Citizens Community Bancorp (CZWI) investor relations material

Executive summary

• Net income for Q2 2026 was $1.1 million ($0.11 per diluted share), down from $3.3 million ($0.33 per share) in Q2 2025 and $3.8 million ($0.39) in Q1 2026; six-month net income was $4.9 million ($0.50 per share), down from $6.5 million ($0.65 per share) year-over-year.

• Earnings decline was driven by a significant increase in provision for credit losses, primarily due to three loan relationships moving to substandard nonaccrual status.

• Net interest income increased to $13.5 million in Q2 2026, supported by lower deposit costs and higher portfolio yields, despite lower loan payoff income and higher nonaccrual loan balances.

• Board approved a quarterly dividend of $0.105 per share, payable August 21, 2026.

• Maintained strong capital ratios and liquidity to support organic loan growth, M&A activity, and shareholder returns.

Financial highlights

• Net interest income for Q2 2026 was $13.5 million (Q2 2025: $13.3 million); net interest margin was 3.22% (Q2 2025: 3.27%).

• Provision for credit losses surged to $4.33 million in Q2 2026 from $1.4 million in Q2 2025 and $0.75 million in Q1 2026.

• Non-interest income for Q2 2026 was $2.6 million, down from $2.8 million in Q2 2025, mainly due to lower gains on loan sales.

• Non-interest expense for Q2 2026 was $10.5 million, down from $10.8 million in Q2 2025, mainly from lower compensation and data processing costs.

• Tangible book value per share reached $16.55 at June 30, 2026, up 9.2% year-over-year.

Outlook and guidance

• Management expects continued pressure on net interest margin due to competitive deposit pricing and interest rate environment.

• Loan growth and deposit increases are expected to support future earnings, with a focus on resolving substandard and nonperforming loans.

• No material changes in risk factors or capital strategy anticipated for the remainder of 2026.