CZWI · Citizens Community Bancorp, Inc.

Citizens Community Bancorp delivered solid Q1 2026 results with $3.755 million net income (GAAP), representing a 17.5% increase year-over-year but a 12.0% sequential decline from Q4 2025’s $4.271 million. Diluted EPS held steady at $0.39 versus $0.32 in Q1 2025, though down from $0.44 in Q4 2025 — suggesting normalization after a stronger prior quarter rather than deterioration. The improvement in net interest margin to 3.18% (from 2.85% in Q1 2025) reflects disciplined asset yield management: loan yields rose to 5.73% while deposit cost remained stable at 2.49%, compressing the interest rate spread to 2.64%. Non-interest income increased 15.0% year-over-year to $3.099 million, driven by higher gain-on-sale of loans ($1.021M vs $0.720M) and service fee growth; non-interest expense moderated to $10.727 million (66% efficiency ratio), down from 68% in Q4 2025. Credit quality remains robust: nonperforming assets were 1.00% of total assets, and the allowance for credit losses covered 133% of nonaccrual loans. Tangible book value per share rose to $16.52, supported by retained earnings growth and stable equity issuance. The Board’s declaration of a $0.105 per share dividend — consistent with the prior quarter’s $0.105 (implied from $0.36 annualized) — affirms capital return discipline and confidence in earnings sustainability. Management’s stated objective of exceeding 1% ROA and 12% ROATCE remains aspirational, with current annualized ROAA at 0.85% and ROATCE at 9.90%; execution on organic loan growth and expense control will be critical to closing that gap.