Citizens Community Bancorp, Inc. reported its financial results for the second quarter and first half of 2026, revealing a decline in net income compared to the same periods in 2025. For the three months ended June 30, 2026, the company recorded net income of $1.1 million, or $0.11 per diluted share, down from $3.3 million, or $0.33 per diluted share, in the prior year. For the six months, net income was $4.9 million, or $0.50 per diluted share, compared to $6.5 million, or $0.65 per diluted share, in 2025. The decrease in profitability was attributed to a significant increase in the provision for credit losses, which rose to $4.3 million in the second quarter from $1.4 million in the same quarter last year.

Total interest income for the second quarter of 2026 was $22.0 million, slightly lower than the $22.5 million reported in the same quarter of 2025. The decrease was primarily due to a reduction in interest income from loans, which fell to $19.3 million from $20.1 million, influenced by higher nonaccrual loan balances and a one-time loan payoff income recognized in the previous year. Interest expense also decreased, contributing to a net interest income of $13.5 million for the quarter, a modest increase from $13.3 million in the prior year. The company’s net interest margin decreased to 3.22% from 3.27% year-over-year.

On the operational front, Citizens Community Bancorp saw its total loans increase to $1.38 billion as of June 30, 2026, up from $1.34 billion at the end of 2025. The growth in loans was driven by a rise in commercial real estate lending, which accounted for 52.8% of the total loan portfolio. The company also reported a total deposit increase of $30.3 million during the first half of 2026, reaching $1.55 billion, with significant contributions from commercial and public deposits. The composition of deposits remained stable, with consumer deposits making up 57% of the total.

The company’s allowance for credit losses on loans increased to $25.9 million, representing 1.87% of total loans, compared to $22.4 million, or 1.67%, at the end of 2025. This increase was largely due to a net rise in specific reserves on nonaccrual loans. The total nonperforming assets also rose to $32.4 million, up from $16.7 million at the end of 2025, primarily due to new nonaccrual loans and the repurchase of delinquent government loans. Looking ahead, Citizens Community Bancorp remains focused on managing its credit risk and maintaining adequate capital levels, as it continues to navigate a challenging economic environment.

About Citizens Community Bancorp Inc.

Citizens Community Bancorp, Inc. is a bank holding company that owns Citizens Community Federal N.A., a community bank serving Wisconsin and Minnesota. It offers commercial, agricultural, residential, and consumer banking services through 22 branches. The company focuses on small-business and individual customers, providing loans, deposit products, and investment securities, with core strengths in local market expertise, regulatory compliance, and community engagement.

This description was generated via AI from an annual report. Updated about 1 year ago.

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