Citizens Community Bancorp, Inc. (CZWI): Business Model Canvas [Dec-2025 Updated]

You're looking for the real mechanics behind Citizens Community Bancorp, Inc.'s business, and honestly, it boils down to a classic community bank play with a modern twist: they are deeply rooted in Wisconsin and Minnesota, serving SME and Ag clients through 21-22 physical locations while managing $1.727 billion in assets as of September 30, 2025. Their value proposition is that high-touch, local lender relationship, which helped them post a 3.20% Net Interest Margin in Q3 2025, even while navigating credit quality concerns like the $16.7 million in non-performing assets that quarter. To see the full picture-from their key partnerships with FHLB to how they structure their cost base-dive into the nine blocks we've mapped out for you below.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Key Partnerships

You're looking at the external relationships Citizens Community Bancorp, Inc. relies on to keep the lights on and the loans flowing. These aren't just names on a contract; they represent critical access to capital, technology, and local market reach.

The Federal Home Loan Bank (FHLB) relationship is a key part of liquidity management, though as of mid-2025, Citizens Community Bancorp, Inc. was self-sufficient enough to report zero borrowings.

Here's a snapshot of the scale of the operation these partners support, based on late 2025 figures:

The reliance on third-party technology is evident in expense reporting, for instance, the Data processing expense reported for the second quarter of 2025 was $1,753 thousand.

The structure of the Key Partnerships relies on these categories:

• Fintech providers for digital banking and payments integration
• Federal Home Loan Bank (FHLB) for liquidity and funding: $0 advances outstanding as of June 30, 2025.
• Correspondent banks for treasury and larger transaction services
• Local real estate and title companies for mortgage referrals
• Third-party vendors for core processing and IT security

The on-balance sheet liquidity ratio, which measures unpledged securities and cash, stood at 12.17% of total assets at June 30, 2025. Also, the collateralized new borrowing capacity plus uncommitted federal funds availability was $730 million against uninsured and uncollateralized deposits at that same date.

For Q1 2025, the on-balance sheet liquidity ratio was reported at 14.38% of total assets, with borrowing capacity at $852 million against uninsured and uncollateralized deposits as of March 31, 2025.

The allowance for credit losses on loans was $21.3 million at June 30, 2025, representing 1.59% of total loans receivable.

Finance: draft 13-week cash view by Friday.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Key Activities

You're looking at the core engine of Citizens Community Bancorp, Inc. as of late 2025. It's all about managing the balance sheet actively while keeping credit tight. Here's a breakdown of what the team is focused on day-to-day.

Core deposit gathering and managing the deposit portfolio

Gathering stable funding is always job one for a community bank. Citizens Community Bancorp, Inc. ended Q3 2025 with total deposits at $1.48 billion. That quarter showed a push-pull dynamic: commercial deposits actually grew by $17.1 million, which is great, but they saw a seasonal dip in public deposits of $15.2 million. They are definitely managing the mix to keep funding costs down, which helped their net interest margin (NIM) stay positive year-over-year, even as Q2 had a one-time boost from loan payoffs.

Here's how the deposit mix looked at the end of Q2 2025, showing where the focus is:

The bank also offers standard products like checking, savings, money market accounts, and certificates of deposit, supported by digital and mobile banking platforms.

Commercial, Ag, and residential loan origination and servicing

Servicing the existing book and originating new, quality assets is the other side of the coin. Loans receivable stood at $1.323 billion as of September 30, 2025. You'll notice loans shrank by $22.6 million in Q3 2025; honestly, that's because payoffs and amortization were higher than what they originated that quarter. They are actively working the book, evidenced by non-interest income improving by $0.2 million quarter-over-quarter due to higher gains on the sale of mortgage/SBA loans.

Disciplined balance sheet management, like the $15 million debt redemption in Q3 2025

This is where you see the focus on capital efficiency. Citizens Community Bancorp, Inc. executed a key move by redeeming $15 million of its 6% subordinated debt on September 1, 2025. That's a concrete action taken to clean up the liability side of the balance sheet. This, combined with earnings, helped the Tangible Common Equity (TCE) to Tangible Assets ratio climb to 9.13% by the end of Q3 2025. They also authorized a 5% stock buyback, repurchasing about 136K shares in Q3 at an average price of $14.93.

Executing the M&A and organic growth strategy

The stated strategy involves both growing organically and acquiring smaller community banks within their existing markets of Wisconsin and Minnesota. The Q1 2025 focus highlighted a strategic transformation away from being purely consumer-focused toward becoming a more diversified community bank with expanded commercial lending capabilities. This suggests new activity is centered on integrating commercial opportunities in the Chippewa Valley, Mankato, and Twin Cities regions.

Maintaining regulatory compliance and strong credit underwriting

Credit quality remains a major activity, and the numbers show a clear focus on managing risk exposure. They are definitely keeping a close eye on potential problem areas, though one large multifamily loan moving to nonaccrual did push NPAs up to $16.7 million (or 0.96% of assets) in Q3 2025. The response was to strengthen reserves:

• Allowance for Credit Losses (ACL) increased to 1.68% of loans.
• ACL coverage rose to 141% of nonperforming loans.
• Criticized loans fell by approximately $7 million quarter-over-quarter, down to $34.2 million.
• Special mention loans declined by about $10.3 million in Q3 2025.
• Historically, net charge-offs have averaged just 0.05% since 2017.

The underwriting discipline is defintely a core activity, aiming to keep those charge-offs low.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Key Resources

You're looking at the core assets that Citizens Community Bancorp, Inc. (CZWI) relies on to execute its community banking strategy across Wisconsin and Minnesota. These aren't just line items; they are the tangible and intangible foundations supporting every loan and deposit relationship you see in their operations.

The financial strength starts with capital. Citizens Community Bancorp, Inc. maintains a strong capital base, which is critical for weathering any economic shifts and supporting growth initiatives, including potential smaller community bank buyouts, which is part of their stated strategy. As of the third quarter of 2025, the company reported a CET1 ratio of 10.7%. That's well above the regulatory minimums you'd expect for a bank of this size, and their tangible capital ratio also exceeded 9.1% as of September 30, 2025. This capital cushion is a key resource for stability.

Physically, Citizens Community Bancorp, Inc. is rooted in its local markets. The physical branch network is concentrated in Wisconsin and Minnesota, serving as the primary touchpoint for relationship banking. As of late 2025 reporting periods, this network consists of 21 branch locations, with prior reports indicating 22, confirming a stable, localized footprint in areas like the Chippewa Valley Region and Mankato.

The sheer scale of the operation is reflected in the balance sheet. As of September 30, 2025, Citizens Community Bancorp, Inc. reported total assets of $1.727 billion. This asset base supports their loan portfolio, which, as of that same date, stood at $1.32 billion in total loans. Honestly, managing an asset base of this size requires disciplined execution.

Here's a quick look at the key financial anchors supporting the business:

The human element is non-negotiable in community banking. The resource here is the team of experienced local lenders and relationship managers. Their expertise in underwriting commercial, agricultural, and residential mortgage loans within specific regional markets is what drives loan quality and customer retention. This local knowledge is something a large, distant institution just can't replicate easily.

Finally, the operational backbone relies on technology. Citizens Community Bancorp, Inc. utilizes digital banking platforms and core technology infrastructure to meet modern customer expectations for convenience. While specific internal metrics on their core system modernization aren't public, the industry trend for 2025 shows a clear prioritization of digital-first technology to drive efficiency and improve customer experience. For Citizens Community Bancorp, Inc., this means maintaining the systems that support:

• Online Banking access for account management.
• Mobile Banking capabilities for on-the-go transactions.
• The core processing engine for all lending and deposit activities.
• Data analytics to understand local customer behavior.

The ability to seamlessly integrate these digital channels with the in-person relationship service is a critical, though less quantifiable, resource. Finance: draft 13-week cash view by Friday.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Value Propositions

You're looking at what Citizens Community Bancorp, Inc. (CZWI) offers its clients to keep them loyal and attract new business as of late 2025. It's all about being a local partner with the financial backing of a larger institution.

Community-centric, high-touch service model for local businesses

Citizens Community Bancorp, Inc. (CZWI) delivers its services across specific regional markets in Wisconsin and Minnesota, operating through 21 branch locations as of Q3 2025. This physical presence supports the high-touch model, especially in areas like the Chippewa Valley Region in Wisconsin, and the Mankato and Twin Cities regions in Minnesota. The bank specifically offers banking services to businesses and ag operators.

Financial stability and strong capital position for deposit safety

The value proposition here is safety and resilience. Management points to a strong capital position to provide that assurance. As of the third quarter of 2025, the Tangible Common Equity (TCE) as a percent of Tangible Assets stood at 9.13%. This metric, viewed by management as useful for evaluating capital adequacy, showed improvement from 8.45% at the end of the first quarter of 2025. Furthermore, the company actively managed its liabilities, redeeming $15 million of its 6% subordinated debt on September 1, 2025, which strengthens the balance sheet. The tangible book value per share was $15.71 at September 30, 2025.

Diversified lending portfolio focused on Ag and SME clients

Citizens Community Bancorp, Inc. (CZWI) has strategically shifted its loan focus away from a consumer-centric model seen in 2016 toward a more balanced mix that explicitly includes commercial real estate (CRE), commercial and industrial (C&I), and agricultural lending by 2025. While total period-end loans were $1.323 billion in Q3 2025, the focus remains on these core commercial and agricultural segments to mitigate volatility. The bank's strategy emphasizes quality, well-priced loan growth with relationship borrowers.

Personalized financial solutions blended with modern digital access

You get the benefit of local relationship banking alongside modern convenience. The bank provides access to Online Banking and Mobile Banking services. This blend means clients can manage routine transactions digitally while relying on local lenders for complex, personalized solutions.

Local decision-making by lenders who understand the regional economy

A key differentiator is that lending decisions are made locally by people familiar with the specific economic dynamics of the Chippewa Valley, Mankato, and Twin Cities markets. This local understanding helps tailor financial solutions, which is a core part of the community-centric approach.

Here are some key financial figures that underpin these value propositions as of mid-to-late 2025:

The bank's focus on credit quality is also evident in asset management metrics. For instance, Nonperforming Assets (NPAs) were 0.96% of assets in Q3 2025, driven by one specific multifamily loan moving to nonaccrual. However, criticized loans fell by approximately $7 million quarter-over-quarter, from $41.1 million to $34.2 million.

• ACL (Allowance for Credit Losses) to loans increased to 1.68% in Q3 2025.
• ACL coverage rose to 141% of non-performing loans.
• Non-interest income improved by $0.2 million quarter-over-quarter to $3.0 million on higher gains from mortgage/SBA loan sales.

Finance: draft the 13-week cash flow view by Friday.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Customer Relationships

You're looking at how Citizens Community Bancorp, Inc. (CZWI) keeps its customers close, which is the whole point of community banking, right? The model is built on deep, personal connections, which you can see reflected in their financial stability through the first three quarters of 2025.

Long-term, relationship-driven model with dedicated bankers

Citizens Community Bancorp, Inc.'s core strategy is to exceed customer expectations by putting them at the center of every decision. This focus translates directly into the balance sheet. For example, the bank posted a net income of nearly $3.7 million for the third quarter of 2025, showing that relationship focus is driving results. The tangible book value per share as of September 30, 2025, stood at $15.71, which is a strong indicator of retained value built through these long-term ties.

High-touch service for commercial and agricultural operators

The bank explicitly serves businesses and agricultural operators, which requires more than just an app. This high-touch approach is evident in credit quality metrics; at March 31, 2025, special mention loans increased to $15.0 million, largely due to one C&I relationship. This single data point shows how a significant relationship can impact the books, underscoring the importance of dedicated banker attention for commercial and industrial clients.

Self-service options via mobile and online banking platforms

While the personal touch is key, Citizens Community Bancorp, Inc. supports it with digital tools, matching the broader industry trend where 77% of banking interactions now occur through digital channels globally. You have to offer both. The bank's platforms help customers manage their finances on the go, even as the bank maintains its physical footprint. Honestly, if you aren't offering robust digital access today, you're missing the mark, even in a relationship-focused model.

Community involvement and financial literacy programs

The mission statement of Citizens Community Bancorp, Inc. is clear: serving customers and enriching communities. This commitment is a key part of the relationship value proposition, fostering trust beyond the transaction. While specific program spending isn't detailed in the latest reports, the stated value of maintaining deep community engagement drives the culture that supports customer retention.

Direct, in-person service through the branch network

Direct, in-person service remains a pillar, especially for complex commercial and agricultural needs. Citizens Community Bancorp, Inc. serves its primary markets across Wisconsin and Minnesota through 21 branch locations as of the first quarter of 2025. This physical presence is critical for relationship building, even as general trends show only 8% of banking interactions now occur via branch visits nationwide.

Here's a quick look at the financial results that reflect the execution of this customer-centric strategy through the first three quarters of 2025:

The bank's ability to grow deposits by $35.5 million in Q1 2025 to reach $1.524 billion shows that customers trust them with their cash, which is the ultimate relationship metric.

You should review the Q4 2025 earnings release when it drops to see if the consensus EPS forecast of $0.395 is met, as that will be the next real-time validation of the relationship strategy.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Channels

You're looking at how Citizens Community Bancorp, Inc. gets its value proposition-community-focused banking-out to its customers in Wisconsin and Minnesota. The physical footprint remains important, but the digital layer is clearly a key focus for efficiency, which is smart given the industry trends.

The core physical channel is the network of brick-and-mortar offices. As of the third quarter of 2025, Citizens Community Bancorp, Inc. serves customers across its primary markets in Wisconsin and Minnesota through 21 branch locations. This physical presence supports the relationship-driven approach, especially for complex services like commercial lending, where the bank has significant exposure, with commercial-related loans making up 90% of the loan portfolio as of September 30, 2025. The bank is headquartered in Eau Claire, WI, and its subsidiary, Citizens Community Federal N.A., is based in Altoona, Wisconsin. This network is the traditional touchpoint for deposit-taking and loan origination.

The digital channels are essential for modern service delivery and efficiency. Citizens Community Bancorp's mobile and online banking portals allow customers to manage accounts, execute payments, and access online statements. This digital capability is a necessary complement to the physical branches, especially as the bank has moved to streamline operations, a strategy consistent with closing less profitable offices in the past to enhance operating efficiencies. The bank also supports transactions through its ATM network and integrated digital payment systems, though specific network size data isn't immediately available.

Direct sales are driven by personnel who build deep relationships. Loan officers and relationship managers are the key channel for delivering commercial, agricultural, and residential mortgage loan products directly to businesses and consumers. This human element is crucial for a community bank strategy emphasizing local reinvestment.

For the investment community, the Investor Relations website serves as the primary digital channel for transparency and compliance. Shareholders can access official documents and communications. For instance, the Annual Meeting of Shareholders took place on June 17, 2025, in Eau Claire, WI. The IR site provides access to filings, including the Q3 2025 report which showed net income of $3.7 million and a tangible book value per share of $15.71 as of September 30, 2025.

Here's a quick look at the scale of the business that these channels support as of late 2025:

The bank uses several specific methods to communicate with its various customer groups through these channels:

• Branch Locations: 21 full-service offices across WI and MN.
• Digital Access: Mobile and online banking for account management and payments.
• Direct Sales: Loan officers and relationship managers for commercial and agricultural clients.
• Shareholder Access: Investor Relations website with SEC Filings and Event Presentations.
• Key Event Date: Annual Meeting of Shareholders held on June 17, 2025.

Finance: draft 13-week cash view by Friday.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Customer Segments

Citizens Community Bancorp, Inc. serves its core markets across Wisconsin and Minnesota by focusing on distinct customer groups for both lending and deposit gathering activities. The strategic shift has heavily favored commercial lending relationships.

The composition of the deposit portfolio as of June 30, 2025, clearly delineates the funding base:

The lending focus, however, shows a significant concentration in business-related activities. As of September 30, 2025, the loan portfolio composition reflects this strategic emphasis:

• Commercial-related loans accounted for 90% of the total loan portfolio as of September 30, 2025.
• Total loans stood at $1.32 billion as of September 30, 2025.
• The commercial-related portion includes Commercial Real Estate (CRE), Commercial and Industrial (C&I), and agricultural lending.

The customer segments are served through these primary channels:

• Small and Medium Enterprises (SME) and commercial businesses are a primary focus, evidenced by the 90% commercial-related loan concentration.
• Agricultural operators (Ag/SME) in core markets are included within the diversified commercial lending activities.
• Local consumers and households for retail banking form the largest component of the deposit base at 58% as of June 30, 2025.
• Public entities represent a stable funding source, making up 13% of the deposit portfolio at June 30, 2025.
• Residential mortgage borrowers are served through the Consumer segment, which represents the remaining portion of the loan portfolio not classified as commercial-related, which was 10% of total loans as of September 30, 2025.

The bank's overall asset base was reported at $1.73 billion as of September 30, 2025. The company operates through 21 branch locations across its markets.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Cost Structure

You're looking at the cost side of Citizens Community Bancorp, Inc.'s operations as of late 2025. For a community bank, the cost structure is heavily weighted toward funding costs and operating overhead. Here's the quick math based on the third quarter of 2025 results.

The total non-interest expense for Citizens Community Bancorp, Inc. in the third quarter ended September 30, 2025, was reported at $11.1 million. This represented an increase of $0.3 million compared to the second quarter of 2025 figure of $10.8 million.

Interest expense paid on customer deposits and borrowings

While the specific interest expense on deposits and borrowings isn't broken out separately from Net Interest Income (NII) calculations, the cost of funding is a major driver. The company took action to reduce a significant funding cost by redeeming $15 million of 6% subordinated debt on September 1, 2025. The overall Net Interest Income for Q3 2025 was $13.2 million, which benefited from 'lower deposit costs' offsetting other factors.

Personnel costs for branch staff and corporate employees

Specific personnel costs are embedded within the total non-interest expense. The sequential increase in non-interest expense in Q3 2025 was partly attributed to higher costs related to compensation and medical expenses. For context on executive compensation, the Chairman, President, and CEO, Stephen M. Bianchi, had a reported salary/compensation of $744.76K in the most recent available full-year data.

Non-interest expenses for branch operations and administration

These operational costs are part of the $11.1 million total non-interest expense. In the fourth quarter of 2024, non-interest expense included higher professional fees of $0.2 million and higher REO (Real Estate Owned) expenses of $0.2 million. You'd expect these administrative and operational costs to be relatively stable across the 21 branch locations.

Technology investment and cybersecurity costs

Direct figures for technology investment and cybersecurity spending are not itemized in the readily available Q3 2025 summary filings. However, management highlighted planned enhancements to treasury management services and digital banking capabilities as a focus area. This implies ongoing, though unquantified, investment in the technology stack to support the customer-centric push. It's a necessary cost to maintain parity with larger regional competitors.

Provision for credit losses (Non-performing assets were $16.7 million in Q3 2025)

The Provision for Credit Losses (PCL) for Q3 2025 was $0.65 million. This was a significant reduction from the $1.35 million provision taken in the second quarter of 2025. The reported Nonperforming Assets (NPAs) at the end of Q3 2025 stood at $16.7 million, which represented 0.96% of total assets. The Allowance for Credit Losses (ACL) coverage ratio improved to 141% of non-performing loans for the quarter.

• The company redeemed $15 million in subordinated debt.
• Total assets were $1.73 billion as of September 30, 2025.
• Total loans were $1.32 billion as of September 30, 2025.
• The company employed 232 people as of the end of 2024.

Finance: draft 13-week cash view by Friday.

Citizens Community Bancorp, Inc. (CZWI) - Canvas Business Model: Revenue Streams

You're looking at how Citizens Community Bancorp, Inc. (CZWI) brings in the money, which for a bank like this, boils down to interest earned and fees charged. It's all about the spread between what they pay for deposits and what they earn on loans and investments, plus the non-interest income that keeps things interesting.

The core engine is Net Interest Income (NII), which is the difference between the interest Citizens Community Bancorp, Inc. earns on its assets, like loans and securities, and the interest it pays out on liabilities, like customer deposits. For the third quarter ending September 30, 2025, the NII was reported at $13.2 million. This is the bread and butter of the operation.

The efficiency of that core engine is measured by the Net Interest Margin (NIM), which shows how much profit they make on their interest-earning assets relative to the cost of funding those assets. As you noted, the NIM was 3.20% in Q3 2025. Honestly, that margin tells you a lot about their asset pricing power versus their deposit competition.

Beyond the interest spread, Citizens Community Bancorp, Inc. generates revenue from various activities that fall under Non-interest income. For the third quarter of 2025, this stream contributed $3.0 million, which was an improvement of $0.2 million from the linked quarter. This category is where you find the fees you're asking about.

Specifically, a key part of that non-interest income comes from fees related to lending activities. The Q3 2025 results pointed to this stream being boosted by higher gains on sale of mortgage/SBA loans. While I don't have the isolated figure for Loan origination and servicing fees, these gains are a direct reflection of their activity in originating and selling those assets, which is a critical component of their fee-based revenue.

To put the overall picture together, the Trailing Twelve Months (TTM) revenue ending September 30, 2025, for Citizens Community Bancorp, Inc. was $60.040 million. [cite: required by outline] This total revenue figure encompasses the NII and Non-interest income generated over the full year leading up to that date.

Here's a quick snapshot of the key revenue components we have data for, using the latest quarterly figures to illustrate the streams that feed into the TTM total:

You can see the reliance on the interest income stream. The non-interest income, which includes those loan fees, is smaller but important for diversification. If onboarding takes 14+ days, churn risk rises, and that could impact future loan origination fees, so keeping that process tight is key.

• Net Interest Income (NII) is the primary driver.
• Net Interest Margin (NIM) stood at 3.20% in Q3 2025.
• Non-interest income totaled $3.0 million in Q3 2025.
• Gains on sale of mortgage/SBA loans drove non-interest income.
• Total revenue for the TTM ending September 30, 2025, was $60.040 million. [cite: required by outline]

Finance: draft 13-week cash view by Friday.