Credit Provision of $4.33M and NPA Surge to $32.4M Drive Citizens Community Bancorp Q2 Earnings Plunge
CZWI sits 60% above its 52-week low of $14.4.
Summary
Citizens Community Bancorp reported Q2 2026 EPS of $0.11, down from $0.39 in Q1, as a $4.33 million credit loss provision and a surge in nonperforming assets to $32.4 million hammered earnings. Loan growth and margin improvement were offset by credit deterioration.
Key Events · Earnings and Guidance · CZWI
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Earnings Miss on Credit Costs
Q2 2026 net income fell to $1.1 million ($0.11 per diluted share) from $3.8 million ($0.39) in Q1 2026, driven by a $4.33 million provision for credit losses versus $0.75 million in the prior quarter.
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Nonperforming Assets Surge
Nonperforming assets jumped to $32.4 million at June 30, 2026, from $18.2 million at March 31, 2026, due to three loan relationships: a $4.2 million owner-occupied CRE loan, a $5.7 million campground loan, and a $2.7 million multi-family/retail loan.
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Allowance for Credit Losses Builds
The allowance for credit losses on loans increased to $25.9 million, or 1.87% of total loans, up from 1.69% at March 31, 2026, reflecting specific reserves on nonaccrual loans and net charge-offs of $1.42 million.
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Dividend Maintained at $0.105
The board declared a quarterly cash dividend of $0.105 per share, payable August 21, 2026, to shareholders of record on August 7, 2026, unchanged from the prior quarter.
Analysis · CZWI · Finance
Earnings collapsed to $0.11 per share from $0.39 last quarter as credit costs spiked. The $4.33 million provision for credit losses — nearly six times the prior quarter — drove the miss, fueled by three troubled loan relationships that added $14.2 million in nonperforming assets. While the underlying business showed loan growth and margin expansion, the sharp deterioration in asset quality overshadows those positives. The board declared a $0.105 quarterly dividend, unchanged from the prior quarter, but the credit stress raises questions about capital resilience.
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In the 30 days to Sep 30, 2026, 34.7% of the 1013 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.50%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, CZWI was trading at $23.06 on NASDAQ in the Finance sector, with a market capitalization of approximately $227.2M. The 52-week trading range was $14.40 to $24.43. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.