EAU CLAIRE, Wis.--(BUSINESS WIRE)--
Citizens Community Bancorp, Inc. (NASDAQ: CZWI), the holding company for
Citizens Community Federal, today reported results for its fiscal 2009
first quarter ended December 31, 2008.
For the first quarter, the Company reported net income of $266,000,
versus net income of $455,000 for the prior-year first quarter. On a
basic and diluted, per-share basis, Citizens Community Bancorp, Inc.,
reported fiscal 2009 first-quarter earnings of $0.05 per share, compared
to earnings of $0.07 per share for the year-earlier first quarter.
The fiscal 2009 first-quarter decrease resulted mainly from two factors.
First, the Company increased its 2009 first-quarter provision for loan
losses by $102,000 to $267,000, from $165,000 in fiscal 2008 first
quarter, due to the current economic environment. The second factor was
planned salaries and benefits, occupancy and professional services, and
other expenses associated with the Company's continued growth, primarily
the openings of Citizens' Wal-Mart Supercenter branches.
Net interest income for the quarter ended December 31, 2008, totaled
$3.6 million, up from $2.9 million for the prior-year period. Largely
responsible for the gain was a rise in the average balance of
interest-earning assets and interest-bearing liabilities. During the
period, the net interest spread remained relatively unchanged at 2.64
percent, compared to 2.65 percent for the 2008 first quarter.
Fiscal 2009 first-quarter, non-interest income was $477,000, up from
$428,000 for the year-earlier period. The increase was primarily the
result of service charges on deposit accounts that were generated from
core deposit growth at the Company's Wal-Mart in-store locations.
Non-interest expense was $3.3 million for the fiscal 2009 first quarter,
compared to $2.4 million for the year-earlier quarter. Sequentially,
non-interest expense rose only slightly from $3.2 million in the fiscal
2008 fourth quarter. The 2009 first-quarter, year-over-year increase
resulted again mainly from the planned growth costs associated with the
Company's Wal-Mart Supercenter branch expansions.
Total assets rose $7.6 million, or 1.6 percent, to $487.6 million at
December 31, 2008, from $480.0 million at September 30, 2008. The gain
was primarily due to a $13.9 million increase in loans receivable--of
which, $7.9 million came from the Company's new Wal-Mart in-store
branches. This was partially offset by decreases in cash and cash
equivalents to help fund new loan demand.
Deposits grew to $315.7 million at December 31, 2008, from $297.2
million at September 30, 2008. The $18.5 million increase, or 6.2
percent, was the result of growth in both new certificates of deposit,
as well as new core deposits. $13.8 million of the gain came from total
deposit growth at the Company's Wal-Mart Supercenter branch locations--of
that amount, $10.8 million was core deposit growth.
Total equity was $65.3 million at December 31, 2008, versus $68.5
million at September 30, 2008. The decrease was due to the buyback of
shares under Citizens' previously announced share repurchase program
(since September 2007, the Company has repurchased 1.2 million of its
common shares); dividends paid; and, an increase in the unrealized loss
of investment securities available for sale of $1.4 million, net of tax,
related to the revaluation of the Company's MBS portfolio. The Company
does not believe there is any other than temporary impairment of these
securities at December 31, 2008.
The Company's non-performing assets were $4.4 million at December 31,
2008, or 0.91 percent of total assets. This was up from $3.3 million, or
0.68 percent of total assets, at September 30, 2008, and $1.7 million,
or 0.42 percent, at December 31, 2007. The increases since September 30,
2008, and December 31, 2007, were due to increases in non-performing
one- to four-family residential loans, as well as the addition of new
non-real estate consumer loans moving into the non-performing category.
The Company anticipates minimal losses associated with its
non-performing one- to four-family residential loans as supported by
recent appraisals of the properties. While Citizens anticipates some
higher loss levels associated with its non-performing consumer loans,
loss levels are anticipated to be below comparable peers due to the
Company's strong underwriting criteria. The Company believes its
allowance for loan loss is adequate to cover these and other anticipated
losses on its portfolio.
Net charge-offs for the three months ended December 31, 2008, were
$132,000, versus $114,000 at September 30, 2008, and $108,000 at
December 31, 2007. The annualized net charge-offs to average loans
receivable was 0.14 percent for the three months ended December 31,
2008, compared to 0.13 percent for the comparable 2007 three-month
period, and 0.14 percent for the three months ended September 30, 2008.
The Company's net charge-offs, while up slightly from year-earlier
levels, remain at levels considerably below comparable peer company
norms.
Said James Cooley, president and chief executive officer of Citizens
Community Bancorp, Inc., "Given current economic conditions and
uncertainties, we're pleased with our first-quarter performance. We're a
profitable institution that's continuing to deliver asset, loan and
deposit growth, and we're expanding our footprint with new Wal-Mart
in-store branches. Though our new Wal-Mart locations require up-front
investment which impacts our bottom-line performance initially, we
believe that these branches will help fuel our long-term growth and
enhance income performance."
Business Update
During the fiscal 2009 first quarter, Citizens saw a continuing trend of
appraisals for one- to four-family real-estate loans being adversely
impacted by the current economic crisis. As a result, there has been
significant devaluation of underlying assets, as appraised, associated
with new loans being considered for approval. Consequently, these loans,
which otherwise met Citizens' underwriting criteria, were not approved.
The Company expects this trend to continue during its second quarter.
Related to its continuing expansion, Citizens opened two new Wal-Mart
Supercenter in-store branches during the first quarter: the first in
Hutchinson, Minn.; and the other in Winona, Minn. These locations mark
the 10th and 11th of Citizens' 11 planned 2008
branch openings.
In addition, Citizens announced on October 30, 2008, that it is
scheduled to open six additional Wal-Mart in-store branches during 2009
in Wisconsin and Minnesota. The Company will open Citizens Community
Federal branches in the following Wal-Mart Supercenter locations:
Menomonie, Neenah, Plover, Shawano, and Wisconsin Rapids, Wis.; and Oak
Park Heights, Minn.
Said Cooley, "Wal-Mart in-store branches are cost-efficient locations
where we are able to provide our customers with improved accessibility
and expanded hours--and Citizens with a platform for growth. Since March
3, 2008, we have opened 11 new branch locations, from which we expect
long-term deposit, loan and income growth. Today, we are pleased with
the performance of our new branch locations--which is encouraging given
the challenges facing the banking industry."
As of December 31, 2008, the Company's Wal-Mart in-store locations have
delivered:
-- Total deposit gains since March 3, 2008, of $31.9 million--of this,
$22.1 million was core deposits; and
-- Total loan gains since March 3, 2008, of $17.0 million--of this, $6.3
million consisted of real estate loans and $10.7 million of consumer
loans.
According to Cooley, nine out of the 11 branches Citizens opened in
2008, opened after July 1, 2008.
Concluded Cooley, "We remain committed to achieving the growth plans
that we previously discussed. They include expanding in select locations
that offer growth potential--in-store locations have provided a solid
stream of new checking accounts, deposits and loans. We also will
continue to focus on building core deposits, as well as rigorously
managing our lending portfolio to minimize risk and maximize income. And
finally, we'll leverage our collective experiences and skills to pursue
growth targets as appropriate."
About Citizens Community Bancorp, Inc.
Citizens Community Bancorp, Inc., based in Eau Claire, Wisconsin, is the
holding company for Citizens Community Federal, a federal savings
association operating 20 full-service banking offices in Wisconsin,
Minnesota and Michigan. Please visit us online at www.citizenscommunityfederal.net.
Except for historical information contained herein, the matters
contained in this news release and other information in the Company's
SEC filings, may express "forward looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties, including statements that are other than
statements of historical facts. The risks and uncertainties that may
affect the operations, performance, development, growth projections and
results of the Company's business include, but are not limited to, the
growth of the economy, interest rate movements, timely development by
the Company of technology enhancements for its products and operating
systems, the impact of the Company to successfully integrate acquired
companies, Congressional legislation, changes in regulatory or generally
accepted accounting principles and similar matters. Readers are
cautioned not to place undue reliance on forward-looking statements that
are subject to influence by the named risk factors and unanticipated
future events. Actual results, accordingly, may differ materially from
management expectations.
Citizens Community does not undertake, and specifically disclaims, any
obligation to publicly release the results of any revisions which may be
made to any forward-looking statements to reflect the occurrence of
anticipated and unanticipated events or circumstances after the date of
such statements.
CITIZENS COMMUNITY BANCORP, INC.
SELECTED FINANCIAL
INFORMATION - UNAUDITED
(in thousands, except per share data)
December 31, 2008 September 30, 2008
Selected Financial Condition Data
Total Assets $ 487,562 $ 480,036
Cash and Cash equivalents $ 15,107 $ 23,666
Securities available-for-sale (at fair $ 58,195 $ 61,776
value)
Loans receivable $ 383,633 $ 369,710
Allowance for Loan Losses ($1,326 ) ($1,192 )
Deposits $ 315,711 $ 297,243
Federal Home Loan Bank Advances $ 102,775 $ 110,245
Total Equity $ 65,260 $ 68,476
Three Months Ended December 31,
2008 2007
Selected Operations Data
Total Interest and Dividend Income $ 7,391 $ 6,262
Interest expense $ 3,811 $ 3,344
Net Interest Income $ 3,580 $ 2,918
Provision for loan losses $ 267 $ 165
Net Interest Income After Provision For Loan $ 3,313 $ 2,753
Loss
Total Noninterest Income $ 477 $ 428
Total Noninterest Expense $ 3,317 $ 2,434
Income before provision for income tax $ 473 $ 747
Provision for income taxes $ 207 $ 292
Net Income $ 266 $ 455
Per Share Information
Basic Earnings $ 0.05 $ 0.07
Diluted Earnings $ 0.05 $ 0.07
Dividends Paid $ 0.05 $ 0.05
December 31, September 30,
2008 2008
($ in thous) ($ in thous)
Asset Quality as of the period ended
Non-performing loans (NPLs) $ 4,415 $ 3,255
NPLs as a percent of total loans 1.15 % 0.88 %
Non-performing Assets (NPAs) $ 4,440 $ 3,255
NPAs as a percent of total assets 0.91 % 0.68 %
Allowance for loan losses $ 1,326 $ 1,192
Allowance for loan losses as a percent of loans 0.35 % 0.32 %
Allowance for loan losses as a percent of NPLs 30.03 % 36.62 %
Net charge offs for 3 months ended $ 132 $ 114
Annualized net charge offs to average loans for
the 3 months ended December 31, 2008, and Sept. 0.14 % 0.14 %
30, 2008
Source: Citizens Community Bancorp, Inc.
Contact: Citizens Community Bancorp, Inc.
John Zettler, 715-836-9994 x109
Senior Vice President and Chief Financial Officer