Citizens Community Bancorp Reports Q2 2025 Financial Results with $3.3 Million Net Income

Citizens Community Bancorp, Inc. reported its financial results for the second quarter and first half of 2025, revealing a net income of $3.3 million, or $0.33 per diluted share, compared to $3.7 million, or $0.35 per diluted share, in the same period of 2024. For the six months ended June 30, 2025, net income was $6.5 million, down from $7.8 million in the prior year. The company's total interest income for the second quarter was $22.5 million, slightly up from $22.5 million in the previous year, while total interest expense decreased to $9.2 million from $10.9 million, resulting in a net interest income of $13.3 million, an increase from $11.6 million year-over-year.

The bank's total assets decreased to $1.74 billion as of June 30, 2025, from $1.75 billion at the end of 2024. Total loans receivable also saw a decline, falling to $1.35 billion from $1.37 billion, primarily due to a reduction in the commercial real estate and agricultural real estate loan segments. The allowance for credit losses on loans increased to $21.3 million, representing 1.59% of total loans, compared to $20.5 million, or 1.50%, at the end of 2024. The provision for credit losses for the second quarter was $1.35 million, contrasting with a negative provision of $1.53 million in the same quarter of the previous year.

In terms of operational developments, Citizens Community Bancorp has maintained a focus on enhancing its liquidity position, with cash and cash equivalents increasing to $67.5 million from $50.2 million at the end of 2024. The bank's total deposits decreased to $1.48 billion, down from $1.49 billion, largely due to a reduction in brokered deposits. The composition of deposits remained stable, with consumer deposits making up 58% of the total. The bank's capital ratios indicate a strong position, with a total capital ratio of 15.7% and a Tier 1 capital ratio of 14.4%, both exceeding regulatory requirements.

Looking ahead, the bank anticipates continued challenges in the economic environment, particularly with rising interest rates and potential impacts on loan performance. Management remains focused on monitoring credit quality and adjusting the allowance for credit losses as necessary. The bank's strategy includes maintaining a diversified loan portfolio and enhancing its deposit base to support future growth. The board has also authorized a new stock repurchase program, allowing for the repurchase of up to 5% of outstanding shares, reflecting confidence in the bank's long-term prospects.