Citizens Community Bancorp Inc (CZWI, Financial) released its 8-K filing on October 28, 2024, reporting earnings per share (EPS) of $0.32 for the third quarter, exceeding the analyst estimate of $0.27. The company also reported revenue of $11.3 million, slightly below the estimated $11.4 million.
Company Overview
Citizens Community Bancorp Inc is a bank holding company that provides traditional community banking services to businesses, agricultural operators, and consumers. The company offers a variety of loan products, including commercial real estate loans, residential mortgages, and consumer loans, and provides deposit products through its branches.
Performance and Challenges
In the third quarter of 2024, Citizens Community Bancorp Inc reported earnings of $3.3 million, a decrease from $3.7 million in the previous quarter but an increase from $2.5 million in the same quarter last year. The company's performance was impacted by a decrease in net interest income and a reduction in negative provision for credit losses. The net interest margin declined to 2.63% from 2.72% in the previous quarter, primarily due to the absence of non-recurring interest income.
Financial Achievements
Despite challenges, Citizens Community Bancorp Inc achieved a tangible book value per share of $14.64, reflecting a 16.1% increase from the previous year. The company's stockholders' equity as a percentage of total assets improved to 10.01%, and tangible common equity as a percent of tangible assets increased to 8.35%.
Key Financial Metrics
The company's total deposits increased by $1.1 million, offsetting a $30.1 million decrease in brokered deposits. Gross loans decreased by $3.9 million, and nonperforming assets rose to $17.1 million, largely due to one agricultural real estate loan relationship. The allowance for credit losses on loans decreased slightly to 1.47% of total loans receivable.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Earnings Per Share | $0.32 | $0.35 | $0.24 |
| Net Interest Income | $11.3 million | $11.6 million | $12.1 million |
| Net Interest Margin | 2.63% | 2.72% | 2.79% |
| Total Deposits | $1.52 billion | $1.52 billion | $1.47 billion |
Analysis and Commentary
The company's strategic focus on balance sheet optimization and share repurchase has positively impacted its tangible book value and equity ratios. However, the increase in nonperforming assets and the decline in net interest income pose challenges. As stated by Stephen Bianchi, Chairman, President, and CEO,
We continued to execute on our strategic objectives during the third quarter that further strengthened franchise value."
Overall, Citizens Community Bancorp Inc's ability to exceed earnings expectations while navigating financial headwinds demonstrates resilience, though the increase in nonperforming loans and reduced net interest income warrant close monitoring by investors.
Explore the complete 8-K earnings release (here) from Citizens Community Bancorp Inc for further details.
