Citizens Community Bancorp Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Citizens Community Bancorp Inc. has submitted its annual financial report for the fiscal year ended December 31, 2023.</b>

AI Summary

Citizens Community Bancorp Inc. (CZWI) filed a Annual Report (10-K) with the SEC on March 5, 2024. Citizens Community Bancorp Inc. filed its 2023 Form 10-K on March 5, 2024. The filing covers the fiscal year ending December 31, 2023. The company is classified under SIC code 6035 for Savings Institutions, Federally Chartered. Its principal business address is in Eau Claire, Wisconsin. The SEC file number associated with this filing is 001-33003.

Why It Matters

For investors and stakeholders tracking Citizens Community Bancorp Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial performance, operations, and risk factors for the past fiscal year, crucial for investors and stakeholders to assess its current standing and future prospects. As a federally chartered savings institution, the detailed disclosures within this report are essential for understanding its regulatory compliance, market position, and strategic direction within the banking sector.

Risk Assessment

Risk Level: medium — Citizens Community Bancorp Inc. shows moderate risk based on this filing. The company operates in the highly regulated banking sector, which presents inherent risks related to economic downturns, interest rate fluctuations, and compliance requirements, as detailed in its risk factors.

Analyst Insight

Review the detailed financial statements and risk factor disclosures in the 10-K to understand the company's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-05 — Filing Date (Date of submission)
• 001-33003 — SEC File Number (SEC registration identifier)

Key Players & Entities

• Citizens Community Bancorp Inc. (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-03-05 (date) — Filing date
• Eau Claire, WI (location) — Business address
• 001-33003 (other) — SEC file number
• 6035 (other) — Standard Industrial Classification

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company operates in a highly regulated industry, subject to extensive federal and state laws and regulations that can impact its operations and profitability.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's net interest income and the market value of its investments and liabilities.
• Economic Conditions [medium — market]: Deterioration in general economic conditions, particularly in its primary market areas, could adversely affect loan demand, credit quality, and overall financial performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-05: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.01 — he registrant's common stock, par value $0.01 per share, outstanding. DOCUMENTS INC
• $1.851 billion — December 31, 2023, we had approximately $1.851 billion in total assets, $1.519 billion in depo
• $1.519 billion — imately $1.851 billion in total assets, $1.519 billion in deposits, and $173.3 million in equi
• $173.3 million — assets, $1.519 billion in deposits, and $173.3 million in equity. Unless otherwise noted herei
• $51.1 m — tal cash consideration of approximately $51.1 million, subject to certain post-closing
• $2.3 m — premium of 7 percent, or approximately $2.3 million, net of selling costs. The branch
• $34 million — The branch sale included approximately $34 million in deposits and $300,000 in fixed asset
• $300,000 — proximately $34 million in deposits and $300,000 in fixed assets. The Bank retained all
• $1.465 b — ed loans, as of December 31, 2023, were $1.465 billion, consisting of $1.173 billion in
• $1.173 billion — 023, were $1.465 billion, consisting of $1.173 billion in commercial/agricultural real estate
• $147.4 million — mercial/agricultural real estate loans, $147.4 million in C&I/agricultural operating loans, $1
• $131.9 million — on in C&I/agricultural operating loans, $131.9 million in residential mortgage loans and $12.7
• $12.7 million — llion in residential mortgage loans and $12.7 million in consumer installment loans. See Item
• $1.253 billion — including interest bearing deposits of $1.253 billion and non-interest bearing deposits of $0
• $0.266 billion — on and non-interest bearing deposits of $0.266 billion. Borrowings. In addition to our primar

Filing Documents

• czwi-20231231.htm (10-K) — 4593KB
• ex1017.htm (EX-10.17) — 4KB
• ex1018.htm (EX-10.18) — 4KB
• czwi-20231231xex21.htm (EX-21) — 4KB
• czwi-20231231xex231.htm (EX-23.1) — 2KB
• czwi-20231231xex311.htm (EX-31.1) — 10KB
• czwi-20231231xex312.htm (EX-31.2) — 10KB
• czwi-20231231xex321.htm (EX-32.1) — 7KB
• czwi-20231231_g1.jpg (GRAPHIC) — 8KB
• eblogoresized.jpg (GRAPHIC) — 8KB
• ex1017001.jpg (GRAPHIC) — 236KB
• ex1017002.jpg (GRAPHIC) — 74KB
• ex1018001.jpg (GRAPHIC) — 236KB
• ex1018002.jpg (GRAPHIC) — 74KB
• 0001367859-24-000046.txt (&nbsp;) — 24390KB
• czwi-20231231.xsd (EX-101.SCH) — 114KB
• czwi-20231231_cal.xml (EX-101.CAL) — 220KB
• czwi-20231231_def.xml (EX-101.DEF) — 723KB
• czwi-20231231_lab.xml (EX-101.LAB) — 1474KB
• czwi-20231231_pre.xml (EX-101.PRE) — 1126KB
• czwi-20231231_htm.xml (XML) — 5131KB

BUSINESS

BUSINESS 6 ITEM 1A.

RISK FACTORS

RISK FACTORS 12 ITEM 1B. UNRESOLVED STAFF COMMENTS 20 ITEM 1C CYBERSECURITY 20 ITEM 2.

PROPERTIES

PROPERTIES 21 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 21 ITEM 4. MINE SAFETY DISCLOSURES 21 PART II 21 ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 21 ITEM 6. RESERVED 22 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 51 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 54 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 114 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 114 ITEM 9B. OTHER INFORMATION 115 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION 115 PART III 116 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 116 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 116 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 116 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 116 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 117 PART IV 117 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 117

SIGNATURES

SIGNATURES 120 3 As used in this report, the terms "we," "us," "our," "Citizens Community Bancorp" and the "Company" mean Citizens Community Bancorp, Inc. and its wholly owned subsidiary, Citizens Community Federal N.A., unless the context indicates another meaning. As used in this report, the term "Bank" means our wholly owned subsidiary, Citizens Community Federal N.A.

Forward-Looking Statements

Forward-Looking Statements Certain matters discussed in this Annual Report on Form 10-K contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Company intends that these forward-looking statements be covered by the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "estimates," "intend," "may," "preliminary," "planned," "potential," "should," "will," "would," or the negative of those terms or other words of similar meaning. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are inherently subject to many uncertainties in the Company's operations and business environment. Factors that could affect actual results or outcomes include the matters described under the caption "Risk Factors" in Item 1A of this report and the following: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets

BUSINESS

ITEM 1. BUSINESS General Citizens Community Bancorp, Inc. (the "Company") is a Maryland corporation organized in 2004. The Company is a bank holding company and is subject to regulation by the Office of the Comptroller of the Currency ("OCC") and by the Federal Reserve Bank. Our primary activities consist of holding the stock of our wholly-owned subsidiary bank, Citizens Community Federal N.A. (the "Bank"), and providing commercial, agricultural and consumer banking activities through the Bank. At December 31, 2023, we had approximately $1.851 billion in total assets, $1.519 billion in deposits, and $173.3 million in equity. Unless otherwise noted herein, all monetary amounts in this report, other than share, per share and capital ratio amounts, are stated in thousands. Citizens Community Federal N.A. The Bank is a federally chartered National Bank serving customers in Wisconsin and Minnesota through 23 full-service branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, Agricultural operators and consumers, including one-to-four family residential mortgages. Acquisitions On August 18, 2017, the Company completed its merger with Wells Financial Corporation ("WFC"), pursuant to the merger agreement, dated March 17, 2017. At that time, the separate corporate existence of WFC ceased, and the Company survived the merger. In connection with the merger, the Company caused Wells Federal Bank to merge with and into the Bank, with the Bank surviving the merger. The merger expanded the Bank's market share in Mankato and southern Minnesota, along with expanded services through Wells Insurance Agency, Inc. ("WIA"). WIA provided insurance products to the Bank's customers and was sold on June 30, 2020. On October 19, 2018, the Company completed its acquisition of United Bank

View Full Filing

View this 10-K filing on SEC EDGAR