Citizens Community Bancorp, Inc. Reports Second Quarter 2026 Earnings of $0.11 Per Share; Board Approves Quarterly Dividend at $0.105 per Share

Rhea-AI Summary

Citizens Community Bancorp (Nasdaq: CZWI) reported second quarter 2026 net income of $1.1 million, or $0.11 per diluted share, down from $3.8 million ($0.39) in first quarter 2026 and $3.3 million ($0.33) a year earlier, mainly due to higher credit loss provisions tied to three commercial loan relationships.

Pre-provision net revenue rose to $5.56 million, up 3.3% sequentially and 3.1% year over year, as net interest income increased $0.5 million on a 4-basis point net interest margin expansion and loan growth of $24.7 million. Nonperforming assets increased $14.2 million to $32.4 million, and the allowance for credit losses on loans rose to $25.9 million, or 1.87% of total loans and 82% of nonperforming loans. Tangible book value per share grew to $16.55, up 9.2% from June 30, 2025, and tangible common equity to tangible assets was 8.96%. The board approved a quarterly dividend of $0.105 per share, payable August 21, 2026, to shareholders of record on August 7, 2026.

Positive

• PPNR up 3.3% QoQ to $5.56 million in Q2 2026
• PPNR up 20.0% YoY for six months to $10.9 million
• Net interest income increased $0.5 million QoQ to $13.5 million
• Loan portfolio grew $24.7 million (1.8%) in Q2 2026 to $1.383 billion
• Tangible book value per share rose 9.2% YoY to $16.55
• Tangible common equity ratio improved to 8.96% at June 30, 2026
• Liquidity and borrowing capacity totaled $781 million, or 246% of uninsured and uncollateralized deposits
• Efficiency ratio improved to 65% from 66% in both prior periods
• Quarterly dividend of $0.105 per share declared for payment on August 21, 2026

Negative

• EPS declined to $0.11 from $0.39 in Q1 2026 and $0.33 in Q2 2025
• Provision for credit losses rose to $4.33 million from $0.75 million in Q1 2026
• Nonperforming assets increased $14.2 million to $32.4 million during Q2 2026
• Specific loan issues included a $4.2 million owner-occupied CRE loan and two CRE relationships totaling $8 million moving to substandard nonaccrual
• Non-interest income fell $0.5 million QoQ to $2.6 million, mainly from lower loan sale gains
• Total deposits decreased $11.2 million QoQ to $1.554 billion, driven by seasonal public deposit declines
• On-balance sheet liquidity ratio declined to 14.3% of assets from 16.2%

Market Reaction – CZWI

-10.44% $21.10

15m delay

-10.44% Vs previous close

$21.10 Last Price

$20.84 $23.55 Day Range

$227.22M Market Cap

0.7x Rel. Volume

Following this news, CZWI has declined 10.44%, reflecting a significant negative market reaction. Our momentum scanner has triggered 10 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $21.10.

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Market Context

0.68% was the average move across four tagged earnings-and-dividend events. That record frames this ...

Analysis

0.68% was the average move across four tagged earnings-and-dividend events. That record frames this report's earnings decline and credit-cost increase alongside loan growth; net insider selling is a sourced risk to monitor.

Key Figures

Quarterly earnings: $1.1 million Diluted EPS: $0.11 per share Provision for credit losses: $4.33 million +5 more

8 metrics

Quarterly earnings $1.1 million 2Q26, compared with $3.8 million in 1Q26

Diluted EPS $0.11 per share 2Q26, compared with $0.39 in 1Q26 and $0.33 in 2Q25

Provision for credit losses $4.33 million 2Q26, compared with $0.75 million in 1Q26

Net interest margin 4 basis point increase 2Q26 compared with 1Q26

Pre-provision net revenue $5.56 million 2Q26, up 3.3% from 1Q26

Nonperforming assets $32.4 million June 30, 2026, up $14.2 million from March 31, 2026

Allowance for credit losses $25.9 million June 30, 2026, representing 1.87% of total loans

Quarterly dividend $0.105 per share Approved July 23, 2026; payable August 21, 2026

Previous Dividends,earnings Reports

4 past events · Latest: Apr 27 (Positive)

Same Type Pattern 4 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 27	1Q26 earnings report	Positive	+1.1%	Reported $0.39 diluted EPS and approved a $0.105 quarterly dividend
Jan 26	4Q25 earnings report	Positive	-0.8%	Reported higher quarterly earnings and initiated a $0.105 quarterly dividend
Apr 28	1Q25 earnings report	Positive	+3.0%	Reported $0.32 diluted EPS and year-over-year book value growth
Jan 27	4Q24 earnings report	Negative	-0.6%	Reported lower quarterly earnings while increasing the annual dividend

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across four tag-matched earnings and dividend events, three reactions aligned with the event sentiment, while the average move was 0.68%.

Key Terms

pre-provision net revenue, nonaccrual loans, available-for-sale, tangible common equity

4 terms

pre-provision net revenue financial

"Pre-provision net revenue (“PPNR”) increased 3.3% during the quarter"

Pre-provision net revenue is a bank’s income from core operations — interest earned minus interest paid plus fees and other operating income, after operating costs — measured before setting aside funds for potential loan losses. Investors use it to gauge how well a bank’s everyday business generates money independent of one-time loss reserves, like judging a store’s sales and operating profit before accounting for an expected number of returned items.

nonaccrual loans financial

"two CRE loan relationships totaling $8 million moved to substandard nonaccrual"

Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.

available-for-sale financial

"lower unrealized losses on the available-for-sale investment portfolio"

A classification for bonds, stocks or other investments that a company plans to keep but might sell before they reach full term. Think of it like items a shop keeps on a shelf for potential sale: their market value can go up or down while the company holds them, and those unrealized gains or losses are shown separately from operating profit until they are sold. Investors watch this because large swings can change a company’s reported net worth and signal how much flexibility it has to raise cash quickly.

tangible common equity financial

"Tangible common equity (“TCE”) as a percent of tangible assets"

Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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EAU CLAIRE, Wis., July 27, 2026 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of CCFBank N.A. (the “Bank” or “CCFBank”), today reported earnings of $1.1 million and earnings per diluted share of $0.11 for the second quarter ended June 30, 2026, compared to $3.8 million and earnings per diluted share of $0.39 for the first quarter ended March 31, 2026, and $3.3 million and $0.33 earnings per diluted share for the quarter ended June 30, 2025, respectively. For the six months ended June 30, 2026, the Company reported earnings of $4.9 million and earnings per diluted share of $0.50 compared to the prior year period of $6.5 million and earnings per diluted share of $0.65.

The Company’s second quarter 2026 operating results reflected the following changes from the first quarter of 2026: (1) increased provision for credit losses of $3.6 million; (2) lower non-interest income of $0.5 million largely due to lower gains on sale of loans, with these changes partially offset by; (3) an increase in net interest margin of 4 basis points due to lower interest-bearing deposit costs, along with the higher portfolio loan yields, offset by the impact of new nonaccrual loans. This net interest margin increase, along with one additional business day during the current quarter of $0.1 million, and an increase in average interest-earning assets, increased net interest income by $0.5 million; and (4) lower non-interest expense of $0.2 million resulted in an increase in pre-provision net revenue of $0.2 million. In addition, lower income tax expense of $0.7 million was recognized in the quarter.

Book value per share increased to $19.83 at June 30, 2026, compared to $19.82 at March 31, 2026, and increased from $18.36 at June 30, 2025. Tangible book value per share (non-GAAP)¹ was $16.55 at June 30, 2026, compared to $16.52 at March 31, 2026, and increased 9.2% from $15.15 at June 30, 2025. For the second quarter of 2026, the increase in tangible book value was due to quarterly net income, 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 10.55% at June 30, 2026, compared to 10.47% at March 31, 2026. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)¹ was 8.96% at June 30, 2026, compared to 8.88% at March 31, 2026.

“We are disappointed with the impact three loan relationships had on net income, but have undertaken an aggressive posture to mitigate their future earnings influences. Specifically, one loan relationship ceased operations and was downgraded to substandard nonaccrual. This loan relationship had a $3.8 million ACL provision impact including a $1.2 million charge-off, with a specific reserve established equal to the owner occupied real estate loan exposure. In addition, two CRE loan relationships totaling $8 million moved to substandard nonaccrual from pass in the quarter. Dedicated workout resources and processes are in place to resolve substandard and nonperforming loan levels. The underlying strength of our business remained positive with loan growth of $24.7 million, up 1.8% in the linked quarter or 7.2% annualized, and deposits up 5.1% versus the same prior year period. Net interest margin expansion continued, more than offsetting the impact of elevated nonaccruals. Tangible book value increased $0.03 per share after the quarterly dividend payment and reduction in AOCI, and the Company was well capitalized with a TCE ratio of 8.96%,” according to Stephen Bianchi, Chairman, President, and CEO.

June 30, 2026, Highlights:

• Quarterly earnings were $1.1 million, or $0.11 per diluted share for the quarter ended June 30, 2026, a decrease compared to earnings of $3.8 million, or $0.39 per diluted share for the quarter ended March 31, 2026, and a decrease from $3.3 million, or $0.33 per diluted share for the quarter ended June 30, 2025.
• For the six months ended June 30, 2026, earnings were $4.9 million or $0.50 per diluted share compared to $6.5 million or $0.65 per diluted share for the six-month period one year earlier. The decline in earnings for the six-month period primarily relates to increases in the provision for credit losses for the most recent six-month period, mostly due to the second quarter of 2026 increases, modestly offset by increases in pre-provision net revenue.
• Pre-provision net revenue (“PPNR”) increased 3.3% during the quarter ended June 30, 2026, to $5.56 million from $5.38 million for the quarter ended March 31, 2026, and increased 3.1% from $5.40 million over the past year.
• PPNR for the six months ended June 30, 2026, increased 20.0% to $10.9 million from $9.1 million for the six months ended June 30, 2025, largely due to increases in net interest income.
• Net interest income increased $0.5 million to $13.5 million for the quarter ended June 30, 2026, from $13.0 million for the quarter ended March 31, 2026, and increased from $13.3 million for the quarter ended June 30, 2025. The increase in net interest income from the first quarter of 2026 was primarily due to a 4-basis point increase in net interest margin, due to: (1) lower interest-bearing deposit costs; (2) reductions in lower yielding cash and securities; and (3) an increase in the yield on the performing loan portfolio, along with higher average balance of loans, and an additional day in the quarter. The overall yield on the loan portfolio decreased during the second quarter due to the impact of new nonaccrual loans and the repurchase of delinquent government guaranteed loans.
• The provision for credit losses was $4.33 million for the quarter ended June 30, 2026, compared to a provision for credit losses of $0.75 million for the first quarter of 2026. Factors affecting the second quarter provision for credit losses include: (1) a net increase of $3.1 million in specific reserves on nonaccrual loans to $6.3 million at June 30, 2026; and (2) charge-offs of $1.42 million. A reduction in the duration of the loan portfolio more than offset the impact of new loans. The allowance for credit losses on loans increased to $25.9 million or 82% of total nonperforming loans and 1.87% of total loans.
• Non-interest income decreased by $0.5 million in the second quarter ended June 30, 2026, to $2.6 million from $3.1 million in the prior quarter and decreased $0.2 million from $2.8 million in the second quarter of 2025. The decrease in the second quarter of 2026 from the first quarter of 2026 and the second quarter of 2025 was primarily due to lower gains on the sale of loans.
• Non-interest expense decreased $0.2 million to $10.5 million from $10.7 million for the previous quarter and decreased $0.2 million from $10.8 million for the second quarter of 2025. The decrease in non-interest expense compared to the linked quarter was driven primarily by lower compensation costs, as reduced incentive accruals more than offset the annual merit raises included in the last payroll period of the first quarter. Additionally, a one-time $0.1 million reduction in data processing expense was more than offset by the increase in other expenses, primarily related to the impact of higher nonperforming assets.
• The effective tax rate was 10.9% for the quarter ended June 30, 2026, compared to 18.9% for the quarter ended March 31, 2026, and 19.2% for the quarter ended June 30, 2025. The decrease in the effective tax rate in the second quarter of 2026 from the first quarter of 2026 was due to the reduction in the tax rate for the full year, based on lower income, recognized in the second quarter on a lower tax rate of 4.6% and a reduction in the tax rate of 3.4% from the previous quarter due to the increased benefit of securities maturities.
• Loans receivable increased $24.7 million during the second quarter ended June 30, 2026, to $1.383 billion compared to the prior quarter end. The increase in loans reflected new loan originations with some completed construction loans moving to CRE and multi-family due to completion of construction.
• Nonperforming assets increased $14.2 million to $32.4 million at June 30, 2026, compared to $18.2 million at March 31, 2026. The increase was largely due to: (1) the addition of a $4.2 million owner-occupied commercial real estate loan, secured by real estate and equipment, with a specific reserve established equal to the owner occupied real estate loan exposure; (2) a local loan relationship totaling $5.7 million secured by two campgrounds; (3) a multi-use multi-family/retail loan of $2.7 million that had performed for 10 years; and (4) a net increase in repurchased government fully guaranteed loans totaling $1.4 million. The non-guaranteed portion of the loans originated with partial government guarantees decreased $0.3 million to $1.2 million at June 30, 2026. There are specific reserves of approximately 25% on the non-guaranteed government loans.
• Special mention loans decreased $6.0 million to $19.9 million at June 30, 2026, from March 31, 2026, largely due to the migration of a loan relationship to substandard.
• Substandard loans increased $12.7 million to $35.2 million at June 30, 2026, from March 31, 2026, primarily due to the increase in nonperforming assets discussed above.
• Total deposits decreased $11.2 million during the quarter ended June 30, 2026, to $1.554 billion, and increased $76.0 million from the quarter ended June 30, 2025. The decrease in the most recent quarter was largely due to seasonal decreases in public deposits of $15.8 million partially offset by seasonal increases of $8.5 million in commercial deposits.
• The efficiency ratio was 65% for the quarter ended June 30, 2026, compared to 66% for the quarter ended March 31, 2026, and 66% for the quarter ended June 30, 2025.
• On July 23, 2026, the Board of Directors approved a quarterly dividend of $0.105 per share. The dividend will be payable on August 21, 2026, to shareholders of record on August 7, 2026.

Balance Sheet and Asset Quality

Total assets decreased by $8.7 million during the quarter to $1.814 billion at June 30, 2026.

Cash and cash equivalents decreased $27.4 million due to loan growth and seasonal reductions in deposits.

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 14.3% of total assets at June 30, 2026, compared to 16.2% of total assets at March 31, 2026. On-balance sheet liquidity, collateralized new borrowing capacity, and uncommitted federal funds borrowing availability was $781 million, or 246% of uninsured and uncollateralized deposits at June 30, 2026, and $799 million, or 248% at March 31, 2026.

AFS securities decreased $2.5 million during the quarter ended June 30, 2026, to $128.4 million from $130.9 million at March 31, 2026. The decrease was largely related to principal repayments and maturities of $4.6 million and corporate debt security redemptions of $1.8 million, partially offset by purchases of new corporate debt securities of $3.6 million and a decrease in the unrealized loss on AFS securities of $0.3 million.

HTM securities decreased $1.6 million to $77.4 million during the quarter ended June 30, 2026, from $79.0 million at March 31, 2026, due to principal repayments.

Loans receivable increased $24.7 million, or 1.8%, during the second quarter ended June 30, 2026, to $1.383 billion compared to the prior quarter end as loan growth was realized in commercial real estate and C&I loans.

The office loan portfolio consisted of seventy loans totaling $36 million at June 30, 2026, compared to seventy loans totaling $31 million at March 31, 2026. Criticized loans in the office loan portfolio for the quarter ended June 30, 2026, totaled $0.3 million, compared to $0.2 million at March 31, 2026, and there have been no charge-offs in office loans 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.

The allowance for credit losses on loans increased by $2.9 million to $25.9 million at June 30, 2026, representing 82% of total nonperforming loans and 1.87% of total loans compared to 1.69% of total loans receivable at March 31, 2026. The provision for credit losses was $4.33 million for the quarter ended June 30, 2026, compared to a provision for credit losses of $0.75 million for the quarter ended March 31, 2026, and a provision for credit losses of $1.35 million for the quarter ended June 30, 2025.

Allowance for Credit Losses (“ACL”) - Loans Percentage

(in thousands, except ratios)

		June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025
Loans, end of period		$	1,382,975			$	1,358,252			$	1,340,325			$	1,323,010
ACL - Loans		$	25,899			$	22,966			$	22,401			$	22,182
ACL - Loans as a percentage of loans, end of period			1.87	%			1.69	%			1.67	%			1.68	%

In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.457 million at June 30, 2026, $0.482 million at March 31, 2026, and $0.627 million at June 30, 2025, classified in other liabilities on the consolidated balance sheets.

Allowance for Credit Losses - Unfunded Commitments
(in thousands)

		June 30, 2026 and Three Months Ended				June 30, 2025 and Three Months Ended			June 30, 2026 and Six Months Ended				June 30, 2025 and Six Months Ended
ACL - Unfunded commitments, beginning of period		$	482			$	435		$	490			$	334
Additions (reversals) to ACL - Unfunded commitments via provision for credit losses charged to operations			(25	)			192			(33	)			293
ACL - Unfunded commitments, end of period		$	457			$	627		$	457			$	627

Nonperforming assets increased $14.2 million to $32.4 million at June 30, 2026, compared to $18.2 million at March 31, 2026. The increase was largely due to the addition of a $4.2 million owner-occupied commercial real estate loan secured by real estate and equipment, with a specific reserve established equal to the owner occupied real estate loan exposure, a local loan relationship totaling $5.7 million secured by two campgrounds, a multi-use multi-family/retail loan of $2.7 million that had performed for 10 years and a net increase in repurchased government guaranteed loans totaling $1.4 million. The non-guaranteed portion of the loans originated with partial government guarantees decreased $0.3 million at June 30, 2026. There are specific reserves of approximately 25% on the non-guaranteed government loans.

Special mention loans decreased $6.0 million to $19.9 million at June 30, 2026, from $25.9 million at March 31, 2026.

Substandard loans increased $12.7 million to $35.2 million at June 30, 2026, from $22.5 million at March 31, 2026, primarily due to an increase in nonaccrual loan balances.

		(in thousands)
		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Special mention loan balances		$	19,863		$	25,894		$	24,473		$	12,920		$	23,201
Substandard loan balances			35,216			22,498			21,388			21,310			17,922
Criticized loans, end of period		$	55,079		$	48,392		$	45,861		$	34,230		$	41,123

Deposit Portfolio Composition
(in thousands)

		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Consumer deposits		$	884,335		$	887,998		$	889,109		$	855,226		$	856,467
Commercial deposits			442,443			433,923			422,605			423,662			406,608
Public deposits			201,599			217,400			187,777			175,689			190,933
Wholesale deposits			26,040			26,301			24,608			25,977			24,408
Total deposits		$	1,554,417		$	1,565,622		$	1,524,099		$	1,480,554		$	1,478,416

At June 30, 2026, the deposit portfolio composition by percentages changed very modestly from the prior quarter at 56.9% consumer, 28.4% commercial, 13.0% public, and 1.7% wholesale deposits.

Deposit Composition By Type
(in thousands)

		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Non-interest-bearing demand deposits		$	274,822		$	271,396		$	264,394		$	262,535		$	260,248
Interest-bearing demand deposits			384,101			392,684			367,958			360,475			366,481
Savings accounts			145,390			152,487			151,525			157,317			159,340
Money market accounts			408,305			404,991			392,900			354,290			357,518
Certificate accounts			341,799			344,064			347,322			345,937			334,829
Total deposits		$	1,554,417		$	1,565,622		$	1,524,099		$	1,480,554		$	1,478,416

Uninsured and uncollateralized deposits were $312.5 million, or 20% of total deposits at June 30, 2026, and $322.6 million, or 20% of total deposits at March 31, 2026. Uninsured deposits alone at June 30, 2026, were $479.4 million, or 31% of total deposits and $499.6 million, or 32% of total deposits at March 31, 2026.

Federal Home Loan Bank advances remained at $0 at June 30, 2026, March 31, 2026, and June 30, 2025.

Review of Operations

Net interest income increased by $0.5 million to $13.5 million for the current quarter ended June 30, 2026, from $13.0 million for the quarter ended March 31, 2026, and increased from $13.3 million for the quarter ended June 30, 2025. Net interest income for the second quarter of 2026 increased due to: (1) an increase in net interest margin of 4 basis points due to a reduction in interest-bearing deposit costs; (2) a 1.4% increase in average interest earning assets; and (3) $0.1 million of increased net interest income due to one additional business day during the quarter. Overall loan yields decreased 5 basis points during the quarter due to the increase in nonaccrual loans and the repurchase of delinquent government guaranteed loans, partially offset by an increase in performing portfolio loan yields. Lower deposit costs resulted in a net interest margin increase to 3.22% for the quarter ended June 30, 2026, compared to 3.18% for the quarter ended March 31, 2026, and an increase of 22 basis points from the quarter ended June 30, 2025, after excluding 27 basis points or $1.1 million of income recognized on loan payoffs.

Net Interest Income and Net Interest Margin Analysis
(in thousands, except yields and rates)

		Three Months Ended
		June 30, 2026							March 31, 2026							December 31, 2025							September 30, 2025							June 30, 2025
		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		$	13,504			3.22	%		$	13,010			3.18	%		$	13,065			3.15	%		$	13,214			3.20	%		$	13,311			3.27	%
Less scheduled accretion for PCD loans			(5	)		—	%			(4	)		—	%			(5	)		—	%			(17	)		—	%			(23	)		(0.01)%
Less paid loan accretion for PCD loans			(26	)		(0.01)%				10			—	%			—			—	%			(133	)		(0.03)%				(416	)		(0.10)%
Less scheduled accretion interest			—			—	%			—			—	%			—			—	%			(30	)		(0.01)%				(33	)		(0.01)%
Without loan purchase accretion		$	13,473			3.21	%		$	13,016			3.18	%		$	13,060			3.15	%		$	13,034			3.16	%		$	12,839			3.15	%

The table below shows the impact of loans, securities, and certificates contractual fixed rate maturing and repricing.

Portfolio Contractual Fixed Rate Repricing by Future Quarters:
(in millions, except yields)

       

		Q3 2026				Q4 2026				Q1 2027				Q2 2027				Q3 2027				Q4 2027
Maturing or Repricing Loans:
Contractual balance		$	93			$	96			$	53			$	67			$	43			$	68
Contractual interest rate			3.82	%			3.92	%			4.13	%			4.60	%			4.99	%			5.33	%
Maturing or Repricing Securities:
Contractual balance		$	7			$	3			$	3			$	—			$	4			$	—
Contractual interest rate			3.44	%			3.35	%			3.31	%			—	%			5.93	%			—	%
Maturing Certificate Accounts:
Contractual balance		$	134			$	98			$	66			$	27			$	12			$	—
Contractual interest rate			3.77	%			3.70	%			3.64	%			3.54	%			3.57	%			—	%

Non-interest income decreased by $0.5 million in the second quarter ended June 30, 2026, to $2.6 million from $3.1 million in the prior quarter and decreased $0.2 million from $2.8 million in the second quarter of 2025. The decrease in the second quarter of 2026 from the first quarter of 2026 and the second quarter of 2025 was primarily due to lower gains on the sale of loans.

Non-interest expense decreased $0.2 million to $10.5 million from $10.7 million for the previous quarter and decreased $0.2 million from $10.8 million for the second quarter of 2025. The decrease in non-interest expense compared to the linked quarter was driven primarily by lower compensation costs, as reduced incentive accruals more than offset the annual merit raises included in the last payroll period of the first quarter. Additionally, a one-time $0.1 million reduction in data processing expense was more than offset by the increase in other expenses, primarily related to the impact of higher nonperforming assets.

The effective tax rate was 10.9% for the quarter ended June 30, 2026, compared to 18.9% for the quarter ended March 31, 2026, and 19.2% for the quarter ended June 30, 2025. The decrease in the effective tax rate in the second quarter of 2026 from the first quarter of 2026 was due to the reduction in the tax rate for the full year, based on lower income, recognized in the second quarter on a lower tax rate of 4.6% and a reduction in the tax rate of 3.4% from the previous quarter due to the increased benefit of securities maturities.

Certain items previously reported may be reclassified for consistency with the current presentation. These financial results are preliminary until the Form 10-Q is filed in August 2026.

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 21 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. Similarly, statements that describe the Company’s future plans, objectives or goals are also forward-looking statements. 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; cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which the Company and the Bank operate; 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 from others in the financial services industry, including non-depository institutions; disintermediation risk (including the use of emerging financial technologies such as cryptocurrencies); 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 ability 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 acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; volatility of our stock price (including possible removal from the Russell 3000^® Index and related indexes); 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, 2025, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2026, and the Company’s subsequent filings with the SEC. The forward-looking statements made herein are only made as of the date of this release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent 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 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.

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 share data)
		June 30, 2026 (unaudited)				March 31, 2026 (unaudited)				December 31, 2025 (audited)				June 30, 2025 (unaudited)
Assets
Cash and cash equivalents		$	121,762			$	149,202			$	118,853			$	67,454
Securities available-for-sale (“AFS”)			128,435				130,876				134,103				134,773
Securities held-to-maturity (“HTM”)			77,415				79,014				80,210				83,029
Equity investments			6,287				5,978				5,840				5,741
Other investments			12,485				12,498				12,506				12,379
Loans receivable			1,382,975				1,358,252				1,340,325				1,345,620
Allowance for credit losses			(25,899	)			(22,966	)			(22,401	)			(21,347	)
Loans receivable, net			1,357,076				1,335,286				1,317,924				1,324,273
Loans held for sale			941				654				4,954				6,063
Mortgage servicing rights, net			3,453				3,484				3,494				3,548
Office properties and equipment, net			17,441				16,453				16,357				16,357
Accrued interest receivable			6,180				5,827				6,126				6,123
Intangible assets			169				282				395				621
Goodwill			31,498				31,498				31,498				31,498
Foreclosed and repossessed assets, net			850				857				857				895
Bank owned life insurance (“BOLI”)			27,342				27,128				26,908				26,494
Other assets			22,975				23,937				21,730				15,916
TOTAL ASSETS		$	1,814,309			$	1,822,974			$	1,781,755			$	1,735,164
Liabilities and Stockholders’ Equity
Liabilities:
Deposits		$	1,554,417			$	1,565,622			$	1,524,099			$	1,478,416
Federal Home Loan Bank (“FHLB”) advances			—				—				—				—
Other borrowings			51,885				51,844				51,804				61,722
Other liabilities			16,659				14,634				17,913				11,564
Total liabilities			1,622,961				1,632,100				1,593,816				1,551,702
Stockholders’ Equity:
Common stock— $0.01 par value, authorized 30,000,000; 9,650,231, 9,628,612, 9,617,245, and 9,991,997 shares issued and outstanding, respectively			97				96				96				100
Additional paid-in capital			110,454				110,277				110,315				114,537
Retained earnings			92,820				92,739				89,995				83,709
Accumulated other comprehensive loss			(12,023	)			(12,238	)			(12,467	)			(14,884	)
Total stockholders’ equity			191,348				190,874				187,939				183,462
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	1,814,309			$	1,822,974			$	1,781,755			$	1,735,164

                

CITIZENS COMMUNITY BANCORP, INC. Consolidated Statements of Operations (in thousands, except per share data)
		Three Months Ended											Six Months Ended
		June 30, 2026 (unaudited)				March 31, 2026 (unaudited)				June 30, 2025 (unaudited)			June 30, 2026 (unaudited)				June 30, 2025 (unaudited)
Interest and dividend income:
Interest and fees on loans		$	19,322			$	18,769			$	20,105		$	38,091			$	38,707
Interest on cash and investments			2,712				2,747				2,397			5,459				4,898
Total interest and dividend income			22,034				21,516				22,502			43,550				43,605
Interest expense:
Interest on deposits			7,819				7,791				8,287			15,610				16,884
Interest on FHLB borrowed funds			1				—				1			1				12
Interest on other borrowed funds			710				715				903			1,425				1,804
Total interest expense			8,530				8,506				9,191			17,036				18,700
Net interest income before provision for credit losses			13,504				13,010				13,311			26,514				24,905
Provision for credit losses			4,325				750				1,350			5,075				1,100
Net interest income after provision for credit losses			9,179				12,260				11,961			21,439				23,805
Non-interest income:
Service charges on deposit accounts			460				460				432			920				855
Interchange income			556				501				564			1,057				1,082
Loan servicing income			593				661				565			1,254				1,124
Gain on sale of loans			442				1,021				699			1,463				1,419
Loan fees and service charges			129				138				237			267				357
Net gains (losses) on equity securities			160				(59	)			99			101				109
Other			267				377				240			644				483
Total non-interest income			2,607				3,099				2,836			5,706				5,429
Non-interest expense:
Compensation and related benefits			5,712				6,066				6,008			11,778				11,605
Occupancy			1,240				1,278				1,196			2,518				2,483
Data processing			1,302				1,417				1,753			2,719				3,472
Amortization of intangible assets			113				113				179			226				358
Mortgage servicing rights expense, net			173				161				148			334				288
Advertising, marketing and public relations			207				226				194			433				361
FDIC premium assessment			200				231				191			431				389
Professional services			514				605				432			1,119				940
(Gains) losses on repossessed assets, net			(12	)			—				—			(12	)			4
Other			1,100				630				649			1,730				1,313
Total non-interest expense			10,549				10,727				10,750			21,276				21,213
Income before provision for income taxes			1,237				4,632				4,047			5,869				8,021
Provision for income taxes			135				877				777			1,012				1,554
Net income attributable to common stockholders		$	1,102			$	3,755			$	3,270		$	4,857			$	6,467
Per share information:
Basic earnings		$	0.11			$	0.39			$	0.33		$	0.50			$	0.65
Diluted earnings		$	0.11			$	0.39			$	0.33		$	0.50			$	0.65
Cash dividends paid		$	0.105			$	0.105			$	—		$	0.21			$	0.36
Book value per share at end of period		$	19.83			$	19.82			$	18.36		$	19.83			$	18.36
Tangible book value per share at end of period (non-GAAP)		$	16.55			$	16.52			$	15.15		$	16.55			$	15.15

Loan Composition

(in thousands)

		June 30, 2026				March 31, 2026				December 31, 2025				June 30, 2025
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate		$	731,028			$	697,785			$	683,108			$	693,382
Agricultural real estate			71,382				69,706				69,136				69,237
Multi-family real estate			253,244				241,221				245,688				238,953
Construction and land development			56,090				83,213				75,767				70,477
C&I/Agricultural operating:
Commercial and industrial			117,215				114,379				105,907				109,202
Agricultural operating			29,427				29,032				33,375				31,876
Residential mortgage:
Residential mortgage			117,083				117,586				122,025				125,818
Purchased HELOC loans			1,405				1,551				1,739				2,368
Consumer installment:
Originated indirect paper			1,559				1,902				2,224				2,959
Other consumer			7,267				4,633				3,997				4,275
Gross loans		$	1,385,700			$	1,361,008			$	1,342,966			$	1,348,547
Unearned net deferred fees and costs and loans in process			(2,638	)			(2,638	)			(2,528	)			(2,629	)
Unamortized discount on acquired loans			(87	)			(118	)			(113	)			(298	)
Total loans receivable		$	1,382,975			$	1,358,252			$	1,340,325			$	1,345,620

Nonperforming Assets
Loan balances at amortized cost

(in thousands, except ratios)

		June 30, 2026				March 31, 2026				December 31, 2025				June 30, 2025
Nonperforming Assets:
Nonaccrual loans
Commercial real estate		$	18,676			$	5,899			$	4,652			$	5,013
Agricultural real estate			2,254				461				464				5,447
Multi-family real estate			8,970				8,970				8,970				—
Construction and land development			—				—				—				—
Commercial and industrial (“C&I”)			1,221				1,517				1,282				600
Agricultural operating			—				—				—				—
Residential mortgage			440				456				485				549
Consumer installment			—				—				—				—
Total nonaccrual loans		$	31,561			$	17,303			$	15,853			$	11,609
Accruing loans past due 90 days or more			18				39				1				521
Total nonperforming loans (“NPLs”) at amortized cost			31,579				17,342				15,854				12,130
Foreclosed and repossessed assets, net			850				857				857				895
Total nonperforming assets (“NPAs”)		$	32,429			$	18,199			$	16,711			$	13,025
Loans, end of period		$	1,382,975			$	1,358,252			$	1,340,325			$	1,345,620
Total assets, end of period		$	1,814,309			$	1,822,974			$	1,781,755			$	1,735,164
Ratios:
NPLs to total loans			2.28	%			1.28	%			1.18	%			0.90	%
NPAs to total assets			1.79	%			1.00	%			0.94	%			0.75	%

Average Balances, Interest Yields and Rates

(in thousands, except yields and rates)

		Three Months Ended June 30, 2026									Three Months Ended March 31, 2026									Three Months Ended June 30, 2025
		Average Balance			Interest Income/ Expense			Average Yield/ Rate			Average Balance			Interest Income/ Expense			Average Yield/ Rate			Average Balance			Interest Income/ Expense			Average Yield/ Rate
Average interest earning assets:
Cash and cash equivalents		$	98,575		$	908		3.69	%		$	105,651		$	961		3.69	%		$	44,377		$	493		4.46	%
Loans receivable			1,363,849			19,322		5.68	%			1,328,448			18,769		5.73	%			1,353,332			20,105		5.96	%
Investment securities			209,228			1,650		3.16	%			214,412			1,630		3.08	%			223,318			1,735		3.12	%
Other investments			12,491			154		4.95	%			12,503			156		5.06	%			12,400			169		5.47	%
Total interest earning assets		$	1,684,143		$	22,034		5.25	%		$	1,661,014		$	21,516		5.25	%		$	1,633,427		$	22,502		5.53	%
Average interest-bearing liabilities:
Savings accounts		$	148,055		$	276		0.75	%		$	152,304		$	309		0.82	%		$	160,849		$	335		0.84	%
Demand deposits			389,098			1,862		1.92	%			376,998			1,768		1.90	%			372,723			1,986		2.14	%
Money market accounts			401,145			2,534		2.53	%			393,958			2,508		2.58	%			361,420			2,510		2.79	%
CD’s			342,800			3,147		3.68	%			344,493			3,206		3.77	%			342,959			3,456		4.04	%
Total deposits		$	1,281,098		$	7,819		2.45	%		$	1,267,753		$	7,791		2.49	%		$	1,237,951		$	8,287		2.69	%
FHLB advances and other borrowings			51,920			711		5.49	%			51,824			715		5.60	%			61,781			904		5.87	%
Total interest-bearing liabilities		$	1,333,018		$	8,530		2.57	%		$	1,319,577		$	8,506		2.61	%		$	1,299,732		$	9,191		2.84	%
Net interest income					$	13,504								$	13,010								$	13,311
Interest rate spread								2.68	%								2.64	%								2.69	%
Net interest margin								3.22	%								3.18	%								3.27	%
Average interest earning assets to average interest-bearing liabilities								1.26									1.26									1.26

		Six Months Ended June 30, 2026									Six Months Ended June 30, 2025
		Average Balance			Interest Income/ Expense			Average Yield/ Rate			Average Balance			Interest Income/ Expense			Average Yield/ Rate
Average interest earning assets:
Cash and cash equivalents		$	102,093		$	1,870		3.69	%		$	46,097		$	1,017		4.45	%
Loans receivable			1,346,246			38,091		5.71	%			1,358,314			38,707		5.75	%
Investment securities			211,806			3,279		3.12	%			225,902			3,544		3.16	%
Other investments			12,497			310		5.00	%			12,448			337		5.46	%
Total interest earning assets		$	1,672,642		$	43,550		5.25	%		$	1,642,761		$	43,605		5.35	%
Average interest-bearing liabilities:
Savings accounts		$	150,168		$	585		0.79	%		$	163,908		$	742		0.91	%
Demand deposits			383,082			3,630		1.91	%			377,512			4,018		2.15	%
Money market accounts			397,571			5,042		2.56	%			363,463			5,046		2.80	%
CD’s			343,642			6,353		3.73	%			343,353			7,078		4.16	%
Total deposits		$	1,274,463		$	15,610		2.47	%		$	1,248,236		$	16,884		2.73	%
FHLB advances and other borrowings			51,872			1,426		5.54	%			63,200			1,816		5.79	%
Total interest-bearing liabilities		$	1,326,335		$	17,036		2.59	%		$	1,311,436		$	18,700		2.88	%
Net interest income					$	26,514								$	24,905
Interest rate spread								2.66	%								2.47	%
Net interest margin								3.20	%								3.06	%
Average interest earning assets to average interest bearing liabilities								1.26									1.25

Wholesale Deposits
(in thousands)

		Quarter Ended
		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Brokered money market accounts			5,229			5,495			5,168			5,131			5,092
Third party originated reciprocal deposits			20,811			20,806			19,440			20,846			19,316
Total wholesale deposits		$	26,040		$	26,301		$	24,608		$	25,977		$	24,408

Key Financial Metric Ratios:

		Three Months Ended									Six Months Ended
		June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025
Ratios based on net income:
Return on average assets (annualized)		0.25	%		0.85	%		0.75	%		0.55	%		0.74	%
Return on average equity (annualized)		2.32	%		8.04	%		7.23	%		5.15	%		7.25	%
Return on average tangible common equity1 (annualized)		3.03	%		9.90	%		9.18	%		6.43	%		9.23	%
Efficiency ratio		65	%		66	%		66	%		66	%		69	%
Net interest margin with loan purchase accretion		3.22	%		3.18	%		3.27	%		3.20	%		3.06	%
Net interest margin without loan purchase accretion		3.21	%		3.18	%		3.15	%		3.19	%		2.99	%

Reconciliation of Return on Average Assets

(in thousands, except ratios)

		Three Months Ended												Six Months Ended
		June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
GAAP earnings after income taxes		$	1,102			$	3,755			$	3,270			$	4,857			$	6,467
Average assets		$	1,803,346			$	1,786,218			$	1,745,897			$	1,790,755			$	1,750,912
Return on average assets (annualized)			0.25	%			0.85	%			0.75	%			0.55	%			0.74	%

Reconciliation of Return on Average Equity

(in thousands, except ratios)

		Three Months Ended												Six Months Ended
		June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
GAAP earnings after income taxes		$	1,102			$	3,755			$	3,270			$	4,857			$	6,467
Average equity		$	190,897			$	189,383			$	181,370			$	190,035			$	179,901
Return on average equity (annualized)			2.32	%			8.04	%			7.23	%			5.15	%			7.25	%

Reconciliation of Return on Average Tangible Common Equity (non-GAAP)

(in thousands, except ratios)

		Three Months Ended												Six Months Ended
		June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Total stockholders’ equity		$	191,348			$	190,874			$	183,462			$	191,348			$	183,462
Less: Goodwill			(31,498	)			(31,498	)			(31,498	)			(31,498	)			(31,498	)
Less: Intangible assets			(169	)			(282	)			(621	)			(169	)			(621	)
Tangible common equity (non-GAAP)		$	159,681			$	159,094			$	151,343			$	159,681			$	151,343
Average tangible common equity (non-GAAP)		$	159,174			$	157,546			$	149,161			$	158,255			$	147,603
GAAP earnings after income taxes			1,102				3,755				3,270				4,857				6,467
Amortization of intangible assets, net of tax			101				92				145				187				289
Tangible net income		$	1,203			$	3,847			$	3,415			$	5,044			$	6,756
Return on average tangible common equity (annualized)			3.03	%			9.90	%			9.18	%			6.43	%			9.23	%

Reconciliation of Efficiency Ratio

(in thousands, except ratios)

		Three Months Ended												Six Months Ended
		June 30, 2026				March 31, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Non-interest expense (GAAP)		$	10,549			$	10,727			$	10,750			$	21,276			$	21,213
Less amortization of intangibles			(113	)			(113	)			(179	)			(226	)			(358	)
Efficiency ratio numerator (GAAP)		$	10,436			$	10,614			$	10,571			$	21,050			$	20,855
Non-interest income		$	2,607			$	3,099			$	2,836			$	5,706			$	5,429
Add back net losses on debt and equity securities			—				(59	)			—				—				—
Subtract net gains on debt and equity securities			160				—				99				101				109
Net interest income			13,504				13,010				13,311				26,514				24,905
Efficiency ratio denominator (GAAP)		$	15,951			$	16,168			$	16,048			$	32,119			$	30,225
Efficiency ratio (GAAP)			65	%			66	%			66	%			66	%			69	%

Pre-Provision Net Revenue (PPNR)
(in thousands, except yields and rates)

		June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Pre-tax income		$	1,237		$	4,632		$	4,885		$	4,535		$	4,047
Add back provision for credit losses			4,325			750			200			650			1,350
Subtract provision reversal for credit losses			—			—			—			—			—
Pre-provision net revenue		$	5,562		$	5,382		$	5,085		$	5,185		$	5,397

Reconciliation of Tangible Book Value Per Share (non-GAAP)

(in thousands, except per share data)

Tangible book value per share at end of period		June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
Total stockholders’ equity		$	191,348			$	190,874			$	187,939			$	186,815			$	183,462
Less: Goodwill			(31,498	)			(31,498	)			(31,498	)			(31,498	)			(31,498	)
Less: Intangible assets			(169	)			(282	)			(395	)			(508	)			(621	)
Tangible common equity (non-GAAP)		$	159,681			$	159,094			$	156,046			$	154,809			$	151,343
Ending common shares outstanding			9,650,231				9,628,612				9,617,245				9,856,745				9,991,997
Book value per share		$	19.83			$	19.82			$	19.54			$	18.95			$	18.36
Tangible book value per share (non-GAAP)		$	16.55			$	16.52			$	16.23			$	15.71			$	15.15

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		June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
Total stockholders’ equity		$	191,348			$	190,874			$	187,939			$	186,815			$	183,462
Less: Goodwill			(31,498	)			(31,498	)			(31,498	)			(31,498	)			(31,498	)
Less: Intangible assets			(169	)			(282	)			(395	)			(508	)			(621	)
Tangible common equity (non-GAAP)		$	159,681			$	159,094			$	156,046			$	154,809			$	151,343
Total assets			1,814,309			$	1,822,974			$	1,781,755			$	1,726,987			$	1,735,164
Less: Goodwill			(31,498	)			(31,498	)			(31,498	)			(31,498	)			(31,498	)
Less: Intangible assets			(169	)			(282	)			(395	)			(508	)			(621	)
Tangible assets (non-GAAP)		$	1,782,642			$	1,791,194			$	1,749,862			$	1,694,981			$	1,703,045
Total stockholders’ equity to total assets ratio			10.55	%			10.47	%			10.55	%			10.82	%			10.57	%
Tangible common equity as a percent of tangible assets (non-GAAP)			8.96	%			8.88	%			8.92	%			9.13	%			8.89	%

¹Tangible 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 enhance investors’ ability to understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial tables “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 (non-GAAP)”.

FAQ

How did Citizens Community Bancorp (CZWI) perform in Q2 2026 earnings?

Citizens Community Bancorp reported Q2 2026 net income of $1.1 million, or $0.11 per diluted share. According to the company, this was down from $3.8 million ($0.39) in Q1 2026 and $3.3 million ($0.33) in Q2 2025, mainly due to higher credit loss provisions.

Why did CZWI’s net income and EPS decline in the second quarter of 2026?

Net income and EPS declined primarily because the provision for credit losses increased to $4.33 million. According to Citizens Community Bancorp, this was driven by higher specific reserves and $1.42 million in charge-offs related to several commercial loan relationships moving to substandard nonaccrual status.

What dividend did Citizens Community Bancorp (NASDAQ: CZWI) declare for Q2 2026?

The board approved a quarterly dividend of $0.105 per share for Q2 2026. According to the company, the dividend is payable on August 21, 2026, to shareholders of record on August 7, 2026, continuing its regular cash dividend program.

How did asset quality and nonperforming assets change for CZWI in Q2 2026?

Nonperforming assets increased to $32.4 million, up $14.2 million from March 31, 2026. According to Citizens Community Bancorp, the rise reflected several commercial real estate and campground loan relationships moving to nonaccrual, while the allowance for credit losses on loans increased to 1.87% of total loans.

What happened to Citizens Community Bancorp’s net interest margin and PPNR in Q2 2026?

Net interest margin expanded by 4 basis points in Q2 2026, helping lift PPNR to $5.56 million. According to the company, this improvement came from lower interest-bearing deposit costs, better loan yields, higher average loans, and one additional business day in the quarter.

How did CZWI’s loan and deposit balances change in the second quarter of 2026?

Loans receivable grew by $24.7 million to $1.383 billion, reflecting commercial real estate and C&I growth. According to Citizens Community Bancorp, total deposits fell $11.2 million sequentially to $1.554 billion, mainly from seasonal declines in public deposits, but were up $76.0 million year over year.

What is Citizens Community Bancorp’s capital and tangible book value position as of June 30, 2026?

Tangible book value per share reached $16.55, up 9.2% year over year, and book value was $19.83. According to the company, the tangible common equity to tangible assets ratio was 8.96%, and it remained well capitalized while continuing to pay quarterly dividends.