Regional economic concentration
Most lending and deposit activity is tied to Wisconsin and Minnesota conditions.
- Scope
- Loan demand, collateral values and borrower repayment capacity
- Materiality
- high
Citizens Community Bancorp Inc.
Citizens Community Bancorp Inc. is a Maryland-based bank holding company whose main asset is Citizens Community Federal N.A., a federally chartered community bank. Through the bank, it provides commercial, agricultural, residential mortgage, home equity and consumer banking services to customers in Wisconsin and Minnesota.
| % | |
|---|---|
| Commercial and agricultural lending | 45% Loans to small businesses, commercial borrowers and agricultural operators across the bank's local markets. |
| Residential mortgage lending | 20% One-to-four family mortgage originations and related home lending products for local households. |
| Consumer lending | 10% Consumer installment loans and home equity lines used by retail customers for personal borrowing needs. |
| Deposit and treasury services | 20% Core deposit accounts, cash management, remote deposit capture and related banking services. |
| Other banking services | 5% Fee-based and ancillary banking activities, including electronic banking and other customer services. |
The bank serves consumers, small businesses, agricultural operators and public-sector depositors in its Wisconsin and...
- Consumer householdsprimary
They buy deposits, residential mortgages, home equity lines and consumer loans for everyday banking and housing finance.
- Small commercial borrowersprimary
They use commercial real estate, C&I and treasury services to fund working capital, property and business expansion.
- Agricultural operatorsprimary
They borrow for farmland and seasonal operating needs, reflecting the bank's rural market exposure.
- Public and municipal depositorssecondary
They place operating and reserve balances with the bank, supporting low-cost funding and relationship depth.
The bank operates 21 full-service branches in Wisconsin and Minnesota, with core markets in the Chippewa Valley, the...
- •21 branches across Wisconsin and Minnesota
- •Core markets include Chippewa Valley, Twin Cities and Mankato
- •Rural communities are important for agricultural and consumer banking
- •Local concentration increases sensitivity to regional economic cycles
- •Funding and lending are both primarily sourced within the footprint
Management is focused on retaining and attracting non-rate-sensitive deposits, strengthening customer relationships and...
01
Expand core deposit relationshipsshort-term
Stable, non-rate-sensitive deposits lower funding risk and support loan growth.
02
Defend local lending franchisemedium-term
Relationship lending in local markets is central to the bank's competitive position.
03
Preserve liquidity and capital strengthshort-term
Strong liquidity supports depositor confidence and loan commitments in a volatile rate environment.
The company is exposed to regional economic weakness, credit deterioration and deposit competition because its business...
Deposit competition and rate pressure
Customers can move balances to higher-yielding banks or non-bank alternatives.
- Scope
- Funding costs, deposit retention and net interest margin
- Materiality
- high
Credit quality deterioration
Commercial, agricultural and real estate loans are sensitive to cash flow and collateral values.
- Scope
- Allowance for credit losses and charge-offs
- Materiality
- high
Disintermediation from digital payment alternatives
Customers may bypass traditional bank channels for transfers and payments.
- Scope
- Fee income and deposit balances
- Materiality
- medium
Allowance for credit losses
Provision expense, loan loss reserve and capital
Mortgage servicing rights
Non-interest expense and asset carrying value
Off-balance-sheet loan commitments
Liquidity planning and contingent credit risk
Income tax estimates
Net income and EPS
: 28.4.2026