Citizens Community Bancorp Reports Q1 2025 Financial Results with $3.2 Million Net Income

Citizens Community Bancorp, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $3.2 million, or $0.32 per diluted share, a decrease from $4.1 million, or $0.39 per diluted share, in the same period last year. The company's total interest income fell to $21.1 million from $22.7 million, primarily due to a reduction in the loan portfolio and lower asset yields. Net interest income before provision for credit losses was $11.6 million, down from $11.9 million in the prior year, reflecting a smaller loan portfolio and a temporary increase in lower-yielding cash balances.

The company's total assets increased to $1.78 billion as of March 31, 2025, compared to $1.75 billion at the end of 2024. This growth was driven by a rise in cash and cash equivalents, which reached $100.2 million, up from $50.2 million. Total loans receivable decreased to $1.35 billion from $1.37 billion, with a notable decline in commercial and industrial loans. The allowance for credit losses on loans was $20.2 million, slightly down from $20.5 million, reflecting a negative provision for credit losses of $0.3 million for the quarter.

In terms of operational developments, the bank's total deposits rose to $1.52 billion, an increase of $35.5 million from the previous quarter. This growth was attributed to seasonal inflows in public deposits and increases in both consumer and commercial deposits. The bank's capital ratios remained strong, with a Tier 1 capital ratio of 14.3%, indicating that it is well-capitalized under regulatory standards. The bank continues to focus on managing its interest rate risk and liquidity, with significant borrowing capacity available through the Federal Home Loan Bank.

Looking ahead, Citizens Community Bancorp anticipates challenges related to market conditions and interest rate fluctuations, which could impact its loan portfolio and overall financial performance. The bank's management remains committed to monitoring economic conditions and adjusting its strategies accordingly to maintain stability and growth. The company is also focused on enhancing its operational efficiency and customer engagement to drive future profitability.