Updated 4/21/25
Citizens Community Bancorp (CZWI), a regional bank based in Wisconsin, has built a reputation for consistent execution, disciplined capital management, and a steady dividend. Over the past year, its stock has climbed nearly 29%, supported by improving net interest margins, share repurchases, and a recent dividend increase. Trading at a discount to book value and maintaining a low payout ratio, CZWI continues to appeal to investors focused on long-term income and capital preservation. Leadership has shown a clear focus on balance sheet strength, conservative lending practices, and returning value through dividends and buybacks, even amid a changing rate environment.
Recent Events
Over the past year, CZWI’s stock price has seen a respectable lift, up nearly 29% over the last 52 weeks. That kind of gain stands out, especially at a time when many regional banks are just trying to keep their heads above water in a shifting interest rate landscape.
But not everything has been smooth sailing. Revenue in the latest quarter (ending December 2024) dropped 4.8% year over year. Net income took a bigger hit, down 26.8%. For a small bank, that’s not insignificant. Higher deposit costs and a tightening credit environment are eating into margins—not exactly surprising given the broader economic backdrop.
Even with that pressure, Citizens Community is still generating profits. Return on equity is sitting at 7.8%, and its profit margin remains healthy at 23.1%. Those numbers don’t scream explosive growth, but they do signal disciplined management and a business that’s not trying to punch above its weight.
Cash reserves are solid, with more than $50 million on hand, and total debt is manageable at $67.68 million. That leaves the bank in a decent position to keep doing what it’s doing—running a tight ship and keeping the dividend intact.
Key Dividend Metrics
💵 Forward Dividend Yield: 2.65%
📈 5-Year Average Dividend Yield: 2.32%
🎯 Payout Ratio: 23.88%
📅 Recent Dividend: $0.36 annualized
📊 Stability: Backed by consistent profits and strong cash position
Dividend Overview
The dividend isn’t huge, but it’s consistent—and in today’s market, that counts for a lot. With a forward yield of 2.65%, CZWI edges past its five-year average. That might not jump off the page, but it’s a reminder that the bank continues to deliver incremental value to shareholders.
The real standout here is the payout ratio. At just under 24%, it’s clear the bank isn’t stretching itself to keep the dividend going. Earnings per share are at $1.34, and that gives them a wide cushion to maintain or even gradually grow the dividend from here.
This isn’t a company chasing high yield for the sake of appearances. It’s been increasing the dividend at a modest pace—from $0.32 to $0.36—and that’s exactly what you want to see from a bank that’s focused on the long game.
Dividend Growth and Safety
Safety might be the single most important word for dividend investors, and Citizens Community delivers on that front. Despite some softness in recent earnings, the dividend looks well protected.
With $5.02 in cash per share and a book value of $17.94, the financials offer a solid floor. The stock trades at about 0.76 times book value, suggesting there’s still room for the market to warm up to it. And with a five-year beta of 0.82, this is a stock that tends to move less than the broader market—a trait income-focused investors often appreciate.
From a balance sheet perspective, there’s no red flag. Cash flow from operations stands at just over $20 million annually, more than enough to cover the current dividend commitment. And the bank isn’t over-leveraged. In fact, it’s sitting in a position where it can keep weathering some bumps in the road without putting the dividend at risk.
The consistency of their dividend payments over the past several years, even through challenging periods, is a good indicator of how management approaches capital allocation. They don’t promise what they can’t deliver, and they haven’t shown any sign of cutting corners just to prop up yield.
Looking at the dividend calendar, the last payment was issued in February, and the ex-dividend date fell earlier that same month. If past patterns hold, investors can expect the next payout to come sometime this summer, continuing a dependable rhythm that’s been in place for years.
This kind of reliability doesn’t make headlines—but it’s exactly what income investors look for when they want to build a portfolio they don’t have to constantly worry about. CZWI may not be a household name, but for those paying attention, it’s proving to be a bank you can count on.
Cash Flow Statement
Citizens Community Bancorp reported $20.18 million in operating cash flow over the trailing twelve months, showing that the business continues to generate consistent cash from its core lending and deposit operations. This level of operating cash flow provides solid backing for the company’s dividend payments and other capital needs, giving it breathing room to handle expenses without leaning heavily on debt or diluting equity.
The absence of reported figures for levered free cash flow leaves a small gap in visibility, but with over $50 million in total cash on hand, the company appears well-positioned from a liquidity standpoint. While operating earnings saw some pressure in the last quarter, the underlying cash generation suggests CZWI remains disciplined in its financial management, even as revenue and net income experienced a short-term dip.
Analyst Ratings
📉 Citizens Community Bancorp (NASDAQ: CZWI) has recently been downgraded from a “buy” to a “hold” by analysts. This shift reflects a more tempered outlook following a quarter where results met, but didn’t exceed, expectations. The company reported earnings per share of $0.27 in its most recent quarter, which came in line with what analysts were anticipating. While that consistency is generally a good sign, the absence of any earnings surprise led to a more neutral position among coverage analysts.
💼 From a profitability standpoint, CZWI posted a return on equity of 7.87% and a net profit margin of 13.79%. These figures point to a business that’s running efficiently, but not exactly on a fast growth trajectory. That’s likely why the stock’s rating was adjusted—there’s nothing fundamentally wrong, but there’s not a lot of short-term excitement either.
🎯 The current consensus price target sits at $17.34, with individual projections ranging from $16.16 on the low end to $18.90 at the high end. At the current trading price, that does suggest some upside, but it’s moderate. The downgrade essentially signals a pause in momentum rather than a red flag, and the market seems to be waiting for stronger catalysts before getting more enthusiastic again.
Earning Report Summary
Citizens Community Bancorp wrapped up 2024 with earnings of $2.7 million in the fourth quarter, which came out to $0.27 per share. That’s a bit softer than the $3.3 million posted in the previous quarter and down from $3.7 million a year earlier. While not a dramatic miss, it does reflect some tightening in profitability. Still, there were a few encouraging signs tucked into the report.
Net Interest Margin Improving
One positive takeaway was the bank’s net interest income, which rose by $400,000 to $11.7 million for the quarter. More importantly, the net interest margin—essentially the spread between what the bank earns on loans versus what it pays out on deposits—climbed 16 basis points to 2.79%. That’s a healthy gain and shows their efforts to improve the core lending business are making headway.
Dip in Non-Interest Income and Rising Costs
Not everything moved in the right direction, though. Non-interest income took a hit, dropping by $900,000. The biggest reason was fewer gains from loan sales, along with a loss on some equity securities. On top of that, expenses ticked higher, especially in areas like professional services and costs tied to managing foreclosed properties.
Loan and Deposit Trends
The loan book shrank by about $55.8 million in the quarter, driven mainly by trimming down non-core relationships. Deposits also dipped, falling by $32.5 million—most of that came from a reduction in wholesale funding, which the bank had previously used more aggressively.
Strong Capital Position and Book Value Growth
One thing that continues to stand out is how strong the bank’s balance sheet remains. Book value per share inched up to $17.94, and tangible book value rose nearly 10% year-over-year to $14.69. That kind of progress gives the bank flexibility to return value to shareholders while staying on solid footing.
CEO Steve Bianchi struck an optimistic tone about where things are headed. He pointed to successful moves in balance sheet optimization, stronger margins, and a higher equity ratio. The bank also continued its share repurchase efforts, buying back 94,000 shares in the quarter at an average price of $14.55. Management sees these buybacks as accretive to both earnings per share and book value.
On the dividend front, shareholders got a little bonus. The board approved a 12.5% boost in the annual dividend, bumping it up to $0.36 per share. That kind of steady dividend growth speaks to the confidence leadership has in their long-term strategy, even as short-term earnings pull back slightly.
Overall, while the headline numbers were a bit lighter, there’s a clear effort underway to improve efficiency, focus on core strengths, and deliver steady returns to shareholders.
Chart Analysis
CZWI has had quite a journey over the past year, with clear signs of accumulation, momentum, and now some cooling off. The chart paints a full picture of a stock that experienced a healthy uptrend, entered a topping phase, and is now navigating through a corrective pullback. Let’s unpack the story behind the movement.
Price Movement and Moving Averages
From May through December, CZWI steadily climbed from the $10 range all the way to a high just over $17, a strong advance driven by positive sentiment and likely supported by improving fundamentals. The 50-day moving average (in red) tracked above the 200-day moving average (in blue) for the majority of that run, confirming the strength of the trend. However, since early January, the 50-day MA began to roll over, indicating a loss of momentum. As the price declined through March and April, it briefly dropped below the 200-day line, often considered a longer-term support level.
The recent bounce in late April shows the price trying to recover from a short-term oversold position, but the gap between the two moving averages has narrowed, suggesting that the trend has cooled and now sits at a potential inflection point.
Volume Trends
Volume spiked noticeably during some of the more dramatic price swings—particularly in early November during a breakout, and again in April during a sharp selloff. Outside of those moves, volume has been relatively modest. That kind of volume pattern can indicate institutional activity, especially when it aligns with major price shifts. Right now, volume hasn’t surged meaningfully with the recent bounce, which could mean this is more of a technical recovery than a wave of new buyers stepping in.
Relative Strength Index (RSI)
Looking at the RSI, CZWI spent much of the second half of 2023 in a bullish zone, regularly testing the overbought threshold around 70. Since January though, the RSI has hovered in a more neutral-to-weak zone, even dipping below 30 in early April—a strong sign of a stock that became oversold. The rebound in RSI that followed shows momentum coming back slightly, but it remains well below any overheated territory, implying there’s still some room to run if momentum builds again.
Technical Outlook
The stock appears to be trying to form a base after the pullback, but it hasn’t yet broken decisively higher. The 200-day moving average is still trending upward, which lends some longer-term support. If the stock can reclaim the 50-day MA and hold above it, it would signal strength returning. Until then, it’s more of a wait-and-watch scenario, especially with volume remaining light and the RSI still in a modest range.
CZWI’s chart reflects a stock that ran hard, corrected naturally, and may now be settling into a period of consolidation. The next few weeks will be key in determining whether that recovery takes hold or stalls.
Management Team
Citizens Community Bancorp is guided by a leadership group that leans into steady, deliberate execution. Stephen Bianchi, serving as Chairman, President, and CEO, brings a strategic, long-view approach to the table. Under his direction, the bank hasn’t tried to outpace competitors through flashy moves or acquisitions. Instead, it’s focused on measured growth, operational efficiency, and shareholder value. Bianchi’s communication style is plainspoken, rooted in fundamentals—discussions about tangible book value, equity ratios, and net interest margin dominate earnings calls. That’s usually a sign of leadership focused on the essentials.
The management team has demonstrated solid capital discipline. Whether it’s increasing the dividend in line with earnings growth or buying back shares when valuations are attractive, their decisions reflect a focus on long-term value. While many banks chase yield or expand aggressively, CZWI’s leadership has consistently shown restraint. That’s particularly important in a sector where overreach can quickly undo years of good work. The team’s ability to maintain a strong capital position while returning value to shareholders suggests they understand how to balance prudence with progress.
Valuation and Stock Performance
Trading around $13.56, CZWI remains attractively priced relative to its book value. With a price-to-book ratio under 0.80, it still sits below what many banks with similar or weaker fundamentals command. The trailing price-to-earnings ratio hovers just above 10, reflecting cautious sentiment more than any specific weakness in the business. Investors tend to value smaller banks conservatively, especially in uncertain macro environments, but CZWI’s consistency makes that discount appear more opportunity than red flag.
The stock has delivered a solid return over the past 12 months, climbing close to 29%. That strength likely came from improving net interest margins and disciplined capital use. It also benefited from renewed investor confidence in the regional banking space after a rough patch industry-wide. While the rally lost some steam in early 2025, pulling the stock back from its highs, the retracement looks more like a healthy reset than a sign of trouble.
In terms of long-term performance, CZWI behaves like the kind of stock that stays grounded during market turbulence. Its beta is low, and its movements are less extreme than many financial names. That helps it stand out as a stable performer, particularly for portfolios built around income and risk management rather than growth at any cost.
Risks and Considerations
Like any regional bank, CZWI faces macro headwinds. Interest rate shifts, slowing loan demand, and changing credit conditions can all impact margins and earnings. While the bank has handled these dynamics well so far, external pressures are always a factor in performance. Rising funding costs and softer loan origination could drag on profitability if rates remain elevated and economic activity slows.
Credit quality is another area to monitor. While CZWI hasn’t flagged major concerns, smaller banks are often more exposed to specific regional or sector risks, such as commercial real estate or agriculture. A downturn in its lending base could lead to higher loan loss provisions and tighter spreads. It’s an area that warrants attention even when credit quality appears stable on the surface.
Scale is also a limiting factor. Without the reach or resources of larger peers, growth opportunities are naturally more constrained. That means innovation, technological upgrades, and product expansion happen at a slower pace. It doesn’t make the business less valuable, but it does mean upside is more measured.
Liquidity is the final piece to consider. The stock trades lightly on most days, with average volumes under 30,000 shares. That can create challenges for investors building large positions, and also adds to short-term volatility. For those who plan to hold over the long term, it may not be an issue, but it’s still something to factor into your decision-making process.
Final Thoughts
Citizens Community Bancorp may not grab headlines, but it’s shown time and again that it doesn’t need to. Its value lies in its consistency—a clear, conservative strategy that avoids unnecessary risk while continuing to generate income and deliver shareholder returns. The leadership team has a firm handle on operations, and their decisions suggest a strong alignment with long-term investors.
Valuation remains attractive, particularly for a company with solid cash flow and a secure dividend. It’s not often you find a bank trading at a discount to book with a track record of steady earnings and a willingness to return capital. That combination is part of what keeps CZWI on the radar for investors seeking stable, income-producing positions.
Yes, there are risks. The environment remains tricky, and as a smaller bank, CZWI won’t be immune to broader market challenges. But the foundation is solid, the management team has proven its discipline, and the focus remains on the fundamentals.
It’s not trying to do everything. It’s simply trying to do what it does best—run a clean, conservative bank that grows steadily, pays its shareholders, and avoids trouble. That kind of clarity can be hard to come by, and when you find it, it’s worth paying attention.