Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Historically, trading in shares of our common stock has been limited. Citizens Community Bancorp, Inc. common stock is traded on the NASDAQ Global Market under the symbol “CZWI”.
We had approximately 626 stockholders of record at March 8, 2021. The number of stockholders does not separately reflect persons or entities that hold their stock in nominee or “street” name through various brokerage firms. We believe that the number of beneficial owners of our common stock on that date was substantially greater.
Dividends
The holders of our common stock are entitled to receive such dividends when and as declared by our Board of Directors and approved by our regulators. During the continuance of an event of default under its Subordinated Note Purchase Agreement entered into with certain accredited purchasers in August 2020, the Company would be restricted from declaring or paying any dividends on its capital stock. In determining the payment of cash dividends, our Board of Directors considers our earnings, capital and debt servicing requirements, the financial ratio guidelines of our regulators, our financial condition and other relevant factors.
The Company’s ability to pay dividends on its common stock is dependent on the dividend payments it receives from the Bank, since the Company receives substantially all of its revenue in the form of dividends from the Bank. Future dividends are not guaranteed and will depend on the Company’s ability to pay them. For more information on dividends, see Note 11, Capital Matters of Notes to Consolidated Financial Statements contained in Item 8 of this Form 10-K.
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Purchases of Equity Securities by the Issuer
On November 30, 2020, the Board of Directors approved a stock repurchase program. Under this program the Company may repurchase up to approximately 5% of the outstanding shares of its common stock as of November 30, 2020, or 557,728 shares, from time to time. The table below shows information about our repurchases of our common stock during the period beginning on November 30, 2020 (the date on which the plan was adopted) and ending on December 31, 2020.
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
November 30, 2020 - November 30, 2020 — $ — — 557,728
December 1, 2020 - December 31, 2020 97,765 $ 10.00 97,765 459,963
Total 97,765 $ 10.00 97,765
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ITEM 6. SELECTED FINANCIAL DATA
FIVE YEAR SELECTED CONSOLIDATED FINANCIAL DATA
The following tables set forth selected historical financial and other data of the Company for the years and at the dates indicated. The information at December 31, 2020 and December 31, 2019, and for the twelve months ended December 31, 2020 and December 31, 2019 is derived in part from, and should be read together with, the audited consolidated financial statements and notes thereto of the Company that appear in this Annual Report on Form 10-K. The information at December 31, 2018, September 30, 2018 and September 30, 2017 and for the three month transition period ended December 31, 2018, and for the twelve months ended September 30, 2018 and 2017 is derived in part from audited financial statements that do not appear in this Annual Report on Form 10-K. The information below is qualified in its entirety by the detailed information included elsewhere herein and should be read along with Item 7., “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 8., “Financial Statements and Supplementary Data” included in this Form 10-K. See discussion of the Company’s acquisitions in Item 1., “Business”, in Item 7., “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, and in Note 2. “Acquisition” in the consolidated financial statements.
Year ended December 31, Year ended December 31, Three month transition period ended December 31,
2020 2019 2018
Selected Results of Operations Data:
Interest income $ 64,527 $ 60,423 $ 13,047
Interest expense 14,272 16,910 3,007
Net interest income 50,255 43,513 10,040
Provision for loan losses 7,750 3,525 950
Net interest income after provision for loan losses 42,505 39,988 9,090
Gain on sale of loans, loan servicing income and fees and service charges 14,066 8,649 1,790
Other non-interest income 4,382 6,326 736
Non-interest income 18,448 14,975 2,526
Non-interest expense 43,673 42,686 9,794
Income before provision for income taxes 17,280 12,277 1,822
Income tax provision 4,555 2,814 561
Net income $ 12,725 $ 9,463 $ 1,261
Per Share Data: (1)
Net income per share (basic) (1) $ 1.14 $ 0.85 $ 0.12
Net income per share (diluted) (1) $ 1.14 $ 0.85 $ 0.12
Cash dividends per common share $ 0.21 $ 0.20 $ —
Book value per share at end of period $ 14.52 $ 13.36 $ 12.62
Tangible book value per share at end of period $ 11.18 $ 9.89 $ 9.03
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FIVE YEAR SELECTED CONSOLIDATED FINANCIAL DATA (CONTINUED)
As of, or for the
Year ended December 31, Year ended December 31, Three month transition period ended December 31,
2020 2019 2018
Selected Financial Condition Data:
Total assets $ 1,649,095 $ 1,531,249 $ 1,287,924
Investment securities $ 187,784 $ 182,970 $ 151,575
Loans receivable $ 1,237,581 $ 1,177,380 $ 992,556
Total deposits $ 1,295,256 $ 1,195,702 $ 1,007,512
FHLB short-term borrowings and borrowings maturing within twelve months, net of unamortized discount $ 7,968 $ 73,471 $ 98,813
Other FHLB borrowings $ 115,530 $ 57,500 $ 11,000
Other borrowings $ 58,328 $ 43,560 $ 24,647
Total shareholders’ equity $ 160,564 $ 150,553 $ 138,187
Weighted average basic common shares outstanding 11,161,551 11,114,328 10,942,920
Weighted average diluted common shares outstanding 11,161,811 11,121,289 10,967,386
Performance Ratios:
Return on average assets 0.80 % 0.68 % 0.42 %
Return on average total shareholders’ equity 8.29 % 6.59 % 3.65 %
Net interest margin (2) 3.40 % 3.37 % 3.56 %
Net interest spread (2)
Average during period 3.20 % 3.13 % 3.32 %
End of period 3.18 % 3.46 % 3.68 %
Net overhead ratio (3) 1.58 % 1.98 % 2.44 %
Average loan-to-average deposit ratio 98.97 % 98.55 % 94.99 %
Average interest bearing assets to average interest bearing liabilities 120.13 % 118.35 % 122.68 %
Efficiency ratio (4) 63.57 % 72.98 % 77.94 %
Asset Quality Ratios:
Non-performing loans to total loans (5) 0.92 % 1.71 % 0.82 %
Allowance for loan losses to:
Total loans (net of unearned income) 1.38 % 0.88 % 0.77 %
Non-performing loans (5) 150.38 % 51.19 % 93.99 %
Net charge-offs to average loans 0.08 % 0.08 % 0.04 %
Non-performing assets to total assets (5) 0.70 % 1.41 % 0.83 %
Capital Ratios:
Shareholders’ equity to assets (6) 9.74 % 9.83 % 10.73 %
Average equity to average assets (6) 9.63 % 10.26 % 11.52 %
Tier 1 capital (leverage ratio) (7) 9.9 % 10.4 % 9.7 %
Total risk-based capital (7) 14.7 % 13.1 % 12.7 %
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FIVE YEAR SELECTED CONSOLIDATED FINANCIAL DATA (CONTINUED)
Years ended September 30, (dollars in thousands, except per share data)
2018 2017
Selected Results of Operations Data:
Interest income $ 38,896 $ 27,878
Interest expense 8,593 5,610
Net interest income 30,303 22,268
Provision for loan losses 1,300 319
Net interest income after provision for loan losses 29,003 21,949
Gain on sale of loans, loan servicing income and fees and service charges 4,635 2,937
Net (loss) gain on sale of available for sale securities (17) 111
Other non-interest income 2,752 1,703
Non-interest income 7,370 4,751
Non-interest expense 29,764 22,878
Income before provision for income taxes 6,609 3,822
Income tax provision 2,326 1,323
Net income $ 4,283 $ 2,499
Per Share Data: (1)
Net income per share (basic) (1)
$ 0.72 $ 0.47
Net income per share (diluted) (1)
$ 0.58 $ 0.46
Cash dividends per common share $ 0.20 $ 0.16
Book value per share at end of period $ 12.45 $ 12.48
Tangible book value per share at end of period $ 11.05 $ 9.78
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FIVE YEAR SELECTED CONSOLIDATED FINANCIAL DATA (CONTINUED)
As of, and for the
Years ended September 30, (dollars in thousands, except per share data)
2018 2017
Selected Financial Condition Data:
Total assets $ 975,409 $ 940,664
Investment securities $ 123,101 $ 101,336
Loans receivable $ 759,247 $ 732,995
Total deposits $ 746,529 $ 742,504
FHLB short-term borrowings and borrowings maturing within twelve months, net of unamortized discount $ 63,000 $ 90,000
Other FHLB borrowings
$ — $ —
Other borrowings $ 24,619 $ 30,319
Total shareholders’ equity $ 135,847 $ 73,483
Weighted average basic common shares outstanding 5,943,891 5,361,843
Weighted average diluted common shares outstanding 7,335,247 5,378,360
Performance Ratios:
Return on average assets 0.45 % 0.34 %
Return on average total shareholders’ equity 4.35 % 3.76 %
Net interest margin (2)
3.42 % 3.31 %
Net interest spread (2)
Average during period 3.27 % 3.19 %
End of period 3.37 % 3.47 %
Net overhead ratio (3)
2.35 % 2.48 %
Average loan-to-average deposit ratio 99.52 % 100.87 %
Average interest bearing assets to average interest bearing liabilities 114.92 % 114.96 %
Efficiency ratio (4)
79.01 % 84.67 %
Asset Quality Ratios:
Non-performing loans to total loans (5)
1.10 % 1.10 %
Allowance for loan losses to:
Total loans (net of unearned income) 0.89 % 0.81 %
Non-performing loans (5) 81.04 % 73.90 %
Net charge-offs to average loans 0.07 % 0.07 %
Non-performing assets to total assets (5) 1.14 % 1.49 %
Capital Ratios:
Shareholders’ equity to assets (6)
13.93 % 7.81 %
Average equity to average assets (6)
10.32 % 9.09 %
Tier 1 capital (leverage ratio) (7)
9.2 % 9.2 %
Total risk-based capital (7)
13.1 % 13.2 %
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(1) Earnings per share are based on the weighted average number of shares outstanding for the period.
(2) Net interest margin represents net interest income as a percentage of average interest earning assets, and net interest rate spread represents the difference between the weighted average yield on interest earning assets and the weighted average cost of interest bearing liabilities.
(3) Net overhead ratio represents the difference between non-interest expense and non-interest income, divided by average assets.
(4) Efficiency ratio represents non-interest expense, divided by the sum of net interest income and non-interest income.
(5) Non-performing loans are either 90+ days past due or nonaccrual. Non-performing assets consist of non-performing loans plus other real estate owned plus other collateral owned.
(6) Company ratios
(7) Bank regulatory ratios
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