Citizens Community Bancorp, Inc. Reports Fiscal Second Quarter, First Half 2014 Earnings,
Quarterly Performance Demonstrates Year-Over-Year Earnings Growth and Asset Quality Improvement
Eau Claire, WI, April 25, 2014 – Citizens Community Bancorp, Inc. (NasdaqGM: CZWI) (the "Company"), parent company of Citizens Community Federal (the “Bank”), a financial institution offering full-service retail banking and commercial lending, today announced unaudited financial results for the fiscal second quarter and six months ended March 31, 2014. The Bank's results reflected year-over-year earnings growth, an increase in non-interest income and improved asset quality.
For the three months ended March 31, 2014, net income was $321,000 or $0.06 per diluted share, compared with $333,000 or $0.06 per diluted share for the three months ended March 31, 2013. For the six months ended March 31, 2014, net income was $624,000 or $0.12 per diluted share, compared with $593,000 or $0.12 per diluted share for the six months ended March 31, 2013, a 5.2% year-over-year earnings improvement during the year to date period. As previously announced, the Bank closed two in-store branch offices during the fiscal first quarter of 2014 at a cost of $359,000. During the fiscal second quarter of 2014, additional fees were incurred in the amount of $34,000 relating to these branch closures and the sale of the Wisconsin Dells branch loans and deposits. Excluding these branch closure and sale costs, net income during the fiscal first half of 2014, was $859,800 or $0.17 per diluted share calculated as follows:
Fiscal 2014, Six Months ended, March 31, 2014
Net income after tax
Branch closure costs after tax ($393,000*.60)
Net income excluding branch closure costs
Fiscal 2014, Six Months ended, March 31, 2014
Average shares of common stock outstanding
Earnings per diluted share of common stock
The Company's focus on improving asset quality was reflected in the fiscal second quarter balance sheet improvements. During the fiscal second quarter of 2014, the Bank sold the entire remaining balance of the non-agency residential mortgage-backed securities (MBS) portfolio, which had a book value of $1.5 million. Although the non-agency residential MBS were sold at a loss of $183,000, Management determined that it was not likely the Bank would collect all amounts due according to the contractual terms of the securities and that further deterioration in the securities was likely.
Non-interest income, excluding valuation losses, was $773,000 for the fiscal second quarter of 2014 compared to $669,000 for the fiscal second quarter of 2013. Gross fee income for the fiscal second quarter of 2014 was $587,000, an increase of $91,000 or 18.3% over the amount of gross fee income during the fiscal second quarter of 2013.
Non-performing loan balances as of March 31, 2014, decreased $940,000 or 36.0%, during the six months ended March 31, 2014 from their balances at September 30, 2013. At March 31, 2014, the Company's allowance for loan losses to total non-performing loans was 377.5% compared to 237.0% as of September 30, 2013. Non-performing loans as a percentage of total loans declined from 0.59% as of September 30, 2013 to 0.38% as of March 31, 2014.
Edward H. Schaefer, President and CEO, stated: “Our results reflect an ongoing commitment to focus on our most productive assets and markets, generate growth with greater efficiency, strengthen our balance sheet and generate shareholder value. We were able to maintain our net interest margin and at the same time, reduce income volatility with the sale of the remaining securities in the non-agency MBS portfolio. Net income remained relatively stable despite the impact of fewer days in the quarter, and we were able to double the annual cash dividend paid to our shareholders from $0.02 per share in fiscal 2013 to $0.04 per share in fiscal 2014. Our commercial lending and relationship business banking continues to expand with the introduction of agricultural lending products."
The following information was filed by Citizens Community Bancorp Inc. (CZWI) on Friday, April 25, 2014 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.