EAU CLAIRE, Wis., April 29, 2024 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $4.1 million and earnings per diluted share of $0.39 for the first quarter ended March 31, 2024, compared to $3.7 million and $0.35 per diluted share for the fourth quarter ended December 31, 2023, and $3.7 million and $0.35 per diluted share for the first quarter ended March 31, 2023, respectively.
The Company’s first quarter 2024 operating results reflected the following changes from the fourth quarter of 2023: (1) an increase in net interest income largely due to interest income of $0.6 million principally from nonaccrual payoffs partially offset by a lower average balance of non-interest bearing commercial checking deposits and a modest increase in net liability costs; (2) a $0.15 million increase in negative provision for credit losses to $0.8 million in the first quarter, due to a decrease in the allowance for credit losses (“ACL”) on individually evaluated loans, net recoveries, and reductions in commitments to fund construction loans; (3) higher non-interest income due to $0.8 million from higher gains on the sale of loans, principally SBA loans; and (4) $0.6 million higher non-interest expense largely due to $0.4 million in higher compensation expense and higher professional fees of $0.2 million. During the first quarter, non-interest expense included establishment of a $0.4 million SBA recourse reserve. This first quarter expense approximated the write-down of a closed branch in the fourth quarter.
Book value per share was $16.61 at March 31, 2024, compared to $16.60 at December 31, 2023, and $15.70 at March 31, 2023. Tangible book value per share (non-GAAP)1 was $13.43 at March 31, 2024, compared to $13.42 at December 31, 2023, and an 8% increase from $12.48 at March 31, 2023. For the first quarter of 2024, tangible book value was positively influenced by net income and intangible amortization, partially offset by the payment of the annual cash dividend of $0.32 per share and a modest increase in the unrealized loss on the available for sale (“AFS”) securities portfolio, reflected in accumulated other comprehensive income (“AOCI”). The increase in the AOCI loss was largely due to an increase in the ten-year U.S. Treasury rate to 4.20% at March 31,2024 compared to 3.88% at December 31, 2023. Stockholders’ equity as a percent of total assets was 9.50% at March 31, 2024, compared to 9.36% at December 31, 2023. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 was 7.83% at March 31, 2024, compared to 7.71% at December 31, 2023, with the changes above impacted favorably by asset shrinkage.
“The quarter was highlighted by asset quality improvement, deposit growth and strong non-interest income from SBA loan sales. Nonperforming assets decreased 31% with criticized assets decreasing 25%. We realized net loan recoveries for the fourth consecutive quarter. The allowance for credit losses remains strong at 1.55% of total loans and we recorded a negative provision of $0.8 million due to improving credit quality. Deposits grew for the fourth quarter in a row reflecting our emphasis on new customer growth and customer retention. This steady deposit growth of 6% or $91 million since March 31, 2023, has reduced our use of wholesale funding. We see this trend continuing which will be supported by an expected one to three percent decrease in total loans during 2024,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer. He continued, “Our TCE ratio increased to 7.83%, and with future net income and 2024 asset shrinkage, will provide flexibility to consider share repurchases under the current buyback authorization.”
March 31, 2024, Highlights: (as of or for the 3-month period ended March 31, 2024, compared to December 31, 2023, and March 31, 2023.)
- Quarterly earnings were $4.1 million, or $0.39 per diluted share for the quarter ended March 31, 2024, an increase from the quarter ended December 31, 2023, earnings of $3.7 million or $0.35 per diluted share, and an increase from the quarter ended March 31, 2023, earnings of $3.7 million or $0.35 per diluted share.
- Net interest income increased $0.2 million to $11.9 million for the first quarter of 2024, from $11.7 million the previous quarter and decreased $0.9 million from the first quarter of 2023. The increase in net interest income from the fourth quarter of 2023 was due to interest income of $0.6 million recognized from nonaccrual payoffs, partially offset by a modest increase in net liability costs and a lower average balance of non-interest-bearing commercial checking deposits.
- The net interest margin without loan purchase accretion was 2.75% for the quarter ended March 31, 2024, compared to 2.67% for the previous quarter and 2.99% for the comparable quarter one year earlier. The first quarter 2024 net interest margin impact principally from nonaccrual payoffs, was $0.6 million, or approximately 13 basis points.
- In the first quarter ended March 31, 2024, a negative provision for credit losses of $0.80 million was recorded due to: (1) a decrease in the allowance for credit losses on individually evaluated loans of $0.5 million; 2) a reduction in the ACL on unfunded construction loan commitments; and 3) net loan recoveries. Provisions for credit losses totaled $0.05 million during the first quarter a year ago.
- Non-interest income increased $0.8 million due to higher gain on sale of loans compared to the fourth quarter and $1.0 million higher compared to the first quarter of 2023 due to higher gain on sales of loans and higher loan fees due to customer activity.
- Non-interest expenses increased $571 thousand to $10.8 million from $10.2 million for the previous quarter and increased $656 thousand from $10.1 million one year earlier. The increase in the current quarter was primarily related to compensation and related benefits and professional services.
- Gross loans decreased by $10.9 million during the first quarter ended March 31, 2024, to $1.45 billion from $1.46 billion at December 31, 2023. The decrease was largely due to criticized asset reductions, including a decrease in nonperforming assets of $4.8 million.
- Total deposits increased by $8.4 million during the first quarter ended March 31, 2024, to $1.53 billion from $1.52 billion at December 31, 2023. The increase in deposits reflects an increase in public and retail deposits offset by a decrease in brokered deposits. Total deposits increased despite seasonal commercial customer outflows in non-interest-bearing checking deposits.
- Federal Home Loan Bank advances were reduced $40.0 million to $39.5 million at March 31, 2024, from $79.5 million at December 31, 2023. The payoff of the advances was largely funded by deposit growth.
- The effective tax rate increased to 21.3% for the current quarter from 20.9% in the previous quarter and decreased from 25.5% one year earlier. The increase in the tax rate in the first quarter from the fourth quarter was primarily due to an increase in pre-tax income. The decrease in the tax rate from the first quarter of 2023 is due to the impact of the Wisconsin tax change approved in the third quarter of 2023.
- Nonperforming assets were $10.6 million at March 31, 2024, compared to $15.4 million at December 31, 2023. Nonperforming assets decreased primarily due to nonperforming loan payoffs of $5.4 million during the current quarter.
- Substandard loans decreased by $4.9 million to $14.7 million at March 31, 2024, compared to $19.6 million at December 31, 2023. The decrease was largely due to nonaccrual payoffs of $5.4 million in the current quarter.
- 50 thousand shares of common stock were repurchased in the first quarter of 2024 at $11.95 per share.
- In March, we notified our customers that we would be closing our St. Peter, Minnesota branch in late June 2024, and account balances will be transferred to our nearest branch which is 13 miles away. The estimated branch closure cost to be recognized in the second quarter is less than $0.2 million.
- The efficiency ratio was 71% for the quarter ended March 31, 2024, compared to 72% for the quarter ended December 31, 2023. The efficiency ratio benefited from higher net revenue.
Balance Sheet and Asset Quality
Total assets decreased modestly by $32.1 million during the quarter to $1.82 billion at March 31, 2024.
Cash and cash equivalents decreased $8.5 million during the quarter to $28.6 million at March 31, 2024, largely due to a decrease in clearing balances of $10.89 million partially offset by an increase in interest-bearing deposits at the Federal Reserve Bank of $5.5 million.
Securities available for sale decreased $4.0 million during the quarter ended March 31, 2024, to $151.7 million from $155.7 million at December 31, 2023. The decrease was due to principal repayments of $3.1 million and a decrease in the market value of the portfolio of $0.9 million.
Securities held to maturity decreased $1.3 million to $89.9 million during the quarter ended March 31, 2024, from $91.2 million at December 31, 2023, due to principal repayments.
On-balance sheet liquidity, collateralized new borrowing capacity and uncommitted federal funds borrowing availability was 263% of uninsured and uncollateralized deposits at March 31, 2024, and 244% at December 31, 2023.
On-balance sheet liquidity, collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $696.8 million at March 31, 2024, and $673.6 million at December 31, 2023.
Gross loans decreased by $10.9 million during the first quarter of 2024 largely due to a reduction in criticized assets. Multi-family loans increased by $7.4 million and commercial and industrial loans increased $6.8 million in the first quarter. Construction and land development loans decreased $17.4 million as completed construction project loans moved to their permanent loan category. This led to corresponding increases in commercial real estate portfolios, including multi-family. The reduction in criticized loans was primarily in commercial real estate loans, resulting in commercial real estate loans decreasing by $4.8 million during the first quarter.
The office loan portfolio totaled $39.5 million at quarter end and consists of 68 loans. There were no criticized loans in this portfolio and there have been no charge-offs in the trailing twelve months.
The allowance for credit losses on loans decreased by $0.5 million to $22.44 million at March 31, 2024, representing 1.55% of total loans receivable compared to 1.57% of total loans receivable at December 31, 2023. For the quarter ended March 31, 2024, the Bank recorded negative provision of $800 thousand which included a negative provision on ACL for unfunded commitments of $0.275 million and a negative provision of $0.525 million on ACL for loans.
Allowance for Credit Losses (“ACL”) - Loans Percentage
(in thousands, except ratios)
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||
| Loans, end of period | $ | 1,450,159 | $ | 1,460,792 | $ | 1,447,529 | $ | 1,424,988 | ||||||||
| Allowance for credit losses - Loans | $ | 22,436 | $ | 22,908 | $ | 22,973 | $ | 23,164 | ||||||||
| ACL - Loans as a percentage of loans, end of period | 1.55 | % | 1.57 | % | 1.59 | % | 1.63 | % | ||||||||
Allowance for Credit Losses - Unfunded Commitments:
(in thousands)
In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.975 million at March 31, 2024, and $1.250 million at December 31, 2023, classified in other liabilities on the consolidated balance sheets.
| March 31, 2024 and Three Months Ended | December 31, 2023 and Three Months Ended | March 31, 2023 and Three Months Ended | ||||||||||
| ACL - Unfunded commitments - beginning of period | $ | 1,250 | $ | 1,571 | $ | — | ||||||
| Cumulative effect of ASU 2016-13 adoption | — | — | 1,537 | |||||||||
| Additions (reductions) to ACL - Unfunded commitments via provision for credit losses charged to operations | (275 | ) | (321 | ) | (287 | ) | ||||||
| ACL - Unfunded commitments - end of period | $ | 975 | $ | 1,250 | $ | 1,250 | ||||||
Nonperforming assets decreased $4.8 million to $10.6 million, or 0.57% of total assets at March 31, 2024, compared to $15.4 million or 0.83% at December 31, 2023. The payoff of $5.4 million of nonaccrual loans in the current quarter was the primary reason for the reduction in nonperforming assets from December 31, 2023, partially offset by a slight increase in new nonaccrual loans.
| (in thousands) | ||||||||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||
| Special mention loan balances | $ | 13,737 | $ | 18,392 | $ | 20,043 | $ | 20,507 | $ | 6,636 | ||||||||||
| Substandard loan balances | 14,733 | 19,596 | 16,171 | 19,203 | 15,439 | |||||||||||||||
| Criticized loans, end of period | $ | 28,470 | $ | 37,988 | $ | 36,214 | $ | 39,710 | $ | 22,075 | ||||||||||
Special mention loans decreased $4.7 million from December 31, 2023, primarily due to the payoff of a $5.0 million special mention loan.
Substandard loans decreased by $4.9 million to $14.7 million at March 31, 2024, compared to $19.6 million at December 31, 2023. The decrease was largely due to the payoff of $5.4 million of nonaccrual loans in the current quarter.
Total deposits increased $8.4 million during the quarter ended March 31, 2024, to $1.53 billion. Seasonal public deposits grew $20.0 million while consumer deposits grew $12.4 million and commercial deposits decreased $9.7 million. Commercial deposits decreased due to seasonal outflow of non-interest-bearing deposits. Brokered deposits decreased $14.3 million due to brokered CD maturities not being replaced.
Deposit Portfolio Composition
(in thousands)
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||
| Consumer deposits | $ | 827,290 | $ | 814,899 | $ | 794,970 | $ | 790,404 | $ | 786,614 | ||||||||||
| Commercial deposits | 414,088 | 423,762 | 429,358 | 401,079 | 391,534 | |||||||||||||||
| Public deposits | 202,175 | 182,172 | 163,734 | 175,869 | 194,683 | |||||||||||||||
| Brokered deposits | 83,936 | 98,259 | 85,173 | 97,330 | 63,962 | |||||||||||||||
| Total deposits | $ | 1,527,489 | $ | 1,519,092 | $ | 1,473,235 | $ | 1,464,682 | $ | 1,436,793 | ||||||||||
Deposit Composition
(in thousands)
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | ||||||||||||||||
| Non-interest-bearing demand deposits | $ | 248,537 | $ | 265,704 | $ | 275,790 | $ | 261,876 | $ | 247,735 | ||||||||||
| Interest-bearing demand deposits | 361,278 | 343,276 | 336,962 | 358,226 | 390,730 | |||||||||||||||
| Savings accounts | 177,595 | 176,548 | 183,702 | 206,380 | 214,537 | |||||||||||||||
| Money market accounts | 387,879 | 374,055 | 312,689 | 288,934 | 309,005 | |||||||||||||||
| Certificate accounts | 352,200 | 359,509 | 364,092 | 349,266 | 274,786 | |||||||||||||||
| Total deposits | $ | 1,527,489 | 1,519,092 | $ | 1,473,235 | $ | 1,464,682 | $ | 1,436,793 | |||||||||||
At March 31, 2024, the deposit portfolio composition was 54% consumer, 27% commercial, 13% public and 6% brokered deposits compared to 54% consumer, 28% commercial, 12% public and 6% brokered deposits at December 31, 2023.
Uninsured and uncollateralized deposits were $265.1 million, or 17% of total deposits, at March 31, 2024, and $275.8 million, or 18% of total deposits, at December 31, 2023. Uninsured deposits alone at March 31, 2024, were $429.1 million, or 28% of total deposits, and $427.5 million, or 28% of total deposits at December 31, 2023.
Federal Home Loan Bank advances decreased $40.0 million to $39.5 million at March 31, 2024, from $79.5 million one quarter earlier, as deposit growth more than funded loan growth, allowing advances to be repaid.
The Company repurchased 50,000 shares of the Company’s common stock in the first quarter of 2024. As of March 31, 2024, approximately 152 thousand shares remain available for repurchase under the current share repurchase authorization.
Review of Operations
Net interest income increased to $11.9 million for the current quarter ended March 31, 2024, from $11.7 million for the quarter ended December 31, 2023, and decreased from $12.8 million for the quarter ended March 31, 2023. The increase in net interest income in the first quarter of 2024 reflected recognition of $0.6 million in interest income principally from nonaccrual payoffs. Partially offsetting the increased interest income was an increase in deposit costs which reflected a larger balance of interest-bearing deposits and a lower balance of non-interest commercial checking deposits due to seasonal commercial spending.
Net interest income and net interest margin analysis:
(in thousands, except yields and rates)
| Three months ended | |||||||||||||||||||||||||||||||||||
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||||||||||||||||||||||||||||
| Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | Net Interest Income | Net Interest Margin | ||||||||||||||||||||||||||
| As reported | $ | 11,905 | 2.77 | % | $ | 11,747 | 2.69 | % | $ | 12,121 | 2.79 | % | $ | 11,686 | 2.72 | % | $ | 12,795 | 3.02 | % | |||||||||||||||
| Less accretion for PCD loans | (75 | ) | (0.02 | )% | (37 | ) | (0.01 | )% | (39 | ) | (0.01 | )% | (39 | ) | (0.01 | )% | (37 | ) | (0.01 | )% | |||||||||||||||
| Less scheduled accretion interest | (33 | ) | (0.01 | )% | (33 | ) | (0.01 | )% | (77 | ) | (0.02 | )% | (85 | ) | (0.02 | )% | (84 | ) | (0.02 | )% | |||||||||||||||
| Without loan purchase accretion | $ | 11,797 | 2.74 | % | $ | 11,677 | 2.67 | % | $ | 12,005 | 2.76 | % | $ | 11,562 | 2.69 | % | $ | 12,674 | 2.99 | % | |||||||||||||||
For the first quarter ended March 31, 2024, provision for credit losses was a negative $0.8 million compared to negative $0.7 million the previous quarter. The negative provision in the first quarter reflected (1) a decrease in specific reserves of $0.5 million; (2) a reduction in commitments to fund construction loans; and (3) net recoveries. The fourth quarter 2023 provision for credit losses was a negative $0.7 million primarily due to (1) net recoveries; (2) net reductions in ACL and ACL unfunded commitments due to reductions in outstanding construction commitments; and (3) improved forecasted general economic conditions, partially offset by increases in specific reserves. The provision was $0.05 million during the first quarter a year ago.
Non-interest income increased to $3.3 million in the quarter ended March 31, 2024, compared to $2.5 million in the quarter ended December 31, 2023, and increased from $2.3 million in the quarter ended March 31, 2023. The increase from the fourth quarter of 2023 was largely due to higher gains on sale of SBA loans.
Total non-interest expense increased $0.6 million in the first quarter of 2024 to $10.8 million, compared to $10.2 million for the quarter ended December 31, 2023, and increased from $10.1 million for the quarter ended March 31, 2023. The increase in the first quarter of 2024 compared to the fourth quarter of 2023 was primarily due to higher compensation costs from the fourth quarter, largely due to first quarter payroll taxes and benefits and higher professional costs. In the first quarter of 2024, the creation of an SBA recourse reserve of $0.4 million offset branch closure expenses of $0.4 million recorded in the fourth quarter of 2023. The increase in non-interest expense in the first quarter of 2024 compared to the first quarter of 2023 was $0.7 million, which was largely due to the creation of the first quarter 2024 SBA recourse reserve of $0.4 million and the impact of annual employee raises effective late in the first quarter of 2023.
Provision for income taxes increased to $1.1 million in the first quarter of 2024 from $1.0 million in the fourth quarter of 2023. The effective tax rate was 21.3% for the quarter ended March 31, 2024, 20.9% for the quarter ended December 31, 2023, and 25.5% for the quarter ended March 31, 2023.
These financial results are preliminary until Form 10-Q is filed in May 2024.
About the Company
Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of the Bank, a national bank based in Altoona, Wisconsin, currently serving customers primarily in Wisconsin and Minnesota through 23 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, ag operators and consumers, including residential mortgage loans.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “on pace,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include: 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; our inability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2024 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release.
1 Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity, which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods.
Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position.
Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.
Contact: Steve Bianchi, CEO
(715)-836-9994
(CZWI-ER)
| CITIZENS COMMUNITY BANCORP, INC. Consolidated Balance Sheets (in thousands, except shares and per share data) | ||||||||||||||||
| March 31, 2024 (unaudited) | December 31, 2023 (audited) | September 30, 2023 (unaudited) | March 31, 2023 (unaudited) | |||||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 28,638 | $ | 37,138 | $ | 32,532 | $ | 65,050 | ||||||||
| Other interest bearing deposits | — | — | — | 249 | ||||||||||||
| Securities available for sale “AFS” | 151,672 | 155,743 | 153,414 | 173,423 | ||||||||||||
| Securities held to maturity “HTM” | 89,942 | 91,229 | 92,336 | 95,301 | ||||||||||||
| Equity investments | 3,281 | 3,284 | 2,433 | 2,151 | ||||||||||||
| Other investments | 13,022 | 15,725 | 15,109 | 17,428 | ||||||||||||
| Loans receivable | 1,450,159 | 1,460,792 | 1,447,529 | 1,420,955 | ||||||||||||
| Allowance for credit losses | (22,436 | ) | (22,908 | ) | (22,973 | ) | (22,679 | ) | ||||||||
| Loans receivable, net | 1,427,723 | 1,437,884 | 1,424,556 | 1,398,276 | ||||||||||||
| Loans held for sale | — | 5,773 | 2,737 | 761 | ||||||||||||
| Mortgage servicing rights, net | 3,774 | 3,865 | 3,944 | 4,120 | ||||||||||||
| Office properties and equipment, net | 18,026 | 18,373 | 19,465 | 20,197 | ||||||||||||
| Accrued interest receivable | 6,324 | 5,409 | 5,936 | 5,550 | ||||||||||||
| Intangible assets | 1,515 | 1,694 | 1,873 | 2,245 | ||||||||||||
| Goodwill | 31,498 | 31,498 | 31,498 | 31,498 | ||||||||||||
| Foreclosed and repossessed assets, net | 1,845 | 1,795 | 1,046 | 1,113 | ||||||||||||
| Bank owned life insurance (“BOLI”) | 25,836 | 25,647 | 25,467 | 25,118 | ||||||||||||
| Other assets | 16,219 | 16,334 | 18,741 | 18,240 | ||||||||||||
| TOTAL ASSETS | $ | 1,819,315 | $ | 1,851,391 | $ | 1,831,087 | $ | 1,860,720 | ||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||
| Liabilities: | ||||||||||||||||
| Deposits | $ | 1,527,489 | $ | 1,519,092 | $ | 1,473,235 | $ | 1,436,793 | ||||||||
| Federal Home Loan Bank (“FHLB”) advances | 39,500 | 79,530 | 114,530 | 182,530 | ||||||||||||
| Other borrowings | 67,523 | 67,465 | 67,407 | 67,300 | ||||||||||||
| Other liabilities | 11,982 | 11,970 | 10,513 | 9,536 | ||||||||||||
| Total liabilities | 1,646,494 | 1,678,057 | 1,665,685 | 1,696,159 | ||||||||||||
| Stockholders’ equity: | ||||||||||||||||
| Common stock— $0.01 par value, authorized 30,000,000; 10,406,880, 10,440,591, 10,468,091 and 10,482,821 shares issued and outstanding, respectively | 104 | 104 | 105 | 105 | ||||||||||||
| Additional paid-in capital | 118,916 | 119,441 | 119,612 | 119,327 | ||||||||||||
| Retained earnings | 71,831 | 71,117 | 67,424 | 61,720 | ||||||||||||
| Accumulated other comprehensive loss | (18,030 | ) | (17,328 | ) | (21,739 | ) | (16,591 | ) | ||||||||
| Total stockholders’ equity | 172,821 | 173,334 | 165,402 | 164,561 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,819,315 | $ | 1,851,391 | $ | 1,831,087 | $ | 1,860,720 | ||||||||
Note: Certain items previously reported were reclassified for consistency with the current presentation.
| CITIZENS COMMUNITY BANCORP, INC. Consolidated Statements of Operations (in thousands, except per share data) | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, 2024 (unaudited) | December 31, 2023 (unaudited) | March 31, 2023 (unaudited) | ||||||||||
| Interest and dividend income: | ||||||||||||
| Interest and fees on loans | $ | 20,168 | $ | 19,408 | $ | 17,126 | ||||||
| Interest on investments | 2,511 | 2,618 | 2,547 | |||||||||
| Total interest and dividend income | 22,679 | 22,026 | 19,673 | |||||||||
| Interest expense: | ||||||||||||
| Interest on deposits | 9,209 | 7,851 | 4,348 | |||||||||
| Interest on FHLB borrowed funds | 512 | 1,371 | 1,493 | |||||||||
| Interest on other borrowed funds | 1,053 | 1,057 | 1,037 | |||||||||
| Total interest expense | 10,774 | 10,279 | 6,878 | |||||||||
| Net interest income before provision for credit losses | 11,905 | 11,747 | 12,795 | |||||||||
| Provision for credit losses | (800 | ) | (650 | ) | 50 | |||||||
| Net interest income after provision for credit losses | 12,705 | 12,397 | 12,745 | |||||||||
| Non-interest income: | ||||||||||||
| Service charges on deposit accounts | 471 | 485 | 485 | |||||||||
| Interchange income | 541 | 581 | 551 | |||||||||
| Loan servicing income | 582 | 539 | 569 | |||||||||
| Gain on sale of loans | 1,020 | 191 | 298 | |||||||||
| Loan fees and service charges | 230 | 124 | 80 | |||||||||
| Net gains on investment securities | 167 | 277 | 56 | |||||||||
| Other | 253 | 283 | 253 | |||||||||
| Total non-interest income | 3,264 | 2,480 | 2,292 | |||||||||
| Non-interest expense: | ||||||||||||
| Compensation and related benefits | 5,483 | 5,139 | 5,338 | |||||||||
| Occupancy | 1,367 | 1,314 | 1,423 | |||||||||
| Data processing | 1,597 | 1,511 | 1,460 | |||||||||
| Amortization of intangible assets | 179 | 179 | 204 | |||||||||
| Mortgage servicing rights expense, net | 148 | 159 | 158 | |||||||||
| Advertising, marketing and public relations | 164 | 262 | 136 | |||||||||
| FDIC premium assessment | 205 | 204 | 201 | |||||||||
| Professional services | 566 | 371 | 505 | |||||||||
| Losses (gains) on repossessed assets, net | — | — | (29 | ) | ||||||||
| Other | 1,068 | 1,067 | 725 | |||||||||
| Total non-interest expense | 10,777 | 10,206 | 10,121 | |||||||||
| Income before provision for income taxes | 5,192 | 4,671 | 4,916 | |||||||||
| Provision for income taxes | 1,104 | 978 | 1,254 | |||||||||
| Net income attributable to common stockholders | $ | 4,088 | $ | 3,693 | $ | 3,662 | ||||||
| Per share information: | ||||||||||||
| Basic earnings | $ | 0.39 | $ | 0.35 | $ | 0.35 | ||||||
| Diluted earnings | $ | 0.39 | $ | 0.35 | $ | 0.35 | ||||||
| Cash dividends paid | $ | 0.32 | $ | — | $ | 0.29 | ||||||
| Book value per share at end of period | $ | 16.61 | $ | 16.60 | $ | 15.70 | ||||||
| Tangible book value per share at end of period (non-GAAP) | $ | 13.43 | $ | 13.42 | $ | 12.48 | ||||||
Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
(in thousands, except per share data)
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| GAAP pretax income | $ | 5,192 | $ | 4,671 | $ | 4,916 | ||||||
| Branch closure costs (1) | — | 380 | — | |||||||||
| Pretax income as adjusted (2) | $ | 5,192 | $ | 5,051 | $ | 4,916 | ||||||
| Provision for income tax on net income as adjusted (3) | 1,104 | 1,058 | 1,254 | |||||||||
| Net income as adjusted (non-GAAP) (2) | $ | 4,088 | $ | 3,993 | $ | 3,662 | ||||||
| GAAP diluted earnings per share, net of tax | $ | 0.39 | $ | 0.35 | $ | 0.35 | ||||||
| Branch closure costs, net of tax | — | 0.03 | — | |||||||||
| Diluted earnings per share, as adjusted, net of tax (non-GAAP) | $ | 0.39 | $ | 0.38 | $ | 0.35 | ||||||
| Average diluted shares outstanding | 10,443,267 | 10,457,184 | 10,477,610 | |||||||||
(1) Branch closure costs include severance pay recorded in compensation and benefits and accelerated depreciation expense included in other non-interest expense in the consolidated statement of operations.
(2) Pretax income as adjusted and net income as adjusted is a non-GAAP measure that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
(3) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.
Loan Composition
(in thousands)
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||
| Total Loans: | ||||||||||||||||
| Commercial/Agricultural real estate: | ||||||||||||||||
| Commercial real estate | $ | 745,720 | $ | 750,531 | $ | 750,282 | $ | 732,435 | ||||||||
| Agricultural real estate | 80,451 | 83,350 | 84,558 | 87,198 | ||||||||||||
| Multi-family real estate | 235,450 | 228,095 | 219,193 | 208,211 | ||||||||||||
| Construction and land development | 93,560 | 110,941 | 109,799 | 105,625 | ||||||||||||
| C&I/Agricultural operating: | ||||||||||||||||
| Commercial and industrial | 128,434 | 121,666 | 121,033 | 133,763 | ||||||||||||
| Agricultural operating | 26,237 | 25,691 | 24,552 | 24,358 | ||||||||||||
| Residential mortgage: | ||||||||||||||||
| Residential mortgage | 129,665 | 129,021 | 125,939 | 119,724 | ||||||||||||
| Purchased HELOC loans | 2,895 | 2,880 | 2,881 | 3,216 | ||||||||||||
| Consumer installment: | ||||||||||||||||
| Originated indirect paper | 5,851 | 6,535 | 7,175 | 8,189 | ||||||||||||
| Other consumer | 5,750 | 6,187 | 6,440 | 6,487 | ||||||||||||
| Gross loans | $ | 1,454,013 | $ | 1,464,897 | $ | 1,451,852 | $ | 1,429,206 | ||||||||
| Unearned net deferred fees and costs and loans in process | (2,757 | ) | (2,900 | ) | (3,048 | ) | (2,827 | ) | ||||||||
| Unamortized discount on acquired loans | (1,097 | ) | (1,205 | ) | (1,275 | ) | (1,391 | ) | ||||||||
| Total loans receivable | $ | 1,450,159 | $ | 1,460,792 | $ | 1,447,529 | $ | 1,424,988 | ||||||||
Nonperforming Assets
Loan Balances at Amortized Cost
(in thousands, except ratios)
| March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | |||||||||||||
| Nonperforming assets: | ||||||||||||||||
| Nonaccrual loans | ||||||||||||||||
| Commercial real estate | $ | 5,340 | $ | 10,359 | $ | 10,570 | $ | 11,359 | ||||||||
| Agricultural real estate | 382 | 391 | 469 | 1,712 | ||||||||||||
| Construction and land development | — | 54 | 94 | 94 | ||||||||||||
| Commercial and industrial (“C&I”) | 440 | — | — | 4 | ||||||||||||
| Agricultural operating | 1,106 | 1,180 | 1,373 | 1,436 | ||||||||||||
| Residential mortgage | 1,127 | 1,167 | 923 | 1,029 | ||||||||||||
| Consumer installment | 18 | 33 | 27 | 29 | ||||||||||||
| Total nonaccrual loans | $ | 8,413 | $ | 13,184 | $ | 13,456 | $ | 15,663 | ||||||||
| Accruing loans past due 90 days or more | 326 | 389 | 971 | 492 | ||||||||||||
| Total nonperforming loans (“NPLs”) at amortized cost | 8,739 | 13,573 | 14,427 | 16,155 | ||||||||||||
| Foreclosed and repossessed assets, net | 1,845 | 1,795 | 1,046 | 1,199 | ||||||||||||
| Total nonperforming assets (“NPAs”) | $ | 10,584 | $ | 15,368 | $ | 15,473 | $ | 17,354 | ||||||||
| Loans, end of period | $ | 1,450,159 | $ | 1,460,792 | $ | 1,447,529 | $ | 1,424,988 | ||||||||
| Total assets, end of period | $ | 1,819,315 | $ | 1,851,391 | $ | 1,831,087 | $ | 1,829,837 | ||||||||
| Ratios: | ||||||||||||||||
| NPLs to total loans | 0.60 | % | 0.93 | % | 1.00 | % | 1.13 | % | ||||||||
| NPAs to total assets | 0.58 | % | 0.83 | % | 0.85 | % | 0.95 | % | ||||||||
Average Balances, Interest Yields and Rates
(in thousands, except yields and rates)
| Three Months Ended March 31, 2024 | Three Months Ended December 31, 2023 | Three Months Ended March 31, 2023 | |||||||||||||||||||||||||
| Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | Average Balance | Interest Income/ Expense | Average Yield/ Rate (1) | |||||||||||||||||||
| Average interest earning assets: | |||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 13,071 | $ | 191 | 5.88 | % | $ | 16,699 | $ | 241 | 5.73 | % | $ | 18,270 | $ | 140 | 3.11 | % | |||||||||
| Loans receivable | 1,456,586 | 20,168 | 5.57 | % | 1,458,558 | 19,408 | 5.28 | % | 1,412,409 | 17,126 | 4.92 | % | |||||||||||||||
| Interest bearing deposits | — | — | — | % | — | — | — | % | 249 | 1 | 1.63 | % | |||||||||||||||
| Investment securities | 243,991 | 2,060 | 3.40 | % | 243,705 | 2,102 | 3.42 | % | 270,174 | 2,175 | 3.22 | % | |||||||||||||||
| Other investments | 13,350 | 260 | 7.83 | % | 15,760 | 275 | 6.92 | % | 16,663 | 231 | 5.62 | % | |||||||||||||||
| Total interest earning assets | $ | 1,726,998 | $ | 22,679 | 5.28 | % | $ | 1,734,722 | $ | 22,026 | 5.04 | % | $ | 1,717,765 | $ | 19,673 | 4.64 | % | |||||||||
| Average interest-bearing liabilities: | |||||||||||||||||||||||||||
| Savings accounts | $ | 176,838 | $ | 421 | 0.96 | % | $ | 175,281 | $ | 323 | 0.73 | % | $ | 216,169 | $ | 382 | 0.72 | % | |||||||||
| Demand deposits | 353,995 | 2,017 | 2.29 | % | 329,096 | 1,680 | 2.03 | % | 391,635 | 1,432 | 1.48 | % | |||||||||||||||
| Money market accounts | 377,475 | 2,920 | 3.11 | % | 326,981 | 2,217 | 2.69 | % | 301,710 | 1,096 | 1.47 | % | |||||||||||||||
| CD’s | 360,177 | 3,851 | 4.30 | % | 368,110 | 3,631 | 3.91 | % | 255,567 | 1,438 | 2.28 | % | |||||||||||||||
| Total deposits | $ | 1,268,485 | $ | 9,209 | 2.92 | % | $ | 1,199,468 | $ | 7,851 | 2.60 | % | $ | 1,165,081 | $ | 4,348 | 1.51 | % | |||||||||
| FHLB advances and other borrowings | 124,701 | 1,565 | 5.05 | % | 191,575 | 2,428 | 5.03 | % | 232,166 | 2,530 | 4.42 | % | |||||||||||||||
| Total interest-bearing liabilities | $ | 1,393,186 | $ | 10,774 | 3.11 | % | $ | 1,391,043 | $ | 10,279 | 2.93 | % | $ | 1,397,247 | $ | 6,878 | 2.00 | % | |||||||||
| Net interest income | $ | 11,905 | $ | 11,747 | $ | 12,795 | |||||||||||||||||||||
| Interest rate spread | 2.17 | % | 2.11 | % | 2.64 | % | |||||||||||||||||||||
| Net interest margin | 2.77 | % | 2.69 | % | 3.02 | % | |||||||||||||||||||||
| Average interest earning assets to average interest-bearing liabilities | 1.24 | 1.25 | 1.23 | ||||||||||||||||||||||||
(1) Fully taxable equivalent (FTE). The average yield on tax exempt securities is computed on a tax equivalent basis using a tax rate of 21% for the quarters
Key Financial Metric Ratios:
| Three Months Ended | |||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||
| Ratios based on net income: | |||||||||
| Return on average assets (annualized) | 0.90 | % | 0.79 | % | 0.81 | % | |||
| Return on average equity (annualized) | 9.57 | % | 8.72 | % | 9.03 | % | |||
| Return on average tangible common equity4 (annualized) | 12.26 | % | 11.29 | % | 11.85 | % | |||
| Efficiency ratio | 71 | % | 72 | % | 66 | % | |||
| Net interest margin with loan purchase accretion | 2.77 | % | 2.69 | % | 3.02 | % | |||
| Net interest margin without loan purchase accretion | 2.74 | % | 2.67 | % | 2.99 | % | |||
| Ratios based on net income as adjusted (non-GAAP) | |||||||||
| Return on average assets as adjusted2 (annualized) | 0.90 | % | 0.86 | % | 0.81 | % | |||
| Return on average equity as adjusted3 (annualized) | 9.57 | % | 9.43 | % | 9.03 | % | |||
Reconciliation of Return on Average Assets
(in thousands, except ratios)
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| GAAP earnings after income taxes | $ | 4,088 | $ | 3,693 | $ | 3,662 | ||||||
| Net income as adjusted after income taxes (non-GAAP) (1) | $ | 4,088 | $ | 3,993 | $ | 3,662 | ||||||
| Average assets | $ | 1,834,152 | $ | 1,843,789 | $ | 1,823,748 | ||||||
| Return on average assets (annualized) | 0.90 | % | 0.79 | % | 0.81 | % | ||||||
| Return on average assets as adjusted (non-GAAP) (annualized) | 0.90 | % | 0.86 | % | 0.81 | % | ||||||
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
Reconciliation of Return on Average Equity
(in thousands, except ratios)
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| GAAP earnings after income taxes | $ | 4,088 | $ | 3,693 | $ | 3,662 | ||||||
| Net income as adjusted after income taxes (non-GAAP) (1) | $ | 4,088 | $ | 3,993 | $ | 3,662 | ||||||
| Average equity | $ | 171,794 | $ | 168,058 | $ | 164,426 | ||||||
| Return on average equity (annualized) | 9.57 | % | 8.72 | % | 9.03 | % | ||||||
| Return on average equity as adjusted (non-GAAP) (annualized) | 9.57 | % | 9.43 | % | 9.03 | % | ||||||
(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)
Reconciliation of Efficiency Ratio
(in thousands, except ratios)
| Three Months Ended | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Non-interest expense (GAAP) | $ | 10,777 | $ | 10,206 | $ | 10,121 | |||||
| Less amortization of intangibles | (179 | ) | (179 | ) | (204 | ) | |||||
| Efficiency ratio numerator (GAAP) | $ | 10,598 | $ | 10,027 | $ | 9,917 | |||||
| Non-interest income | $ | 3,264 | $ | 2,480 | $ | 2,292 | |||||
| (Gain) loss on investment securities | (167 | ) | (277 | ) | (56 | ) | |||||
| Net interest margin | 11,905 | 11,747 | 12,795 | ||||||||
| Efficiency ratio denominator (GAAP) | $ | 15,002 | $ | 13,950 | $ | 15,031 | |||||
| Efficiency ratio (GAAP) | 71 | % | 72 | % | 66 | % | |||||
Reconciliation of tangible book value per share (non-GAAP)
(in thousands, except per share data)
| Tangible book value per share at end of period | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||
| Total stockholders’ equity | $ | 172,821 | $ | 173,334 | $ | 165,402 | $ | 165,558 | ||||||||
| Less: Goodwill | (31,498 | ) | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||||
| Less: Intangible assets | (1,515 | ) | (1,694 | ) | (1,873 | ) | (2,052 | ) | ||||||||
| Tangible common equity (non-GAAP) | $ | 139,808 | $ | 140,142 | $ | 132,031 | $ | 132,008 | ||||||||
| Ending common shares outstanding | 10,406,880 | 10,440,591 | 10,468,091 | 10,470,175 | ||||||||||||
| Book value per share | $ | 16.61 | $ | 16.60 | $ | 15.80 | $ | 15.81 | ||||||||
| Tangible book value per share (non-GAAP) | $ | 13.43 | $ | 13.42 | $ | 12.61 | $ | 12.61 | ||||||||
Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)
(in thousands, except ratios)
| Tangible common equity as a percent of tangible assets at end of period | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | ||||||||||||
| Total stockholders’ equity | $ | 172,821 | $ | 173,334 | $ | 165,402 | $ | 165,558 | ||||||||
| Less: Goodwill | (31,498 | ) | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||||
| Less: Intangible assets | (1,515 | ) | (1,694 | ) | (1,873 | ) | (2,052 | ) | ||||||||
| Tangible common equity (non-GAAP) | $ | 139,808 | $ | 140,142 | $ | 132,031 | $ | 132,008 | ||||||||
| Total Assets | $ | 1,819,315 | $ | 1,851,391 | $ | 1,831,087 | $ | 1,829,837 | ||||||||
| Less: Goodwill | (31,498 | ) | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||||
| Less: Intangible assets | (1,515 | ) | (1,694 | ) | (1,873 | ) | (2,052 | ) | ||||||||
| Tangible Assets (non-GAAP) | $ | 1,786,302 | $ | 1,818,199 | $ | 1,797,716 | $ | 1,796,287 | ||||||||
| Total stockholders’ equity to total assets ratio | 9.50 | % | 9.36 | % | 9.03 | % | 9.05 | % | ||||||||
| Tangible common equity as a percent of tangible assets (non-GAAP) | 7.83 | % | 7.71 | % | 7.34 | % | 7.35 | % | ||||||||
Reconciliation of Return on Average Tangible Common Equity (non-GAAP)
(in thousands, except ratios)
| Three Months Ended | ||||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||||
| Total stockholders’ equity | $ | 172,821 | $ | 173,334 | $ | 164,561 | ||||||
| Less: Goodwill | (31,498 | ) | (31,498 | ) | (31,498 | ) | ||||||
| Less: Intangible assets | (1,515 | ) | (1,694 | ) | (2,245 | ) | ||||||
| Tangible common equity (non-GAAP) | $ | 139,808 | $ | 140,142 | $ | 130,818 | ||||||
| Average tangible common equity (non-GAAP) | $ | 138,692 | $ | 134,776 | $ | 130,582 | ||||||
| GAAP earnings after income taxes | 4,088 | 3,693 | 3,662 | |||||||||
| Amortization of intangible assets, net of tax | 141 | 142 | 152 | |||||||||
| Tangible net income | $ | 4,229 | $ | 3,835 | $ | 3,814 | ||||||
| Return on average tangible common equity (annualized) | 12.26 | % | 11.29 | % | 11.85 | % | ||||||
1Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to better understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”.
2Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”.
3Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to better understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”.
4Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on tangible common equity are non-GAAP measures that management believes enhances investors’ ability to better understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of tangible book value per share (non-GAAP)”, “Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)”, and “Reconciliation of return on average tangible common equity)”.
