Sign in

You're signed outSign in or to get full access.

CC

Citizens Community Bancorp Inc. (CZWI)·Q3 2025 Earnings Summary

Executive Summary

  • EPS was $0.37 (flat vs consensus; +12% sequential; +16% y/y), with diluted EPS of $0.37, net interest income (NII) $13.2M, and net interest margin (NIM) 3.20% . EPS matched Wall Street consensus at $0.37 and revenue was modestly above consensus ($15.59M vs $15.40M)* .
  • Credit remained manageable: ACL increased to 1.68% of loans; ACL coverage rose to 141% of non‑performing loans; net recoveries were $51K. NPAs rose to 0.96% of assets driven by one $9M multifamily loan moving to nonaccrual (offset by a $5M ag payoff) .
  • Tangible book value per share increased 3.7% q/q to $15.71; TCE/Tangible Assets rose to 9.13%, supported by earnings and lower unrealized AFS losses .
  • Capital actions/catalysts: 5% buyback authorized (499K shares); ~136K repurchased at $14.93 in Q3 with ~363K remaining; redeemed $15M 6% subordinated debt on Sept 1, 2025 .

What Went Well and What Went Wrong

What Went Well

  • “Earnings met expectations, and capital grew in the quarter strengthening our balance sheet for share buybacks and strategic opportunities… tangible capital ratio now exceeds 9.1% and tangible book value increased 3.7% to $15.71 per share.” — CEO Stephen Bianchi .
  • Non‑interest income improved $0.2M q/q to $3.0M on higher gains on sale of mortgage/SBA loans .
  • Criticized loans fell by ~$7M q/q (from $41.1M to $34.2M), and special mention declined by ~$10.3M, reflecting remediation and a reclassification dynamic .

What Went Wrong

  • NIM contracted 7 bps q/q to 3.20% as Q2 benefited from $1.1M loan payoff accretion that waned in Q3; NIM still +57 bps y/y .
  • NPAs increased $3.7M q/q to $16.7M (0.96% of assets) largely due to one $9M multifamily loan placed on nonaccrual; offset by a $5M ag relationship payoff .
  • Loans shrank $22.6M q/q to $1.323B as payoffs and amortization outpaced originations; non‑interest expense rose $0.3M q/q on compensation/medical costs .

Financial Results

MetricQ3 2024Q2 2025Q3 2025
Diluted EPS ($)$0.32 $0.33 $0.37
Net Interest Income ($USD)$11.285M $13.311M $13.214M
Non‑interest Income ($USD)$2.921M $2.836M $3.022M
Total Net Revenue (NII + Non‑interest) ($USD)$14.206M $16.147M $16.236M
Net Interest Margin (%)2.63% 3.27% 3.20%
Efficiency Ratio (%)72% 66% 67%
NPLs / Loans (%)1.09% 0.90% 1.19%
NPAs / Assets (%)0.95% 0.75% 0.96%

Segment breakdown (loans at amortized cost):

Loan Category ($USD 000s)Q3 2024Q2 2025Q3 2025
Commercial Real Estate$730,459 $693,382 $683,931
Agricultural Real Estate$76,043 $69,237 $64,096
Multi‑family Real Estate$239,191 $238,953 $237,191
Construction & Land Dev.$87,875 $70,477 $74,789
Commercial & Industrial$119,619 $109,202 $101,700
Agricultural Operating$27,550 $31,876 $30,085
Residential Mortgage$134,944 $125,818 $125,198
Purchased HELOC$2,932 $2,368 $1,979
Indirect Consumer$4,405 $2,959 $2,567
Other Consumer$5,438 $4,275 $4,155

Key KPIs:

KPIQ3 2024Q2 2025Q3 2025
Tangible Book Value per Share ($)$14.64 $15.15 $15.71
TCE / Tangible Assets (%)8.35% 8.89% 9.13%
ACL / Loans (%)1.50% 1.59% 1.68%
Total Deposits ($USD)$1.5207B $1.4784B $1.4806B
Uninsured + Uncollateralized Deposits ($USD)—$263.2M (18%) $277.7M (19%)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Share Repurchase AuthorizationAnnounced 7/24/2025None5% buyback (499K shares); 136K repurchased; ~363K remaining Raised capital return
Subordinated Debt9/1/2025$15M 6% due 2030Fully redeemed on 9/1/2025 Lower leverage
DividendsSince 9/30/2024—$0.36/share paid since 9/30/2024 Maintained payouts
Quantitative Operating GuidanceQ4 2025 onwardNoneNone provided (management qualitative only) Maintained (no formal guidance)

Earnings Call Themes & Trends

No earnings call transcript was available in the document set searched for Q3 2025 (and prior two quarters), so themes are synthesized from the press releases and furnished Q&A materials only (we searched for “earnings call transcript” and found none) [SearchDocuments: no result].

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Net Interest MarginNIM 2.85%; expansion expected as loans reprice and deposits repriced NIM 3.27% boosted by $1.1M payoff accretion NIM 3.20%; accretion declined; underlying yields and lower deposit costs partly offset Improving y/y; softer q/q
Credit QualityACL 1.49%; special mention rose on one C&I; NPAs 0.82% ACL 1.59%; criticized loans +; NPLs down to 0.90% ACL 1.68%; NPAs 0.96% due to $9M MF nonaccrual; criticized loans down $7M Mixed; elevated single‑name
Capital & TBVTBVPS $14.79; TCE 8.45% TBVPS $15.15; TCE 8.89%; new buyback TBVPS $15.71; TCE 9.13%; buybacks executed Strengthening
Liquidity/DepositsDeposits +$35.5M; seasonal muni inflows Deposits −$45.2M; seasonal public outflows; customer reinvestment Deposits +$2.1M; commercial +$17.1M; public seasonal −$15.2M Stable core; seasonal swings
Macro/UnemploymentBelow national averages; cautious on tariffs Business activity poised to accelerate H2 2025 Middle‑income and small biz stress (tax/insurance/higher costs) observed Mixed

Management Commentary

  • “Earnings met expectations, and capital grew… tangible capital ratio now exceeds 9.1% and tangible book value increased 3.7%… continued expansion in the net interest margin and strong non‑interest income… 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.” — Stephen Bianchi, Chairman, President & CEO .
  • “The quarter was solid overall with continued margin improvement… strong net interest income… tangible common equity ratio improved to 8.9%… asset quality was mixed… allowance to credit losses to nonperforming loans increased to 176%.” — Stephen Bianchi (Q2 press release) .
  • “The balance sheet is well positioned… strong capital and liquidity… loan repricing and originations will benefit our net‑interest margin expansion… deposit repricing.” — Stephen Bianchi (Q1 press release) .

Q&A Highlights

No call transcript was furnished for Q3 2025 or the prior two quarters in the available documents; therefore, no Q&A highlights or clarifications beyond the press releases and exhibits could be confirmed [SearchDocuments: no result].

Estimates Context

MetricConsensus (Q3 2025)Actual (Q3 2025)# of Estimates
EPS ($)$0.37*$0.37 2*
Revenue ($USD)$15.40M*$15.59M*1*
Target Price ($)$18.75*$18.75*—
  • EPS matched consensus; revenue was modestly above consensus. The low estimate count suggests limited Street coverage and potential volatility in revisions.*
  • Values retrieved from S&P Global.*

Key Takeaways for Investors

  • EPS in line with consensus; sequential EPS growth and y/y margin expansion underpin TBVPS/TCE accretion .
  • NIM normalization likely as one‑time payoff accretion fades; underlying asset yields and deposit cost control remain supportive .
  • Credit watch: single‑name multifamily nonaccrual drove NPAs higher; ACL strengthened to 1.68% with 141% NPL coverage; monitor CRE/MF migration .
  • Capital deployment: buyback authorization with ~363K shares remaining and sub debt redemption provide flexibility and could be EPS‑accretive .
  • Deposits resilient with seasonal public flows; commercial deposits grew; uninsured/un‑collateralized share at ~19% suggests manageable funding risk .
  • Operating leverage: efficiency ratio at 67% (vs 72% y/y); continued cost discipline, technology investment, and NII stability are levers .
  • Near‑term trading: in‑line print with capital accretion and buyback activity; watch credit headlines around MF loan and any margin trajectory updates in Q4 .