EX-99.1 2 exhibit991earningsrelczwi2.htm EX-99.1
EXHIBIT 99.1
Citizens Community Bancorp, Inc. Reports Fourth Quarter 2024 Earnings of $0.27 Per Share and
Twelve Month 2024 Earnings of $1.34 Per Share;
Board of Directors Increases Annual Dividend by 12.5% to $0.36 Per Share
EAU CLAIRE, WI, January 27, 2025 - Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $2.7 million and earnings per diluted share of $0.27 for the fourth quarter ended December 31, 2024, compared to $3.3 million and earnings per diluted share of $0.32 for the quarter ended September 30, 2024, and $3.7 million and $0.35 earnings per diluted share for the quarter ended December 31, 2023, respectively.
The Company’s fourth quarter 2024 operating results reflected the following changes from the third quarter of 2024: (1) increase in net interest income of $0.4 million with net interest margin increased by 16 basis points; (2) a $0.05 million increase in negative provision for credit losses to $0.45 million in the fourth quarter; (3) lower non-interest income of $0.9 million primarily due to $0.5 million lower gain on sale of loans and $0.2 million higher net losses on sale of equity securities in the fourth quarter of 2024; and (4) higher non-interest expense primarily due to higher REO expenses of $0.2 million and higher professional fees of $0.2 million.
Book value per share improved to $17.94 at December 31, 2024, compared to $17.88 at September 30, 2024, and $16.60 at December 31, 2023. Tangible book value per share (non-GAAP)1 was $14.69 at December 31, 2024, compared to $14.64 at September 30, 2024, and a 9.5% increase from $13.42 at December 31, 2023. For the fourth quarter of 2024, tangible book value was positively influenced by net income and intangible amortization which was mostly offset by the impact of higher long-term interest rates which increased the net unrealized loss on the available for sale securities portfolio. Stockholders’ equity as a percentage of total assets was 10.24% at December 31, 2024, compared to 10.01% at September 30, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 increased to 8.54% at December 31, 2024, compared to 8.35% at September 30, 2024, largely due to the impact of asset shrinkage.
“As we closed 2024, I am pleased with the execution on our strategic objectives, continuing to strengthen franchise value. The quarter reflected our balance sheet optimization efforts, which increased the net interest margin 6%, and increased the tangible common equity ratio for the continued repurchase of shares at prices that were accretive to earnings per share and tangible book value. The TCE ratio increased to 8.54%, from 8.35% in the prior quarter which provides flexibility to grow the loan portfolio and potentially repurchase shares in 2025. Deposits, net of the decrease in wholesale deposits, increased $27 million. Loans decreased $56 million during the quarter, primarily in non-strategic relationships, but we forecast modest loan growth of one to three percent in 2025. Credit metrics improved and we continue to maintain a healthy reserve for credit losses to total loans at 1.50%,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.
1

December 31, 2024, Highlights:
•Quarterly earnings were $2.7 million, or $0.27 per diluted share for the quarter ended December 31, 2024, a decrease compared to earnings of $3.3 million, or $0.32 per diluted share for the quarter ended September 30, 2024, and $3.7 million, or $0.35 per diluted share for the quarter ended December 31, 2023.
•Net interest income increased $0.4 million to $11.7 million for the current quarter ended December 31, 2024, from $11.3 million for the quarter ended September 30, 2024, and flat with $11.7 million for the quarter ended December 31, 2023. The increase in net interest income from the third quarter of 2024 was primarily due to an increase in net interest margin of 16 basis points.
•The net interest margin increased to 2.79%, primarily due to lower deposit costs, for the quarter ended December 31, 2024, compared to 2.63% for the previous quarter, and 2.69% for the quarter ended December 31, 2023. The net interest margin increase in the fourth quarter of 2024, was also favorably impacted by accelerated deferred fee accretion on loan payoffs of 3 basis points.
•Negative provision for credit losses of $0.45 million, $0.40 million, and $0.65 million were recorded during the quarters ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The fourth quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.324 million and a $0.126 million decrease in off-balance sheet ACL due to a reduction in unfunded loan commitments.
•Non-interest income decreased $0.9 million in the fourth quarter of 2024, due to $0.5 million in lower gain on sale of loans, $0.2 million of higher net losses on equity securities and lower loan servicing income and service charges on deposit accounts. Non-interest income decreased by $0.5 million compared to the fourth quarter of 2023, due to higher net losses on equity securities.
•Non-interest expense increased $0.4 million to $10.8 million in the fourth quarter of 2024 from $10.4 million for the previous quarter and increased $0.6 million from $10.2 million in the fourth quarter one year earlier. The $0.4 million increase in non-interest expense from the third quarter was largely due to $0.2 million increase in professional fees and $0.2 million in losses on repossessed assets. The $0.6 million increase from the fourth quarter of 2023 was due to: (1) a $0.7 million increase in compensation expenses, due to higher incentive compensation and annual merit increases; (2) an increase of $0.2 million on losses on repossessed assets; and (3) higher data processing of $0.2 million, partially offset by lower other expenses of $0.5 million primarily due to 2023 branch closure costs.
•Loans receivable decreased $55.8 million during the fourth quarter ended December 31, 2024, to $1.369 billion compared to the prior quarter end, due to pay offs of non-strategic relationships as part of the balance sheet optimization plan.
•Total deposits decreased $32.5 million during the fourth quarter of 2024, compared to three months earlier, as wholesale deposits were reduced with brokered deposits decreasing $47.5 million to $19.1 million at December 31, 2024, compared to three months earlier.
•Federal Home Loan Bank advances decreased $16.0 million to $5.0 million at December 31, 2024, from $21.0 million at September 30, 2024.
•The effective tax rate was 19.5% for the quarter ended December 31, 2024, compared to 21.5% for the quarter ended September 30, 2024, and 20.9% for the quarter ended December 31, 2023.
•Nonperforming assets decreased to $14.3 million at December 31, 2024, compared to $17.1 million at September 30, 2024. The decrease was largely due to a partial paydown on one agricultural real estate loan relationship in forestry services that was placed on nonaccrual status in the third quarter.
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•Net charge-offs remain minimal and were 0.009% of average loans during the fourth quarter and 0.007% over the twelve-month period ending December 31, 2024.
•Common stock totaling 94 thousand shares were repurchased in the fourth quarter ending December 31, 2024, at an average price of $14.55 per share. For the twelve-month period ending December 31, 2024, approximately 476 thousand shares of common stock were repurchased at an average price of $12.76 per share.
•In November 2024, the Company notified its customers that it would be closing the Faribault, Minnesota branch on February 3, 2025, with account balances transferred to the nearest branch which is 39 miles away. The branch closure costs recognized in the fourth quarter were minimal.
•The efficiency ratio was 76% for the quarter ended December 31, 2024, compared to 72% for the quarter ended September 30, 2024.
•On January 23, 2025, the Board of Directors declared a $0.36 per share annual dividend, an increase of 12.5%, to shareholders of record as of February 7, 2025, and payable February 21, 2025.
Balance Sheet and Asset Quality
Total assets decreased by $50.6 million during the quarter to $1.749 billion at December 31, 2024.
Securities available for sale (AFS”) decreased $6.6 million during the quarter ended December 31, 2024, to $142.8 million from $149.4 million at September 30, 2024. The decrease was due to higher pre-tax unrealized losses of $3.3 million and principal repayments of $3.3 million.
Securities held to maturity (“HTM”) decreased $1.5 million to $85.5 million during the quarter ended December 31, 2024, from $87.0 million at September 30, 2024, due to principal repayments.
The on-balance sheet liquidity ratio, which is defined as the fair market value of AFS and HTM securities that are not pledged and cash on deposit with other financial institutions, was 11.75% of total assets at December 31, 2024, compared to 11.46% at September 30, 2024. On-balance sheet liquidity collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $725 million, or 273%, of uninsured and uncollateralized deposits at December 31, 2024, and $718 million, or 269%, at September 30, 2024.
Continued balance sheet optimization resulted in loans decreasing by $55.8 million during the fourth quarter ended December 31, 2024, to $1.372 billion, compared to September 30, 2024. A large level of non-strategic relationships were repaid during the quarter as well as a $4.9 million reduction in criticized loans.
The office loan portfolio consisting of 71 loans totaled $28 million at December 31, 2024, and decreased $3 million from $31 million at September 30, 2024. Criticized loans in the office loan portfolio for the quarter ended December 31, 2024, totaled $0.5 million and there have been no charge-offs in the trailing twelve months.
The allowance for credit losses on loans decreased by $0.45 million to $20.5 million at December 31, 2024, representing 1.50% of total loans receivable compared to 1.47% of total loans receivable at September 30, 2024. For the quarter ended December 31, 2024, the Bank recorded a negative provision of $0.45 million which included a negative provision on ACL for loans of $0.32 million and a negative provision of $0.13 million on ACL for unfunded commitments.
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Allowance for Credit Losses (“ACL”) - Loans Percentage
(in thousands, except ratios)

|  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | December 31, 2023
Loans, end of period |  | $ | 1,368,981 |  |  | $ | 1,424,828 |  |  | $ | 1,428,588 |  |  | $ | 1,460,792 |
Allowance for credit losses - Loans |  | $ | 20,549 |  |  | $ | 21,000 |  |  | $ | 21,178 |  |  | $ | 22,908 |
ACL - Loans as a percentage of loans, end of period |  | 1.50 | % |  | 1.47 | % |  | 1.48 | % |  | 1.57 | %

In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.334 million at December 31, 2024, $0.460 million at September 30, 2024, and $1.250 million at December 31, 2023, classified in other liabilities on the consolidated balance sheets.
Allowance for Credit Losses - Unfunded Commitments:
(in thousands)

|  | December 31, 2024 and Three Months Ended |  | December 31, 2023 and Three Months Ended |  | December 31, 2024 and Twelve Months Ended |  | December 31, 2023 and Twelve Months Ended
ACL - Unfunded commitments - beginning of period |  | $ | 460 |  |  | $ | 1,571 |  |  | $ | 1,250 |  |  | $ | — |
Cumulative effect of ASU 2016-13 adoption |  | — |  |  | — |  |  | — |  |  | 1,537 |
(Reductions) additions to ACL - Unfunded commitments via provision for credit losses charged to operations |  | (126) |  |  | (321) |  |  | (916) |  |  | (287) |
ACL - Unfunded commitments - end of period |  | $ | 334 |  |  | $ | 1,250 |  |  | $ | 334 |  |  | $ | 1,250 |

Special mention loans decreased by $2.5 million to $8.5 million at December 31, 2024, compared to $11.0 million at September 30, 2024. Over the past 12 months, special mention loans have declined $9.9 million from $18.4 million at December 31, 2023.
Substandard loans decreased by $2.3 million to $18.9 million at December 31, 2024, compared to $21.2 million at September 30, 2024, primarily due to a $1.6 million reduction in a nonperforming loan, classified as substandard, agricultural real estate forestry services loan.
Nonperforming assets decreased $2.8 million to $14.3 million at December 31, 2024, compared to $17.1 million at September 30, 2024, primarily due to the $1.6 million reduction in nonperforming assets discussed above and the sale of a real estate owned property.

|  | (in thousands)
|  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023
Special mention loan balances |  | $ | 8,480 |  |  | $ | 11,047 |  |  | $ | 8,848 |  |  | $ | 13,737 |  |  | $ | 18,392 |
Substandard loan balances |  | 18,891 |  |  | 21,202 |  |  | 14,420 |  |  | 14,733 |  |  | 19,596 |
Criticized loans, end of period |  | $ | 27,371 |  |  | $ | 32,249 |  |  | $ | 23,268 |  |  | $ | 28,470 |  |  | $ | 37,988 |

Total deposits decreased $32.5 million during the quarter ended December 31, 2024, to $1.49 billion as $59.7 million of wholesale brokered deposits were repaid. Brokered deposits declined $47.5 million to $19.1 million at December 31, 2024, from $66.6 million at September 30, 2024, and declined $79.1 million from $98.2 million at December 31, 2023.
Deposit Portfolio Composition
(in thousands)

|  | December 31, 2024 |  |  |  |  |  | September 30, 2024 |  |  |  |  |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023
Consumer deposits |  | $ | 852,083 |  |  |  |  |  |  | $ | 844,808 |  |  |  |  |  |  | $ | 822,665 |  |  | $ | 827,290 |  |  | $ | 814,899 |
Commercial deposits |  | 412,355 |  |  |  |  |  |  | 406,095 |  |  |  |  |  |  | 395,148 |  |  | 400,910 |  |  | 415,715 |
Public deposits |  | 190,460 |  |  |  |  |  |  | 176,844 |  |  |  |  |  |  | 187,698 |  |  | 202,175 |  |  | 182,172 |
Wholesale deposits |  | 33,250 |  |  |  |  |  |  | 92,920 |  |  |  |  |  |  | 114,033 |  |  | 97,114 |  |  | 106,306 |
Total deposits |  | $ | 1,488,148 |  |  |  |  |  |  | $ | 1,520,667 |  |  |  |  |  |  | $ | 1,519,544 |  |  | $ | 1,527,489 |  |  | $ | 1,519,092 |

4

At December 31, 2024, the deposit portfolio composition was 57% consumer, 28% commercial, 13% public, and 2% wholesale deposits compared to 55% consumer, 27% commercial, 12% public, and 6% wholesale deposits at September 30, 2024.
Deposit Composition By Type
(in thousands)

|  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023
Non-interest-bearing demand deposits |  | $ | 252,656 |  |  | $ | 256,840 |  |  | $ | 255,703 |  |  | $ | 248,537 |  |  | $ | 265,704 |
Interest-bearing demand deposits |  | 355,750 |  |  | 346,971 |  |  | 353,477 |  |  | 361,278 |  |  | 343,276 |
Savings accounts |  | 159,821 |  |  | 169,096 |  |  | 170,946 |  |  | 177,595 |  |  | 176,548 |
Money market accounts |  | 369,534 |  |  | 366,067 |  |  | 370,164 |  |  | 387,879 |  |  | 374,055 |
Certificate accounts |  | 350,387 |  |  | 381,693 |  |  | 369,254 |  |  | 352,200 |  |  | 359,509 |
Total deposits |  | $ | 1,488,148 |  |  | $ | 1,520,667 |  |  | $ | 1,519,544 |  |  | 1,527,489 |  |  | $ | 1,519,092 |

Uninsured and uncollateralized deposits were $265.4 million, or 18% of total deposits, at December 31, 2024, and $267.1 million, or 18% of total deposits, at September 30, 2024. Uninsured deposits alone at December 31, 2024, were $428.0 million, or 29% of total deposits, and $413.6 million, or 27% of total deposits at September 30, 2024.
As part of the balance sheet optimization plan, $16.0 million in Federal Home Loan Bank advances were repaid during the fourth quarter and totaled $5.0 million at December 31, 2024, compared to $21.0 million one quarter earlier.
Common stock totaling approximately 94 thousand shares were repurchased in the fourth quarter of 2024 at an average price of $14.55 per share. For the twelve-month period ending December 31, 2024, approximately 476 thousand shares of common stock were repurchased at an average price of $12.76 per share. There are 238 thousand shares remaining under the July 2024 Board of Director repurchase authorization plan.
Review of Operations
Net interest income increased $0.4 million for the quarter ended December 31, 2024, from $11.3 million for the quarter ended September 30, 2024, and flat from $11.7 million for the quarter ended December 31, 2023. The increase in net interest income compared to the third quarter of 2024 was primarily due to an increase in net interest margin, partially offsetting the impact of asset shrinkage. The net interest margin increase was favorably impacted by 3 basis points due to deferred fee accretion on loan payoffs.
Net interest income and net interest margin analysis:
(in thousands, except yields and rates)

|  | Three months ended |  |  |  |  |
|  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023 |  |  |
|  | 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 |  | $ | 11,708 |  |  | 2.79 | % |  | $ | 11,285 |  |  | 2.63 | % |  | $ | 11,576 |  |  | 2.72 | % |  | $ | 11,905 |  |  | 2.77 | % |  | $ | 11,747 |  |  | 2.69 | % |  |  |  |  |  |  |
Less accretion for PCD loans |  | (42) |  |  | (0.01) | % |  | (45) |  |  | (0.01) | % |  | (62) |  |  | (0.01) | % |  | (75) |  |  | (0.02) | % |  | (37) |  |  | (0.01) | % |  |  |  |  |  |  |
Less scheduled accretion interest |  | (33) |  |  | (0.01) | % |  | (33) |  |  | (0.01) | % |  | (32) |  |  | (0.01) | % |  | (33) |  |  | (0.01) | % |  | (33) |  |  | (0.01) | % |  |  |  |  |  |  |
Without loan purchase accretion |  | $ | 11,633 |  |  | 2.77 | % |  | $ | 11,207 |  |  | 2.61 | % |  | $ | 11,482 |  |  | 2.70 | % |  | $ | 11,797 |  |  | 2.74 | % |  | $ | 11,677 |  |  | 2.67 | % |  |  |  |  |  |  |

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The table below shows the impact of certificate, loan and securities contractual fixed rate maturing and repricing.
Portfolio Contractual Repricing:
(in millions, except yields)

|  | Q1 2025 |  | Q2 2025 |  | Q3 2025 |  | Q4 2025 |  | FY 2026
Maturing Certificate Accounts: |  |  |  |  |  |  |  |  |  |
Contractual Balance |  | $ | 95 |  |  | $ | 177 |  |  | $ | 43 |  |  | $ | 14 |  |  | $ | 13 |
Contractual Interest Rate |  | 4.63 | % |  | 4.68 | % |  | 4.25 | % |  | 3.07 | % |  | 3.36 | %
Maturing or Repricing Loans: |  |  |  |  |  |  |  |  |  |
Contractual Balance |  | $ | 46 |  |  | $ | 97 |  |  | $ | 18 |  |  | $ | 55 |  |  | $ | 322 |
Contractual Interest Rate |  | 5.27 | % |  | 7.10 | % |  | 6.15 | % |  | 4.79 | % |  | 3.85 | %
Maturing or Repricing Securities: |  |  |  |  |  |  |  |  |  |
Contractual Balance |  | $ | 4 |  |  | $ | 3 |  |  | $ | 3 |  |  | $ | 4 |  |  | $ | 19 |
Contractual Interest Rate |  | 6.15 | % |  | 5.12 | % |  | 4.07 | % |  | 4.31 | % |  | 3.49 | %

Non-interest income decreased $0.9 million in the fourth quarter of 2024 to $2.0 million from $2.9 million the prior quarter due to $0.5 million of lower gain on sale of loans, $0.2 million of higher net losses on equity securities and lower loan servicing income and service charges on deposit accounts. Total non-interest income for the quarter ended December 31, 2023, was higher at $2.5 million due to an increase in net losses on equity securities in 4Q 2024.
Non-interest expense increased $0.4 million to $10.8 million from $10.4 million for the previous quarter and increased $0.6 million from $10.2 million one year earlier. The $0.4 million increase in non-interest expense compared to the linked quarter was largely due to the $0.2 million increase in professional fees and $0.2 million in losses on repossessed assets. The $0.6 million increase from the fourth quarter of 2023 is due to: (1) a $0.7 million increase in compensation expenses, due to higher incentive compensation and annual merit increases; (2) an increase in the current quarter of $0.2 million on losses on repossessed assets; (3) higher data processing of $0.2 million partially offset by lower other expenses $0.5 million primarily due to 2023 branch closure costs.
Provision for income taxes decreased to $0.7 million in the fourth quarter of 2024 from $0.9 million in the third quarter of 2024 largely due to lower pre-tax income. The effective tax rate was 19.5% for the quarter ended December 31, 2024, 21.5% for the quarter ended September 30, 2024, and 20.9% for the quarter ended December 31, 2023.
These financial results are preliminary until Form 10-K is filed in March 2025.
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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 22 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. 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 (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; 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 among depository and other financial institutions; disintermediation risk; 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 inability 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 the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; 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, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect 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 net income as adjusted, net income as adjusted per share, 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.
Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. 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.
7

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)
8

CITIZENS COMMUNITY BANCORP, INC.
Consolidated Balance Sheets
(in thousands, except shares and per share data)

|  | December 31, 2024 (unaudited) |  | September 30, 2024 (unaudited) |  | June 30, 2024 (unaudited) |  | December 31, 2023 (audited) |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 50,172 |  |  | $ | 36,632 |  |  | $ | 36,886 |  |  | $ | 37,138 |  |  |  |  |
Securities available for sale “AFS” |  | 142,851 |  |  | 149,432 |  |  | 146,438 |  |  | 155,743 |  |  |  |  |
Securities held to maturity “HTM” |  | 85,504 |  |  | 87,033 |  |  | 88,605 |  |  | 91,229 |  |  |  |  |
Equity investments |  | 4,702 |  |  | 5,096 |  |  | 5,023 |  |  | 3,284 |  |  |  |  |
Other investments |  | 12,500 |  |  | 12,311 |  |  | 13,878 |  |  | 15,725 |  |  |  |  |
Loans receivable |  | 1,368,981 |  |  | 1,424,828 |  |  | 1,428,588 |  |  | 1,460,792 |  |  |  |  |
Allowance for credit losses |  | (20,549) |  |  | (21,000) |  |  | (21,178) |  |  | (22,908) |  |  |  |  |
Loans receivable, net |  | 1,348,432 |  |  | 1,403,828 |  |  | 1,407,410 |  |  | 1,437,884 |  |  |  |  |
Loans held for sale |  | 1,329 |  |  | 697 |  |  | 275 |  |  | 5,773 |  |  |  |  |
Mortgage servicing rights, net |  | 3,663 |  |  | 3,696 |  |  | 3,731 |  |  | 3,865 |  |  |  |  |
Office properties and equipment, net |  | 17,075 |  |  | 17,365 |  |  | 17,774 |  |  | 18,373 |  |  |  |  |
Accrued interest receivable |  | 5,653 |  |  | 6,235 |  |  | 6,289 |  |  | 5,409 |  |  |  |  |
Intangible assets |  | 979 |  |  | 1,158 |  |  | 1,336 |  |  | 1,694 |  |  |  |  |
Goodwill |  | 31,498 |  |  | 31,498 |  |  | 31,498 |  |  | 31,498 |  |  |  |  |
Foreclosed and repossessed assets, net |  | 915 |  |  | 1,572 |  |  | 1,662 |  |  | 1,795 |  |  |  |  |
Bank owned life insurance (“BOLI”) |  | 26,102 |  |  | 25,901 |  |  | 25,708 |  |  | 25,647 |  |  |  |  |
Other assets |  | 17,144 |  |  | 16,683 |  |  | 15,794 |  |  | 16,334 |  |  |  |  |
TOTAL ASSETS |  | $ | 1,748,519 |  |  | $ | 1,799,137 |  |  | $ | 1,802,307 |  |  | $ | 1,851,391 |  |  |  |  |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 1,488,148 |  |  | $ | 1,520,667 |  |  | $ | 1,519,544 |  |  | $ | 1,519,092 |  |  |  |  |
Federal Home Loan Bank (“FHLB”) advances |  | 5,000 |  |  | 21,000 |  |  | 31,500 |  |  | 79,530 |  |  |  |  |
Other borrowings |  | 61,606 |  |  | 61,548 |  |  | 61,498 |  |  | 67,465 |  |  |  |  |
Other liabilities |  | 14,681 |  |  | 15,773 |  |  | 13,720 |  |  | 11,970 |  |  |  |  |
Total liabilities |  | 1,569,435 |  |  | 1,618,988 |  |  | 1,626,262 |  |  | 1,678,057 |  |  |  |  |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Common stock— $0.01 par value, authorized 30,000,000; 9,981,996, 10,074,136, 10,297,341, and 10,440,591 shares issued and outstanding, respectively |  | 100 |  |  | 101 |  |  | 103 |  |  | 104 |  |  |  |  |
Additional paid-in capital |  | 114,564 |  |  | 115,455 |  |  | 117,838 |  |  | 119,441 |  |  |  |  |
Retained earnings |  | 80,840 |  |  | 78,438 |  |  | 75,501 |  |  | 71,117 |  |  |  |  |
Accumulated other comprehensive loss |  | (16,420) |  |  | (13,845) |  |  | (17,397) |  |  | (17,328) |  |  |  |  |
Total stockholders’ equity |  | 179,084 |  |  | 180,149 |  |  | 176,045 |  |  | 173,334 |  |  |  |  |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |  | $ | 1,748,519 |  |  | $ | 1,799,137 |  |  | $ | 1,802,307 |  |  | $ | 1,851,391 |  |  |  |  |

Note: Certain items previously reported were reclassified for consistency with the current presentation.
9

CITIZENS COMMUNITY BANCORP, INC.
Consolidated Statements of Operations
(in thousands, except per share data)

|  | Three Months Ended |  | Twelve Months Ended
|  | December 31, 2024 (unaudited) |  | September 30, 2024 (unaudited) |  |  |  | December 31, 2023 (unaudited) |  | December 31, 2024 (unaudited) |  | December 31, 2023 (audited)
Interest and dividend income: |  |  |  |  |  |  |  |  |  |  |  |
Interest and fees on loans |  | $ | 19,534 |  |  | $ | 20,115 |  |  |  |  | $ | 19,408 |  |  | $ | 79,738 |  |  | $ | 73,577 |
Interest on investments |  | 2,427 |  |  | 2,397 |  |  |  |  | 2,618 |  |  | 9,877 |  |  | 10,671 |
Total interest and dividend income |  | 21,961 |  |  | 22,512 |  |  |  |  | 22,026 |  |  | 89,615 |  |  | 84,248 |
Interest expense: |  |  |  |  |  |  |  |  |  |  |  |
Interest on deposits |  | 9,273 |  |  | 10,165 |  |  |  |  | 7,851 |  |  | 37,985 |  |  | 25,749 |
Interest on FHLB borrowed funds |  | 65 |  |  | 128 |  |  |  |  | 1,371 |  |  | 1,281 |  |  | 5,966 |
Interest on other borrowed funds |  | 915 |  |  | 934 |  |  |  |  | 1,057 |  |  | 3,875 |  |  | 4,184 |
Total interest expense |  | 10,253 |  |  | 11,227 |  |  |  |  | 10,279 |  |  | 43,141 |  |  | 35,899 |
Net interest income before provision for credit losses |  | 11,708 |  |  | 11,285 |  |  |  |  | 11,747 |  |  | 46,474 |  |  | 48,349 |
(Negative) provision for credit losses |  | (450) |  |  | (400) |  |  |  |  | (650) |  |  | (3,175) |  |  | (475) |
Net interest income after provision for credit losses |  | 12,158 |  |  | 11,685 |  |  |  |  | 12,397 |  |  | 49,649 |  |  | 48,824 |
Non-interest income: |  |  |  |  |  |  |  |  |  |  |  |
Service charges on deposit accounts |  | 450 |  |  | 513 |  |  |  |  | 485 |  |  | 1,924 |  |  | 1,949 |
Interchange income |  | 550 |  |  | 577 |  |  |  |  | 581 |  |  | 2,247 |  |  | 2,324 |
Loan servicing income |  | 520 |  |  | 643 |  |  |  |  | 539 |  |  | 2,271 |  |  | 2,218 |
Gain on sale of loans |  | 218 |  |  | 752 |  |  |  |  | 191 |  |  | 2,216 |  |  | 1,692 |
Loan fees and service charges |  | 292 |  |  | 165 |  |  |  |  | 124 |  |  | 996 |  |  | 432 |
Net realized gains on debt securities |  | — |  |  | — |  |  |  |  | — |  |  | — |  |  | 12 |
Net (losses) gains on equity securities |  | (287) |  |  | (78) |  |  |  |  | 277 |  |  | (856) |  |  | 447 |
Bank Owned Life Insurance (BOLI) death benefit |  | — |  |  | — |  |  |  |  | — |  |  | 184 |  |  | — |
Other |  | 266 |  |  | 349 |  |  |  |  | 283 |  |  | 1,125 |  |  | 1,176 |
Total non-interest income |  | 2,009 |  |  | 2,921 |  |  |  |  | 2,480 |  |  | 10,107 |  |  | 10,250 |
Non-interest expense: |  |  |  |  |  |  |  |  |  |  |  |
Compensation and related benefits |  | 5,840 |  |  | 5,743 |  |  |  |  | 5,139 |  |  | 22,741 |  |  | 21,106 |
Occupancy |  | 1,217 |  |  | 1,242 |  |  |  |  | 1,314 |  |  | 5,159 |  |  | 5,431 |
Data processing |  | 1,743 |  |  | 1,665 |  |  |  |  | 1,511 |  |  | 6,530 |  |  | 5,951 |
Amortization of intangible assets |  | 179 |  |  | 178 |  |  |  |  | 179 |  |  | 715 |  |  | 755 |
Mortgage servicing rights expense, net |  | 107 |  |  | 163 |  |  |  |  | 159 |  |  | 534 |  |  | 615 |
Advertising, marketing and public relations |  | 218 |  |  | 225 |  |  |  |  | 262 |  |  | 793 |  |  | 734 |
FDIC premium assessment |  | 192 |  |  | 201 |  |  |  |  | 204 |  |  | 798 |  |  | 812 |
Professional services |  | 514 |  |  | 336 |  |  |  |  | 371 |  |  | 1,763 |  |  | 1,524 |
Losses (gains) on repossessed assets, net |  | 247 |  |  | 65 |  |  |  |  | — |  |  | 294 |  |  | 62 |
Other |  | 552 |  |  | 603 |  |  |  |  | 1,067 |  |  | 2,979 |  |  | 3,152 |
Total non-interest expense |  | 10,809 |  |  | 10,421 |  |  |  |  | 10,206 |  |  | 42,306 |  |  | 40,142 |
Income before provision for income taxes |  | 3,358 |  |  | 4,185 |  |  |  |  | 4,671 |  |  | 17,450 |  |  | 18,932 |
Provision for income taxes |  | 656 |  |  | 899 |  |  |  |  | 978 |  |  | 3,699 |  |  | 5,873 |
Net income attributable to common stockholders |  | $ | 2,702 |  |  | $ | 3,286 |  |  |  |  | $ | 3,693 |  |  | $ | 13,751 |  |  | $ | 13,059 |
Per share information: |  |  |  |  |  |  |  |  |  |  |  |
Basic earnings |  | $ | 0.27 |  |  | $ | 0.32 |  |  |  |  | $ | 0.35 |  |  | $ | 1.34 |  |  | $ | 1.25 |
Diluted earnings |  | $ | 0.27 |  |  | $ | 0.32 |  |  |  |  | $ | 0.35 |  |  | $ | 1.34 |  |  | $ | 1.25 |
Cash dividends paid |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 0.32 |  |  | $ | 0.29 |
Book value per share at end of period |  | $ | 17.94 |  |  | $ | 17.88 |  |  |  |  | $ | 16.60 |  |  | $ | 17.94 |  |  | $ | 16.60 |
Tangible book value per share at end of period (non-GAAP) |  | $ | 14.69 |  |  | $ | 14.64 |  |  |  |  | $ | 13.42 |  |  | $ | 14.69 |  |  | $ | 13.42 |

10

Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
(in thousands, except per share data)

|  | Three Months Ended |  | Twelve Months Ended |  |
|  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023 |  |
GAAP pretax income |  | $ | 3,358 |  |  | $ | 4,185 |  |  | $ | 4,671 |  |  | $ | 17,450 |  |  | $ | 18,932 |  |  |
Branch closure costs (1) |  | — |  |  | — |  |  | 380 |  |  | 168 |  |  | 380 |  |  |
Pretax income as adjusted (2) |  | $ | 3,358 |  |  | $ | 4,185 |  |  | $ | 5,051 |  |  | $ | 17,618 |  |  | $ | 19,312 |  |  |
Provision for income tax on net income as adjusted (3) |  | 656 |  |  | 899 |  |  | 1,058 |  |  | 3,735 |  |  | 5,991 |  |  |
Net income as adjusted (non-GAAP) (2) |  | $ | 2,702 |  |  | $ | 3,286 |  |  | $ | 3,993 |  |  | $ | 13,883 |  |  | $ | 13,321 |  |  |
GAAP diluted earnings per share, net of tax |  | $ | 0.27 |  |  | $ | 0.32 |  |  | $ | 0.35 |  |  | $ | 1.34 |  |  | $ | 1.25 |  |  |
Branch closure costs, net of tax |  | — |  |  | — |  |  | 0.03 |  |  | 0.01 |  |  | 0.03 |  |  |
Diluted earnings per share, as adjusted, net of tax (non-GAAP) |  | $ | 0.27 |  |  | $ | 0.32 |  |  | $ | 0.38 |  |  | $ | 1.35 |  |  | $ | 1.28 |  |  |
Average diluted shares outstanding |  | 10,033,957 |  |  | 10,204,195 |  |  | 10,457,184 |  |  | 10,262,710 |  |  | 10,470,298 |  |  |

(1) Branch closure costs include severance pay recorded in compensation and benefits and depreciation and right of use lease asset accelerated expense included in other non-interest expense in the consolidated statement of operations.
(2) Pretax income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
(3) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.
11

Loan Composition
(in thousands)

|  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | December 31, 2023
Total Loans: |  |  |  |  |  |  |  |
Commercial/Agricultural real estate: |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 709,018 |  |  | $ | 730,459 |  |  | $ | 729,236 |  |  | $ | 750,531 |
Agricultural real estate |  | 73,130 |  |  | 76,043 |  |  | 78,248 |  |  | 83,350 |
Multi-family real estate |  | 220,805 |  |  | 239,191 |  |  | 234,758 |  |  | 228,095 |
Construction and land development |  | 78,489 |  |  | 87,875 |  |  | 87,898 |  |  | 110,941 |
C&I/Agricultural operating: |  |  |  |  |  |  |  |
Commercial and industrial |  | 115,657 |  |  | 119,619 |  |  | 127,386 |  |  | 121,666 |
Agricultural operating |  | 31,000 |  |  | 27,550 |  |  | 27,409 |  |  | 25,691 |
Residential mortgage: |  |  |  |  |  |  |  |
Residential mortgage |  | 132,341 |  |  | 134,944 |  |  | 133,503 |  |  | 129,021 |
Purchased HELOC loans |  | 2,956 |  |  | 2,932 |  |  | 2,915 |  |  | 2,880 |
Consumer installment: |  |  |  |  |  |  |  |
Originated indirect paper |  | 3,970 |  |  | 4,405 |  |  | 5,110 |  |  | 6,535 |
Other consumer |  | 5,012 |  |  | 5,438 |  |  | 5,860 |  |  | 6,187 |
Gross loans |  | $ | 1,372,378 |  |  | $ | 1,428,456 |  |  | $ | 1,432,323 |  |  | $ | 1,464,897 |
Unearned net deferred fees and costs and loans in process |  | (2,547) |  |  | (2,703) |  |  | (2,733) |  |  | (2,900) |
Unamortized discount on acquired loans |  | (850) |  |  | (925) |  |  | (1,002) |  |  | (1,205) |
Total loans receivable |  | $ | 1,368,981 |  |  | $ | 1,424,828 |  |  | $ | 1,428,588 |  |  | $ | 1,460,792 |

Nonperforming Assets
Loan Balances at Amortized Cost
(in thousands, except ratios)

|  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | December 31, 2023 |  |  |  |
Nonperforming assets: |  |  |  |  |  |  |  |  |  |  |  |
Nonaccrual loans |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  | $ | 4,594 |  |  | $ | 4,778 |  |  | $ | 5,350 |  |  | $ | 10,359 |  |  |  |  |
Agricultural real estate |  | 6,222 |  |  | 6,193 |  |  | 382 |  |  | 391 |  |  |  |  |
Construction and land development |  | 103 |  |  | 106 |  |  | — |  |  | 54 |  |  |  |  |
Commercial and industrial (“C&I”) |  | 597 |  |  | 1,956 |  |  | 422 |  |  | — |  |  |  |  |
Agricultural operating |  | 793 |  |  | 901 |  |  | 1,017 |  |  | 1,180 |  |  |  |  |
Residential mortgage |  | 858 |  |  | 1,088 |  |  | 1,145 |  |  | 1,167 |  |  |  |  |
Consumer installment |  | 1 |  |  | 20 |  |  | 36 |  |  | 33 |  |  |  |  |
Total nonaccrual loans |  | $ | 13,168 |  |  | $ | 15,042 |  |  | $ | 8,352 |  |  | $ | 13,184 |  |  |  |  |
Accruing loans past due 90 days or more |  | 186 |  |  | 530 |  |  | 256 |  |  | 389 |  |  |  |  |
Total nonperforming loans (“NPLs”) at amortized cost |  | 13,354 |  |  | 15,572 |  |  | 8,608 |  |  | 13,573 |  |  |  |  |
Foreclosed and repossessed assets, net |  | 915 |  |  | 1,572 |  |  | 1,662 |  |  | 1,795 |  |  |  |  |
Total nonperforming assets (“NPAs”) |  | $ | 14,269 |  |  | $ | 17,144 |  |  | $ | 10,270 |  |  | $ | 15,368 |  |  |  |  |
Loans, end of period |  | $ | 1,368,981 |  |  | $ | 1,424,828 |  |  | $ | 1,428,588 |  |  | $ | 1,460,792 |  |  |  |  |
Total assets, end of period |  | $ | 1,748,519 |  |  | $ | 1,799,137 |  |  | $ | 1,802,307 |  |  | $ | 1,851,391 |  |  |  |  |
Ratios: |  |  |  |  |  |  |  |  |  |  |  |
NPLs to total loans |  | 0.98 | % |  | 1.09 | % |  | 0.60 | % |  | 0.93 | % |  |  |  |
NPAs to total assets |  | 0.82 | % |  | 0.95 | % |  | 0.57 | % |  | 0.83 | % |  |  |  |

12

Average Balances, Interest Yields and Rates
(in thousands, except yields and rates)

|  | Three Months Ended December 31, 2024 |  | Three Months Ended September 30, 2024 |  | Three Months Ended December 31, 2023
|  | 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 |  | $ | 26,197 |  |  | $ | 327 |  |  | 4.97 | % |  | $ | 25,187 |  |  | $ | 360 |  |  | 5.69 | % |  | $ | 16,699 |  |  | $ | 241 |  |  | 5.73 | %
Loans receivable |  | 1,396,854 |  |  | 19,534 |  |  | 5.56 | % |  | 1,429,928 |  |  | 20,115 |  |  | 5.60 | % |  | 1,458,558 |  |  | 19,408 |  |  | 5.28 | %
Investment securities |  | 235,268 |  |  | 1,940 |  |  | 3.28 | % |  | 236,960 |  |  | 1,966 |  |  | 3.30 | % |  | 243,705 |  |  | 2,102 |  |  | 3.42 | %
Other investments |  | 12,318 |  |  | 160 |  |  | 5.17 | % |  | 12,553 |  |  | 71 |  |  | 2.25 | % |  | 15,760 |  |  | 275 |  |  | 6.92 | %
Total interest earning assets |  | $ | 1,670,637 |  |  | $ | 21,961 |  |  | 5.23 | % |  | $ | 1,704,628 |  |  | $ | 22,512 |  |  | 5.25 | % |  | $ | 1,734,722 |  |  | $ | 22,026 |  |  | 5.04 | %
Average interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Savings accounts |  | $ | 162,501 |  |  | $ | 383 |  |  | 0.94 | % |  | $ | 170,777 |  |  | $ | 450 |  |  | 1.05 | % |  | $ | 175,281 |  |  | $ | 323 |  |  | 0.73 | %
Demand deposits |  | 346,411 |  |  | 1,891 |  |  | 2.17 | % |  | 357,201 |  |  | 2,152 |  |  | 2.40 | % |  | 329,096 |  |  | 1,680 |  |  | 2.03 | %
Money market accounts |  | 351,566 |  |  | 2,720 |  |  | 3.08 | % |  | 381,369 |  |  | 3,126 |  |  | 3.26 | % |  | 326,981 |  |  | 2,217 |  |  | 2.69 | %
CD’s |  | 374,087 |  |  | 4,279 |  |  | 4.55 | % |  | 379,722 |  |  | 4,437 |  |  | 4.65 | % |  | 368,110 |  |  | 3,631 |  |  | 3.91 | %
Total deposits |  | $ | 1,234,565 |  |  | $ | 9,273 |  |  | 2.99 | % |  | $ | 1,289,069 |  |  | $ | 10,165 |  |  | 3.14 | % |  | $ | 1,199,468 |  |  | $ | 7,851 |  |  | 2.60 | %
FHLB advances and other borrowings |  | 72,431 |  |  | 980 |  |  | 5.38 | % |  | 80,338 |  |  | 1,062 |  |  | 5.26 | % |  | 191,575 |  |  | 2,428 |  |  | 5.03 | %
Total interest-bearing liabilities |  | $ | 1,306,996 |  |  | $ | 10,253 |  |  | 3.12 | % |  | $ | 1,369,407 |  |  | $ | 11,227 |  |  | 3.26 | % |  | $ | 1,391,043 |  |  | $ | 10,279 |  |  | 2.93 | %
Net interest income |  |  |  | $ | 11,708 |  |  |  |  |  |  | $ | 11,285 |  |  |  |  |  |  | $ | 11,747 |  |  |
Interest rate spread |  |  |  |  |  | 2.11 | % |  |  |  |  |  | 1.99 | % |  |  |  |  |  | 2.11 | %
Net interest margin |  |  |  |  |  | 2.79 | % |  |  |  |  |  | 2.63 | % |  |  |  |  |  | 2.69 | %
Average interest earning assets to average interest-bearing liabilities |  |  |  |  |  | 1.28 |  |  |  |  |  |  | 1.24 |  |  |  |  |  |  | 1.25 |

|  | Twelve Months Ended December 31, 2024 |  | Twelve Months Ended December, 2023
|  | Average Balance |  | Interest Income/ Expense |  | Average Yield/ Rate |  | Average Balance |  | Interest Income/ Expense |  | Average Yield/ Rate
Average interest earning assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 20,864 |  |  | $ | 1,150 |  |  | 5.51 | % |  | $ | 18,469 |  |  | $ | 1,010 |  |  | 5.47 | %
Loans receivable |  | 1,430,631 |  |  | 79,738 |  |  | 5.57 | % |  | 1,430,035 |  |  | 73,577 |  |  | 5.15 | %
Interest bearing deposits |  | — |  |  | — |  |  | — | % |  | 63 |  |  | 1 |  |  | 1.59 | %
Investment securities |  | 238,851 |  |  | 7,977 |  |  | 3.34 | % |  | 257,020 |  |  | 8,606 |  |  | 3.35 | %
Other investments |  | 12,816 |  |  | 750 |  |  | 5.85 | % |  | 16,274 |  |  | 1,054 |  |  | 6.48 | %
Total interest earning assets |  | $ | 1,703,162 |  |  | $ | 89,615 |  |  | 5.26 | % |  | $ | 1,721,861 |  |  | $ | 84,248 |  |  | 4.89 | %
Average interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Savings accounts |  | $ | 171,069 |  |  | $ | 1,684 |  |  | 0.98 | % |  | $ | 200,087 |  |  | $ | 1,427 |  |  | 0.71 | %
Demand deposits |  | 353,107 |  |  | 8,083 |  |  | 2.29 | % |  | 359,866 |  |  | 6,727 |  |  | 1.87 | %
Money market accounts |  | 371,909 |  |  | 11,725 |  |  | 3.15 | % |  | 306,020 |  |  | 6,976 |  |  | 2.28 | %
CD’s |  | 366,634 |  |  | 16,493 |  |  | 4.50 | % |  | 317,376 |  |  | 10,619 |  |  | 3.35 | %
Total deposits |  | $ | 1,262,719 |  |  | $ | 37,985 |  |  | 3.01 | % |  | $ | 1,183,349 |  |  | $ | 25,749 |  |  | 2.18 | %
FHLB advances and other borrowings |  | 99,731 |  |  | 5,156 |  |  | 5.17 | % |  | 208,373 |  |  | 10,150 |  |  | 4.87 | %
Total interest-bearing liabilities |  | $ | 1,362,450 |  |  | $ | 43,141 |  |  | 3.17 | % |  | $ | 1,391,722 |  |  | $ | 35,899 |  |  | 2.58 | %
Net interest income |  |  |  | $ | 46,474 |  |  |  |  |  |  | $ | 48,349 |  |  |
Interest rate spread |  |  |  |  |  | 2.09 | % |  |  |  |  |  | 2.31 | %
Net interest margin |  |  |  |  |  | 2.73 | % |  |  |  |  |  | 2.81 | %
Average interest earning assets to average interest bearing liabilities |  |  |  |  |  | 1.25 |  |  |  |  |  | 1.24

13

Wholesale Deposits
(in thousands)

|  | Quarter Ended |  |  |  |  |  |
|  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | March 31, 2024 |  | December 31, 2023 |  |  |  |  |  |
Brokered certificate accounts |  | $ | 14,123 |  |  | $ | 48,578 |  |  | $ | 54,123 |  |  | $ | 43,507 |  |  | $ | 58,209 |  |  |  |  |  |  |
Brokered money market accounts |  | 5,002 |  |  | 18,076 |  |  | 42,673 |  |  | 40,429 |  |  | 40,050 |  |  |  |  |  |  |
Third party originated reciprocal deposits |  | 14,125 |  |  | 26,266 |  |  | 17,237 |  |  | 13,178 |  |  | 8,047 |  |  |  |  |  |  |
Total |  | $ | 33,250 |  |  | $ | 92,920 |  |  | $ | 114,033 |  |  | $ | 97,114 |  |  | $ | 106,306 |  |  |  |  |  |  |

Key Financial Metric Ratios:

|  | Three Months Ended |  | Twelve Months Ended |  |
|  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  |  |  |  | December 31, 2024 |  | December 31, 2023 |  |
Ratios based on net income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets (annualized) |  | 0.61 | % |  | 0.72 | % |  | 0.79 | % |  |  |  |  | 0.76 | % |  | 0.71 | % |  |
Return on average equity (annualized) |  | 6.00 | % |  | 7.34 | % |  | 8.72 | % |  |  |  |  | 7.84 | % |  | 7.87 | % |  |
Return on average tangible common equity 4 (annualized) |  | 7.72 | % |  | 9.38 | % |  | 11.29 | % |  |  |  |  | 10.03 | % |  | 10.26 | % |  |
Efficiency ratio |  | 76 | % |  | 72 | % |  | 72 | % |  |  |  |  | 72 | % |  | 68 | % |  |
Net interest margin with loan purchase accretion |  | 2.79 | % |  | 2.63 | % |  | 2.69 | % |  |  |  |  | 2.73 | % |  | 2.81 | % |  |
Net interest margin without loan purchase accretion |  | 2.77 | % |  | 2.61 | % |  | 2.67 | % |  |  |  |  | 2.69 | % |  | 2.78 | % |  |
Ratios based on net income as adjusted (non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets as adjusted 2 (annualized) |  | 0.61 | % |  | 0.72 | % |  | 0.86 | % |  |  |  |  | 0.77 | % |  | 0.73 | % |  |
Return on average equity as adjusted 3 (annualized) |  | 6.00 | % |  | 7.34 | % |  | 9.43 | % |  |  |  |  | 7.91 | % |  | 8.03 | % |  |

Reconciliation of Return on Average Assets
(in thousands, except ratios)

|  | Three Months Ended |  | Twelve Months Ended |  |  |
|  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023 |  |  |
GAAP earnings after income taxes |  | $ | 2,702 |  |  | $ | 3,286 |  |  | $ | 3,693 |  |  | $ | 13,751 |  |  | $ | 13,059 |  |  |  |
Net income as adjusted after income taxes (non-GAAP) (1) |  | $ | 2,702 |  |  | $ | 3,286 |  |  | $ | 3,993 |  |  | $ | 13,883 |  |  | $ | 13,321 |  |  |  |
Average assets |  | $ | 1,771,351 |  |  | $ | 1,810,826 |  |  | $ | 1,843,789 |  |  | $ | 1,808,256 |  |  | $ | 1,836,337 |  |  |  |
Return on average assets (annualized) |  | 0.61 | % |  | 0.72 | % |  | 0.79 | % |  | 0.76 | % |  | 0.71 | % |  |  |
Return on average assets as adjusted (non-GAAP) (annualized) |  | 0.61 | % |  | 0.72 | % |  | 0.86 | % |  | 0.77 | % |  | 0.73 | % |  |  |

(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
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Reconciliation of Return on Average Equity
(in thousands, except ratios)

|  | Three Months Ended |  | Twelve Months Ended
|  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
GAAP earnings after income taxes |  | $ | 2,702 |  |  | $ | 3,286 |  |  | $ | 3,693 |  |  | $ | 13,751 |  |  | $ | 13,059 |
Net income as adjusted after income taxes (non-GAAP) (1) |  | $ | 2,702 |  |  | $ | 3,286 |  |  | $ | 3,993 |  |  | $ | 13,883 |  |  | $ | 13,321 |
Average equity |  | $ | 179,242 |  |  | $ | 178,050 |  |  | $ | 168,058 |  |  | $ | 175,475 |  |  | $ | 165,968 |
Return on average equity (annualized) |  | 6.00 | % |  | 7.34 | % |  | 8.72 | % |  | 7.84 | % |  | 7.87 | %
Return on average equity as adjusted (non-GAAP) (annualized) |  | 6.00 | % |  | 7.34 | % |  | 9.43 | % |  | 7.91 | % |  | 8.03 | %

(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
Reconciliation of tangible book value per share (non-GAAP)
(in thousands, except per share data)

Tangible book value per share at end of period |  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | December 31, 2023 |  |  |  |
Total stockholders’ equity |  | $ | 179,084 |  |  | $ | 180,149 |  |  | $ | 176,045 |  |  | $ | 173,334 |  |  |  |  |
Less: Goodwill |  | (31,498) |  |  | (31,498) |  |  | (31,498) |  |  | (31,498) |  |  |  |  |
Less: Intangible assets |  | (979) |  |  | (1,158) |  |  | (1,336) |  |  | (1,694) |  |  |  |  |
Tangible common equity (non-GAAP) |  | $ | 146,607 |  |  | $ | 147,493 |  |  | $ | 143,211 |  |  | $ | 140,142 |  |  |  |  |
Ending common shares outstanding |  | 9,981,996 |  |  | 10,074,136 |  |  | 10,297,341 |  |  | 10,440,591 |  |  |  |  |
Book value per share |  | $ | 17.94 |  |  | $ | 17.88 |  |  | $ | 17.10 |  |  | $ | 16.60 |  |  |  |  |
Tangible book value per share (non-GAAP) |  | $ | 14.69 |  |  | $ | 14.64 |  |  | $ | 13.91 |  |  | $ | 13.42 |  |  |  |  |

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 |  | December 31, 2024 |  | September 30, 2024 |  | June 30, 2024 |  | December 31, 2023 |  |  |  |
Total stockholders’ equity |  | $ | 179,084 |  |  | $ | 180,149 |  |  | $ | 176,045 |  |  | $ | 173,334 |  |  |  |  |
Less: Goodwill |  | (31,498) |  |  | $ | (31,498) |  |  | $ | (31,498) |  |  | (31,498) |  |  |  |  |
Less: Intangible assets |  | (979) |  |  | $ | (1,158) |  |  | $ | (1,336) |  |  | (1,694) |  |  |  |  |
Tangible common equity (non-GAAP) |  | $ | 146,607 |  |  | $ | 147,493 |  |  | $ | 143,211 |  |  | $ | 140,142 |  |  |  |  |
Total Assets |  | $ | 1,748,519 |  |  | $ | 1,799,137 |  |  | $ | 1,802,307 |  |  | $ | 1,851,391 |  |  |  |  |
Less: Goodwill |  | (31,498) |  |  | (31,498) |  |  | (31,498) |  |  | (31,498) |  |  |  |  |
Less: Intangible assets |  | (979) |  |  | (1,158) |  |  | (1,336) |  |  | (1,694) |  |  |  |  |
Tangible Assets (non-GAAP) |  | $ | 1,716,042 |  |  | $ | 1,766,481 |  |  | $ | 1,769,473 |  |  | $ | 1,818,199 |  |  |  |  |
Total stockholders’ equity to total assets ratio |  | 10.24 | % |  | 10.01 | % |  | 9.77 | % |  | 9.36 | % |  |  |  |
Tangible common equity as a percent of tangible assets (non-GAAP) |  | 8.54 | % |  | 8.35 | % |  | 8.09 | % |  | 7.71 | % |  |  |  |

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Reconciliation of Return on Average Tangible Common Equity (non-GAAP)
(in thousands, except ratios)

|  | Three Months Ended |  | Twelve Months Ended |  |  |  |  |  |
|  | December 31, 2024 |  | September 30, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023 |  |  |  |  |  |
Total stockholders’ equity |  | $ | 179,084 |  |  | $ | 180,149 |  |  | $ | 173,334 |  |  | $ | 179,084 |  |  | $ | 173,334 |  |  |  |  |  |  |
Less: Goodwill |  | (31,498) |  |  | (31,498) |  |  | (31,498) |  |  | (31,498) |  |  | (31,498) |  |  |  |  |  |  |
Less: Intangible assets |  | (979) |  |  | (1,158) |  |  | (1,694) |  |  | (979) |  |  | (1,694) |  |  |  |  |  |  |
Tangible common equity (non-GAAP) |  | $ | 146,607 |  |  | $ | 147,493 |  |  | $ | 140,142 |  |  | $ | 146,607 |  |  | $ | 140,142 |  |  |  |  |  |  |
Average tangible common equity (non-GAAP) |  | $ | 146,676 |  |  | $ | 145,305 |  |  | $ | 134,776 |  |  | $ | 142,641 |  |  | $ | 132,409 |  |  |  |  |  |  |
GAAP earnings after income taxes |  | 2,702 |  |  | 3,286 |  |  | 3,693 |  |  | 13,751 |  |  | 13,059 |  |  |  |  |  |  |
Amortization of intangible assets, net of tax |  | 144 |  |  | 140 |  |  | 142 |  |  | 563 |  |  | 521 |  |  |  |  |  |  |
Tangible net income |  | $ | 2,846 |  |  | $ | 3,426 |  |  | $ | 3,835 |  |  | $ | 14,314 |  |  | $ | 13,580 |  |  |  |  |  |  |
Return on average tangible common equity (annualized) |  | 7.72 | % |  | 9.38 | % |  | 11.29 | % |  | 10.03 | % |  | 10.26 | % |  |  |  |  |  |

Reconciliation of Efficiency Ratio
(in thousands, except ratios)

|  | Three Months Ended |  | Twelve Months Ended
|  | December 31, 2024 |  | September 30, 2024 |  |  |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
Non-interest expense (GAAP) |  | $ | 10,809 |  |  | $ | 10,421 |  |  |  |  | $ | 10,206 |  |  | $ | 42,306 |  |  | $ | 40,142 |
Less amortization of intangibles |  | (179) |  |  | (178) |  |  |  |  | (179) |  |  | (715) |  |  | (755) |
Efficiency ratio numerator (GAAP) |  | $ | 10,630 |  |  | $ | 10,243 |  |  |  |  | $ | 10,027 |  |  | $ | 41,591 |  |  | $ | 39,387 |
Non-interest income |  | $ | 2,009 |  |  | $ | 2,921 |  |  |  |  | $ | 2,480 |  |  | $ | 10,107 |  |  | $ | 10,250 |
Add back net losses on debt and equity securities |  | (287) |  |  | (78) |  |  |  |  | — |  |  | (856) |  |  | — |
Subtract net gains on debt and equity securities |  | — |  |  | — |  |  |  |  | 277 |  |  | — |  |  | 459 |
Net interest income |  | 11,708 |  |  | 11,285 |  |  |  |  | 11,747 |  |  | 46,474 |  |  | 48,349 |
Efficiency ratio denominator (GAAP) |  | $ | 14,004 |  |  | $ | 14,284 |  |  |  |  | $ | 13,950 |  |  | $ | 57,437 |  |  | $ | 58,140 |
Efficiency ratio (GAAP) |  | 76 | % |  | 72 | % |  |  |  | 72 | % |  | 72 | % |  | 68 | %

1 Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”.
2 Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”.
3 Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”.
4 Tangible 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 enhances investors’ ability to better understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “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)”.
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