Citizens Community Bancorp (CZWI)·Q4 2025 Earnings Summary

Citizens Community Bancorp Delivers 63% EPS Growth as Margins Expand

January 26, 2026 · by Fintool AI Agent

Citizens Community Bancorp (NASDAQ: CZWI) reported fourth quarter 2025 earnings of $0.44 per diluted share, up 63% from $0.27 in Q4 2024, marking the strongest quarterly result of the year. The Wisconsin-based community bank delivered improving profitability metrics across the board while returning capital to shareholders through buybacks and initiating a quarterly dividend.

Did Citizens Community Beat Earnings?

Yes. CZWI delivered a strong beat on both earnings and profitability metrics:

For the full year 2025, CZWI earned $1.46 per diluted share compared to $1.34 in 2024, representing 9% growth.

What Drove the Strong Quarter?

The Q4 2025 results reflected several positive developments:

1. Net Interest Margin Expansion: NIM of 3.15% expanded 36 basis points year-over-year from 2.79%, driven by lower deposit costs and improved asset yields. Deposit costs decreased as the company repriced liabilities lower while loan yields remained elevated.

2. Lower Provision Expense: Provision for credit losses was just $0.2 million versus $0.65 million in Q3, reflecting stable credit quality and the impact of loan growth.

3. Tax Credit Benefit: The effective tax rate dropped to 12.6% from 18.8% in Q3 due to the full-year impact of a new tax credit investment.

4. Operating Leverage: Non-interest expense decreased $0.4 million sequentially to $10.7 million due to lower medical costs and improved data processing expense negotiations.

What Did Management Guide?

While CZWI does not provide explicit forward guidance, CEO Stephen Bianchi's commentary was constructive:

"Loan growth returned in the quarter and the pipeline looked promising entering 2026. We remained focused on growing our customer base, and specifically deposits, as noted in the YOY growth of $44 million. With the improved quality of our deposit base and as loans originated during the pandemic come due for pricing adjustments, we anticipate continued NIM expansion which should result in stronger earnings."

Management's performance objectives target exceeding 1% ROA and 12% ROATCE through modest organic loan and deposit growth with an efficiency ratio in the low to mid-60% range.

Balance Sheet: Loan and Deposit Growth Returned

Loan Composition: The portfolio remains diversified with commercial/agricultural real estate at $683M (51%), multi-family at $246M (18%), C&I at $106M (8%), and agricultural at $103M (8%). Loan growth was driven by new multi-family and C&I originations.

Deposit Mix: Consumer deposits grew $33.9 million to $889 million while public deposits had seasonal growth of $12.1 million. The deposit mix is 58% consumer, 28% commercial, 12% public, and 2% wholesale.

How Is Credit Quality?

Credit quality remained stable with no material deterioration:

Special mention loans increased to $24.5 million from $12.9 million, largely due to two commercial real estate relationships totaling $11 million. However, trailing 12-month net charge-offs remain minimal at less than 5 basis points, consistent with the company's historical pattern.

Capital Return: Buybacks and New Quarterly Dividend

CZWI actively returned capital to shareholders:

Share Repurchases: The company repurchased approximately 250,000 shares at an average price of $15.99 per share during Q4, below tangible book value of $16.23. Approximately 113,000 shares remain available under the July 2025 5% buyback authorization.

Dividend Shift: The Board declared a quarterly dividend of $0.105 per share, payable February 20, 2026, replacing the company's former annual dividend with a quarterly cadence.

Book Value Growth:

What Changed From Last Quarter?

Improved:

• EPS increased 19% sequentially ($0.44 vs $0.37)
• Loan growth returned (+$17.3M after declines)
• Deposit growth accelerated (+$43.5M vs +$2.1M in Q3)
• ROATCE expanded to 11.16% from 9.80%
• Effective tax rate benefit (12.6% vs 18.8%)

Mixed:

• NIM compressed 5 bps sequentially (3.15% vs 3.20%) due to Q3 loan payoff accretion; without accretion, NIM was flat at 3.15%
• Efficiency ratio ticked up to 68% from 67%

Watchlist:

• Special mention loans increased $11.6M on two CRE relationships
• NPAs flat but elevated vs prior year

Key Operating Metrics Trend

Forward Catalysts

1. Loan Repricing Tailwind: Loans originated during the pandemic at lower rates are coming due for repricing, which management expects to support continued NIM expansion.

2. Pipeline Strength: CEO Bianchi noted the loan pipeline "looked promising entering 2026."

3. Continued Capital Return: 113,000 shares remain authorized for repurchase, and the new quarterly dividend provides regular income to shareholders.

4. Tax Credit Benefit: The tax credit investment will continue lowering the effective tax rate quarterly through 2026.

Valuation Snapshot

CZWI trades at approximately:

• Price/Tangible Book: 1.12x ($18.20 / $16.23)
• Price/Book: 0.93x ($18.20 / $19.54)
• Market Cap: ~$176 million
• Dividend Yield: ~2.3% annualized ($0.42 / $18.20)

The stock is trading near its 52-week high of $18.99, up from a 52-week low of $12.69.

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View the full Q4 2025 8-K filing or explore more about Citizens Community Bancorp.