Citizens Community Bancorp Inc. (CZWI, Financial) filed Quarterly Report for the period ended 2011-12-31.
Citizens Community Bancorp Inc. has a market cap of $29.3 million; its shares were traded at around $5.75 with and P/S ratio of 0.9.
As shown in the rate/volume analysis in the following pages, volume changes resulted in an increase of $202 in net interest income for the three months ended December 31, 2011, compared to the comparable prior year period. The decrease and changes in the composition of interest earning assets resulted in a $228 decrease in interest income for the three months ended December 31, 2011, compared to the comparable prior year period. Rate changes on interest earning assets decreased interest income by $588 for the three month period ended December 31, 2011. This decrease was partially offset by rate changes on interest-bearing liabilities that decreased interest expense by $341 over the same prior year period, for a net impact of a $247 decrease in net interest income due to changes in interest rates during the three month period ended December 31, 2011. The decreases in balances of CDs and FHLB Advances, are the primary factors affecting volume changes. Rate decreases on all asset and deposit categories are reflective of the current overall lower market interest rate environment versus the same period last year.
Average Balances, Net Interest Income, Yields Earned and Rates Paid. The following net Interest Income Analysis table presents interest income from average interest earning assets, expressed in dollars and yields, and interest expense on average interest-bearing liabilities, expressed in dollars and rates. Also presented is the weighted average yield on interest-earning assets, rates paid on interest-bearing liabilities and the resultant spread at December 31, 2011 for each of the three-month periods shown below. No tax equivalent adjustments were made. Non-accruing loans have been included in the table as loans carrying a zero yield.
Average interest earning assets were $522,053 for the three month period ended December 31, 2011, compared to $571,190 for the comparable prior year period. Interest income on interest earning assets was $7,143 for the three month period ended December 31, 2011 compared to $7,959 for the comparable prior year period. Interest income is comprised primarily of interest income on loans and interest income on available for sale securities. Interest income on loans was $6,802 for the three month period ended December 31, 2011, compared to $7,269 for the comparable prior year period. Interest income on available for sale securities was $309 for the three month period ended December 31, 2011 compared to $649 for the comparable prior year period. The decrease in loan interest income was primarily due to decreased loan volumes and a continued lower interest rate environment. Decreases in interest income on available for sale securities were primarily due to two factors. First, we apply interest payments to principal on specific securities on which we had previously recorded other-than-temporary impairment. Also, we sold several higher risk non-agency mortgage backed securities and reinvested the proceeds in lower risk and lower yielding agency and floating rate bonds.
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Citizens Community Bancorp Inc. has a market cap of $29.3 million; its shares were traded at around $5.75 with and P/S ratio of 0.9.
Highlight of Business Operations:
Interest rate spread and net interest margin are used to measure and explain changes in net interest income. Interest rate spread is the difference between the yield on interest earning assets and the rate paid for interest-bearing liabilities that fund those assets. Net interest margin is expressed as the percentage of net interest income to average earning assets. Net interest margin exceeds interest rate spread because non-interest bearing sources of funds (net free funds), principally demand deposits and stockholders equity, also support interest income earning assets. The narrative below discusses net interest income, interest rate spread, and net interest margin for the three month periods ended December 31, 2011 and 2010, respectively.As shown in the rate/volume analysis in the following pages, volume changes resulted in an increase of $202 in net interest income for the three months ended December 31, 2011, compared to the comparable prior year period. The decrease and changes in the composition of interest earning assets resulted in a $228 decrease in interest income for the three months ended December 31, 2011, compared to the comparable prior year period. Rate changes on interest earning assets decreased interest income by $588 for the three month period ended December 31, 2011. This decrease was partially offset by rate changes on interest-bearing liabilities that decreased interest expense by $341 over the same prior year period, for a net impact of a $247 decrease in net interest income due to changes in interest rates during the three month period ended December 31, 2011. The decreases in balances of CDs and FHLB Advances, are the primary factors affecting volume changes. Rate decreases on all asset and deposit categories are reflective of the current overall lower market interest rate environment versus the same period last year.
Average Balances, Net Interest Income, Yields Earned and Rates Paid. The following net Interest Income Analysis table presents interest income from average interest earning assets, expressed in dollars and yields, and interest expense on average interest-bearing liabilities, expressed in dollars and rates. Also presented is the weighted average yield on interest-earning assets, rates paid on interest-bearing liabilities and the resultant spread at December 31, 2011 for each of the three-month periods shown below. No tax equivalent adjustments were made. Non-accruing loans have been included in the table as loans carrying a zero yield.
Average interest earning assets were $522,053 for the three month period ended December 31, 2011, compared to $571,190 for the comparable prior year period. Interest income on interest earning assets was $7,143 for the three month period ended December 31, 2011 compared to $7,959 for the comparable prior year period. Interest income is comprised primarily of interest income on loans and interest income on available for sale securities. Interest income on loans was $6,802 for the three month period ended December 31, 2011, compared to $7,269 for the comparable prior year period. Interest income on available for sale securities was $309 for the three month period ended December 31, 2011 compared to $649 for the comparable prior year period. The decrease in loan interest income was primarily due to decreased loan volumes and a continued lower interest rate environment. Decreases in interest income on available for sale securities were primarily due to two factors. First, we apply interest payments to principal on specific securities on which we had previously recorded other-than-temporary impairment. Also, we sold several higher risk non-agency mortgage backed securities and reinvested the proceeds in lower risk and lower yielding agency and floating rate bonds.
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