Citizens Community Bancorp Inc. (CZWI, Financial) filed Quarterly Report for the period ended 2010-12-31.
Citizens Community Bancorp Inc. has a market cap of $27.1 million; its shares were traded at around $5.3 .
Net interest income was $5,363 for the three months ended December 31, 2010, compared to $4,979 for the three months ended December 31, 2009. The net interest margin for the three months ended December 31, 2010 was 3.73% compared to 3.62% for the three months ended December 31, 2009. The 11 bp increase in net interest margin was attributable to a 14 bp increase in interest rate spread resulting from a 41 bp decline in return on interest-earning assets, which was more than offset by a 55 bp decrease in the cost of interest-bearing liabilities between the three months ended December 31, 2010 and the three months ended December 31, 2009. Contributing factors include an increase in CDs of approximately $60,000 and a decrease in FHLB advances of approximately $45,000, both reflecting a shift to lower cost funding.
As shown in the rate/volume analysis in the following pages, volume changes resulted in a $15 decrease in net interest income for the three months ended December 31, 2010 and over the amount recorded during the three months ended December 31, 2009. The decrease and changes in the composition of interest earning assets resulted in a $93 decrease in interest income for the three months ended December 31, 2010 from the level achieved during the three months ended December 31, 2009, offset by a $78 decrease in interest expense due to the composition change in interest-bearing liabilities. Rate changes on interest earning assets decreased interest income by $120, but were more than offset by rate changes on interest-bearing liabilities that decreased interest expense by $519, for a net impact of $399 due to changes in interest rates. The changes in CD and FHLB Advance balances, discussed above, are the primary factors affecting volume changes. Rate decreases on loans and all deposit categories are reflective of the overall lower market interest rate environment currently versus the same period last year.
Average interest earning assets were $571,190 for the period ending December 31, 2010 compared to $545,365 for the period ending December 31, 2009. Average loans outstanding increased to $453,087 from $445,222 for the period ending December 31, 2010 and 2009, respectively. Interest income on loans decreased $79, of which $128 related to the increase in average outstanding balances offset by a decrease in interest income of $207 due to lower yields on such loans.
Average interest-bearing liabilities increased $22,757 for the three months ending December 31, 2010 compared to the three months ending December 31, 2009. Average interest-bearing deposits increased $67,958, or 16.46% for the quarter ending December 31, 2010 compared to the same period in 2009. Interest expense on interest-bearing deposits increased $418 from the volume and mix changes and decreased $701 from the impact of the rate environment, resulting in an aggregate decrease of $283 in interest expense on interest-bearing deposits. Average FHLB Advances decreased $45,201 for the three months ending December 31, 2010 compared to the three months ending December 31, 2009. As noted above, the Bank sought increases in customer deposits at competitively low interest rates, in part to replace FHLB Advances, which represent a higher interest rate source of funds.
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Citizens Community Bancorp Inc. has a market cap of $27.1 million; its shares were traded at around $5.3 .
Highlight of Business Operations:
The following is a brief summary of some of the factors that affected our operating results in the three months ended December 31, 2010. See the remainder of this section for a more thorough discussion. Unless otherwise stated, all monetary amounts in this Management s Discussion and Analysis of Financial Condition and Results of Operations, other than share and per share amounts, are stated in thousands. We reported a net loss of $239 for the three months ended December 31, 2010, compared to net income of $175 for the three months ended December 31, 2009. Both basic and diluted losses per share were ($0.05) for the three months ended December 31, 2010, compared to basic and diluted earnings per share of $0.03 for the three months ended December 31, 2009. The return on average assets for the three months ended December 31, 2010 and 2009 was (0.16%) and 0.12%, respectively. The return on average equity for the three months ended December 31, 2010 and 2009 was (1.87%) and 1.26%, respectively. No cash dividends were declared or paid in either of the three month periods ended December 31, 2010 and 2009, respectively.Net interest income was $5,363 for the three months ended December 31, 2010, compared to $4,979 for the three months ended December 31, 2009. The net interest margin for the three months ended December 31, 2010 was 3.73% compared to 3.62% for the three months ended December 31, 2009. The 11 bp increase in net interest margin was attributable to a 14 bp increase in interest rate spread resulting from a 41 bp decline in return on interest-earning assets, which was more than offset by a 55 bp decrease in the cost of interest-bearing liabilities between the three months ended December 31, 2010 and the three months ended December 31, 2009. Contributing factors include an increase in CDs of approximately $60,000 and a decrease in FHLB advances of approximately $45,000, both reflecting a shift to lower cost funding.
As shown in the rate/volume analysis in the following pages, volume changes resulted in a $15 decrease in net interest income for the three months ended December 31, 2010 and over the amount recorded during the three months ended December 31, 2009. The decrease and changes in the composition of interest earning assets resulted in a $93 decrease in interest income for the three months ended December 31, 2010 from the level achieved during the three months ended December 31, 2009, offset by a $78 decrease in interest expense due to the composition change in interest-bearing liabilities. Rate changes on interest earning assets decreased interest income by $120, but were more than offset by rate changes on interest-bearing liabilities that decreased interest expense by $519, for a net impact of $399 due to changes in interest rates. The changes in CD and FHLB Advance balances, discussed above, are the primary factors affecting volume changes. Rate decreases on loans and all deposit categories are reflective of the overall lower market interest rate environment currently versus the same period last year.
Average interest earning assets were $571,190 for the period ending December 31, 2010 compared to $545,365 for the period ending December 31, 2009. Average loans outstanding increased to $453,087 from $445,222 for the period ending December 31, 2010 and 2009, respectively. Interest income on loans decreased $79, of which $128 related to the increase in average outstanding balances offset by a decrease in interest income of $207 due to lower yields on such loans.
Average interest-bearing liabilities increased $22,757 for the three months ending December 31, 2010 compared to the three months ending December 31, 2009. Average interest-bearing deposits increased $67,958, or 16.46% for the quarter ending December 31, 2010 compared to the same period in 2009. Interest expense on interest-bearing deposits increased $418 from the volume and mix changes and decreased $701 from the impact of the rate environment, resulting in an aggregate decrease of $283 in interest expense on interest-bearing deposits. Average FHLB Advances decreased $45,201 for the three months ending December 31, 2010 compared to the three months ending December 31, 2009. As noted above, the Bank sought increases in customer deposits at competitively low interest rates, in part to replace FHLB Advances, which represent a higher interest rate source of funds.
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