Citizens Community Bancorp Inc (CZWI) Q4 2024 Earnings: EPS Meets Expectations at $0.27, Revenue Surpasses Estimates at $11.7 Million

Quarterly Performance and Financial Highlights

Earnings Per Share (EPS): Met expectations with $0.27 per share for Q4 2024, aligning with the estimated EPS of $0.27.
Revenue: Achieved $11.7 million for Q4 2024, surpassing the estimated revenue of $11.50 million.
Net Interest Income: Increased by $0.4 million to $11.7 million, driven by a 16 basis point rise in net interest margin.
Book Value Per Share: Improved to $17.94 at the end of 2024, up from $16.60 at the end of 2023.
Non-Interest Income: Decreased by $0.9 million due to lower gains on loan sales and higher net losses on equity securities.
Non-Interest Expense: Rose by $0.4 million to $10.8 million, primarily due to increased professional fees and losses on repossessed assets.
Dividend Increase: Annual dividend raised by 12.5% to $0.36 per share, reflecting confidence in future performance.

Citizens Community Bancorp Inc (CZWI, Financial) released its 8-K filing on January 27, 2025, reporting earnings of $0.27 per share for the fourth quarter of 2024, aligning with analyst estimates. The company also reported annual earnings of $1.34 per share, meeting the annual estimate. Citizens Community Bancorp Inc is a bank holding company offering traditional community banking services, including a variety of loan products and deposit services.

Performance Overview

For the fourth quarter ended December 31, 2024, Citizens Community Bancorp Inc reported net income of $2.7 million, a decrease from $3.3 million in the previous quarter and $3.7 million in the same quarter of the previous year. The company's net interest income increased by $0.4 million to $11.7 million, driven by a 16 basis point increase in net interest margin to 2.79%. However, non-interest income decreased by $0.9 million due to lower gains on loan sales and higher net losses on equity securities.

Financial Achievements and Challenges

The company's book value per share improved to $17.94, and tangible book value per share increased by 9.5% year-over-year to $14.69. Stockholders’ equity as a percentage of total assets rose to 10.24%. Despite these achievements, Citizens Community Bancorp Inc faced challenges, including a decrease in loans receivable by $55.8 million and a reduction in total deposits by $32.5 million during the quarter.

Income Statement and Key Metrics

Net interest income for the quarter was $11.7 million, consistent with the same quarter last year. The negative provision for credit losses was $0.45 million, reflecting a decrease in on-balance sheet allowance for credit losses. Non-interest expense increased to $10.8 million, primarily due to higher professional fees and losses on repossessed assets.

Balance Sheet and Asset Quality

Total assets decreased by $50.6 million to $1.749 billion. The allowance for credit losses on loans was 1.50% of total loans receivable, slightly up from the previous quarter. Nonperforming assets decreased to $14.3 million, indicating improved asset quality.

Commentary and Strategic Outlook

“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,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.

Dividend Increase and Share Repurchase

The Board of Directors increased the annual dividend by 12.5% to $0.36 per share. Additionally, the company repurchased 94 thousand shares in the fourth quarter at an average price of $14.55 per share, contributing to the increase in tangible common equity ratio.

Conclusion

Citizens Community Bancorp Inc's performance in the fourth quarter of 2024 highlights its strategic focus on optimizing its balance sheet and improving asset quality. While the company met analyst EPS estimates, challenges such as declining loan and deposit volumes remain. The increase in dividend and share repurchase activities reflect confidence in the company's financial health and future prospects.

Citizens Community Bancorp Inc (CZWI) Q4 2024 Earnings: EPS Meet

Citizens Community Bancorp Inc reported a net income of $2.7 million for Q4 2024, with EPS meeting expectations at $0.27. Revenue exceeded estimates at $11.7 million, driven by a 16 basis point rise in net interest margin. The company increased its annual dividend by 12.5% to $0.36 per share.