Executive Summary

EPS of $0.32 beat Wall Street consensus by $0.06 (+21%); “revenue” (SPGI net operating revenue) of $14.44M modestly beat by ~2%, as NIM expanded 6 bps q/q to 2.85% and efficiency improved to 73% . EPS consensus and “revenue” consensus from S&P Global; see Estimates Context.
Balance sheet quality improved: deposits +$35.5M q/q to $1.524B, loans -$16.3M seasonally to $1.353B, and FHLB advances fully repaid (zero at 3/31) while on‑balance‑sheet liquidity ratio rose to 14.38% (from 11.75%) .
Credit stayed within historical range though special mention loans rose to $15.0M due to one C&I relationship; NPAs increased slightly to $14.5M; ACL/loans edged to 1.49% with de minimis net recoveries .
Outlook: management expects low‑to‑mid single‑digit 2025 loan growth and NIM expansion in 2H25 and 2026; dividend of $0.36/sh paid in Q1; 238k shares remain authorized for repurchase .

What Went Well and What Went Wrong

What Went Well
- NIM and efficiency: NIM rose to 2.85% (+6 bps q/q) and the efficiency ratio improved to 73% from 76% in Q4 .
- Funding and liquidity: Deposits grew $35.5M; FHLB advances were fully repaid; on‑balance‑sheet liquidity ratio climbed to 14.38% from 11.75% .
- Non‑interest income uplift: +$0.6M q/q on higher gain on sale of loans (+$0.5M) and higher net gains on equity securities (+$0.3M) .
- Management tone: “We believe loan repricing and originations will benefit our net‑interest margin expansion, especially in the second half of 2025, and throughout 2026, as well as will the impact of deposit repricing.” — CEO Stephen Bianchi .
What Went Wrong
- Seasonal loan contraction: Loans fell $16.3M q/q to $1.353B; average assets also ticked lower, pressuring NII alongside two fewer days in the quarter .
- Rising criticized credits (idiosyncratic): Special mention loans increased to $15.0M (from $8.5M) largely due to one C&I relationship with weaker cash flow .
- YoY comparisons: EPS declined vs prior year ($0.32 vs $0.39) and non‑interest income was $0.7M lower YoY on lower gains on loans/securities .

Financial Results

Results vs prior year and prior quarter

Metric	Q1 2024	Q4 2024	Q1 2025
Diluted EPS ($)	0.39	0.27	0.32
Net Interest Income ($M)	11.91	11.71	11.59
Non‑interest Income ($M)	3.26	2.01	2.59
Net Interest Margin (%)	2.77	2.79	2.85
Efficiency Ratio (%)	71	76	73
ROAA (annualized, %)	0.90	0.61	0.74

Balance sheet and credit

Metric	Q1 2024	Q4 2024	Q1 2025
Loans Receivable (EOP, $M)	1,450.16	1,368.98	1,352.73
Deposits (EOP, $M)	1,527.49	1,488.15	1,523.65
FHLB Advances (EOP, $M)	39.50	5.00	0.00
TCE / Tangible Assets (%)	7.83	8.54	8.45
Uninsured + Uncollateralized Deposits ($M, % of total)	—	265.4 (18%)	271.7 (18%)

Key credit KPIs

KPI	Q1 2024	Q4 2024	Q1 2025
ACL / Loans (%)	1.57	1.50	1.49
NPLs / Loans (%)	0.60	0.98	1.01
NPAs / Assets (%)	0.57	0.82	0.82
Net (Recoveries)/Charge‑offs (annualized, %)	—	0.04	0.00

Notes: “—” not disclosed in same format within cited table.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Loan growth	FY 2025	“Modest loan growth of 1–3% in 2025” (Q4 commentary)	“Low‑to‑mid single‑digit percentages” in 2025	Raised (upper end broadened)
NIM trajectory	2H25–2026	Not explicitly guided in Q4	“Expect NIM expansion especially in 2H25 and throughout 2026”	New
Funding mix	Near‑term	FHLB $5.0M at 12/31/24	FHLB $0 at 3/31/25	Improved leverage/cost
Share repurchase	Ongoing	238k shares available under 2024 plan	238k remain; no Q1 repurchases	Maintained capacity
Dividend	2025 annual	Declared $0.36 annual dividend (1/23/25)	$0.36 paid in Q1	Implemented

Earnings Call Themes & Trends

(Company did not publish a Q1 2025 earnings call transcript; themes below reflect prepared remarks and press materials.)

Topic	Previous Mentions (Q3 2024 and Q4 2024)	Current Period (Q1 2025)	Trend
Net interest margin	Q3: NIM 2.63%; Q4: +16 bps to 2.79% on lower deposit costs	NIM 2.85% (+6 bps q/q) on deposit cost relief; expects expansion in 2H25/2026	Improving; expansion guided
Loan growth	Q3: modest; Q4: forecast 1–3% in 2025	Low‑to‑mid single‑digit growth targeted	Slightly more constructive
Liquidity/funding	Q3->Q4: reduced wholesale; FHLB $21M→$5M	FHLB repaid to $0; liquidity ratio 14.38%	Stronger
Credit quality	Q3: NPLs up from one ag/forestry loan; ACL 1.47%	Special mention +$6.5M (one C&I); NPAs +$0.3M; ACL 1.49%	Stable overall; idiosyncratic uptick
Macro/tariffs	Noted stable markets and lower unemployment vs national	“Tariff exposure appears to be indirect”	Stable
Capital/returns	Q3/Q4: TCE rose; buyback authorization in place	TCE 8.45%; 238k shares remain for repurchase	Capacity preserved

Management Commentary

Strategic positioning: “The balance sheet is well positioned for the remainder of 2025 with strong capital and liquidity positions, strong ACL reserves and credit metrics in our historical range.” — CEO Stephen Bianchi .
Margin outlook and growth: “We believe loan repricing and originations will benefit our net‑interest margin expansion, especially in the second half of 2025, and throughout 2026, as will the impact of deposit repricing.” — CEO Stephen Bianchi .

Q&A Highlights

No Q1 2025 earnings call transcript was available; the company furnished a press release and detailed financial supplement only . As such, no Q&A clarifications were disclosed this quarter.

Estimates Context

Q1 2025 results vs S&P Global consensus:
- EPS: Actual $0.32 vs $0.27 consensus; beat by $0.06 (+21%)* .
- “Revenue” (SPGI net operating revenue): Actual $14.44M vs $14.20M consensus; beat by ~$0.24M (~1.7%)*.

Notes: Asterisked values are from S&P Global consensus and actuals; values retrieved from S&P Global.

Metric	Consensus	Actual	Surprise
EPS ($)	0.265*	0.32	+0.055 (+21%)*
Revenue ($M)	14.20*	14.44*	+0.24 (+1.7%)*
EPS – # of estimates	2*	—	—
Revenue – # of estimates	1*	—	—

Key Takeaways for Investors

Beat/quality: EPS and SPGI “revenue” beats driven by NIM improvement, lower deposit costs, and stronger non‑interest income; efficiency ratio improved to 73% .
Funding strength: Full FHLB repayment, deposit growth, and a higher liquidity ratio position CZWI well into 2H25; loan‑to‑deposit ratio remains sub‑90% (management comment) .
Credit watchlist: Special mention increase was idiosyncratic (one C&I); NPAs were largely stable; ACL/loans remains ~1.5% with negligible net charge‑offs — monitor concentration migration in coming quarters .
Forward NIM catalyst: Management explicitly guides NIM expansion in 2H25/2026 as assets reprice and deposit costs roll down — a key stock narrative lever near mid‑year .
Capital returns optionality: TCE at 8.45% and remaining buyback authorization (238k shares) offer flexibility alongside the $0.36 annual dividend .
Seasonal dynamics: Q1 loan contraction appears seasonal; watch for re‑acceleration and mix in H2 to validate growth and margin trajectory .
Risk‑reward: If funding cost tailwinds persist and criticized loans stabilize, estimate revisions could bias upward on NIM/efficiency; conversely, any broadening in special mention/substandard migration would be a near‑term overhang .

Sources: Company 8‑K press release and financial supplement for Q1 2025; prior Q4 2024 and Q3 2024 press releases/supplements.
All cited figures in tables and bullets are from the referenced documents unless marked with an asterisk.
Asterisked estimate and “revenue” consensus/actual data were retrieved from S&P Global.

Citations

Q1 2025 press release and tables:
Q1 2025 8‑K exhibits/supplement (additional KPIs):
Q4 2024 release/supplement:
Q3 2024 release/supplement:

Citizens Community Bancorp Inc. (CZWI)·Q1 2025 Earnings Summary