EAU CLAIRE, Wis., July 27, 2026 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of CCFBank N.A. (the “Bank” or “CCFBank”), today reported earnings of $1.1 million and earnings per diluted share of $0.11 for the second quarter ended June 30, 2026, compared to $3.8 million and earnings per diluted share of $0.39 for the first quarter ended March 31, 2026, and $3.3 million and $0.33 earnings per diluted share for the quarter ended June 30, 2025, respectively. For the six months ended June 30, 2026, the Company reported earnings of $4.9 million and earnings per diluted share of $0.50 compared to the prior year period of $6.5 million and earnings per diluted share of $0.65.
The Company’s second quarter 2026 operating results reflected the following changes from the first quarter of 2026: (1) increased provision for credit losses of $3.6 million; (2) lower non-interest income of $0.5 million largely due to lower gains on sale of loans, with these changes partially offset by; (3) an increase in net interest margin of 4 basis points due to lower interest-bearing deposit costs, along with the higher portfolio loan yields, offset by the impact of new nonaccrual loans. This net interest margin increase, along with one additional business day during the current quarter of $0.1 million, and an increase in average interest-earning assets, increased net interest income by $0.5 million; and (4) lower non-interest expense of $0.2 million resulted in an increase in pre-provision net revenue of $0.2 million. In addition, lower income tax expense of $0.7 million was recognized in the quarter.
Book value per share increased to $19.83 at June 30, 2026, compared to $19.82 at March 31, 2026, and increased from $18.36 at June 30, 2025. Tangible book value per share (non-GAAP)1 was $16.55 at June 30, 2026, compared to $16.52 at March 31, 2026, and increased 9.2% from $15.15 at June 30, 2025. For the second quarter of 2026, the increase in tangible book value was due to quarterly net income, the impact of lower unrealized losses on the available-for-sale investment portfolio, partially offset by payment of the quarterly dividend. Stockholders’ equity as a percentage of total assets was 10.55% at June 30, 2026, compared to 10.47% at March 31, 2026. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)1 was 8.96% at June 30, 2026, compared to 8.88% at March 31, 2026.
“We are disappointed with the impact three loan relationships had on net income, but have undertaken an aggressive posture to mitigate their future earnings influences. Specifically, one loan relationship ceased operations and was downgraded to substandard nonaccrual. This loan relationship had a $3.8 million ACL provision impact including a $1.2 million charge-off, with a specific reserve established equal to the owner occupied real estate loan exposure. In addition, two CRE loan relationships totaling $8 million moved to substandard nonaccrual from pass in the quarter. Dedicated workout resources and processes are in place to resolve substandard and nonperforming loan levels. The underlying strength of our business remained positive with loan growth of $24.7 million, up 1.8% in the linked quarter or 7.2% annualized, and deposits up 5.1% versus the same prior year period. Net interest margin expansion continued, more than offsetting the impact of elevated nonaccruals. Tangible book value increased $0.03 per share after the quarterly dividend payment and reduction in AOCI, and the Company was well capitalized with a TCE ratio of 8.96%,” according to Stephen Bianchi, Chairman, President, and CEO.
June 30, 2026, Highlights:
- Quarterly earnings were $1.1 million, or $0.11 per diluted share for the quarter ended June 30, 2026, a decrease compared to earnings of $3.8 million, or $0.39 per diluted share for the quarter ended March 31, 2026, and a decrease from $3.3 million, or $0.33 per diluted share for the quarter ended June 30, 2025.
- For the six months ended June 30, 2026, earnings were $4.9 million or $0.50 per diluted share compared to $6.5 million or $0.65 per diluted share for the six-month period one year earlier. The decline in earnings for the six-month period primarily relates to increases in the provision for credit losses for the most recent six-month period, mostly due to the second quarter of 2026 increases, modestly offset by increases in pre-provision net revenue.
- Pre-provision net revenue (“PPNR”) increased 3.3% during the quarter ended June 30, 2026, to $5.56 million from $5.38 million for the quarter ended March 31, 2026, and increased 3.1% from $5.40 million over the past year.
- PPNR for the six months ended June 30, 2026, increased 20.0% to $10.9 million from $9.1 million for the six months ended June 30, 2025, largely due to increases in net interest income.
- Net interest income increased $0.5 million to $13.5 million for the quarter ended June 30, 2026, from $13.0 million for the quarter ended March 31, 2026, and increased from $13.3 million for the quarter ended June 30, 2025. The increase in net interest income from the first quarter of 2026 was primarily due to a 4-basis point increase in net interest margin, due to: (1) lower interest-bearing deposit costs; (2) reductions in lower yielding cash and securities; and (3) an increase in the yield on the performing loan portfolio, along with higher average balance of loans, and an additional day in the quarter. The overall yield on the loan portfolio decreased during the second quarter due to the impact of new nonaccrual loans and the repurchase of delinquent government guaranteed loans.
- The provision for credit losses was $4.33 million for the quarter ended June 30, 2026, compared to a provision for credit losses of $0.75 million for the first quarter of 2026. Factors affecting the second quarter provision for credit losses include: (1) a net increase of $3.1 million in specific reserves on nonaccrual loans to $6.3 million at June 30, 2026; and (2) charge-offs of $1.42 million. A reduction in the duration of the loan portfolio more than offset the impact of new loans. The allowance for credit losses on loans increased to $25.9 million or 82% of total nonperforming loans and 1.87% of total loans.
- Non-interest income decreased by $0.5 million in the second quarter ended June 30, 2026, to $2.6 million from $3.1 million in the prior quarter and decreased $0.2 million from $2.8 million in the second quarter of 2025. The decrease in the second quarter of 2026 from the first quarter of 2026 and the second quarter of 2025 was primarily due to lower gains on the sale of loans.
- Non-interest expense decreased $0.2 million to $10.5 million from $10.7 million for the previous quarter and decreased $0.2 million from $10.8 million for the second quarter of 2025. The decrease in non-interest expense compared to the linked quarter was driven primarily by lower compensation costs, as reduced incentive accruals more than offset the annual merit raises included in the last payroll period of the first quarter. Additionally, a one-time $0.1 million reduction in data processing expense was more than offset by the increase in other expenses, primarily related to the impact of higher nonperforming assets.
- The effective tax rate was 10.9% for the quarter ended June 30, 2026, compared to 18.9% for the quarter ended March 31, 2026, and 19.2% for the quarter ended June 30, 2025. The decrease in the effective tax rate in the second quarter of 2026 from the first quarter of 2026 was due to the reduction in the tax rate for the full year, based on lower income, recognized in the second quarter on a lower tax rate of 4.6% and a reduction in the tax rate of 3.4% from the previous quarter due to the increased benefit of securities maturities.
- Loans receivable increased $24.7 million during the second quarter ended June 30, 2026, to $1.383 billion compared to the prior quarter end. The increase in loans reflected new loan originations with some completed construction loans moving to CRE and multi-family due to completion of construction.
- Nonperforming assets increased $14.2 million to $32.4 million at June 30, 2026, compared to $18.2 million at March 31, 2026. The increase was largely due to: (1) the addition of a $4.2 million owner-occupied commercial real estate loan, secured by real estate and equipment, with a specific reserve established equal to the owner occupied real estate loan exposure; (2) a local loan relationship totaling $5.7 million secured by two campgrounds; (3) a multi-use multi-family/retail loan of $2.7 million that had performed for 10 years; and (4) a net increase in repurchased government fully guaranteed loans totaling $1.4 million. The non-guaranteed portion of the loans originated with partial government guarantees decreased $0.3 million to $1.2 million at June 30, 2026. There are specific reserves of approximately 25% on the non-guaranteed government loans.
- Special mention loans decreased $6.0 million to $19.9 million at June 30, 2026, from March 31, 2026, largely due to the migration of a loan relationship to substandard.
- Substandard loans increased $12.7 million to $35.2 million at June 30, 2026, from March 31, 2026, primarily due to the increase in nonperforming assets discussed above.
- Total deposits decreased $11.2 million during the quarter ended June 30, 2026, to $1.554 billion, and increased $76.0 million from the quarter ended June 30, 2025. The decrease in the most recent quarter was largely due to seasonal decreases in public deposits of $15.8 million partially offset by seasonal increases of $8.5 million in commercial deposits.
- The efficiency ratio was 65% for the quarter ended June 30, 2026, compared to 66% for the quarter ended March 31, 2026, and 66% for the quarter ended June 30, 2025.
- On July 23, 2026, the Board of Directors approved a quarterly dividend of $0.105 per share. The dividend will be payable on August 21, 2026, to shareholders of record on August 7, 2026.
Balance Sheet and Asset Quality
Total assets decreased by $8.7 million during the quarter to $1.814 billion at June 30, 2026.
Cash and cash equivalents decreased $27.4 million due to loan growth and seasonal reductions in deposits.
The on-balance sheet liquidity ratio, which is defined as the fair market value of available-for-sale (“AFS”) and held-to-maturity (“HTM”) securities that are not pledged and cash on deposit with other financial institutions, was 14.3% of total assets at June 30, 2026, compared to 16.2% of total assets at March 31, 2026. On-balance sheet liquidity, collateralized new borrowing capacity, and uncommitted federal funds borrowing availability was $781 million, or 246% of uninsured and uncollateralized deposits at June 30, 2026, and $799 million, or 248% at March 31, 2026.
AFS securities decreased $2.5 million during the quarter ended June 30, 2026, to $128.4 million from $130.9 million at March 31, 2026. The decrease was largely related to principal repayments and maturities of $4.6 million and corporate debt security redemptions of $1.8 million, partially offset by purchases of new corporate debt securities of $3.6 million and a decrease in the unrealized loss on AFS securities of $0.3 million.
HTM securities decreased $1.6 million to $77.4 million during the quarter ended June 30, 2026, from $79.0 million at March 31, 2026, due to principal repayments.
Loans receivable increased $24.7 million, or 1.8%, during the second quarter ended June 30, 2026, to $1.383 billion compared to the prior quarter end as loan growth was realized in commercial real estate and C&I loans.
The office loan portfolio consisted of seventy loans totaling $36 million at June 30, 2026, compared to seventy loans totaling $31 million at March 31, 2026. Criticized loans in the office loan portfolio for the quarter ended June 30, 2026, totaled $0.3 million, compared to $0.2 million at March 31, 2026, and there have been no charge-offs in office loans in the trailing twelve months. The Company has one bank holding company loan for $5 million which constitutes the only non-depository financial institution exposure.
The allowance for credit losses on loans increased by $2.9 million to $25.9 million at June 30, 2026, representing 82% of total nonperforming loans and 1.87% of total loans compared to 1.69% of total loans receivable at March 31, 2026. The provision for credit losses was $4.33 million for the quarter ended June 30, 2026, compared to a provision for credit losses of $0.75 million for the quarter ended March 31, 2026, and a provision for credit losses of $1.35 million for the quarter ended June 30, 2025.
Allowance for Credit Losses (“ACL”) - Loans Percentage
(in thousands, except ratios)
June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025Loans, end of period $1,382,975 $1,358,252 $1,340,325 $1,323,010 ACL - Loans $25,899 $22,966 $22,401 $22,182 ACL - Loans as a percentage of loans, end of period 1.87% 1.69% 1.67% 1.68%In addition to the ACL - Loans, the Company has established an ACL - Unfunded Commitments of $0.457 million at June 30, 2026, $0.482 million at March 31, 2026, and $0.627 million at June 30, 2025, classified in other liabilities on the consolidated balance sheets.
Allowance for Credit Losses - Unfunded Commitments
(in thousands)
Three Months Ended June 30, 2025 and
Three Months Ended June 30, 2026 and
Six Months Ended June 30, 2025 and
Six Months EndedACL - Unfunded commitments, beginning of period $482 $435 $490 $334Additions (reversals) to ACL - Unfunded commitments via provision for credit losses charged to operations (25) 192 (33) 293ACL - Unfunded commitments, end of period $457 $627 $457 $627
Nonperforming assets increased $14.2 million to $32.4 million at June 30, 2026, compared to $18.2 million at March 31, 2026. The increase was largely due to the addition of a $4.2 million owner-occupied commercial real estate loan secured by real estate and equipment, with a specific reserve established equal to the owner occupied real estate loan exposure, a local loan relationship totaling $5.7 million secured by two campgrounds, a multi-use multi-family/retail loan of $2.7 million that had performed for 10 years and a net increase in repurchased government guaranteed loans totaling $1.4 million. The non-guaranteed portion of the loans originated with partial government guarantees decreased $0.3 million at June 30, 2026. There are specific reserves of approximately 25% on the non-guaranteed government loans.
Special mention loans decreased $6.0 million to $19.9 million at June 30, 2026, from $25.9 million at March 31, 2026.
Substandard loans increased $12.7 million to $35.2 million at June 30, 2026, from $22.5 million at March 31, 2026, primarily due to an increase in nonaccrual loan balances.
(in thousands) June 30,2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Special mention loan balances $19,863 $25,894 $24,473 $12,920 $23,201Substandard loan balances 35,216 22,498 21,388 21,310 17,922Criticized loans, end of period $55,079 $48,392 $45,861 $34,230 $41,123
Deposit Portfolio Composition
(in thousands)
2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Consumer deposits $884,335 $887,998 $889,109 $855,226 $856,467Commercial deposits 442,443 433,923 422,605 423,662 406,608Public deposits 201,599 217,400 187,777 175,689 190,933Wholesale deposits 26,040 26,301 24,608 25,977 24,408Total deposits $1,554,417 $1,565,622 $1,524,099 $1,480,554 $1,478,416
At June 30, 2026, the deposit portfolio composition by percentages changed very modestly from the prior quarter at 56.9% consumer, 28.4% commercial, 13.0% public, and 1.7% wholesale deposits.
Deposit Composition By Type
(in thousands)
2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Non-interest-bearing demand deposits $274,822 $271,396 $264,394 $262,535 $260,248Interest-bearing demand deposits 384,101 392,684 367,958 360,475 366,481Savings accounts 145,390 152,487 151,525 157,317 159,340Money market accounts 408,305 404,991 392,900 354,290 357,518Certificate accounts 341,799 344,064 347,322 345,937 334,829Total deposits $1,554,417 $1,565,622 $1,524,099 $1,480,554 $1,478,416
Uninsured and uncollateralized deposits were $312.5 million, or 20% of total deposits at June 30, 2026, and $322.6 million, or 20% of total deposits at March 31, 2026. Uninsured deposits alone at June 30, 2026, were $479.4 million, or 31% of total deposits and $499.6 million, or 32% of total deposits at March 31, 2026.
Federal Home Loan Bank advances remained at $0 at June 30, 2026, March 31, 2026, and June 30, 2025.
Review of Operations
Net interest income increased by $0.5 million to $13.5 million for the current quarter ended June 30, 2026, from $13.0 million for the quarter ended March 31, 2026, and increased from $13.3 million for the quarter ended June 30, 2025. Net interest income for the second quarter of 2026 increased due to: (1) an increase in net interest margin of 4 basis points due to a reduction in interest-bearing deposit costs; (2) a 1.4% increase in average interest earning assets; and (3) $0.1 million of increased net interest income due to one additional business day during the quarter. Overall loan yields decreased 5 basis points during the quarter due to the increase in nonaccrual loans and the repurchase of delinquent government guaranteed loans, partially offset by an increase in performing portfolio loan yields. Lower deposit costs resulted in a net interest margin increase to 3.22% for the quarter ended June 30, 2026, compared to 3.18% for the quarter ended March 31, 2026, and an increase of 22 basis points from the quarter ended June 30, 2025, after excluding 27 basis points or $1.1 million of income recognized on loan payoffs.
Net Interest Income and Net Interest Margin Analysis
(in thousands, except yields and rates)
The table below shows the impact of loans, securities, and certificates contractual fixed rate maturing and repricing.
Portfolio Contractual Fixed Rate Repricing by Future Quarters:
(in millions, except yields)
Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027Maturing or Repricing Loans: Contractual balance $93 $96 $53 $67 $43 $68 Contractual interest rate 3.82% 3.92% 4.13% 4.60% 4.99% 5.33%Maturing or Repricing Securities: Contractual balance $7 $3 $3 $— $4 $— Contractual interest rate 3.44% 3.35% 3.31% —% 5.93% —%Maturing Certificate Accounts: Contractual balance $134 $98 $66 $27 $12 $— Contractual interest rate 3.77% 3.70% 3.64% 3.54% 3.57% —%
Non-interest income decreased by $0.5 million in the second quarter ended June 30, 2026, to $2.6 million from $3.1 million in the prior quarter and decreased $0.2 million from $2.8 million in the second quarter of 2025. The decrease in the second quarter of 2026 from the first quarter of 2026 and the second quarter of 2025 was primarily due to lower gains on the sale of loans.
Non-interest expense decreased $0.2 million to $10.5 million from $10.7 million for the previous quarter and decreased $0.2 million from $10.8 million for the second quarter of 2025. The decrease in non-interest expense compared to the linked quarter was driven primarily by lower compensation costs, as reduced incentive accruals more than offset the annual merit raises included in the last payroll period of the first quarter. Additionally, a one-time $0.1 million reduction in data processing expense was more than offset by the increase in other expenses, primarily related to the impact of higher nonperforming assets.
The effective tax rate was 10.9% for the quarter ended June 30, 2026, compared to 18.9% for the quarter ended March 31, 2026, and 19.2% for the quarter ended June 30, 2025. The decrease in the effective tax rate in the second quarter of 2026 from the first quarter of 2026 was due to the reduction in the tax rate for the full year, based on lower income, recognized in the second quarter on a lower tax rate of 4.6% and a reduction in the tax rate of 3.4% from the previous quarter due to the increased benefit of securities maturities.
Certain items previously reported may be reclassified for consistency with the current presentation. These financial results are preliminary until the Form 10-Q is filed in August 2026.
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 21 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. Similarly, statements that describe the Company’s future plans, objectives or goals are also forward-looking statements. 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; cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which the Company and the Bank operate; 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 from others in the financial services industry, including non-depository institutions; disintermediation risk (including the use of emerging financial technologies such as cryptocurrencies); 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 ability 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 acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; volatility of our stock price (including possible removal from the Russell 3000® Index and related indexes); 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, 2025, filed with the Securities and Exchange Commission (“SEC”) on March 5, 2026, and the Company’s subsequent filings with the SEC. The forward-looking statements made herein are only made as of the date of this release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent 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 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.
Tangible book value, tangible book value per share, tangible common equity as a percentage 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 share data) June 30, 2026
(unaudited) March 31, 2026
(unaudited) December 31, 2025
(audited) June 30, 2025
(unaudited)Assets Cash and cash equivalents $121,762 $149,202 $118,853 $67,454 Securities available-for-sale (“AFS”) 128,435 130,876 134,103 134,773 Securities held-to-maturity (“HTM”) 77,415 79,014 80,210 83,029 Equity investments 6,287 5,978 5,840 5,741 Other investments 12,485 12,498 12,506 12,379 Loans receivable 1,382,975 1,358,252 1,340,325 1,345,620 Allowance for credit losses (25,899) (22,966) (22,401) (21,347)Loans receivable, net 1,357,076 1,335,286 1,317,924 1,324,273 Loans held for sale 941 654 4,954 6,063 Mortgage servicing rights, net 3,453 3,484 3,494 3,548 Office properties and equipment, net 17,441 16,453 16,357 16,357 Accrued interest receivable 6,180 5,827 6,126 6,123 Intangible assets 169 282 395 621 Goodwill 31,498 31,498 31,498 31,498 Foreclosed and repossessed assets, net 850 857 857 895 Bank owned life insurance (“BOLI”) 27,342 27,128 26,908 26,494 Other assets 22,975 23,937 21,730 15,916 TOTAL ASSETS $1,814,309 $1,822,974 $1,781,755 $1,735,164 Liabilities and Stockholders’ Equity Liabilities: Deposits $1,554,417 $1,565,622 $1,524,099 $1,478,416 Federal Home Loan Bank (“FHLB”) advances — — — — Other borrowings 51,885 51,844 51,804 61,722 Other liabilities 16,659 14,634 17,913 11,564 Total liabilities 1,622,961 1,632,100 1,593,816 1,551,702 Stockholders’ Equity: Common stock— $0.01 par value, authorized 30,000,000; 9,650,231, 9,628,612, 9,617,245, and 9,991,997 shares issued and outstanding, respectively 97 96 96 100 Additional paid-in capital 110,454 110,277 110,315 114,537 Retained earnings 92,820 92,739 89,995 83,709 Accumulated other comprehensive loss (12,023) (12,238) (12,467) (14,884)Total stockholders’ equity 191,348 190,874 187,939 183,462 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,814,309 $1,822,974 $1,781,755 $1,735,164
CITIZENS COMMUNITY BANCORP, INC.
Consolidated Statements of Operations
(in thousands, except per share data) Three Months Ended Six Months Ended June 30, 2026
(unaudited) March 31, 2026
(unaudited) June 30, 2025
(unaudited) June 30, 2026
(unaudited) June 30, 2025
(unaudited)Interest and dividend income: Interest and fees on loans $19,322 $18,769 $20,105 $38,091 $38,707Interest on cash and investments 2,712 2,747 2,397 5,459 4,898Total interest and dividend income 22,034 21,516 22,502 43,550 43,605Interest expense: Interest on deposits 7,819 7,791 8,287 15,610 16,884Interest on FHLB borrowed funds 1 — 1 1 12Interest on other borrowed funds 710 715 903 1,425 1,804Total interest expense 8,530 8,506 9,191 17,036 18,700Net interest income before provision for credit losses 13,504 13,010 13,311 26,514 24,905Provision for credit losses 4,325 750 1,350 5,075 1,100Net interest income after provision for credit losses 9,179 12,260 11,961 21,439 23,805Non-interest income: Service charges on deposit accounts 460 460 432 920 855Interchange income 556 501 564 1,057 1,082Loan servicing income 593 661 565 1,254 1,124Gain on sale of loans 442 1,021 699 1,463 1,419Loan fees and service charges 129 138 237 267 357Net gains (losses) on equity securities 160 (59) 99 101 109Other 267 377 240 644 483Total non-interest income 2,607 3,099 2,836 5,706 5,429Non-interest expense: Compensation and related benefits 5,712 6,066 6,008 11,778 11,605Occupancy 1,240 1,278 1,196 2,518 2,483Data processing 1,302 1,417 1,753 2,719 3,472Amortization of intangible assets 113 113 179 226 358Mortgage servicing rights expense, net 173 161 148 334 288Advertising, marketing and public relations 207 226 194 433 361FDIC premium assessment 200 231 191 431 389Professional services 514 605 432 1,119 940(Gains) losses on repossessed assets, net (12) — — (12) 4Other 1,100 630 649 1,730 1,313Total non-interest expense 10,549 10,727 10,750 21,276 21,213Income before provision for income taxes 1,237 4,632 4,047 5,869 8,021Provision for income taxes 135 877 777 1,012 1,554Net income attributable to common stockholders $1,102 $3,755 $3,270 $4,857 $6,467Per share information: Basic earnings $0.11 $0.39 $0.33 $0.50 $0.65Diluted earnings $0.11 $0.39 $0.33 $0.50 $0.65Cash dividends paid $0.105 $0.105 $— $0.21 $0.36Book value per share at end of period $19.83 $19.82 $18.36 $19.83 $18.36Tangible book value per share at end of period (non-GAAP) $16.55 $16.52 $15.15 $16.55 $15.15
Loan Composition
(in thousands)
June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2025Total Loans: Commercial/Agricultural real estate: Commercial real estate $731,028 $697,785 $683,108 $693,382 Agricultural real estate 71,382 69,706 69,136 69,237 Multi-family real estate 253,244 241,221 245,688 238,953 Construction and land development 56,090 83,213 75,767 70,477 C&I/Agricultural operating: Commercial and industrial 117,215 114,379 105,907 109,202 Agricultural operating 29,427 29,032 33,375 31,876 Residential mortgage: Residential mortgage 117,083 117,586 122,025 125,818 Purchased HELOC loans 1,405 1,551 1,739 2,368 Consumer installment: Originated indirect paper 1,559 1,902 2,224 2,959 Other consumer 7,267 4,633 3,997 4,275 Gross loans $1,385,700 $1,361,008 $1,342,966 $1,348,547 Unearned net deferred fees and costs and loans in process (2,638) (2,638) (2,528) (2,629)Unamortized discount on acquired loans (87) (118) (113) (298)Total loans receivable $1,382,975 $1,358,252 $1,340,325 $1,345,620Nonperforming Assets
Loan balances at amortized cost
(in thousands, except ratios)
June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2025Nonperforming Assets: Nonaccrual loans Commercial real estate $18,676 $5,899 $4,652 $5,013 Agricultural real estate 2,254 461 464 5,447 Multi-family real estate 8,970 8,970 8,970 — Construction and land development — — — — Commercial and industrial (“C&I”) 1,221 1,517 1,282 600 Agricultural operating — — — — Residential mortgage 440 456 485 549 Consumer installment — — — — Total nonaccrual loans $31,561 $17,303 $15,853 $11,609 Accruing loans past due 90 days or more 18 39 1 521 Total nonperforming loans (“NPLs”) at amortized cost 31,579 17,342 15,854 12,130 Foreclosed and repossessed assets, net 850 857 857 895 Total nonperforming assets (“NPAs”) $32,429 $18,199 $16,711 $13,025 Loans, end of period $1,382,975 $1,358,252 $1,340,325 $1,345,620 Total assets, end of period $1,814,309 $1,822,974 $1,781,755 $1,735,164 Ratios: NPLs to total loans 2.28% 1.28% 1.18% 0.90%NPAs to total assets 1.79% 1.00% 0.94% 0.75%Average Balances, Interest Yields and Rates
(in thousands, except yields and rates)
Three Months EndedJune 30, 2026 Three Months Ended
March 31, 2026 Three Months Ended
June 30, 2025 Average
Balance Interest
Income/
Expense Average
Yield/
Rate Average
Balance Interest
Income/
Expense Average
Yield/
Rate Average
Balance Interest
Income/
Expense Average
Yield/
RateAverage interest earning assets: Cash and cash equivalents $98,575 $908 3.69% $105,651 $961 3.69% $44,377 $493 4.46%Loans receivable 1,363,849 19,322 5.68% 1,328,448 18,769 5.73% 1,353,332 20,105 5.96%Investment securities 209,228 1,650 3.16% 214,412 1,630 3.08% 223,318 1,735 3.12%Other investments 12,491 154 4.95% 12,503 156 5.06% 12,400 169 5.47%Total interest earning assets $1,684,143 $22,034 5.25% $1,661,014 $21,516 5.25% $1,633,427 $22,502 5.53%Average interest-bearing liabilities: Savings accounts $148,055 $276 0.75% $152,304 $309 0.82% $160,849 $335 0.84%Demand deposits 389,098 1,862 1.92% 376,998 1,768 1.90% 372,723 1,986 2.14%Money market accounts 401,145 2,534 2.53% 393,958 2,508 2.58% 361,420 2,510 2.79%CD’s 342,800 3,147 3.68% 344,493 3,206 3.77% 342,959 3,456 4.04%Total deposits $1,281,098 $7,819 2.45% $1,267,753 $7,791 2.49% $1,237,951 $8,287 2.69%FHLB advances and other borrowings 51,920 711 5.49% 51,824 715 5.60% 61,781 904 5.87%Total interest-bearing liabilities $1,333,018 $8,530 2.57% $1,319,577 $8,506 2.61% $1,299,732 $9,191 2.84%Net interest income $13,504 $13,010 $13,311 Interest rate spread 2.68% 2.64% 2.69%Net interest margin 3.22% 3.18% 3.27%Average interest earning assets to average interest-bearing liabilities 1.26 1.26 1.26
June 30, 2026 Six Months Ended
June 30, 2025 Average
Balance Interest
Income/
Expense Average
Yield/
Rate Average
Balance Interest
Income/
Expense Average
Yield/
RateAverage interest earning assets: Cash and cash equivalents $102,093 $1,870 3.69% $46,097 $1,017 4.45%Loans receivable 1,346,246 38,091 5.71% 1,358,314 38,707 5.75%Investment securities 211,806 3,279 3.12% 225,902 3,544 3.16%Other investments 12,497 310 5.00% 12,448 337 5.46%Total interest earning assets $1,672,642 $43,550 5.25% $1,642,761 $43,605 5.35%Average interest-bearing liabilities: Savings accounts $150,168 $585 0.79% $163,908 $742 0.91%Demand deposits 383,082 3,630 1.91% 377,512 4,018 2.15%Money market accounts 397,571 5,042 2.56% 363,463 5,046 2.80%CD’s 343,642 6,353 3.73% 343,353 7,078 4.16%Total deposits $1,274,463 $15,610 2.47% $1,248,236 $16,884 2.73%FHLB advances and other borrowings 51,872 1,426 5.54% 63,200 1,816 5.79%Total interest-bearing liabilities $1,326,335 $17,036 2.59% $1,311,436 $18,700 2.88%Net interest income $26,514 $24,905 Interest rate spread 2.66% 2.47%Net interest margin 3.20% 3.06%Average interest earning assets to average interest bearing liabilities 1.26 1.25
Wholesale Deposits
(in thousands)
2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Brokered money market accounts 5,229 5,495 5,168 5,131 5,092Third party originated reciprocal deposits 20,811 20,806 19,440 20,846 19,316Total wholesale deposits $26,040 $26,301 $24,608 $25,977 $24,408
Key Financial Metric Ratios:
Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025Ratios based on net income: Return on average assets (annualized) 0.25% 0.85% 0.75% 0.55% 0.74%Return on average equity (annualized) 2.32% 8.04% 7.23% 5.15% 7.25%Return on average tangible common equity1 (annualized) 3.03% 9.90% 9.18% 6.43% 9.23%Efficiency ratio 65% 66% 66% 66% 69%Net interest margin with loan purchase accretion 3.22% 3.18% 3.27% 3.20% 3.06%Net interest margin without loan purchase accretion 3.21% 3.18% 3.15% 3.19% 2.99%Reconciliation of Return on Average Assets
(in thousands, except ratios)
Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP earnings after income taxes $1,102 $3,755 $3,270 $4,857 $6,467 Average assets $1,803,346 $1,786,218 $1,745,897 $1,790,755 $1,750,912 Return on average assets (annualized) 0.25% 0.85% 0.75% 0.55% 0.74%Reconciliation of Return on Average Equity
(in thousands, except ratios)
Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025GAAP earnings after income taxes $1,102 $3,755 $3,270 $4,857 $6,467 Average equity $190,897 $189,383 $181,370 $190,035 $179,901 Return on average equity (annualized) 2.32% 8.04% 7.23% 5.15% 7.25%Reconciliation of Return on Average Tangible Common Equity (non-GAAP)
(in thousands, except ratios)
Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025Total stockholders’ equity $191,348 $190,874 $183,462 $191,348 $183,462 Less: Goodwill (31,498) (31,498) (31,498) (31,498) (31,498)Less: Intangible assets (169) (282) (621) (169) (621)Tangible common equity (non-GAAP) $159,681 $159,094 $151,343 $159,681 $151,343 Average tangible common equity (non-GAAP) $159,174 $157,546 $149,161 $158,255 $147,603 GAAP earnings after income taxes 1,102 3,755 3,270 4,857 6,467 Amortization of intangible assets, net of tax 101 92 145 187 289 Tangible net income $1,203 $3,847 $3,415 $5,044 $6,756 Return on average tangible common equity (annualized) 3.03% 9.90% 9.18% 6.43% 9.23%Reconciliation of Efficiency Ratio
(in thousands, except ratios)
Three Months Ended Six Months Ended June 30, 2026 March 31, 2026 June 30, 2025 June 30, 2026 June 30, 2025Non-interest expense (GAAP) $10,549 $10,727 $10,750 $21,276 $21,213 Less amortization of intangibles (113) (113) (179) (226) (358)Efficiency ratio numerator (GAAP) $10,436 $10,614 $10,571 $21,050 $20,855 Non-interest income $2,607 $3,099 $2,836 $5,706 $5,429 Add back net losses on debt and equity securities — (59) — — — Subtract net gains on debt and equity securities 160 — 99 101 109 Net interest income 13,504 13,010 13,311 26,514 24,905 Efficiency ratio denominator (GAAP) $15,951 $16,168 $16,048 $32,119 $30,225 Efficiency ratio (GAAP) 65% 66% 66% 66% 69%Pre-Provision Net Revenue (PPNR)
(in thousands, except yields and rates)
2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Pre-tax income $1,237 $4,632 $4,885 $4,535 $4,047Add back provision for credit losses 4,325 750 200 650 1,350Subtract provision reversal for credit losses — — — — —Pre-provision net revenue $5,562 $5,382 $5,085 $5,185 $5,397
Reconciliation of Tangible Book Value Per Share (non-GAAP)
(in thousands, except per share data)
Tangible book value per share at end of period June 30,2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Total stockholders’ equity $191,348 $190,874 $187,939 $186,815 $183,462 Less: Goodwill (31,498) (31,498) (31,498) (31,498) (31,498)Less: Intangible assets (169) (282) (395) (508) (621)Tangible common equity (non-GAAP) $159,681 $159,094 $156,046 $154,809 $151,343 Ending common shares outstanding 9,650,231 9,628,612 9,617,245 9,856,745 9,991,997 Book value per share $19.83 $19.82 $19.54 $18.95 $18.36 Tangible book value per share (non-GAAP) $16.55 $16.52 $16.23 $15.71 $15.15
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 June 30,2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Total stockholders’ equity $191,348 $190,874 $187,939 $186,815 $183,462 Less: Goodwill (31,498) (31,498) (31,498) (31,498) (31,498)Less: Intangible assets (169) (282) (395) (508) (621)Tangible common equity (non-GAAP) $159,681 $159,094 $156,046 $154,809 $151,343 Total assets 1,814,309 $1,822,974 $1,781,755 $1,726,987 $1,735,164 Less: Goodwill (31,498) (31,498) (31,498) (31,498) (31,498)Less: Intangible assets (169) (282) (395) (508) (621)Tangible assets (non-GAAP) $1,782,642 $1,791,194 $1,749,862 $1,694,981 $1,703,045 Total stockholders’ equity to total assets ratio 10.55% 10.47% 10.55% 10.82% 10.57%Tangible common equity as a percent of tangible assets (non-GAAP) 8.96% 8.88% 8.92% 9.13% 8.89%
1Tangible 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 enhance investors’ ability to understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial tables “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 (non-GAAP)”.