EXHIBIT 99.2 Earnings Release Supplement Fourth Quarter 2020
Citizens Community Bancorp, Inc. Table of Contents Segment Profiles COVID-19 Related Loan Deferrals Non-Owner Occupied CRE Owner Occupied CRE Multi-family Commercial and Industrial Loans Construction and Development Loans Agricultural Real Estate and Operating Loans Hotel Loans Restaurant Loans Credit Quality/Risk Rating Descriptions Loans by Risk Rating as of December 31, 2020 Loans by Risk Rating as of September 30, 2020 Loans by Risk Rating as of December 31, 2019 Allowance for Loan Losses Nonaccrual Loans Roll forward Other Real Estate Owned Roll forward Troubled Debt Restructurings in Accrual Status Acquired Loans – Non-accretable difference and accretable discount tables Capital Ratios – Bank and Company Page(s) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 16 17 18 1
COVID-19 Related Loan Deferrals Source: Company filings Dollars in Thousands At December 31, 2020 Balance Number of Loans Commercial Deferrals Hotel Loans 51,643$ 11 Other Commercial Loans 4,817 14 Total Commercial Deferrals 56,460 25 Residential Deferrals 3,858 87 Consumer Deferrals 644 42 Total Deferrals at December 31, 2020 60,962$ 154 Commercial Loan Deferral Expiration by Quarter Balance Number of Loans Hotel Loans Quarter Ending March 31, 2021 915$ 1 Quarter Ending June 30, 2021 48,346 9 Quarter Ending September 30, 2021 2,382 1 Total Hotel Loans 51,643 11 Other Commercial Loans Quarter Ending March 31, 2021 1,494 6 Quarter Ending June 30, 2021 2,341 5 Quarter Ending September 30, 2021 982 3 Total Other Commercial Loans 4,817 14 Total Commercial Deferral Expirations 56,460$ 25 2
Source: Internal Company Documents Portfolio Fundamentals 57% 32% 11% Wisconsin Minnesota Other By Geography As of 12/31/2020 • Typically well seasoned investors with multiple projects, track record of success and personal financial strength (net worth/Liquidity) • Maximum LTV =<80% with recourse to owners with >20% interest • Term of 5-10 years with 20 to 25-year amortizations depending on property type, markets and strength and liquidity of sponsors • Minimum DSC and/or Global DSC covenant required to monitor performance ranging from 1.15x-1.25x • Conservative underwriting approach emphasizing actual results or market data • Appropriate use of SBA 504/7a for lower cash injection or special use projects Non – Owner Occupied CRE As of 12/31/2020 As of 09/30/2020 $307 $305 785 783 $391 $387 Approximate Weighted Average LTV 56% 57% 2.4x 2.4x Weighted Average Seasoning In Months 28 29 0.00% 0.00% Approximate Weighted Average DSCR Trailing 12 Month Net Charge-Offs Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands Portfolio Characteristics Non - Owner Occupied CRE 32% 26% 7% 6% 5% 4% 4% 3% 2% 11% Hotel Investor Residential CRE - Warehouse/Mini Storage CRE - Retail CRE - Senior Living CRE - Industrial/Manufacturing CRE - Office CRE - Mixed Use CRE - Bar/Restaurant Other Non – Owner Occupied CRE 3
Source: Internal Company Documents 15% 12% 10% 9% 9% 7% 7% 5% 24% CRE Campground CRE Restaurant CRE Retail CRE Industrial/Manufacturing CRE Warehouse/Mini Storage CRE Senior Living CRE Mixed Use CRE Office Other Owner Occupied CRE As of 12/31/2020 Portfolio Fundamentals 76% 16% 8% Wisconsin Minnesota Other By Geography As of 12/31/2020 • Underwritten to <80% LTV based on appraised value (<75% for Restaurant) • Term of 5-10 years with 20-year amortization • Recourse to owners with greater than 20% interest • DSC covenant of 1.25x on project and/or Global DSC of 1.15x • Appropriate use of SBA 504/7a for lower cash injection or special use projects • By Geography “Other” segment includes borrowers with warm climates, no state income tax sales Owner Occupied CRE As of 12/31/2020 As of 9/30/2020 $201 $195 420 415 $478 $469 Approximate Weighted Average LTV 50% 50% 2.1x 2.0x Weighted Average Seasoning In Months 32 34 0.00% 0.00% Approximate Weighted Average DSCR Trailing 12 Month Net Charge-Offs Portfolio Characteristics Owner Occupied Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands 4
Portfolio Fundamentals 57% 41% 2% Wisconsin Minnesota Other By Geography As of 12/31/2020 100% Multi-family Multi-family As of 12/31/2020 Source: Internal Company Documents • Robust housing markets in Eau Claire and Mankato markets supported by student populations at state universities, technical colleges, and growing population and job markets • Multi-family sponsors experienced owners with multi-project portfolios • Typically underwritten to 75% LTV based on appraised value with recourse; metro markets and/or strong sponsors may warrant up to 80% LTV • Term of 5-10 years with 20 to 25-year amortization (varies by new versus existing, size of market and sponsor strength) • Covenant for minimum DSC/Global DSC Multi-family As of 12/31/2020 As of 09/30/2020 $122 $110 111 94 $1.10 $1.16 67% 67% Approximate Weighted Average DSCR 1.9x 1.9x 18 17 0.00% 0.00% Approximate Weighted Average LTV Weighted Average Seasoning In Months Trailing 12 Month Net Charge-Offs Portfolio Characteristics - Multi-family Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Millions 5
83% 16% 1% Wisconsin Minnesota Other By Geography As of 12/31/2020 16% 12% 10% 10%8% 8% 7% 5% 4% 4% 4% 4% 3% 3% 2% Manufacturing Real Estate, Rental and Leasing Public Administration Transportation and Warehousing Wholesale Trade Educational Services Construction Retail Trade Administrative and Support Professional Services Other Agriculture Other Services Finance and Insurance Health Care Commercial & Industrial As of 12/31/2020 Portfolio Fundamentals Source: Internal Company Documents • Highly diversified, secured loan portfolio underwritten with recourse • Lines of credit reviewed annually and may have borrowing base certificates governing line usage • Fixed asset LTV’s based on age and type of equipment; <5-year amortization • Use of SBA Guaranty Program (Preferred Lender or General Processing) as appropriate • “Retail Trade” segment consists of Farm Supply, Franchised Hardware, Franchised Auto Parts, Franchised and Non-franchised Auto Dealers and Repair Shops, Convenience Stores/Gas Stations Commercial & Industrial Loans As of 12/31/2020 As of 09/30/2020 $117 $105 764 740 $153 $141 2.4x 2.3x 28 28 0.78% 0.51% Committed Line, if collateral 52 51 Approximate Weighted Average DSCR Weighted Average Seasoning In Months Trailing 12 Month Net Charge-Offs Portfolio Characteristics - Commercial & Industrial Loan Balance In Millions Number of Loans Average Loan Size In Thousands 6
Portfolio Fundamentals 23% 19% 13% 7% 7% 7% 5% 4% 3% 12% CRE Multi-family Commercial 1-4 Family Construction CRE Senior Living CRE Hospitality CRE Retail CRE Industrial/Manufacturing Other Land CRE Warehouse/Mini Storage Residential Lot Other Commercial & Development As of 12/31/2020 59%25% 16% Wisconsin Minnesota Other By Geography As of 12/31/2020 Source: Internal Company Documents • Underwritten to 75-80% LTV based on lesser of cost or appraised value with full recourse • Interest only typically up to 18 months (depending on project complexity and seasonal timing) followed by amortization of 15-25 years (terms vary by property type) • Borrower equity contribution of cash/land value =>15% injected at the beginning of project (cash/land contribution) • Construction loans require 3rd Party inspections and Title Company draws after balancing to sworn construction statement • 1-4 Residential construction centered in eastern Twin Cities and Northwest Wisconsin. Generally 80% LTC /60%-80% of AV. Spec building capped. Progress reporting monthly by individual home Construction & Development Loans As of 12/31/2020 As of 09/30/2020 Loan Balance Outstanding In Millions $99 $89 Number of Loans 125 125 Average Loan Size In Thousands $788 $712 Approximate Weighted Average LTV 51% 51% Trailing 12 Month Net Charge-Offs 0.00% 0.00% Percent Utilized of Commitments 62% 66% Portfolio Characteristics - Construction & Development 7
43% 26% 18% 13% Crop Dairy Other Farming Other Agricultural As of 12/31/2020 Portfolio Fundamentals 68% 28% 4% Wisconsin Minnesota Other By Geography As of 12/31/20 Source: Internal Company Documents • Producers required to have marketing plans to mitigate volatility of commodities • Appropriate crop/revenue insurance and/or dairy margin protection required • Maximum Ag RE LTV of less than 65%; Equipment LTV of less than 75% • Appropriate structuring to separate crop production cycles and to match length of loan with asset financed • Use of Farmer Mac, FSA, SBA or USDA programs to address DSC, collateral margins or working capital Agricultural Real Estate & Operating Loans As of 12/31/2020 As of 9/30/2020 $102 $106 645 627 $157 $169 1.7x 1.5x 35 37 -0.01% 0.12% Approximate Weighted Average DSCR Weighted Average Seasoning In Months Trailing 12 Month Net Charge-Offs Portfolio Characteristics - Agriculture Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands 8
68% 20% 9% 3% Flagged Historic Boutique Other Wisconsin Dells Area Hotels As of 12/31/2020 Portfolio Fundamentals 51% 32% 17% Minnesota Wisconsin Other By Geography As of 12/31/2020 Source: Internal Company Documents • Mainly experienced multi project hoteliers and guarantors with strong personal financial statements (net worth and liquidity) • Mainly flagged properties, Historic hotels, including two hotels in Minneapolis • Wisconsin Dells Area projects were acquired from F&M • One flagged project approved with the SBA 504 structure; nearing completion of construction • Underwriting consistent with management's conservative approach to Investor CRE, emphasizing actual results in underwriting Hotel Loans As of 12/31/2020 As of 09/30/2020 $94 $102 32 35 $2.8 $3.0 56% 58% 2.3x 2.2x 0.00% 0.00%Trailing 12 Month Net Charge Offs Number of Loans Approximate DSCR - Non-Construction Portfolio Characteristics - Hotels Loan Balance Outstanding In Millions Average Loan Size In Millions Approximate Weighted Average LTV 9
50% 17% 9% 11% 7% 6% Culver's - Limited Service Restaurants Other National Limited Services Micro Breweries Other Drinking Establishments Restaurants As of 12/31/2020 Portfolio Fundamentals 77% 21% 2% Wisconsin Minnesota Other By Geography As of 12/31/2020 Source: Internal Company Documents • Experienced developers/operators of national Limited /Quick Service brands (Culver’s, Subway, Dairy Queen, McDonalds, Jimmy John’s, A&W) • Underwritten to =<80% LTV with full recourse (depending on sponsor history); 20-year amortization with 5 to 10-year terms • Use of SBA Guaranty Program (Preferred Lender or General Processing) as appropriate • Drinking establishments may have other collateral pledged and tend to be in smaller communities in our footprint • Micro Breweries concentrated in Eau Claire area • Lessors of RE include investor and owner-occupied structure Restaurant Loans As of 12/31/2020 As of 9/30/2020 $37 $39 90 91 $412 $428 57% 54% 3.3x 2.8x 0.00% 0.00% Portfolio Characteristics - Restaurants Approximate Weighted Average DSCR Trailing 12 Month Net Charge-Offs Loan Balance Outstanding In Millions Number of Loans Average Loan Size In Thousands Approximate Weighted Average LTV 10
Credit Quality/Risk Ratings: Management utilizes a numeric risk rating system to identify and quantify the Bank’s risk of loss within its loan portfolio. Ratings are initially assigned prior to funding the loan, and may be changed at any time as circumstances warrant. Ratings range from the highest to lowest quality based on factors that include measurements of ability to pay, collateral type and value, borrower stability and management experience. The Bank’s loan portfolio is presented below in accordance with the risk rating framework that has been commonly adopted by the federal banking agencies. The definitions of the various risk rating categories are as follows: 1 through 4 - Pass. A “Pass” loan means that the condition of the borrower and the performance of the loan is satisfactory or better. 5 - Watch. A “Watch” loan has clearly identifiable developing weaknesses that deserve additional attention from management. Weaknesses that are not corrected or mitigated, may jeopardize the ability of the borrower to repay the loan in the future. 6 - Special Mention. A “Special Mention” loan has one or more potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position in the future. 7 - Substandard. A “Substandard” loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as substandard must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 8 - Doubtful. A “Doubtful” loan has all the weaknesses inherent in a Substandard loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. 9 - Loss. Loans classified as “Loss” are considered uncollectible, and their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, and a partial recovery may occur in the future. 11
Below is a breakdown of loans by risk rating as of December 31, 2020: 1 to 5 6 7 8 9 TOTAL Originated Loans: Commercial/Agricultural real estate: Commercial real estate $ 349,482 $ 543 $ 1,088 $ — $ — $ 351,113 Agricultural real estate 30,041 446 1,254 — — 31,741 Multi-family real estate 112,423 308 — — — 112,731 Construction and land development 87,763 — 3,478 — — 91,241 C&I/Agricultural operating: Commercial and industrial 91,474 20 3,796 — — 95,290 SBA PPP loans 123,702 — — — — 123,702 Agricultural operating 22,462 934 1,061 — — 24,457 Residential mortgage: Residential mortgage 82,097 7 4,179 — — 86,283 Purchased HELOC loans 5,959 — 301 — — 6,260 Consumer installment: Originated indirect paper 25,616 — 235 — — 25,851 Other consumer 11,986 — 70 — — 12,056 Total originated loans $ 943,005 $ 2,258 $ 15,462 $ — $ — $ 960,725 Acquired Loans: Commercial/Agricultural real estate: Commercial real estate $ 148,303 $ 4,274 $ 3,985 $ — $ — $ 156,562 Agricultural real estate 31,147 — 5,907 — — 37,054 Multi-family real estate 9,273 — 148 — — 9,421 Construction and land development 7,237 — 39 — — 7,276 C&I/Agricultural operating: Commercial and industrial 20,918 9 336 — — 21,263 Agricultural operating 7,838 — 490 — — 8,328 Residential mortgage: Residential mortgage 42,805 131 2,167 — — 45,103 Consumer installment: Other consumer 1,150 — 7 — — 1,157 Total acquired loans $ 268,671 $ 4,414 $ 13,079 $ — $ — $ 286,164 Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 497,785 $ 4,817 $ 5,073 $ — $ — $ 507,675 Agricultural real estate 61,188 446 7,161 — — 68,795 Multi-family real estate 121,696 308 148 — — 122,152 Construction and land development 95,000 — 3,517 — — 98,517 C&I/Agricultural operating: Commercial and industrial 112,392 29 4,132 — — 116,553 SBA PPP loans 123,702 — — — — 123,702 Agricultural operating 30,300 934 1,551 — — 32,785 Residential mortgage: Residential mortgage 124,902 138 6,346 — — 131,386 Purchased HELOC loans 5,959 — 301 — — 6,260 Consumer installment: Originated indirect paper 25,616 — 235 — — 25,851 Other consumer 13,136 — 77 — — 13,213 Gross loans $ 1,211,676 $ 6,672 $ 28,541 $ — $ — $ 1,246,889 Less: Unearned net deferred fees and costs and loans in process (4,245) Unamortized discount on acquired loans (5,063) Allowance for loan losses (17,043) Loans receivable, net $ 1,220,538 12
Below is a breakdown of loans by risk rating as of September 30, 2020: 1 to 5 6 7 8 9 TOTAL Originated Loans: Commercial/Agricultural real estate: Commercial real estate $ 318,915 $ 1,947 $ 1,166 $ — $ — $ 322,028 Agricultural real estate 30,807 454 1,269 — — 32,530 Multi-family real estate 100,148 — — — — 100,148 Construction and land development 77,514 — 3,478 — — 80,992 C&I/Agricultural operating: Commercial and industrial 75,338 802 3,819 — — 79,959 SBA PPP loans 139,166 — — — — 139,166 Agricultural operating 23,040 28 1,256 — — 24,324 Residential mortgage: Residential mortgage 85,922 7 4,171 — — 90,100 Purchased HELOC loans 6,220 — 327 — — 6,547 Consumer installment: Originated indirect paper 28,312 — 223 — — 28,535 Other consumer 13,135 — 86 — — 13,221 Total originated loans $ 898,517 $ 3,238 $ 15,795 $ — $ — $ 917,550 Acquired Loans: Commercial/Agricultural real estate: Commercial real estate $ 168,360 $ 4,237 $ 6,048 $ — $ — $ 178,645 Agricultural real estate 33,765 — 6,848 — — 40,613 Multi-family real estate 9,372 — 148 — — 9,520 Construction and land development 8,264 — 82 — — 8,346 C&I/Agricultural operating: Commercial and industrial 23,572 59 782 — — 24,413 Agricultural operating 8,688 — 946 — — 9,634 Residential mortgage: Residential mortgage 49,243 243 2,268 — — 51,754 Consumer installment: Other consumer 1,404 — 5 — — 1,409 Total acquired loans $ 302,668 $ 4,539 $ 17,127 $ — $ — $ 324,334 Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 487,275 $ 6,184 $ 7,214 $ — $ — $ 500,673 Agricultural real estate 64,572 454 8,117 — — 73,143 Multi-family real estate 109,520 — 148 — — 109,668 Construction and land development 85,778 — 3,560 — — 89,338 C&I/Agricultural operating: Commercial and industrial 98,910 861 4,601 — — 104,372 SBA PPP loans 139,166 — — — — 139,166 Agricultural operating 31,728 28 2,202 — — 33,958 Residential mortgage: Residential mortgage 135,165 250 6,439 — — 141,854 Purchased HELOC loans 6,220 — 327 — — 6,547 Consumer installment: Originated indirect paper 28,312 — 223 — — 28,535 Other consumer 14,539 — 91 — — 14,630 Gross loans $ 1,201,185 $ 7,777 $ 32,922 $ — $ — $ 1,241,884 Less: Unearned net deferred fees and costs and loans in process (5,033) Unamortized discount on acquired loans (6,712) Allowance for loan losses (14,836) Loans receivable, net $ 1,215,303 13
Below is a breakdown of loans by risk rating as of December 31, 2019: 1 to 5 6 7 8 9 TOTAL Originated Loans: Commercial/Agricultural real estate: Commercial real estate $ 301,381 $ 266 $ 899 $ — $ — $ 302,546 Agricultural real estate 31,129 829 2,068 — — 34,026 Multi-family real estate 71,877 — — — — 71,877 Construction and land development 67,989 — 3,478 — — 71,467 C&I/Agricultural operating: Commercial and industrial 85,248 1,023 3,459 — — 89,730 Agricultural operating 19,545 402 770 — — 20,717 Residential mortgage: Residential mortgage 104,428 — 4,191 — — 108,619 Purchased HELOC loans 8,407 — — — — 8,407 Consumer installment: — Originated indirect paper 39,339 — 246 — — 39,585 Other consumer 15,425 — 121 — — 15,546 Total originated loans $ 744,768 $ 2,520 $ 15,232 $ — $ — $ 762,520 Acquired Loans: Commercial/Agricultural real estate: Commercial real estate $ 196,692 $ 6,084 $ 9,137 $ — $ — $ 211,913 Agricultural real estate 42,381 534 8,422 — — 51,337 Multi-family real estate 13,533 — 1,598 — — 15,131 Construction and land development 14,181 — 762 — — 14,943 C&I/Agricultural operating: Commercial and industrial 41,587 932 1,485 — — 44,004 Agricultural operating 15,621 350 1,092 — — 17,063 Residential mortgage: Residential mortgage 65,125 436 2,152 — — 67,713 Consumer installment: Other consumer 2,628 — 12 — — 2,640 Total acquired loans $ 391,748 $ 8,336 $ 24,660 $ — $ — $ 424,744 Total Loans: Commercial/Agricultural real estate: Commercial real estate $ 498,073 $ 6,350 $ 10,036 $ — $ — $ 514,459 Agricultural real estate 73,510 1,363 10,490 — — 85,363 Multi-family real estate 85,410 — 1,598 — — 87,008 Construction and land development 82,170 — 4,240 — — 86,410 C&I/Agricultural operating: Commercial and industrial 126,835 1,955 4,944 — — 133,734 Agricultural operating 35,166 752 1,862 — — 37,780 Residential mortgage: Residential mortgage 169,553 436 6,343 — — 176,332 Purchased HELOC loans 8,407 — — — — 8,407 Consumer installment: Originated indirect paper 39,339 — 246 — — 39,585 Other consumer 18,053 — 133 — — 18,186 Gross loans $ 1,136,516 $ 10,856 $ 39,892 $ — $ — $ 1,187,264 Less: Unearned net deferred fees and costs and loans in process (393) Unamortized discount on acquired loans (9,491) Allowance for loan losses (10,320) Loans receivable, net $ 1,167,060 14
Allowance for Loan Losses (in thousand, except ratios) December 31, 2020 and Three Months Ended September 30, 2020 and Three Months Ended June 30, 2020 and Three Months Ended December 31, 2019 and Three Months Ended Allowance for loan losses (“ALL”), at beginning of period $ 14,836 $ 13,373 $ 11,835 $ 9,177 Loans charged off: Commercial/Agricultural real estate — — — (156) C&I/Agricultural operating (300) (103) (246) — Residential mortgage — (51) — (16) Consumer installment (23) (10) (65) (119) Total loans charged off (323) (164) (311) (291) Recoveries of loans previously charged off: Commercial/Agricultural real estate 1 73 76 — C&I/Agricultural operating 11 33 — — Residential mortgage — 1 6 3 Consumer installment 18 20 17 31 Total recoveries of loans previously charged off: 30 127 99 34 Net loans charged off (“NCOs”) (293) (37) (212) (257) Additions to ALL via provision for loan losses charged to operations 2,500 1,500 1,750 1,400 ALL, at end of period $ 17,043 $ 14,836 $ 13,373 $ 10,320 Average outstanding loan balance $ 1,240,895 $ 1,258,224 $ 1,266,273 $ 1,136,330 Ratios: NCOs (annualized) to average loans 0.09 % 0.01 % 0.07 % 0.09 % 15
Nonaccrual Loans Roll forward (in thousands) Quarter Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Balance, beginning of period $ 13,154 $ 14,787 $ 16,090 $ 19,056 $ 19,022 Additions 912 716 1,907 1,811 2,641 Acquired nonaccrual loans — — — — — Charge offs (2) (141) (175) (452) (198) Transfers to OREO — (172) — (1,100) (425) Return to accrual status — (165) (1,702) (120) (14) Payments received (3,317) (1,744) (1,292) (2,887) (1,957) Other, net — (127) (41) (218) (13) Balance, end of period $ 10,747 $ 13,154 $ 14,787 $ 16,090 $ 19,056 Other Real Estate Owned Roll forward (in thousands) Quarter Ended December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Balance, beginning of period $ 756 $ 692 $ 1,412 $ 1,429 $ 1,348 Loans transferred in — 172 — 988 495 Sales (529) (86) (681) (965) (378) Write-downs (68) (26) (151) (49) (64) Other, net (3) 4 112 9 28 Balance, end of period $ 156 $ 756 $ 692 $ 1,412 $ 1,429 Troubled Debt Restructurings in Accrual Status (in thousands, except number of modifications) December 31, 2020 September 30, 2020 June 30, 2020 December 31, 2019 Number of Modifications Recorded Investment Number of Modifications Recorded Investment Number of Modifications Recorded Investment Number of Modifications Recorded Investment Troubled debt restructurings: Accrual Status Commercial/Agricultural real estate 16 $ 4,695 19 $ 5,480 19 $ 1,885 14 $ 1,730 C&I/Agricultural Operating 4 3,836 5 3,868 5 1,199 2 366 Residential mortgage 43 3,162 42 3,178 39 2,981 40 3,233 Consumer installment 8 49 7 53 8 62 7 67 Total loans 71 $ 11,742 73 $ 12,579 71 $ 6,127 63 $ 5,396 16
Acquired loans represent much of the reduction in non-performing loans and classified loans. The table below shows the changes in the Bank’s non-accretable difference on purchased credit impaired loans. The second table below shows the changes in the Bank’s accretable loan discount which was established at each acquisition. The Bank has transferred the non-accretable difference on purchased credit impaired loans to accretable discount as collateral coverage improved sufficiently, due to a combination of principal paydowns and/or improving collateral positions. This transferred non-accretable difference to accretable discount is accreted over the remaining maturity of the loan or until payoff, whichever is shorter. Non-accretable difference: (in thousands) December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Non-accretable difference, beginning of period $ 1,661 $ 3,355 $ 4,327 $ 6,290 $ 6,737 Additions to non-accretable difference for acquired purchased credit impaired loans — — — — (170) Non-accretable difference realized as interest from payoffs of purchased credit impaired loans (324) (130) (196) (1,043) (271) Transfers from non-accretable difference to accretable discount. (50) (1,294) (741) (669) — Non-accretable difference used to reduce loan principal balance (200) (270) (35) — — Non-accretable difference transferred to OREO due to loan foreclosure — — — (251) (6) Non-accretable difference, end of period $ 1,087 $ 1,661 $ 3,355 $ 4,327 $ 6,290 The table below provides the changes in accretable discount for acquired loans. Accretable discount: (in thousands) December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Accretable discount, beginning of period $ 5,050 $ 4,032 $ 3,637 $ 3,201 $ 3,435 Additions to accretable discount for acquired performing loans — — — — — Accelerated accretion from payoff of certain PCI loans with transferred non-accretable difference (872) — (99) — — Transfers from non-accretable difference to accretable discount 50 1,294 741 669 — Scheduled accretion (252) (276) (247) (233) (234) Accretable discount, end of period $ 3,976 $ 5,050 $ 4,032 $ 3,637 $ 3,201 17
CITIZENS COMMUNITY FEDERAL N.A. Selected Capital Composition Highlights December 31, 2020 (unaudited) September 30, 2020 (unaudited) June 30, 2020 (unaudited) December 31, 2019 (audited) To Be Well Capitalized Under Prompt Corrective Action Provisions Tier 1 leverage ratio (to adjusted total assets) 9.9% 9.9% 9.9% 10.4% 5.0% Tier 1 capital (to risk weighted assets) 13.5% 13.7% 12.9% 12.2% 8.0% Common equity tier 1 capital (to risk weighted assets) 13.5% 13.7% 12.9% 12.2% 6.5% Total capital (to risk weighted assets) 14.7% 15.0% 14.0% 13.1% 10.0% CITIZENS COMMUNITY BANCORP, INC. Selected Capital Composition Highlights December 31, 2020 (unaudited) September 30, 2020 (unaudited) June 30, 2020 (unaudited) December 31, 2019 (audited) To Be Well Capitalized Under Prompt Corrective Action Provisions Tier 1 leverage ratio (to adjusted total assets) 7.7% 7.5% 7.4% 7.7% 5.0% Tier 1 capital (to risk weighted assets) 10.5% 10.5% 9.7% 9.1% 8.0% Common equity tier 1 capital (to risk weighted assets) 10.5% 10.5% 9.7% 9.1% 6.5% Total capital (to risk weighted assets) 14.3% 14.3% 12.1% 11.2% 10.0% 18
