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
second quarter ended March 31, 2009.
For the second quarter, the Company reported net income of $193,000,
versus net income of $246,000 for the prior-year second quarter. Net
income for the six months ended March 31, 2009, totaled $459,000, versus
$701,000 for the prior-year six months.
The fiscal 2009 second-quarter and six-month decreases resulted mainly
from two factors. First, the Company increased its 2009 second-quarter
provision for loan losses by $178,000 to $374,000 for the fiscal 2009
period. For the six months, Citizens' loan loss provision rose by
$280,000 to $641,000, versus the fiscal 2008 six months. Both increases
were due to the current economic environment. The second factor was
planned increases in salaries and benefits, occupancy and other expenses
associated with the Company's continued growth, primarily the openings
of Citizens' Walmart supercenter branches.
Said James Cooley, president and chief executive officer of Citizens
Community Bancorp, Inc., "The in-store Walmart branches that we opened
in 2008 are now maturing--and our new locations are continuing to gain
traction with customers. Management is optimistic that our Walmart
locations will contribute improvements to Citizens' bottom line by the
end of calendar 2009."
On a basic and diluted per-share basis, Citizens Community Bancorp,
Inc., reported fiscal 2009 second-quarter earnings of $0.04 per share,
consistent with earnings of $0.04 per share for the year-earlier second
quarter. For the six months, the Company reported basic and diluted
earnings of $0.08 per share, versus basic and diluted earnings of $0.11
per share in 2008. The decline was due to the factors detailed above.
Net interest income for the quarter ended March 31, 2009, totaled $3.8
million, up 26.7 percent from $3.0 million for the prior-year period.
For the six-months, net interest income was $7.3 million, compared to
$5.9 million for the prior-year six-month period. Largely responsible
for both gains was a rise in the average balance of interest-earning
assets, partially offset by a rise in the average balance of
interest-bearing liabilities, combined with an increase in the net
interest spread as a result of the cost of interest-bearing liabilities
declining at a faster pace than the earnings yield of interest-earning
assets. The net interest spread increased from 2.29 percent for the
prior six-month period to 2.74 percent for the six months ended March
31, 2009.
Fiscal 2009 second-quarter, non-interest income was $476,000, up from
$387,000 for the year-earlier period. For the six months, non-interest
income was $953,000, versus $815,000 for the prior-year six months. The
increase for both periods was primarily the result of service charges on
deposit accounts that were generated from core deposit growth (core
deposits include all deposits excluding CDs) at the Company's Walmart
in-store locations.
Non-interest expense was $3.6 million for the fiscal 2009 second
quarter, compared to $2.7 million for the year-earlier period.
Sequentially, non-interest expense rose from $3.3 million in the fiscal
2009 first quarter. For the six months, non-interest expense was $6.9
million compared to $5.2 million for the prior-year period. The 2009
second-quarter and six-month year-over-year increases resulted, again,
mainly from the planned growth costs associated with the Company's
Walmart supercenter branch expansions. These expansions strongly
contributed to deposit and loan growth.
Deposits grew to $342.2 million at March 31, 2009, from $315.7 million
at December 31, 2008, and $297.2 million at September 30, 2008. The
$26.5 million sequential quarterly increase was the result of growth in
new core deposits and certificates of deposit. $21.4 million of the gain
came from total deposit growth at the Company's Walmart supercenter
branch locations--of that amount, $14.2 million was core deposit growth.
For the six-month period, deposits rose by $45.0 million to $342.2
million, compared to $297.2 million at September 30, 2008. Of the gain,
$35.2 million--which included $25.0 million in core deposits--was from
Citizens' new Walmart branches.
Total assets rose to $507.5 million at March 31, 2009, from $487.6
million at December 31, 2008, and $480.0 million at September 30, 2008.
The sequential quarterly gain was primarily due to a $16.9 million
increase in loans receivable during the second quarter--of which, $16.2
million was generated through the Company's new Walmart in-store
branches. For the six months, loans receivable rose by $30.8 million to
$400.5 million, from $369.7 million at September 30, 2008. Of the
increase, $24.1 million was generated through Citizens' Walmart
locations.
Total equity was $62.2 million at March 31, 2009, compared to $65.3
million at December 31, 2008, and $68.5 million at September 30, 2008.
The decreases for both periods were due to: the buyback of shares under
Citizens' previously announced share repurchase program (since September
2007, the Company has repurchased 1.6 million of its common shares);
dividends paid; and increases in the unrealized loss of investment
securities available for sale related to the revaluation of the
Company's MBS portfolio. The Company does not believe there was any
other than temporary impairment of these securities at March 31, 2009.
The Company's non-performing assets were $4.8 million at March 31, 2009,
or 0.94 percent of total assets. This was up from $3.3 million, or 0.68
percent of total assets, at September 30, 2008, and $4.4 million, or
0.91 percent, at December 31, 2008. The increases since September 30,
2008, and March 31, 2008, 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 based on 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 March 31, 2009, were
$156,000, versus $132,000 at December 31, 2008, and $111,000 at March
31, 2008. The annualized net charge-offs to average loans receivable was
0.16 percent for the three months ended March 31, 2009, compared to 0.14
percent for the December period, and 0.13 percent for the three months
ended March 31, 2008.
Net charge-offs for the six months ended March 31, 2009, were $288,000,
versus $219,000 for the six months ended March 31, 2008. The annualized
net charge-offs to average loans receivable was 0.15 percent for the six
months ended March 31, 2009, compared to 0.13 percent for the six months
ended March 31, 2008. The Company's net charge-offs, while up slightly
from year-earlier levels, remain at levels considerably below comparable
peer company norms.
Said Cooley, "Citizens continues to be profitable and deliver asset,
loan and deposit growth. We're particularly pleased with these
achievements given current economic conditions and uncertainties.
Equally important, we put our customers first and make superior service
a priority for the Company. As we expand into an additional four Walmart
supercenters, as previously announced, we'll grow our footprint in the
Upper Midwest and offer customers added convenience with more locations."
Business Update
Consistent with the fiscal 2009 first quarter, Citizens saw a continuing
trend of one- to four-family residential real-estate appraisals being
adversely impacted by the current economic crisis during the second
quarter. As a result, new loans being considered for approval, which
otherwise met Citizens' underwriting criteria, were not approved.
Despite this trend, the Company's overall loan volume is ahead of
previous periods, being driven by its new Walmart supercenter locations.
Citizens continued its Walmart branch expansion strategy. Recently, the
Company opened new branches in Walmart supercenters in Menomonie, and
Neenah, Wis. These new full-service locations mark the first two of
Citizens' six, previously announced, planned branch openings in calendar
2009. The Company also will, as previously announced, open Citizens
Community Federal branches in the following Walmart supercenter
locations: Plover, Shawano, and Wisconsin Rapids, Wis.; and Oak Park
Heights, Minn.
As of March 31, 2009, the Company's Walmart in-store locations have
delivered:
-- Total new deposits since March 3, 2008, of $53.7 million--of this, $36.3
million was core deposits; and
-- Total loan originations since March 3, 2008, of $30.2 million--of this,
$8.4 million consists of real estate loans and $24.8 million of consumer
loans.
According to Cooley, 10 out of the 12 Citizens Walmart branches were
opened after July 1, 2008.
Concluded Cooley, "Our focus as a financial institution is on building
core deposits, as well as rigorously managing our lending portfolio to
minimize risk and maximize income. Our expansion into in-store locations
is consistent with that strategy and continues to provide a solid stream
of new checking accounts, deposits and loans."
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 22 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)
March 31, 2009 September 30, 2008
Selected Financial Condition Data
Total Assets $507,514 $480,036
Cash and Cash equivalents $18,685 $23,666
Securities available-for-sale (at fair $56,600 $61,776
value)
Loans receivable $400,472 $369,710
Allowance for Loan Losses ($1,544) ($1,192)
Deposits $342,206 $297,243
Federal Home Loan Bank Advances $99,225 $110,245
Total Equity $62,181 $68,476
Three Months Ended Six Months Ended
March 31, March 31,
2009 2008 2009 2008
Selected Operations Data
Total Interest and Dividend Income $7,458 $6,438 $14,849 $12,700
Interest expense $3,701 $3,464 $7,512 $6,808
Net Interest Income $3,757 $2,974 $7,337 $5,892
Provision for loan losses $374 $196 $641 $361
Net Interest Income After Provision For $3,383 $2,778 $6,696 $5,531
Loan Loss
Total Noninterest Income $476 $387 $953 $815
Total Noninterest Expense $3,552 $2,738 $6,869 $5,172
Income before provision for income tax $307 $427 $780 $1,174
Provision for income taxes $114 $181 $321 $473
Net Income $193 $246 $459 $701
Per Share Information
Basic Earnings $0.04 $0.04 $0.08 $0.11
Diluted Earnings $0.04 $0.04 $0.08 $0.11
Dividends Paid $0.05 $0.05 $0.10 $0.10
March 31, September 30,
2009 2008
($ in thous) ($ in thous)
Asset Quality as of the period ended
Non-performing loans (NPLs) $4,444 $3,255
NPLs as a percent of total loans 1.11% 0.88%
Non-performing Assets (NPAs) $4,766 $3,255
NPAs as a percent of total assets 0.94% 0.68%
Allowance for loan losses $1,544 $1,192
Allowance for loan losses as a percent of loans 0.39% 0.32%
Allowance for loan losses as a percent of NPLs 34.74% 36.62%
March 31, March 31,
2009 2008
Net Charge-offs as of period ended
Net charge-offs for the 3 months ended $156 $111
Net charge-offs for the 6 months ended $288 $219
Annualized net charge-offs to average loans for the 0.16% 0.13%
3 months ended
Annualized net charge-offs to average loans for the 0.15% 0.13%
6 months ended
Source: Citizens Community Bancorp, Inc.
Contact: Citizens Community Bancorp, Inc.
John Zettler, 715-836-9994 x109
Senior Vice President and Chief Financial Officer