Citizens Community Bancorp, Inc. · NASDAQ:CZWI
Citizens Community Bancorp — D.A. Davidson 19th Annual Financial Institutions Conference (May 2017)
19 slides from Citizens Community Bancorp's conference presentation, May 8, 2017
Slide 1: D.A. Davidson 19th Annual Financial Institutions Conference
M a y 9 t h – 11 t h , 2 0 1 7 NASDAQ: CZWI 1 D.A. Davidson 19th Annual Financial Institutions Conference Exhibit 99.1
Slide 2: Forward-looking statements
This presentation includes forward-looking statements about the financial condition, results of operations and business of Citizens Community Bancorp, Inc. (“Citizens”) and its wholly owned subsidiary, Citizens Community Federal N.A. (“CCFBank”) Forward-looking statements can be identified by the fa
Slide 3: Executive Management
Executive Management Stephen M. Bianchi is President and CEO of Citizens Community Bancorp, Inc. Prior to joining the Bank, he was President and CEO of HF Financial Corp in Sioux Falls, SD. Prior experience includes Senior Vice President at Associated Bank, where he served as Minnesota Regional Pres
Slide 4: Overview
Overview • Based in Eau Claire County, Wisconsin, Citizens Community Federal N.A. serves more than 50,000 customers. • Key markets include: Northwest Wisconsin MSA Southern, Minnesota MSA Minneapolis/St. Paul, Metro MSA Oakland County, Michigan MSA • Full-service commercial, ag, mortgage and
Slide 5: Current Branch Locations
Current Branch Locations “a Citizens Community Bancorp Inc
Slide 6: Enhancing Performance and Franchise Value
• Remix loan and deposit composition, focused on commercial, ag and municipal relationships. • Improve efficiencies and control expenses by leveraging technology and personnel. • Generate organic growth in core markets. • Attract new Commercial/Ag bankers and reposition existing banker marketing eff
Slide 7: Investment Considerations
• New CEO, hired in June 2016, with history of maximizing commercial and ag market growth and operational efficiencies. • Shareholder focused management recently increased its dividend 33% to $.16/share. • Acquired assets have accelerated earnings growth. • Recent focus on branch efficiency is expec
Slide 8: NPAs / Total Assets Ratio Remain Low
0.95% 0.66% 0.46% 0.37% 0.62%(1) 0.29% 0.67% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% FY2012 FY2013 FY2014 FY2015 FY2016 FY 2017 Q2 1.05%(2) NPAs / Total Assets Ratio Remain Low 8 (1) Total nonperforming assets increased due to the CBN acquisition in Fiscal 2016: NPLs = $1,778;REO = $212;NPAs = $1,
Slide 9: Net Income Growth
$206 $1,047 $2,510 $2,806 $2,573 (1) $1,874 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 FY2012 FY2013 FY2014 FY2015 FY2016 FTD 2017 Q2 (In $000) Net Income Growth 9 (As Restated) (As Restated) (1) Fiscal 2016 Net Income includes acquisition costs of $701
Slide 10: Citizens Community Bancorp, Inc. and Wells Financial Corp. to Merge
Citizens Community Bancorp, Inc. and Wells Financial Corp. to Merge 10
Slide 11: Transactions Highlights
Transactions Highlights 11 Wells Financial Corporation Transaction Value1 $39.8 million Consideration 81% Cash, 19% Stock Price/TBV 124.6% Price/LTM EPS2 16.7x Required Approvals Customary regulatory and shareholder approval Expected Closing Q3 2017 Total Assets (3/31/17 Call Report) $268.5 million
Slide 12: Transactions Rationale
Transactions Rationale 12 Strategic Rationale Financially Attractive Low Risk Integration Acquisition helps CZWI bridge “valuation gap” as its pro forma franchise will be nearly $1.0 billion in assets Consistent with CZWI’s strategy of “re-formulating” its deposit base – core deposits vs. super
Slide 13: Branch Locations – ProForma Update
Branch Locations – ProForma Update 13 Source: SNL Financial Note: CZWI’s MI Branches are not shown
Slide 14: Pro Forma Loans
14 Pro Forma Loans Forma Loans CZWI WEFP Combined Note: Financial Data as of 3/31/17, Regulatory data shown, does not include purchase accounting adjustments Source: SNL Financial Composition Composition Composition Loan Type ($000) % of Total Loan Type ($000) % of Total Loan Type ($000) % of Total
Slide 15: Pro Forma Deposits
15 Pro Forma Deposits CZWI WEFP Combined Note: Financial Data as of 3/31/17, Regulatory data shown, does not include purchase accounting adjustments Source: SNL Financial Composition Composition Composition Deposit Type ($000) % of Total Deposit Type ($000) % of Total Deposit Type ($000) % of Total
Slide 16: Investing Opportunity Remains; Stock Price to Tangible Book Value
Investing Opportunity Remains; Stock Price to Tangible Book Value $5.00 $5.90 $7.25 $8.85 $8.84 $11.18 $13.85 $10.21 $10.68 $10.47 $11.20 $11.72 $11.22 $11.19 $0.00 $3.00 $6.00 $9.00 $12.00 $15.00 FY2011 FY2012 FY2013 FY2014 (As Restated) FY2015 (As Restated) FY2016 3/31/2017 Price Reported Tangible
Slide 17: CZWI Total Return has Outpaced Bank Index
CZWI Total Return has Outpaced Bank Index 17 Total return includes stock appreciation plus dividends.
Slide 18: Building Franchise and Shareholder Value
Building Franchise and Shareholder Value • Improve the quantity and quality of earnings through growth, efficiencies to be recognized from acquisitions and technology enhancements, and branch rationalization. • Accelerating commercial banking business while maintaining strong asset quality metrics.
Slide 19: No Offer or Solicitation and Additional Information
No Offer or Solicitation and Additional Information No Offer or Solicitation This presentation is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, any securities in any jurisdiction pursuant to the proposed transaction or otherwise, nor sha