of uninsured and
uncollateralized deposits at December 31, 2024, and $718 million,
or 269%, at September 30, 2024.
Continued balance sheet optimization resulted in loans
decreasing by $55.8 million during the fourth quarter ended
December 31, 2024, to $1.372 billion, compared to September 30,
2024. A large level of non-strategic relationships were repaid
during the quarter as well as a $4.9 million reduction in
criticized loans.
The office loan portfolio consisting of 71 loans totaled $28
million at December 31, 2024, and decreased $3 million from $31
million at September 30, 2024. Criticized loans in the office loan
portfolio for the quarter ended December 31, 2024, totaled $0.5
million and there have been no charge-offs in the trailing twelve
months.
The allowance for credit losses on loans decreased by $0.45
million to $20.5 million at December 31, 2024, representing 1.50%
of total loans receivable compared to 1.47% of total loans
receivable at September 30, 2024. For the quarter ended December
31, 2024, the Bank recorded a negative provision of $0.45 million
which included a negative provision on ACL for loans of $0.32
million and a negative provision of $0.13 million on ACL for
unfunded commitments.
Allowance for Credit Losses (“ACL”) - Loans
Percentage
(in thousands, except ratios)
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
December 31, 2023 |
|
Loans, end of period |
|
$ |
1,368,981 |
|
|
$ |
1,424,828 |
|
|
$ |
1,428,588 |
|
|
$ |
1,460,792 |
|
| Allowance for credit losses -
Loans |
|
$ |
20,549 |
|
|
$ |
21,000 |
|
|
$ |
21,178 |
|
|
$ |
22,908 |
|
| ACL - Loans as a percentage of
loans, end of period |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.48 |
% |
|
|
1.57 |
% |
In addition to the ACL - Loans, the Company has established an
ACL - Unfunded Commitments of $0.334 million at December 31, 2024,
$0.460 million at September 30, 2024, and $1.250 million at
December 31, 2023, classified in other liabilities on the
consolidated balance sheets.Allowance for Credit Losses -
Unfunded Commitments: (in thousands)
| |
|
December 31, 2024 and Three Months Ended |
|
December 31, 2023 and Three Months Ended |
|
December 31, 2024 and Twelve Months Ended |
|
December 31, 2023 and Twelve Months Ended |
|
ACL - Unfunded commitments - beginning of period |
|
$ |
460 |
|
|
$ |
1,571 |
|
|
$ |
1,250 |
|
|
$ |
— |
|
|
Cumulative effect of ASU 2016-13 adoption |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,537 |
|
|
(Reductions) additions to ACL - Unfunded commitments via provision
for credit losses charged to operations |
|
|
(126 |
) |
|
|
(321 |
) |
|
|
(916 |
) |
|
|
(287 |
) |
|
ACL - Unfunded commitments - end of period |
|
$ |
334 |
|
|
$ |
1,250 |
|
|
$ |
334 |
|
|
$ |
1,250 |
|
Special mention loans decreased by $2.5 million to $8.5 million
at December 31, 2024, compared to $11.0 million at September 30,
2024. Over the past 12 months, special mention loans have declined
$9.9 million from $18.4 million at December 31, 2023.
Substandard loans decreased by $2.3 million to $18.9 million at
December 31, 2024, compared to $21.2 million at September 30, 2024,
primarily due to a $1.6 million reduction in a nonperforming loan,
classified as substandard, agricultural real estate forestry
services loan.
Nonperforming assets decreased $2.8 million to $14.3 million at
December 31, 2024, compared to $17.1 million at September 30, 2024,
primarily due to the $1.6 million reduction in nonperforming assets
discussed above and the sale of a real estate owned property.
| |
|
(in thousands) |
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
Special mention loan balances |
|
$ |
8,480 |
|
$ |
11,047 |
|
$ |
8,848 |
|
$ |
13,737 |
|
$ |
18,392 |
| Substandard loan balances |
|
|
18,891 |
|
|
21,202 |
|
|
14,420 |
|
|
14,733 |
|
|
19,596 |
| Criticized loans, end of
period |
|
$ |
27,371 |
|
$ |
32,249 |
|
$ |
23,268 |
|
$ |
28,470 |
|
$ |
37,988 |
Total deposits decreased $32.5 million during the quarter ended
December 31, 2024, to $1.49 billion as $59.7 million of wholesale
brokered deposits were repaid. Brokered deposits declined $47.5
million to $19.1 million at December 31, 2024, from $66.6 million
at September 30, 2024, and declined $79.1 million from $98.2
million at December 31, 2023.
Deposit Portfolio Composition(in thousands)
| |
|
December 31,2024 |
|
September 30,2024 |
|
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
Consumer deposits |
|
$ |
852,083 |
|
$ |
844,808 |
|
$ |
822,665 |
|
$ |
827,290 |
|
$ |
814,899 |
| Commercial deposits |
|
|
412,355 |
|
|
406,095 |
|
|
395,148 |
|
|
400,910 |
|
|
415,715 |
| Public deposits |
|
|
190,460 |
|
|
176,844 |
|
|
187,698 |
|
|
202,175 |
|
|
182,172 |
| Wholesale deposits |
|
|
33,250 |
|
|
92,920 |
|
|
114,033 |
|
|
97,114 |
|
|
106,306 |
| Total deposits |
|
$ |
1,488,148 |
|
$ |
1,520,667 |
|
$ |
1,519,544 |
|
$ |
1,527,489 |
|
$ |
1,519,092 |
At December 31, 2024, the deposit portfolio composition was 57%
consumer, 28% commercial, 13% public, and 2% wholesale deposits
compared to 55% consumer, 27% commercial, 12% public, and 6%
wholesale deposits at September 30, 2024.
Deposit Composition By Type(in thousands)
| |
|
December 31,2024 |
|
September 30,2024 |
|
June 30,2024 |
|
March 31,2024 |
|
December 31,2023 |
|
Non-interest-bearing demand deposits |
|
$ |
252,656 |
|
$ |
256,840 |
|
$ |
255,703 |
|
$ |
248,537 |
|
$ |
265,704 |
| Interest-bearing demand
deposits |
|
|
355,750 |
|
|
346,971 |
|
|
353,477 |
|
|
361,278 |
|
|
343,276 |
| Savings accounts |
|
|
159,821 |
|
|
169,096 |
|
|
170,946 |
|
|
177,595 |
|
|
176,548 |
| Money market accounts |
|
|
369,534 |
|
|
366,067 |
|
|
370,164 |
|
|
387,879 |
|
|
374,055 |
| Certificate accounts |
|
|
350,387 |
|
|
381,693 |
|
|
369,254 |
|
|
352,200 |
|
|
359,509 |
| Total deposits |
|
$ |
1,488,148 |
|
$ |
1,520,667 |
|
$ |
1,519,544 |
|
|
1,527,489 |
|
$ |
1,519,092 |
Uninsured and uncollateralized deposits were $265.4 million, or
18% of total deposits, at December 31, 2024, and $267.1 million, or
18% of total deposits, at September 30, 2024. Uninsured deposits
alone at December 31, 2024, were $428.0 million, or 29% of total
deposits, and $413.6 million, or 27% of total deposits at September
30, 2024.
As part of the balance sheet optimization plan, $16.0 million in
Federal Home Loan Bank advances were repaid during the fourth
quarter and totaled $5.0 million at December 31, 2024, compared to
$21.0 million one quarter earlier.
Common stock totaling approximately 94 thousand shares were
repurchased in the fourth quarter of 2024 at an average price of
$14.55 per share. For the twelve-month period ending December 31,
2024, approximately 476 thousand shares of common stock were
repurchased at an average price of $12.76 per share. There are 238
thousand shares remaining under the July 2024 Board of Director
repurchase authorization plan.
Review of Operations
Net interest income increased $0.4 million for the quarter ended
December 31, 2024, from $11.3 million for the quarter ended
September 30, 2024, and flat from $11.7 million for the quarter
ended December 31, 2023. The increase in net interest income
compared to the third quarter of 2024 was primarily due to an
increase in net interest margin, partially offsetting the impact of
asset shrinkage. The net interest margin increase was favorably
impacted by 3 basis points due to deferred fee accretion on loan
payoffs.
Net interest income and net interest margin
analysis:(in thousands, except yields and rates)
| |
|
Three months ended |
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
| |
|
Net Interest Income |
|
Net Interest Margin |
|
Net Interest Income |
|
Net Interest Margin |
|
Net Interest Income |
|
Net Interest Margin |
|
Net Interest Income |
|
Net Interest Margin |
|
Net Interest Income |
|
Net Interest Margin |
|
As reported |
|
$ |
11,708 |
|
|
2.79 |
% |
|
$ |
11,285 |
|
|
2.63 |
% |
|
$ |
11,576 |
|
|
2.72 |
% |
|
$ |
11,905 |
|
|
2.77 |
% |
|
$ |
11,747 |
|
|
2.69 |
% |
| Less accretion for PCD
loans |
|
|
(42 |
) |
|
(0.01)% |
|
|
(45 |
) |
|
(0.01)% |
|
|
(62 |
) |
|
(0.01)% |
|
|
(75 |
) |
|
(0.02)% |
|
|
(37 |
) |
|
(0.01)% |
| Less scheduled accretion
interest |
|
|
(33 |
) |
|
(0.01)% |
|
|
(33 |
) |
|
(0.01)% |
|
|
(32 |
) |
|
(0.01)% |
|
|
(33 |
) |
|
(0.01)% |
|
|
(33 |
) |
|
(0.01)% |
| Without loan purchase
accretion |
|
$ |
11,633 |
|
|
2.77 |
% |
|
$ |
11,207 |
|
|
2.61 |
% |
|
$ |
11,482 |
|
|
2.70 |
% |
|
$ |
11,797 |
|
|
2.74 |
% |
|
$ |
11,677 |
|
|
2.67 |
% |
The table below shows the impact of certificate, loan and
securities contractual fixed rate maturing and repricing.
Portfolio Contractual Repricing:(in millions,
except yields)
| |
|
Q1 2025 |
|
Q2 2025 |
|
Q3 2025 |
|
Q4 2025 |
|
FY 2026 |
| Maturing Certificate
Accounts: |
|
|
|
|
|
|
|
|
|
|
|
Contractual Balance |
|
$ |
95 |
|
|
$ |
177 |
|
|
$ |
43 |
|
|
$ |
14 |
|
|
$ |
13 |
|
| Contractual Interest Rate |
|
|
4.63 |
% |
|
|
4.68 |
% |
|
|
4.25 |
% |
|
|
3.07 |
% |
|
|
3.36 |
% |
| Maturing or Repricing
Loans: |
|
|
|
|
|
|
|
|
|
|
| Contractual Balance |
|
$ |
46 |
|
|
$ |
97 |
|
|
$ |
18 |
|
|
$ |
55 |
|
|
$ |
322 |
|
| Contractual Interest Rate |
|
|
5.27 |
% |
|
|
7.10 |
% |
|
|
6.15 |
% |
|
|
4.79 |
% |
|
|
3.85 |
% |
| Maturing or Repricing
Securities: |
|
|
|
|
|
|
|
|
|
|
| Contractual Balance |
|
$ |
4 |
|
|
$ |
3 |
|
|
$ |
3 |
|
|
$ |
4 |
|
|
$ |
19 |
|
| Contractual Interest Rate |
|
|
6.15 |
% |
|
|
5.12 |
% |
|
|
4.07 |
% |
|
|
4.31 |
% |
|
|
3.49 |
% |
Non-interest income decreased $0.9 million in the fourth quarter
of 2024 to $2.0 million from $2.9 million the prior quarter due to
$0.5 million of lower gain on sale of loans, $0.2 million of higher
net losses on equity securities and lower loan servicing income and
service charges on deposit accounts. Total non-interest income for
the quarter ended December 31, 2023, was higher at $2.5 million due
to an increase in net losses on equity securities in 4Q 2024.
Non-interest expense increased $0.4 million to $10.8 million
from $10.4 million for the previous quarter and increased $0.6
million from $10.2 million one year earlier. The $0.4 million
increase in non-interest expense compared to the linked quarter was
largely due to the $0.2 million increase in professional fees and
$0.2 million in losses on repossessed assets. The $0.6 million
increase from the fourth quarter of 2023 is due to: (1) a $0.7
million increase in compensation expenses, due to higher incentive
compensation and annual merit increases; (2) an increase in the
current quarter of $0.2 million on losses on repossessed assets;
(3) higher data processing of $0.2 million partially offset by
lower other expenses $0.5 million primarily due to 2023 branch
closure costs.
Provision for income taxes decreased to $0.7 million in the
fourth quarter of 2024 from $0.9 million in the third quarter of
2024 largely due to lower pre-tax income. The effective tax rate
was 19.5% for the quarter ended December 31, 2024, 21.5% for the
quarter ended September 30, 2024, and 20.9% for the quarter ended
December 31, 2023.
These financial results are preliminary until Form 10-K is filed
in March 2025.About the Company
Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding
company of the Bank, a national bank based in Altoona, Wisconsin,
currently serving customers primarily in Wisconsin and Minnesota
through 22 branch locations. Its primary markets include the
Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato
markets in Minnesota, and various rural communities around these
areas. The Bank offers traditional community banking services to
businesses, ag operators and consumers, including residential
mortgage loans.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements contained in this release are
considered “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
may be identified using forward-looking words or phrases such as
“anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,”
“may,” “on pace,” “preliminary,” “planned,” “potential,” “should,”
“will,” “would” or the negative of those terms or other words of
similar meaning. Such forward-looking statements in this release
are inherently subject to many uncertainties arising in the
operations and business environment of the Company and the Bank.
These uncertainties include: conditions in the financial markets
and economic conditions generally; the impact of inflation on our
business and our customers; geopolitical tensions, including
current or anticipated impact of military conflicts; higher lending
risks associated with our commercial and agricultural banking
activities; future pandemics (including new variants of COVID-19);
cybersecurity risks; adverse impacts on the regional banking
industry and the business environment in which it operates;
interest rate risk; lending risk; changes in the fair value or
ratings downgrades of our securities; the sufficiency of allowance
for credit losses; competitive pressures among depository and other
financial institutions; disintermediation risk; our ability to
maintain our reputation; our ability to maintain or increase our
market share; our ability to realize the benefits of net deferred
tax assets; our inability to obtain needed liquidity; our ability
to raise capital needed to fund growth or meet regulatory
requirements; our ability to attract and retain key personnel; our
ability to keep pace with technological change; prevalence of fraud
and other financial crimes; the possibility that our internal
controls and procedures could fail or be circumvented; our ability
to successfully execute our acquisition growth strategy; risks
posed by acquisitions and other expansion opportunities, including
difficulties and delays in integrating the acquired business
operations or fully realizing the cost savings and other benefits;
restrictions on our ability to pay dividends; the potential
volatility of our stock price; accounting standards for credit
losses; legislative or regulatory changes or actions, or
significant litigation, adversely affecting the Company or Bank;
public company reporting obligations; changes in federal or state
tax laws; and changes in accounting principles, policies or
guidelines and their impact on financial performance. Stockholders,
potential investors, and other readers are urged to consider these
factors carefully in evaluating the forward-looking statements and
are cautioned not to place undue reliance on such forward-looking
statements. Such uncertainties and other risks that may affect the
Company’s performance are discussed further in Part I, Item 1A,
“Risk Factors,” in the Company’s Form 10-K, for the year ended
December 31, 2023, filed with the Securities and Exchange
Commission (“SEC”) on March 5, 2024 and the Company’s subsequent
filings with the SEC. The Company undertakes no obligation to make
any revisions to the forward-looking statements contained in this
news release or to update them to reflect events or circumstances
occurring after the date of this release.
1 Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as
net income as adjusted, net income as adjusted per share, tangible
book value, tangible book value per share, tangible common equity
as a percent of tangible assets and return on average tangible
common equity, which management believes may be helpful in
understanding the Company’s results of operations or financial
position and comparing results over different periods.
Net income as adjusted and net income as adjusted per share are
non-GAAP measures that eliminate the impact of certain expenses
such as branch closure costs and related severance pay, accelerated
depreciation expense and lease termination fees, and the gain on
sale of branch deposits and fixed assets. Tangible book value,
tangible book value per share, tangible common equity as a
percentage of tangible assets and return on average tangible common
equity are non-GAAP measures that eliminate the impact of goodwill
and intangible assets on our financial position. Management
believes these measures are useful in assessing the strength of our
financial position.
Where non-GAAP financial measures are used, the comparable GAAP
financial measure, as well as the reconciliation to the comparable
GAAP financial measure, can be found in this press release. These
disclosures should not be viewed as a substitute for operating
results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other banks and financial institutions.
Contact: Steve Bianchi, CEO(715)-836-9994
(CZWI-ER)
|
CITIZENS COMMUNITY BANCORP,
INC.Consolidated Balance Sheets(in
thousands, except shares and per share data) |
| |
|
December 31, 2024 (unaudited) |
|
September 30, 2024 (unaudited) |
|
June 30, 2024 (unaudited) |
|
December 31, 2023 (audited) |
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
50,172 |
|
|
$ |
36,632 |
|
|
$ |
36,886 |
|
|
$ |
37,138 |
|
| Securities available for sale
“AFS” |
|
|
142,851 |
|
|
|
149,432 |
|
|
|
146,438 |
|
|
|
155,743 |
|
| Securities held to maturity
“HTM” |
|
|
85,504 |
|
|
|
87,033 |
|
|
|
88,605 |
|
|
|
91,229 |
|
| Equity investments |
|
|
4,702 |
|
|
|
5,096 |
|
|
|
5,023 |
|
|
|
3,284 |
|
| Other investments |
|
|
12,500 |
|
|
|
12,311 |
|
|
|
13,878 |
|
|
|
15,725 |
|
| Loans receivable |
|
|
1,368,981 |
|
|
|
1,424,828 |
|
|
|
1,428,588 |
|
|
|
1,460,792 |
|
| Allowance for credit
losses |
|
|
(20,549 |
) |
|
|
(21,000 |
) |
|
|
(21,178 |
) |
|
|
(22,908 |
) |
|
Loans receivable, net |
|
|
1,348,432 |
|
|
|
1,403,828 |
|
|
|
1,407,410 |
|
|
|
1,437,884 |
|
| Loans held for sale |
|
|
1,329 |
|
|
|
697 |
|
|
|
275 |
|
|
|
5,773 |
|
| Mortgage servicing rights,
net |
|
|
3,663 |
|
|
|
3,696 |
|
|
|
3,731 |
|
|
|
3,865 |
|
| Office properties and
equipment, net |
|
|
17,075 |
|
|
|
17,365 |
|
|
|
17,774 |
|
|
|
18,373 |
|
| Accrued interest
receivable |
|
|
5,653 |
|
|
|
6,235 |
|
|
|
6,289 |
|
|
|
5,409 |
|
| Intangible assets |
|
|
979 |
|
|
|
1,158 |
|
|
|
1,336 |
|
|
|
1,694 |
|
| Goodwill |
|
|
31,498 |
|
|
|
31,498 |
|
|
|
31,498 |
|
|
|
31,498 |
|
| Foreclosed and repossessed
assets, net |
|
|
915 |
|
|
|
1,572 |
|
|
|
1,662 |
|
|
|
1,795 |
|
| Bank owned life insurance
(“BOLI”) |
|
|
26,102 |
|
|
|
25,901 |
|
|
|
25,708 |
|
|
|
25,647 |
|
| Other assets |
|
|
17,144 |
|
|
|
16,683 |
|
|
|
15,794 |
|
|
|
16,334 |
|
| TOTAL ASSETS |
|
$ |
1,748,519 |
|
|
$ |
1,799,137 |
|
|
$ |
1,802,307 |
|
|
$ |
1,851,391 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
Deposits |
|
$ |
1,488,148 |
|
|
$ |
1,520,667 |
|
|
$ |
1,519,544 |
|
|
$ |
1,519,092 |
|
|
Federal Home Loan Bank (“FHLB”) advances |
|
|
5,000 |
|
|
|
21,000 |
|
|
|
31,500 |
|
|
|
79,530 |
|
|
Other borrowings |
|
|
61,606 |
|
|
|
61,548 |
|
|
|
61,498 |
|
|
|
67,465 |
|
|
Other liabilities |
|
|
14,681 |
|
|
|
15,773 |
|
|
|
13,720 |
|
|
|
11,970 |
|
| Total liabilities |
|
|
1,569,435 |
|
|
|
1,618,988 |
|
|
|
1,626,262 |
|
|
|
1,678,057 |
|
| Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock— $0.01 par value, authorized 30,000,000; 9,981,996,
10,074,136, 10,297,341, and 10,440,591 shares issued and
outstanding, respectively |
|
|
100 |
|
|
|
101 |
|
|
|
103 |
|
|
|
104 |
|
|
Additional paid-in capital |
|
|
114,564 |
|
|
|
115,455 |
|
|
|
117,838 |
|
|
|
119,441 |
|
|
Retained earnings |
|
|
80,840 |
|
|
|
78,438 |
|
|
|
75,501 |
|
|
|
71,117 |
|
|
Accumulated other comprehensive loss |
|
|
(16,420 |
) |
|
|
(13,845 |
) |
|
|
(17,397 |
) |
|
|
(17,328 |
) |
| Total stockholders’
equity |
|
|
179,084 |
|
|
|
180,149 |
|
|
|
176,045 |
|
|
|
173,334 |
|
| TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
$ |
1,748,519 |
|
|
$ |
1,799,137 |
|
|
$ |
1,802,307 |
|
|
$ |
1,851,391 |
|
Note:
Certain items previously reported were reclassified for consistency
with the current presentation.
|
CITIZENS COMMUNITY BANCORP,
INC.Consolidated Statements of
Operations(in thousands, except per share data) |
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, 2024 (unaudited) |
|
September 30, 2024 (unaudited) |
|
December 31, 2023 (unaudited) |
|
December 31, 2024 (unaudited) |
|
December 31, 2023 (audited) |
| Interest and dividend
income: |
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
19,534 |
|
|
$ |
20,115 |
|
|
$ |
19,408 |
|
|
$ |
79,738 |
|
|
$ |
73,577 |
|
|
Interest on investments |
|
|
2,427 |
|
|
|
2,397 |
|
|
|
2,618 |
|
|
|
9,877 |
|
|
|
10,671 |
|
| Total interest and dividend
income |
|
|
21,961 |
|
|
|
22,512 |
|
|
|
22,026 |
|
|
|
89,615 |
|
|
|
84,248 |
|
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
9,273 |
|
|
|
10,165 |
|
|
|
7,851 |
|
|
|
37,985 |
|
|
|
25,749 |
|
|
Interest on FHLB borrowed funds |
|
|
65 |
|
|
|
128 |
|
|
|
1,371 |
|
|
|
1,281 |
|
|
|
5,966 |
|
|
Interest on other borrowed funds |
|
|
915 |
|
|
|
934 |
|
|
|
1,057 |
|
|
|
3,875 |
|
|
|
4,184 |
|
| Total interest expense |
|
|
10,253 |
|
|
|
11,227 |
|
|
|
10,279 |
|
|
|
43,141 |
|
|
|
35,899 |
|
| Net interest income before
provision for credit losses |
|
|
11,708 |
|
|
|
11,285 |
|
|
|
11,747 |
|
|
|
46,474 |
|
|
|
48,349 |
|
| (Negative) provision for
credit losses |
|
|
(450 |
) |
|
|
(400 |
) |
|
|
(650 |
) |
|
|
(3,175 |
) |
|
|
(475 |
) |
| Net interest income after
provision for credit losses |
|
|
12,158 |
|
|
|
11,685 |
|
|
|
12,397 |
|
|
|
49,649 |
|
|
|
48,824 |
|
| Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
450 |
|
|
|
513 |
|
|
|
485 |
|
|
|
1,924 |
|
|
|
1,949 |
|
|
Interchange income |
|
|
550 |
|
|
|
577 |
|
|
|
581 |
|
|
|
2,247 |
|
|
|
2,324 |
|
|
Loan servicing income |
|
|
520 |
|
|
|
643 |
|
|
|
539 |
|
|
|
2,271 |
|
|
|
2,218 |
|
|
Gain on sale of loans |
|
|
218 |
|
|
|
752 |
|
|
|
191 |
|
|
|
2,216 |
|
|
|
1,692 |
|
|
Loan fees and service charges |
|
|
292 |
|
|
|
165 |
|
|
|
124 |
|
|
|
996 |
|
|
|
432 |
|
|
Net realized gains on debt securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
Net (losses) gains on equity securities |
|
|
(287 |
) |
|
|
(78 |
) |
|
|
277 |
|
|
|
(856 |
) |
|
|
447 |
|
|
Bank Owned Life Insurance (BOLI) death benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
184 |
|
|
|
— |
|
|
Other |
|
|
266 |
|
|
|
349 |
|
|
|
283 |
|
|
|
1,125 |
|
|
|
1,176 |
|
| Total non-interest income |
|
|
2,009 |
|
|
|
2,921 |
|
|
|
2,480 |
|
|
|
10,107 |
|
|
|
10,250 |
|
| Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
|
Compensation and related benefits |
|
|
5,840 |
|
|
|
5,743 |
|
|
|
5,139 |
|
|
|
22,741 |
|
|
|
21,106 |
|
|
Occupancy |
|
|
1,217 |
|
|
|
1,242 |
|
|
|
1,314 |
|
|
|
5,159 |
|
|
|
5,431 |
|
|
Data processing |
|
|
1,743 |
|
|
|
1,665 |
|
|
|
1,511 |
|
|
|
6,530 |
|
|
|
5,951 |
|
|
Amortization of intangible assets |
|
|
179 |
|
|
|
178 |
|
|
|
179 |
|
|
|
715 |
|
|
|
755 |
|
|
Mortgage servicing rights expense, net |
|
|
107 |
|
|
|
163 |
|
|
|
159 |
|
|
|
534 |
|
|
|
615 |
|
|
Advertising, marketing and public relations |
|
|
218 |
|
|
|
225 |
|
|
|
262 |
|
|
|
793 |
|
|
|
734 |
|
|
FDIC premium assessment |
|
|
192 |
|
|
|
201 |
|
|
|
204 |
|
|
|
798 |
|
|
|
812 |
|
|
Professional services |
|
|
514 |
|
|
|
336 |
|
|
|
371 |
|
|
|
1,763 |
|
|
|
1,524 |
|
|
Losses (gains) on repossessed assets, net |
|
|
247 |
|
|
|
65 |
|
|
|
— |
|
|
|
294 |
|
|
|
62 |
|
|
Other |
|
|
552 |
|
|
|
603 |
|
|
|
1,067 |
|
|
|
2,979 |
|
|
|
3,152 |
|
| Total non-interest
expense |
|
|
10,809 |
|
|
|
10,421 |
|
|
|
10,206 |
|
|
|
42,306 |
|
|
|
40,142 |
|
| Income before provision for
income taxes |
|
|
3,358 |
|
|
|
4,185 |
|
|
|
4,671 |
|
|
|
17,450 |
|
|
|
18,932 |
|
| Provision for income
taxes |
|
|
656 |
|
|
|
899 |
|
|
|
978 |
|
|
|
3,699 |
|
|
|
5,873 |
|
| Net income attributable to
common stockholders |
|
$ |
2,702 |
|
|
$ |
3,286 |
|
|
$ |
3,693 |
|
|
$ |
13,751 |
|
|
$ |
13,059 |
|
| Per share information: |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings |
|
$ |
0.27 |
|
|
$ |
0.32 |
|
|
$ |
0.35 |
|
|
$ |
1.34 |
|
|
$ |
1.25 |
|
|
Diluted earnings |
|
$ |
0.27 |
|
|
$ |
0.32 |
|
|
$ |
0.35 |
|
|
$ |
1.34 |
|
|
$ |
1.25 |
|
|
Cash dividends paid |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.32 |
|
|
$ |
0.29 |
|
|
Book value per share at end of period |
|
$ |
17.94 |
|
|
$ |
17.88 |
|
|
$ |
16.60 |
|
|
$ |
17.94 |
|
|
$ |
16.60 |
|
|
Tangible book value per share at end of period (non-GAAP) |
|
$ |
14.69 |
|
|
$ |
14.64 |
|
|
$ |
13.42 |
|
|
$ |
14.69 |
|
|
$ |
13.42 |
|
Reconciliation of GAAP Net Income and Net Income as
Adjusted (non-GAAP)
(in thousands, except per share data)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31,2024 |
|
September 30,2024 |
|
December 31,2023 |
|
December 31,2024 |
|
December 31,2023 |
| |
|
|
|
|
|
|
|
|
|
|
GAAP pretax income |
|
$ |
3,358 |
|
$ |
4,185 |
|
$ |
4,671 |
|
$ |
17,450 |
|
$ |
18,932 |
|
Branch closure costs (1) |
|
|
— |
|
|
— |
|
|
380 |
|
|
168 |
|
|
380 |
| Pretax income as adjusted
(2) |
|
$ |
3,358 |
|
$ |
4,185 |
|
$ |
5,051 |
|
$ |
17,618 |
|
$ |
19,312 |
|
Provision for income tax on net income as adjusted (3) |
|
|
656 |
|
|
899 |
|
|
1,058 |
|
|
3,735 |
|
|
5,991 |
| Net income as adjusted
(non-GAAP) (2) |
|
$ |
2,702 |
|
$ |
3,286 |
|
$ |
3,993 |
|
$ |
13,883 |
|
$ |
13,321 |
| GAAP diluted earnings per
share, net of tax |
|
$ |
0.27 |
|
$ |
0.32 |
|
$ |
0.35 |
|
$ |
1.34 |
|
$ |
1.25 |
| Branch closure costs, net of
tax |
|
|
— |
|
|
— |
|
|
0.03 |
|
|
0.01 |
|
|
0.03 |
| Diluted earnings per share, as
adjusted, net of tax (non-GAAP) |
|
$ |
0.27 |
|
$ |
0.32 |
|
$ |
0.38 |
|
$ |
1.35 |
|
$ |
1.28 |
| |
|
|
|
|
|
|
|
|
|
|
| Average diluted shares
outstanding |
|
|
10,033,957 |
|
|
10,204,195 |
|
|
10,457,184 |
|
|
10,262,710 |
|
|
10,470,298 |
(1) Branch closure costs include severance pay recorded in
compensation and benefits and depreciation and right of use lease
asset accelerated expense included in other non-interest expense in
the consolidated statement of operations.(2) Pretax 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.(3) Provision for income tax on net income as adjusted
is calculated at our effective tax rate for each respective period
presented.
Loan Composition
(in thousands)
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
December 31, 2023 |
| Total Loans: |
|
|
|
|
|
|
|
|
| Commercial/Agricultural real
estate: |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
709,018 |
|
|
$ |
730,459 |
|
|
$ |
729,236 |
|
|
$ |
750,531 |
|
|
Agricultural real estate |
|
|
73,130 |
|
|
|
76,043 |
|
|
|
78,248 |
|
|
|
83,350 |
|
|
Multi-family real estate |
|
|
220,805 |
|
|
|
239,191 |
|
|
|
234,758 |
|
|
|
228,095 |
|
|
Construction and land development |
|
|
78,489 |
|
|
|
87,875 |
|
|
|
87,898 |
|
|
|
110,941 |
|
| C&I/Agricultural
operating: |
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
|
115,657 |
|
|
|
119,619 |
|
|
|
127,386 |
|
|
|
121,666 |
|
|
Agricultural operating |
|
|
31,000 |
|
|
|
27,550 |
|
|
|
27,409 |
|
|
|
25,691 |
|
| Residential mortgage: |
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
132,341 |
|
|
|
134,944 |
|
|
|
133,503 |
|
|
|
129,021 |
|
|
Purchased HELOC loans |
|
|
2,956 |
|
|
|
2,932 |
|
|
|
2,915 |
|
|
|
2,880 |
|
| Consumer installment: |
|
|
|
|
|
|
|
|
|
Originated indirect paper |
|
|
3,970 |
|
|
|
4,405 |
|
|
|
5,110 |
|
|
|
6,535 |
|
|
Other consumer |
|
|
5,012 |
|
|
|
5,438 |
|
|
|
5,860 |
|
|
|
6,187 |
|
| Gross loans |
|
$ |
1,372,378 |
|
|
$ |
1,428,456 |
|
|
$ |
1,432,323 |
|
|
$ |
1,464,897 |
|
|
Unearned net deferred fees and costs and loans in process |
|
|
(2,547 |
) |
|
|
(2,703 |
) |
|
|
(2,733 |
) |
|
|
(2,900 |
) |
|
Unamortized discount on acquired loans |
|
|
(850 |
) |
|
|
(925 |
) |
|
|
(1,002 |
) |
|
|
(1,205 |
) |
| Total loans receivable |
|
$ |
1,368,981 |
|
|
$ |
1,424,828 |
|
|
$ |
1,428,588 |
|
|
$ |
1,460,792 |
|
Nonperforming AssetsLoan Balances at Amortized
Cost
(in thousands, except ratios)
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
December 31, 2023 |
| Nonperforming assets: |
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
4,594 |
|
|
$ |
4,778 |
|
|
$ |
5,350 |
|
|
$ |
10,359 |
|
|
Agricultural real estate |
|
|
6,222 |
|
|
|
6,193 |
|
|
|
382 |
|
|
|
391 |
|
|
Construction and land development |
|
|
103 |
|
|
|
106 |
|
|
|
— |
|
|
|
54 |
|
|
Commercial and industrial (“C&I”) |
|
|
597 |
|
|
|
1,956 |
|
|
|
422 |
|
|
|
— |
|
|
Agricultural operating |
|
|
793 |
|
|
|
901 |
|
|
|
1,017 |
|
|
|
1,180 |
|
|
Residential mortgage |
|
|
858 |
|
|
|
1,088 |
|
|
|
1,145 |
|
|
|
1,167 |
|
|
Consumer installment |
|
|
1 |
|
|
|
20 |
|
|
|
36 |
|
|
|
33 |
|
|
Total nonaccrual loans |
|
$ |
13,168 |
|
|
$ |
15,042 |
|
|
$ |
8,352 |
|
|
$ |
13,184 |
|
|
Accruing loans past due 90 days or more |
|
|
186 |
|
|
|
530 |
|
|
|
256 |
|
|
|
389 |
|
| Total nonperforming loans
(“NPLs”) at amortized cost |
|
|
13,354 |
|
|
|
15,572 |
|
|
|
8,608 |
|
|
|
13,573 |
|
|
Foreclosed and repossessed assets, net |
|
|
915 |
|
|
|
1,572 |
|
|
|
1,662 |
|
|
|
1,795 |
|
| Total nonperforming assets
(“NPAs”) |
|
$ |
14,269 |
|
|
$ |
17,144 |
|
|
$ |
10,270 |
|
|
$ |
15,368 |
|
| Loans, end of period |
|
$ |
1,368,981 |
|
|
$ |
1,424,828 |
|
|
$ |
1,428,588 |
|
|
$ |
1,460,792 |
|
| Total assets, end of period |
|
$ |
1,748,519 |
|
|
$ |
1,799,137 |
|
|
$ |
1,802,307 |
|
|
$ |
1,851,391 |
|
| Ratios: |
|
|
|
|
|
|
|
|
|
NPLs to total loans |
|
|
0.98 |
% |
|
|
1.09 |
% |
|
|
0.60 |
% |
|
|
0.93 |
% |
|
NPAs to total assets |
|
|
0.82 |
% |
|
|
0.95 |
% |
|
|
0.57 |
% |
|
|
0.83 |
% |
Average Balances, Interest Yields and Rates
(in thousands, except yields and rates)
| |
|
Three Months Ended December 31, 2024 |
|
Three Months Ended September 30, 2024 |
|
Three Months EndedDecember 31, 2023 |
| |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Rate |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Rate |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Rate |
| Average interest earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
26,197 |
|
$ |
327 |
|
4.97 |
% |
|
$ |
25,187 |
|
$ |
360 |
|
5.69 |
% |
|
$ |
16,699 |
|
$ |
241 |
|
5.73 |
% |
| Loans receivable |
|
|
1,396,854 |
|
|
19,534 |
|
5.56 |
% |
|
|
1,429,928 |
|
|
20,115 |
|
5.60 |
% |
|
|
1,458,558 |
|
|
19,408 |
|
5.28 |
% |
| Investment securities |
|
|
235,268 |
|
|
1,940 |
|
3.28 |
% |
|
|
236,960 |
|
|
1,966 |
|
3.30 |
% |
|
|
243,705 |
|
|
2,102 |
|
3.42 |
% |
| Other investments |
|
|
12,318 |
|
|
160 |
|
5.17 |
% |
|
|
12,553 |
|
|
71 |
|
2.25 |
% |
|
|
15,760 |
|
|
275 |
|
6.92 |
% |
|
Total interest earning assets |
|
$ |
1,670,637 |
|
$ |
21,961 |
|
5.23 |
% |
|
$ |
1,704,628 |
|
$ |
22,512 |
|
5.25 |
% |
|
$ |
1,734,722 |
|
$ |
22,026 |
|
5.04 |
% |
| Average
interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Savings accounts |
|
$ |
162,501 |
|
$ |
383 |
|
0.94 |
% |
|
$ |
170,777 |
|
$ |
450 |
|
1.05 |
% |
|
$ |
175,281 |
|
$ |
323 |
|
0.73 |
% |
| Demand deposits |
|
|
346,411 |
|
|
1,891 |
|
2.17 |
% |
|
|
357,201 |
|
|
2,152 |
|
2.40 |
% |
|
|
329,096 |
|
|
1,680 |
|
2.03 |
% |
| Money market accounts |
|
|
351,566 |
|
|
2,720 |
|
3.08 |
% |
|
|
381,369 |
|
|
3,126 |
|
3.26 |
% |
|
|
326,981 |
|
|
2,217 |
|
2.69 |
% |
| CD’s |
|
|
374,087 |
|
|
4,279 |
|
4.55 |
% |
|
|
379,722 |
|
|
4,437 |
|
4.65 |
% |
|
|
368,110 |
|
|
3,631 |
|
3.91 |
% |
|
Total deposits |
|
$ |
1,234,565 |
|
$ |
9,273 |
|
2.99 |
% |
|
$ |
1,289,069 |
|
$ |
10,165 |
|
3.14 |
% |
|
$ |
1,199,468 |
|
$ |
7,851 |
|
2.60 |
% |
| FHLB advances and other
borrowings |
|
|
72,431 |
|
|
980 |
|
5.38 |
% |
|
|
80,338 |
|
|
1,062 |
|
5.26 |
% |
|
|
191,575 |
|
|
2,428 |
|
5.03 |
% |
|
Total interest-bearing liabilities |
|
$ |
1,306,996 |
|
$ |
10,253 |
|
3.12 |
% |
|
$ |
1,369,407 |
|
$ |
11,227 |
|
3.26 |
% |
|
$ |
1,391,043 |
|
$ |
10,279 |
|
2.93 |
% |
| Net interest income |
|
|
|
$ |
11,708 |
|
|
|
|
|
$ |
11,285 |
|
|
|
|
|
$ |
11,747 |
|
|
| Interest rate spread |
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
1.99 |
% |
|
|
|
|
|
2.11 |
% |
| Net interest margin |
|
|
|
|
|
2.79 |
% |
|
|
|
|
|
2.63 |
% |
|
|
|
|
|
2.69 |
% |
| Average interest earning assets
to average interest-bearing liabilities |
|
|
|
|
|
1.28 |
|
|
|
|
|
|
1.24 |
|
|
|
|
|
|
1.25 |
|
| |
|
Twelve Months EndedDecember 31, 2024 |
|
Twelve Months EndedDecember, 2023 |
| |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Rate |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Rate |
| Average interest earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
20,864 |
|
$ |
1,150 |
|
5.51 |
% |
|
$ |
18,469 |
|
$ |
1,010 |
|
5.47 |
% |
| Loans receivable |
|
|
1,430,631 |
|
|
79,738 |
|
5.57 |
% |
|
|
1,430,035 |
|
|
73,577 |
|
5.15 |
% |
| Interest bearing deposits |
|
|
— |
|
|
— |
|
— |
% |
|
|
63 |
|
|
1 |
|
1.59 |
% |
| Investment securities |
|
|
238,851 |
|
|
7,977 |
|
3.34 |
% |
|
|
257,020 |
|
|
8,606 |
|
3.35 |
% |
| Other investments |
|
|
12,816 |
|
|
750 |
|
5.85 |
% |
|
|
16,274 |
|
|
1,054 |
|
6.48 |
% |
|
Total interest earning assets |
|
$ |
1,703,162 |
|
$ |
89,615 |
|
5.26 |
% |
|
$ |
1,721,861 |
|
$ |
84,248 |
|
4.89 |
% |
| Average
interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Savings accounts |
|
$ |
171,069 |
|
$ |
1,684 |
|
0.98 |
% |
|
$ |
200,087 |
|
$ |
1,427 |
|
0.71 |
% |
| Demand deposits |
|
|
353,107 |
|
|
8,083 |
|
2.29 |
% |
|
|
359,866 |
|
|
6,727 |
|
1.87 |
% |
| Money market accounts |
|
|
371,909 |
|
|
11,725 |
|
3.15 |
% |
|
|
306,020 |
|
|
6,976 |
|
2.28 |
% |
| CD’s |
|
|
366,634 |
|
|
16,493 |
|
4.50 |
% |
|
|
317,376 |
|
|
10,619 |
|
3.35 |
% |
|
Total deposits |
|
$ |
1,262,719 |
|
$ |
37,985 |
|
3.01 |
% |
|
$ |
1,183,349 |
|
$ |
25,749 |
|
2.18 |
% |
| FHLB advances and other
borrowings |
|
|
99,731 |
|
|
5,156 |
|
5.17 |
% |
|
|
208,373 |
|
|
10,150 |
|
4.87 |
% |
|
Total interest-bearing liabilities |
|
$ |
1,362,450 |
|
$ |
43,141 |
|
3.17 |
% |
|
$ |
1,391,722 |
|
$ |
35,899 |
|
2.58 |
% |
| Net interest income |
|
|
|
$ |
46,474 |
|
|
|
|
|
$ |
48,349 |
|
|
| Interest rate spread |
|
|
|
|
|
2.09 |
% |
|
|
|
|
|
2.31 |
% |
| Net interest margin |
|
|
|
|
|
2.73 |
% |
|
|
|
|
|
2.81 |
% |
| Average interest earning assets
to average interest bearing liabilities |
|
|
|
|
|
1.25 |
|
|
|
|
|
|
1.24 |
|
Wholesale Deposits(in thousands)
| |
|
Quarter Ended |
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
| Brokered certificate
accounts |
|
$ |
14,123 |
|
$ |
48,578 |
|
$ |
54,123 |
|
$ |
43,507 |
|
$ |
58,209 |
| Brokered money market
accounts |
|
|
5,002 |
|
|
18,076 |
|
|
42,673 |
|
|
40,429 |
|
|
40,050 |
| Third party originated
reciprocal deposits |
|
|
14,125 |
|
|
26,266 |
|
|
17,237 |
|
|
13,178 |
|
|
8,047 |
| Total |
|
$ |
33,250 |
|
$ |
92,920 |
|
$ |
114,033 |
|
$ |
97,114 |
|
$ |
106,306 |
Key Financial Metric Ratios:
|
|
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
| Ratios based on net
income: |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
0.61 |
% |
|
0.72 |
% |
|
0.79 |
% |
|
0.76 |
% |
|
0.71 |
% |
|
Return on average equity (annualized) |
|
6.00 |
% |
|
7.34 |
% |
|
8.72 |
% |
|
7.84 |
% |
|
7.87 |
% |
|
Return on average tangible common equity4 (annualized) |
|
7.72 |
% |
|
9.38 |
% |
|
11.29 |
% |
|
10.03 |
% |
|
10.26 |
% |
|
Efficiency ratio |
|
76 |
% |
|
72 |
% |
|
72 |
% |
|
72 |
% |
|
68 |
% |
|
Net interest margin with loan purchase accretion |
|
2.79 |
% |
|
2.63 |
% |
|
2.69 |
% |
|
2.73 |
% |
|
2.81 |
% |
|
Net interest margin without loan purchase accretion |
|
2.77 |
% |
|
2.61 |
% |
|
2.67 |
% |
|
2.69 |
% |
|
2.78 |
% |
| Ratios based on net income as
adjusted (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets as adjusted2 (annualized) |
|
0.61 |
% |
|
0.72 |
% |
|
0.86 |
% |
|
0.77 |
% |
|
0.73 |
% |
|
Return on average equity as adjusted3 (annualized) |
|
6.00 |
% |
|
7.34 |
% |
|
9.43 |
% |
|
7.91 |
% |
|
8.03 |
% |
Reconciliation of Return on Average Assets
(in thousands, except ratios)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
| |
|
|
|
| GAAP earnings after income
taxes |
|
$ |
2,702 |
|
|
$ |
3,286 |
|
|
$ |
3,693 |
|
|
$ |
13,751 |
|
|
$ |
13,059 |
|
| Net income as adjusted after
income taxes (non-GAAP) (1) |
|
$ |
2,702 |
|
|
$ |
3,286 |
|
|
$ |
3,993 |
|
|
$ |
13,883 |
|
|
$ |
13,321 |
|
| Average assets |
|
$ |
1,771,351 |
|
|
$ |
1,810,826 |
|
|
$ |
1,843,789 |
|
|
$ |
1,808,256 |
|
|
$ |
1,836,337 |
|
| Return on average assets
(annualized) |
|
|
0.61 |
% |
|
|
0.72 |
% |
|
|
0.79 |
% |
|
|
0.76 |
% |
|
|
0.71 |
% |
| Return on average assets as
adjusted (non-GAAP) (annualized) |
|
|
0.61 |
% |
|
|
0.72 |
% |
|
|
0.86 |
% |
|
|
0.77 |
% |
|
|
0.73 |
% |
(1) See Reconciliation of GAAP Net Income and Net Income as
Adjusted (non-GAAP)
Reconciliation of Return on Average Equity
(in thousands, except ratios)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|
GAAP earnings after income taxes |
|
$ |
2,702 |
|
|
$ |
3,286 |
|
|
$ |
3,693 |
|
|
$ |
13,751 |
|
|
$ |
13,059 |
|
| Net income as adjusted after
income taxes (non-GAAP) (1) |
|
$ |
2,702 |
|
|
$ |
3,286 |
|
|
$ |
3,993 |
|
|
$ |
13,883 |
|
|
$ |
13,321 |
|
| Average equity |
|
$ |
179,242 |
|
|
$ |
178,050 |
|
|
$ |
168,058 |
|
|
$ |
175,475 |
|
|
$ |
165,968 |
|
| Return on average equity
(annualized) |
|
|
6.00 |
% |
|
|
7.34 |
% |
|
|
8.72 |
% |
|
|
7.84 |
% |
|
|
7.87 |
% |
| Return on average equity as
adjusted (non-GAAP) (annualized) |
|
|
6.00 |
% |
|
|
7.34 |
% |
|
|
9.43 |
% |
|
|
7.91 |
% |
|
|
8.03 |
% |
(1) See Reconciliation of GAAP Net Income and Net Income as
Adjusted (non-GAAP)
Reconciliation of tangible book value per share
(non-GAAP)
(in thousands, except per share data)
| Tangible book value
per share at end of period |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
December 31, 2023 |
|
Total stockholders’ equity |
|
$ |
179,084 |
|
|
$ |
180,149 |
|
|
$ |
176,045 |
|
|
$ |
173,334 |
|
| Less: Goodwill |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
| Less: Intangible assets |
|
|
(979 |
) |
|
|
(1,158 |
) |
|
|
(1,336 |
) |
|
|
(1,694 |
) |
| Tangible common equity
(non-GAAP) |
|
$ |
146,607 |
|
|
$ |
147,493 |
|
|
$ |
143,211 |
|
|
$ |
140,142 |
|
| Ending common shares
outstanding |
|
|
9,981,996 |
|
|
|
10,074,136 |
|
|
|
10,297,341 |
|
|
|
10,440,591 |
|
| Book value per share |
|
$ |
17.94 |
|
|
$ |
17.88 |
|
|
$ |
17.10 |
|
|
$ |
16.60 |
|
| Tangible book value per share
(non-GAAP) |
|
$ |
14.69 |
|
|
$ |
14.64 |
|
|
$ |
13.91 |
|
|
$ |
13.42 |
|
Reconciliation of tangible common equity as a percent of
tangible assets (non-GAAP)
(in thousands, except ratios)
| Tangible common equity
as a percent of tangible assets at end of period |
|
December 31, 2024 |
|
September 30, 2024 |
|
June 30, 2024 |
|
December 31, 2023 |
|
Total stockholders’ equity |
|
$ |
179,084 |
|
|
$ |
180,149 |
|
|
$ |
176,045 |
|
|
$ |
173,334 |
|
| Less: Goodwill |
|
|
(31,498 |
) |
|
$ |
(31,498 |
) |
|
$ |
(31,498 |
) |
|
|
(31,498 |
) |
| Less: Intangible assets |
|
|
(979 |
) |
|
$ |
(1,158 |
) |
|
$ |
(1,336 |
) |
|
|
(1,694 |
) |
| Tangible common equity
(non-GAAP) |
|
$ |
146,607 |
|
|
$ |
147,493 |
|
|
$ |
143,211 |
|
|
$ |
140,142 |
|
| Total Assets |
|
$ |
1,748,519 |
|
|
$ |
1,799,137 |
|
|
$ |
1,802,307 |
|
|
$ |
1,851,391 |
|
| Less: Goodwill |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
| Less: Intangible assets |
|
|
(979 |
) |
|
|
(1,158 |
) |
|
|
(1,336 |
) |
|
|
(1,694 |
) |
| Tangible Assets
(non-GAAP) |
|
$ |
1,716,042 |
|
|
$ |
1,766,481 |
|
|
$ |
1,769,473 |
|
|
$ |
1,818,199 |
|
| Total stockholders’ equity to
total assets ratio |
|
|
10.24 |
% |
|
|
10.01 |
% |
|
|
9.77 |
% |
|
|
9.36 |
% |
| Tangible common equity as a
percent of tangible assets (non-GAAP) |
|
|
8.54 |
% |
|
|
8.35 |
% |
|
|
8.09 |
% |
|
|
7.71 |
% |
Reconciliation of Return on Average Tangible Common
Equity (non-GAAP)
(in thousands, except ratios)
| |
|
Three Months Ended |
|
Twelve Months Ended |
| |
|
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|
Total stockholders’ equity |
|
$ |
179,084 |
|
|
$ |
180,149 |
|
|
$ |
173,334 |
|
|
$ |
179,084 |
|
|
$ |
173,334 |
|
| Less: Goodwill |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
|
|
(31,498 |
) |
| Less: Intangible assets |
|
|
(979 |
) |
|
|
(1,158 |
) |
|
|
(1,694 |
) |
|
|
(979 |
) |
|
|
(1,694 |
) |
| Tangible common equity
(non-GAAP) |
|
$ |
146,607 |
|
|
$ |
147,493 |
|
|
$ |
140,142 |
|
|
$ |
146,607 |
|
|
$ |
140,142 |
|
| Average tangible common equity
(non-GAAP) |
|
$ |
146,676 |
|
|
$ |
145,305 |
|
|
$ |
134,776 |
|
|
$ |
142,641 |
|
|
$ |
132,409 |
|
| GAAP earnings after income
taxes |
|
|
2,702 |
|
|
|
3,286 |
|
|
|
3,693 |
|
|
|
13,751 |
|
|
|
13,059 |
|
| Amortization of intangible
assets, net of tax |
|
|
144 |
|
|
|
140 |
|
|
|
142 |
|
|
|
563 |
|
|
|
521 |
|
| Tangible net income |
|
$ |
2,846 |
|
|
$ |
3,426 |
|
|
$ |
3,835 |
|
|
$ |
14,314 |
|
|
$ |
13,580 |
|
| Return on average tangible
common equity (annualized) |
|
|
7.72 |
% |
|
|
9.38 |
% |
|
|
11.29 |
% |
|
|
10.03 |
% |
|
|
10.26 |
% |
Reconciliation of Efficiency Ratio
(in thousands, except ratios)
| |
Three Months Ended |
|
Twelve Months Ended |
| |
December 31, 2024 |
|
September 30, 2024 |
|
December 31, 2023 |
|
December 31, 2024 |
|
December 31, 2023 |
|
Non-interest expense (GAAP) |
$ |
10,809 |
|
|
$ |
10,421 |
|
|
$ |
10,206 |
|
|
$ |
42,306 |
|
|
$ |
40,142 |
|
| Less amortization of
intangibles |
|
(179 |
) |
|
|
(178 |
) |
|
|
(179 |
) |
|
|
(715 |
) |
|
|
(755 |
) |
| Efficiency ratio numerator
(GAAP) |
$ |
10,630 |
|
|
$ |
10,243 |
|
|
$ |
10,027 |
|
|
$ |
41,591 |
|
|
$ |
39,387 |
|
| |
|
|
|
|
|
|
|
|
|
| Non-interest income |
$ |
2,009 |
|
|
$ |
2,921 |
|
|
$ |
2,480 |
|
|
$ |
10,107 |
|
|
$ |
10,250 |
|
| Add back net losses on debt
and equity securities |
|
(287 |
) |
|
|
(78 |
) |
|
|
— |
|
|
|
(856 |
) |
|
|
— |
|
| Subtract net gains on debt and
equity securities |
|
— |
|
|
|
— |
|
|
|
277 |
|
|
|
— |
|
|
|
459 |
|
| Net interest income |
|
11,708 |
|
|
|
11,285 |
|
|
|
11,747 |
|
|
|
46,474 |
|
|
|
48,349 |
|
| Efficiency ratio denominator
(GAAP) |
$ |
14,004 |
|
|
$ |
14,284 |
|
|
$ |
13,950 |
|
|
$ |
57,437 |
|
|
$ |
58,140 |
|
| Efficiency ratio (GAAP) |
|
76 |
% |
|
|
72 |
% |
|
|
72 |
% |
|
|
72 |
% |
|
|
68 |
% |
1Net income as adjusted and net income as adjusted per share are
non-GAAP financial measures that management believes enhances
investors’ ability to better understand the underlying business
performance and trends related to core business activities. For a
detailed reconciliation of GAAP to non-GAAP results, see the
accompanying financial table “Reconciliation of GAAP Net Income and
Net Income as Adjusted (non-GAAP)”.
2Return on average assets as adjusted is a non-GAAP measure that
management believes enhances investors’ ability to better
understand the underlying business performance and trends relative
to average assets. For a detailed reconciliation of GAAP to
non-GAAP results, see the accompanying financial table
“Reconciliation of Return on Average Assets as Adjusted
(non-GAAP)”.
3Return on average equity as adjusted is a non-GAAP measure that
management believes enhances investors’ ability to better
understand the underlying business performance and trends relative
to average equity. For a detailed reconciliation of GAAP to
non-GAAP results, see the accompanying financial table
“Reconciliation of Return on Average Equity as Adjusted
(non-GAAP)”.
4Tangible book value, tangible book value per share, tangible
common equity as a percent of tangible assets and return on
tangible common equity are non-GAAP measures that management
believes enhances investors’ ability to better understand the
Company’s financial position. For a detailed reconciliation of GAAP
to non-GAAP results, see the accompanying financial table
“Reconciliation of tangible book value per share (non-GAAP)”,
“Reconciliation of tangible common equity as a percent of tangible
assets (non-GAAP)”, and “Reconciliation of return on average
tangible common equity)”.
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