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News Article | May 9, 2017
Site: globenewswire.com

KENILWORTH, N.J., May 09, 2017 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the “Bank”) (OTC:ENBN) recorded first quarter earnings of $489,000, or $0.15 per share, for the quarter ended March 31, 2017, compared to earnings of $459,000, or $0.15 per share, for the quarter ended March 31, 2016 – an increase of $30,000, or 6.5%, year over year.  Assets As of March 31, 2017, total assets were $216.2 million as compared to $209.9 million at December 31, 2016 – an increase of $6.3 million or 3.0%. Don Haake, President and CEO stated, “Business has been growing steadily over the past few years and we are encouraged to see this demand extend through the first quarter of this year. The strength in demand is evidenced by the performance of our new branch that opened in November of last year in the Ironbound Section of Newark. The branch has grown to over $18.0 million in deposits as of the end of the quarter.  Also, previously stated, we remain pleased with the sound growth of our asset base, which has been fueled by the increasing business activity over the past several years. The pace of new loan closings continues as well with total loans ending the first quarter at $197.0 million, up $8.6 million, or 4.5% over year-end. We believe our strategy of controlling growth has allowed us to produce consistent earnings, while maintaining sound asset quality and stable margins.” Capital Stockholders’ equity totaled $28.4 million at March 31, 2017, compared to $27.5 million, at December 31, 2016. All of the Bank’s capital ratios remain strong and in excess of the current regulatory definition of a “well capitalized” institution. At March 31, 2017, the Bank’s Tier One Leverage Capital Ratio was 13.40% and the Bank’s total risk based capital ratio was 16.59%.  In addition, the new Common Equity Tier 1 Ratio was 15.34% for the first quarter, which is in excess of the 4.5% current minimum regulatory threshold and the fully transitioned ratio of 7.0% for the year 2019. Net Interest Income Net interest income was $1,937,000 for the quarter ending March 31, 2017 compared to $1,886,000 for the quarter ending March 31, 2016 – an increase of $51,000, or 2.7%. The Bank’s net interest margin (NIM) for the three months ended March 31, 2017 remained strong at 3.78%, compared to 3.82%, for the same period in 2016. The decline in the NIM is attributed to higher deposit rates related to special promotions for the new branch location and to fund the loan growth in the first quarter. Non-Interest Expense Total non-interest expense for the quarter ending March 31, 2017 increased $46,000 or 4.1% to $1,168,000 compared to $1,122,000 for the quarter ended March 31, 2016. Don Haake, President and CEO said, “The increase is primarily related to the opening of the Newark Branch in November of last year; however, we remain committed to controlling expenses.  This, combined with our steady growth, has allowed us compete well with our peers in the New Jersey market.” Asset Quality The bank had one non-performing loan totaling $104,000 at March 31, 2017, as compared to $230,000 for the same period last year. One non-performing loan paid-off in February 2017 in the amount of $110,000.  We still have an OREO property on the books for $1.25 million, with a value of $1.45 million based on a current appraisal.  We are currently under contract to sell this property. THE BANK Enterprise Bank NJ, headquartered in Kenilworth, New Jersey, is listed on the Pink Sheets under the symbol "ENBN." The Bank focuses on serving the needs of small to medium sized businesses, commercial real estate borrowers, professional practices and consumers. Its services include business and personal checking, savings, money market and certificate of deposit accounts. Additionally, the Bank offers commercial and consumer loans, lines of credit, ATM cards, debit cards, E-Banking, remote deposit capture, and free telephone and online banking. Forward-Looking Statements This news release may contain forward-looking statements. We caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements are also subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute the Bank's business plan, items already mentioned in this press release, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of this date. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date of this release.


News Article | May 9, 2017
Site: globenewswire.com

KENILWORTH, N.J., May 09, 2017 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the “Bank”) (OTC:ENBN) recorded first quarter earnings of $489,000, or $0.15 per share, for the quarter ended March 31, 2017, compared to earnings of $459,000, or $0.15 per share, for the quarter ended March 31, 2016 – an increase of $30,000, or 6.5%, year over year.  Assets As of March 31, 2017, total assets were $216.2 million as compared to $209.9 million at December 31, 2016 – an increase of $6.3 million or 3.0%. Don Haake, President and CEO stated, “Business has been growing steadily over the past few years and we are encouraged to see this demand extend through the first quarter of this year. The strength in demand is evidenced by the performance of our new branch that opened in November of last year in the Ironbound Section of Newark. The branch has grown to over $18.0 million in deposits as of the end of the quarter.  Also, previously stated, we remain pleased with the sound growth of our asset base, which has been fueled by the increasing business activity over the past several years. The pace of new loan closings continues as well with total loans ending the first quarter at $197.0 million, up $8.6 million, or 4.5% over year-end. We believe our strategy of controlling growth has allowed us to produce consistent earnings, while maintaining sound asset quality and stable margins.” Capital Stockholders’ equity totaled $28.4 million at March 31, 2017, compared to $27.5 million, at December 31, 2016. All of the Bank’s capital ratios remain strong and in excess of the current regulatory definition of a “well capitalized” institution. At March 31, 2017, the Bank’s Tier One Leverage Capital Ratio was 13.40% and the Bank’s total risk based capital ratio was 16.59%.  In addition, the new Common Equity Tier 1 Ratio was 15.34% for the first quarter, which is in excess of the 4.5% current minimum regulatory threshold and the fully transitioned ratio of 7.0% for the year 2019. Net Interest Income Net interest income was $1,937,000 for the quarter ending March 31, 2017 compared to $1,886,000 for the quarter ending March 31, 2016 – an increase of $51,000, or 2.7%. The Bank’s net interest margin (NIM) for the three months ended March 31, 2017 remained strong at 3.78%, compared to 3.82%, for the same period in 2016. The decline in the NIM is attributed to higher deposit rates related to special promotions for the new branch location and to fund the loan growth in the first quarter. Non-Interest Expense Total non-interest expense for the quarter ending March 31, 2017 increased $46,000 or 4.1% to $1,168,000 compared to $1,122,000 for the quarter ended March 31, 2016. Don Haake, President and CEO said, “The increase is primarily related to the opening of the Newark Branch in November of last year; however, we remain committed to controlling expenses.  This, combined with our steady growth, has allowed us compete well with our peers in the New Jersey market.” Asset Quality The bank had one non-performing loan totaling $104,000 at March 31, 2017, as compared to $230,000 for the same period last year. One non-performing loan paid-off in February 2017 in the amount of $110,000.  We still have an OREO property on the books for $1.25 million, with a value of $1.45 million based on a current appraisal.  We are currently under contract to sell this property. THE BANK Enterprise Bank NJ, headquartered in Kenilworth, New Jersey, is listed on the Pink Sheets under the symbol "ENBN." The Bank focuses on serving the needs of small to medium sized businesses, commercial real estate borrowers, professional practices and consumers. Its services include business and personal checking, savings, money market and certificate of deposit accounts. Additionally, the Bank offers commercial and consumer loans, lines of credit, ATM cards, debit cards, E-Banking, remote deposit capture, and free telephone and online banking. Forward-Looking Statements This news release may contain forward-looking statements. We caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements are also subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute the Bank's business plan, items already mentioned in this press release, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of this date. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date of this release.


News Article | May 9, 2017
Site: globenewswire.com

KENILWORTH, N.J., May 09, 2017 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the “Bank”) (OTC:ENBN) recorded first quarter earnings of $489,000, or $0.15 per share, for the quarter ended March 31, 2017, compared to earnings of $459,000, or $0.15 per share, for the quarter ended March 31, 2016 – an increase of $30,000, or 6.5%, year over year.  Assets As of March 31, 2017, total assets were $216.2 million as compared to $209.9 million at December 31, 2016 – an increase of $6.3 million or 3.0%. Don Haake, President and CEO stated, “Business has been growing steadily over the past few years and we are encouraged to see this demand extend through the first quarter of this year. The strength in demand is evidenced by the performance of our new branch that opened in November of last year in the Ironbound Section of Newark. The branch has grown to over $18.0 million in deposits as of the end of the quarter.  Also, previously stated, we remain pleased with the sound growth of our asset base, which has been fueled by the increasing business activity over the past several years. The pace of new loan closings continues as well with total loans ending the first quarter at $197.0 million, up $8.6 million, or 4.5% over year-end. We believe our strategy of controlling growth has allowed us to produce consistent earnings, while maintaining sound asset quality and stable margins.” Capital Stockholders’ equity totaled $28.4 million at March 31, 2017, compared to $27.5 million, at December 31, 2016. All of the Bank’s capital ratios remain strong and in excess of the current regulatory definition of a “well capitalized” institution. At March 31, 2017, the Bank’s Tier One Leverage Capital Ratio was 13.40% and the Bank’s total risk based capital ratio was 16.59%.  In addition, the new Common Equity Tier 1 Ratio was 15.34% for the first quarter, which is in excess of the 4.5% current minimum regulatory threshold and the fully transitioned ratio of 7.0% for the year 2019. Net Interest Income Net interest income was $1,937,000 for the quarter ending March 31, 2017 compared to $1,886,000 for the quarter ending March 31, 2016 – an increase of $51,000, or 2.7%. The Bank’s net interest margin (NIM) for the three months ended March 31, 2017 remained strong at 3.78%, compared to 3.82%, for the same period in 2016. The decline in the NIM is attributed to higher deposit rates related to special promotions for the new branch location and to fund the loan growth in the first quarter. Non-Interest Expense Total non-interest expense for the quarter ending March 31, 2017 increased $46,000 or 4.1% to $1,168,000 compared to $1,122,000 for the quarter ended March 31, 2016. Don Haake, President and CEO said, “The increase is primarily related to the opening of the Newark Branch in November of last year; however, we remain committed to controlling expenses.  This, combined with our steady growth, has allowed us compete well with our peers in the New Jersey market.” Asset Quality The bank had one non-performing loan totaling $104,000 at March 31, 2017, as compared to $230,000 for the same period last year. One non-performing loan paid-off in February 2017 in the amount of $110,000.  We still have an OREO property on the books for $1.25 million, with a value of $1.45 million based on a current appraisal.  We are currently under contract to sell this property. THE BANK Enterprise Bank NJ, headquartered in Kenilworth, New Jersey, is listed on the Pink Sheets under the symbol "ENBN." The Bank focuses on serving the needs of small to medium sized businesses, commercial real estate borrowers, professional practices and consumers. Its services include business and personal checking, savings, money market and certificate of deposit accounts. Additionally, the Bank offers commercial and consumer loans, lines of credit, ATM cards, debit cards, E-Banking, remote deposit capture, and free telephone and online banking. Forward-Looking Statements This news release may contain forward-looking statements. We caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements are also subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute the Bank's business plan, items already mentioned in this press release, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of this date. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date of this release.


News Article | May 9, 2017
Site: globenewswire.com

KENILWORTH, N.J., May 09, 2017 (GLOBE NEWSWIRE) -- Enterprise Bank NJ (the “Bank”) (OTC:ENBN) recorded first quarter earnings of $489,000, or $0.15 per share, for the quarter ended March 31, 2017, compared to earnings of $459,000, or $0.15 per share, for the quarter ended March 31, 2016 – an increase of $30,000, or 6.5%, year over year.  Assets As of March 31, 2017, total assets were $216.2 million as compared to $209.9 million at December 31, 2016 – an increase of $6.3 million or 3.0%. Don Haake, President and CEO stated, “Business has been growing steadily over the past few years and we are encouraged to see this demand extend through the first quarter of this year. The strength in demand is evidenced by the performance of our new branch that opened in November of last year in the Ironbound Section of Newark. The branch has grown to over $18.0 million in deposits as of the end of the quarter.  Also, previously stated, we remain pleased with the sound growth of our asset base, which has been fueled by the increasing business activity over the past several years. The pace of new loan closings continues as well with total loans ending the first quarter at $197.0 million, up $8.6 million, or 4.5% over year-end. We believe our strategy of controlling growth has allowed us to produce consistent earnings, while maintaining sound asset quality and stable margins.” Capital Stockholders’ equity totaled $28.4 million at March 31, 2017, compared to $27.5 million, at December 31, 2016. All of the Bank’s capital ratios remain strong and in excess of the current regulatory definition of a “well capitalized” institution. At March 31, 2017, the Bank’s Tier One Leverage Capital Ratio was 13.40% and the Bank’s total risk based capital ratio was 16.59%.  In addition, the new Common Equity Tier 1 Ratio was 15.34% for the first quarter, which is in excess of the 4.5% current minimum regulatory threshold and the fully transitioned ratio of 7.0% for the year 2019. Net Interest Income Net interest income was $1,937,000 for the quarter ending March 31, 2017 compared to $1,886,000 for the quarter ending March 31, 2016 – an increase of $51,000, or 2.7%. The Bank’s net interest margin (NIM) for the three months ended March 31, 2017 remained strong at 3.78%, compared to 3.82%, for the same period in 2016. The decline in the NIM is attributed to higher deposit rates related to special promotions for the new branch location and to fund the loan growth in the first quarter. Non-Interest Expense Total non-interest expense for the quarter ending March 31, 2017 increased $46,000 or 4.1% to $1,168,000 compared to $1,122,000 for the quarter ended March 31, 2016. Don Haake, President and CEO said, “The increase is primarily related to the opening of the Newark Branch in November of last year; however, we remain committed to controlling expenses.  This, combined with our steady growth, has allowed us compete well with our peers in the New Jersey market.” Asset Quality The bank had one non-performing loan totaling $104,000 at March 31, 2017, as compared to $230,000 for the same period last year. One non-performing loan paid-off in February 2017 in the amount of $110,000.  We still have an OREO property on the books for $1.25 million, with a value of $1.45 million based on a current appraisal.  We are currently under contract to sell this property. THE BANK Enterprise Bank NJ, headquartered in Kenilworth, New Jersey, is listed on the Pink Sheets under the symbol "ENBN." The Bank focuses on serving the needs of small to medium sized businesses, commercial real estate borrowers, professional practices and consumers. Its services include business and personal checking, savings, money market and certificate of deposit accounts. Additionally, the Bank offers commercial and consumer loans, lines of credit, ATM cards, debit cards, E-Banking, remote deposit capture, and free telephone and online banking. Forward-Looking Statements This news release may contain forward-looking statements. We caution that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Such statements are also subject to certain factors that may cause the Bank's results to vary from those expected. These factors include changing economic and financial market conditions, competition, ability to execute the Bank's business plan, items already mentioned in this press release, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of this date. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect events and circumstances that arise after the date of this release.


News Article | May 18, 2017
Site: www.cemag.us

Today’s computers are faster and smaller than ever before. The latest generation of transistors will have structural features with dimensions of only 10 nanometers. If computers are to become even faster and at the same time more energy efficient at these minuscule scales, they will probably need to process information using light particles instead of electrons. This is referred to as “optical computing”. Fiber-optic networks already use light to transport data over long distances at high speed and with minimum loss. The diameters of the thinnest cables, however, are in the micrometer range, as the light waves — with a wavelength of around one micrometer — must be able to oscillate unhindered. In order to process data on a micro- or even nanochip, an entirely new system is therefore required. One possibility would be to conduct light signals via so-called plasmon oscillations. This involves a light particle (photon) exciting the electron cloud of a gold nanoparticle so that it starts oscillating. These waves then travel along a chain of nanoparticles at approximately 10 percent of the speed of light. This approach achieves two goals: nanometer-scale dimensions and enormous speed. What remains, however, is the energy consumption. In a chain composed purely of gold, this would be almost as high as in conventional transistors, due to the considerable heat development in the gold particles. Tim Liedl, Professor of Physics at Ludwig-Maximilians-Universität München (LMU) and PI at the cluster of excellence Nanosystems Initiative Munich (NIM), together with colleagues from Ohio University, has now published an article in the journal Nature Physics, which describes how silver nanoparticles can significantly reduce the energy consumption. The physicists built a sort of miniature test track with a length of around 100 nanometers, composed of three nanoparticles: one gold nanoparticle at each end, with a silver nanoparticle right in the middle. The silver serves as a kind of intermediary between the gold particles while not dissipating energy. To make the silver particle’s plasmon oscillate, more excitation energy is required than for gold. Therefore, the energy just flows “around” the silver particle. “Transport is mediated via the coupling of the electromagnetic fields around the so-called hot spots which are created between each of the two gold particles and the silver particle,” explains Liedl. “This allows the energy to be transported with almost no loss, and on a femtosecond time scale.” The decisive precondition for the experiments was the fact that Liedl and his colleagues are experts in the exquisitely exact placement of nanostructures. This is done by the DNA origami method, which allows different crystalline nanoparticles to be placed at precisely defined nanodistances from each other. Similar experiments had previously been conducted using conventional lithography techniques. However, these do not provide the required spatial precision, in particular where different types of metals are involved. In parallel, the physicists simulated the experimental set-up on the computer — and had their results confirmed. In addition to classical electrodynamic simulations, Alexander Govorov, Professor of Physics at Ohio University, was able to establish a simple quantum-mechanical model: “In this model, the classical and the quantum-mechanical pictures match very well, which makes it a potential example for the textbooks.”


News Article | April 27, 2017
Site: globenewswire.com

BROOKLYN, N.Y., April 27, 2017 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (NASDAQ:DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “bank”), today reported net income of $11.2 million for the quarter ended March 31, 2017, or $0.30 per diluted common share, compared with net income of $732,000 for the quarter ended December 31, 2016, or $0.02 per diluted common share, and net income of $50.0 million for the quarter ended March 31, 2016, or $1.36 per diluted common share. During the quarter ended December 31, 2016, the Company recognized a non-cash, non-tax deductible expense of $11.3 million, or $0.31 per diluted common share, on the prepayment of the Employee Stock Ownership Plan (“ESOP”) share acquisition loan. Excluding the prepayment of the ESOP share acquisition loan (“ESOP Charge”), net income was $12.1 million, or $0.33 per diluted common share. During the quarter ended March 31, 2016, the Company recognized an after tax gain on real estate sale of $37.5 million, or $1.02 per diluted common share. Excluding the after tax gain on real estate sale, net income was $12.6 million, or $0.34 per diluted common share. Highlights for the first quarter of 2017 included: Kenneth J. Mahon, President and Chief Executive Officer of the Company, commented, “During this quarter, we were able to successfully launch our Business Banking division, and the initial results are positive, giving us a great deal of confidence in achieving the loan growth goals we have set for the full year. As importantly, the Business Banking division brought in approximately $14.0 million of new deposits at an average rate of four (4) basis points, which highlights the ability to source high quality, low cost deposits through the relationship-based nature of this business.” “In addition, our existing multifamily lending business remains strong and builds on the momentum from last year, while credit quality continues to be a key strength. We will continue to execute on our strategic plan and remain steadfastly focused on building our lending and business banking relationships, as well as on the communities we serve.” Mr. Mahon continued, “This quarter, Dime opened its two newest branches; one near Bedford Avenue and North 6th Street in the Williamsburg section of Brooklyn, and a second at the intersection of Fifth Avenue and Union Street in the Park Slope section of Brooklyn. In addition, the Business Banking division’s Long Island office is now open at 1 Huntington Quadrangle, Melville, and its midtown Manhattan office is scheduled to open soon.” Net interest income in the first quarter of 2017 was $37.5 million, a decrease of $411,000 (-1.1%) from the fourth quarter of 2016 and an increase of $2.9 million (8.3%) over the first quarter of 2016.  Net Interest Margin ("NIM") was 2.57% during the first quarter of 2017, compared to 2.67% during the fourth quarter of 2016, and 2.80% during the first quarter of 2016.  The linked quarter decrease was due to lower income recognized from loan prepayment activity, which varies from quarter to quarter. For the first quarter 2017, income from prepayment activity totaled $1.4 million, benefiting NIM by 9 basis points, compared to $2.7 million, or 19 basis points, during the fourth quarter of 2016, and $2.6 million, or 22 basis points, during the first quarter of 2016. NIM, adjusted for the impact of prepayment activity, was 2.48% during the first quarter of 2017, consistent with the fourth quarter of 2016. Average earning assets were $5.82 billion for the first quarter of 2017, a 9.7% (annualized) increase from $5.69 billion for the fourth quarter of 2016 and a 17.5% increase from $4.96 billion for the first quarter of 2016. For the first quarter of 2017, the average yield on interest earning assets (excluding prepayment income) was 3.44%, 2 basis points lower than the 3.46% for the fourth quarter 2016 and 10 basis points lower than the 3.54% for first quarter 2016, while the average cost of funds was 1.13% for the first quarter of 2017, flat with fourth quarter 2016, and 1 basis point higher than the first quarter of 2016. Real estate loan portfolio growth was $88.0 million (6.3% annualized) during the first quarter of 2017. Real estate loan originations were $240.5 million during the quarter (including $7.1 million from the Business Banking division), at a weighted average interest rate of 3.41%. Of this amount, $57.6 million represented loan refinances from the existing portfolio. Loan amortization and satisfactions totaled $153.4 million, or 10.8% (annualized) of the portfolio balance, at an average rate of 3.93%. The annualized loan payoff rate of 10.8% for first quarter 2017 was lower than both fourth quarter 2016 (15.1%) and first quarter 2016 (13.9%). The average yield on the real estate loan portfolio (excluding income recognized from prepayment activity) was 3.45% during the first quarter of 2017, down 1 basis point compared to 3.46% in the fourth quarter of 2016 and 12 basis points compared to 3.57% in the first quarter of 2016. Average real estate loans were $5.69 billion in the first quarter of 2017, an increase of $127.0 million (9.1% annualized) from the fourth quarter of 2016 and an increase of $869.9 million (18.1%) from the first quarter of 2016. C&I loan portfolio growth was $28.1 million during the first quarter of 2017, with most of the closings occurring towards the end of the quarter, at a weighted average interest rate of 4.04%. Deposit growth was $113.1 million (10.3% annualized) during the first quarter of 2017. The loan-to-deposit ratio fell to 127.6% at March 31, 2017, from 128.2% at December 31, 2016, and 147.0% at March 31, 2016. Core deposits increased to $3.54 billion during the first quarter of 2017, from $3.35 billion during the fourth quarter of 2016 and $2.46 billion during the first quarter of 2016. The average cost of deposits decreased one basis point on a linked quarter basis to 0.86%. Total borrowings decreased $67.4 million during the first quarter of 2017 as compared to the fourth quarter of 2016, which reflected management’s desire to decrease reliance on borrowed funds and to grow both its number of customers and deposits. Non-interest income was $1.8 million during the first quarter of 2017, which was flat compared to the fourth quarter of 2016. Non-interest income was $69.7 million during the first quarter of 2016.  Excluding the $68.2 million pre-tax gain on the sale of real estate recognized during the first quarter of 2016, non-interest income was $1.5 million, due primarily to lower administrative fees collected on portfolio loans in the prior year period. Non-interest expense was $20.8 million during the first quarter of 2017. Non-interest expense, excluding the ESOP Charge, was $18.3 million during the fourth quarter of 2016, and $17.9 million during the first quarter of 2016. Non-interest expense was $2.5 million (13.4%) higher than the fourth quarter of 2016, mostly due to salaries and employee benefits given the build-out of the Business Banking division as well as occupancy and marketing expenses primarily related to the opening of two new branches, both of which occurred early in the quarter. The ratio of non-interest expense to average assets was 1.38% during the first quarter of 2017, compared to 1.25% during the fourth quarter of 2016 excluding the ESOP Charge, and 1.38% during the first quarter of 2016. The efficiency ratio was 53.0% during the first quarter of 2017, higher than the 46.1% during the fourth quarter of 2016 excluding the ESOP Charge, and above the 49.5% during the first quarter of 2016. Both the efficiency ratio and the ratio of non-interest expense to average assets were impacted by the cost of the Business Banking division initial build-out and the fact that asset growth lags expense recognition. At current staffing and interest rate levels, breakeven on a direct cost basis for the division, is expected to occur by year end. The effective income tax rate was 38.2% during the March 2017 quarter. Non-performing loans were $3.8 million, or 0.07% of total loans, at March 31, 2017, a decrease of $436,000 from December 31, 2016. The allowance for loan losses was 0.36% of total loans at March 31, 2017, consistent with December 31, 2016. At March 31, 2017, non-performing assets represented 1.1% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table at the end of this news release). A loan loss provision of $450,000 was recorded during the first quarter of 2017, compared to a loan loss provision of $529,000 during the fourth quarter of 2016. The Company’s consolidated Tier 1 capital to average assets (“leverage ratio”) was 9.91% at March 31, 2017, in excess of Basel III requirements, inclusive of the conservation buffer. The bank’s regulatory capital ratios continued to be in excess of Basel III requirements as well, inclusive of conservation buffer amounts. At March 31, 2017, the bank’s leverage ratio was 8.88%, while Tier 1 capital to risk-weighted assets and Total capital to risk-weighted assets ratios were 11.25% and 11.70%, respectively. Diluted earnings per common share exceeded the quarterly cash dividend per share by 114.3% during the first quarter of 2017, equating to a 46.7% payout ratio. Tangible book value per share was $13.92 at March 31, 2017, a 5.6% increase from $13.18 at March 31, 2016. As of the date of this earnings release, the bank had outstanding real estate loan commitments totaling $155.3 million, at an average interest rate approximating 3.86% (including $35.9 million from the Business Banking division at an interest rate of 4.60%), all of which are likely to close during the quarter ending June 30, 2017. Loan prepayments and amortization are expected to fall within the projected annualized range of 10% - 15% during the June 2017 quarter. In addition, the bank’s C&I pipeline totaled $41.3 million as of the date of this earnings release, at an average interest rate of 4.54%. The Company has a balance sheet growth objective of 10% for the year ending December 31, 2017, with a continued preference toward utilizing retail deposits for most of its funding needs. Despite the recent policy actions of the Federal Open Market Committee, deposit and borrowing funding costs are expected to remain near current historically low levels through the June 2017 quarter. At March 31, 2017, the bank had $170.2 million of Certificates of Deposit at an average rate of 1.25%, and $165.0 million of borrowings, at an average rate of 2.10%, scheduled to mature during the June 2017 quarter. No significant increase or reduction in funding costs is anticipated from the rollover or re-positioning of these funds. Loan loss provisions will be driven by loan portfolio growth (with C&I loans contributing to a large part of the incremental growth of the provision) in the June 2017 quarter, subject to management’s assessment of the adequacy of the allowance for loan losses. Non‐interest expense is expected to approximate $20.5 million during the June 2017 quarter, reflecting several remaining hires and occupancy expense related to the new locations. The sale of the Williamsburg branch office property is now expected to close during the third quarter of 2017, with the branch being relocated to a new nearby location by year end. The Company projects that the consolidated effective tax rate will approximate 38.5% in the June 2017 quarter. The Company had $6.10 billion in consolidated assets as of March 31, 2017. The bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-seven branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and the bank can be found on Dime's website at www.dime.com. This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions. Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of Dime; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates.


News Article | April 17, 2017
Site: globenewswire.com

LOS ANGELES, April 17, 2017 (GLOBE NEWSWIRE) -- PacWest Bancorp (Nasdaq:PACW) today announced net earnings for first quarter of 2017 of $78.7 million, or $0.65 per diluted share, compared to net earnings for the fourth quarter of 2016 of $85.6 million, or $0.71 per diluted share.  The decrease in net earnings from the prior quarter was primarily due to a decrease in interest income due to a $14.7 million decrease in acquired loan discount accretion as the fourth quarter of 2016 included $13.5 million of discount accretion from the payoff of a single loan. Matt Wagner, President and CEO, commented, “First quarter 2017 earnings were below our expectations due mostly to an elevated credit provision and significant loan repayment activity. While the higher than expected provision was not driven by newly classified or impaired loans, it was a disappointment. We remain focused on driving high quality growth and minimizing credit costs.” Patrick Rusnak, Executive Vice President and CFO stated, “Our first quarter tax equivalent NIM excluding acquired loan discount accretion increased one basis point to 5.02%. While the NIM benefitted from the repricing of variable-rate loans, this was partially offset by the mix of loan types that were paid off and originated during the quarter, combined with higher balances and rates on non-core deposits and borrowings.” Mr. Wagner continued, “We recently announced our pending acquisition of CU Bancorp and are excited about the opportunities created through this transaction. CU Bancorp’s exceptional core deposit franchise and asset sensitive balance sheet will strengthen our position in a rising rate environment. This transaction will increase our scale and operating efficiencies, and will also increase our market share in the highly attractive Southern California market.” Net interest income decreased by $15.9 million to $232.5 million in the first quarter of 2017 compared to $248.3 million in the fourth quarter of 2016 due to lower discount accretion on acquired loans, offset by higher average loan and lease balances.   Total accretion on acquired loans was $6.4 million in the first quarter of 2017 (17 basis points on the loan and lease yield) compared to $21.2 million in the fourth quarter of 2016 (56 basis points on the loan and lease yield).  The decrease in accretion was due primarily to lower accelerated accretion from payoffs on acquired loans, including $13.5 million from the payoff of a nonaccrual purchased credit impaired (“PCI”) loan in the fourth quarter of 2016.  The loan and lease yield for the first quarter of 2017 was 5.94% compared to 6.31% for the fourth quarter of 2016.  The decrease in the loan and lease yield was principally due to the lower discount accretion on acquired loans. Excluding acquired loan discount accretion, the loan and lease yield was 5.77% in the first quarter of 2017 compared to 5.75% in the fourth quarter of 2016. The tax equivalent NIM for the first quarter of 2017 was 5.16% compared to 5.47% for the fourth quarter of 2016. The decrease in the NIM was mostly due to lower discount accretion on acquired loans. Such accretion contributed 14 basis points to the NIM in the first quarter of 2017 and 46 basis points to the NIM in the fourth quarter of 2016.  Excluding acquired loan discount accretion, the tax equivalent NIM was 5.02% in the first quarter of 2017 compared to 5.01% in the fourth quarter of 2016. The cost of total deposits increased to 0.21% in the first quarter of 2017 from 0.19% in the fourth quarter of 2016 due to higher average costs and balances of non-core interest-bearing deposits. The tax equivalent net interest income and NIM as well as the loan and lease interest income and loan and lease yield are impacted by volatility in accretion of acquisition discounts on acquired loans and leases. The effects of this are shown in the following tables for the periods indicated: Noninterest income increased by $6.2 million to $35.1 million in the first quarter of 2017 compared to $28.9 million in the fourth quarter of 2016 due mostly to a $7.9 million increase in other income attributable mainly to a $5.0 million legal settlement with a former borrower and a $1.2 million increase in loan syndication fees. This was offset by a decrease in other commissions and fees of $1.6 million driven by a decrease in loan prepayment and unused commitment fees of $2.0 million. Warrant income decreased $0.9 million mainly due to lower realized gains on exercised warrants. The following table presents details of noninterest income for the periods indicated: Noninterest expense decreased by $2.1 million to $116.5 million in the first quarter of 2017 compared to $118.6 million in the fourth quarter of 2016. The decrease was due mostly to a decrease in foreclosed assets expense of $2.6 million, a decrease in other professional services expense of $1.5 million, and a decrease in compensation expense of $1.1 million, offset by an increase in other expense of $1.5 million.  Foreclosed assets expense decreased primarily due to a $2.6 million write-down recorded in the fourth quarter of 2016.  Other professional services expense decreased due to lower legal expense and consulting expense. The $1.1 million reduction in compensation expense was attributable to lower bonus and severance expense, offset by a seasonal increase in payroll taxes. The increase in other expense is mainly attributable to a $1.5 million accrual to increase our reserve for probable loss contingencies. The following table presents details of noninterest expense for the periods indicated: The overall effective income tax rate was 37.7% in the first quarter of 2017 and 36.7% in the fourth quarter of 2016.  The estimated effective tax rate for the full year 2017 is approximately 38.1%. Total loans and leases increased by $100.7 million in the first quarter of 2017 to $15.6 billion at March 31, 2017.  The net increase was driven by first quarter originations and purchases of $1.0 billion, offset partially by principal repayments of $0.9 billion. A portfolio of 56 multi-family loans with an aggregate principal balance of $183 million was purchased from another bank during the first quarter of 2017. The following table presents a roll forward of the loan and lease portfolio for the periods indicated: The following table presents the composition of our loan and lease portfolio as of the dates indicated: Loan growth in the first quarter came primarily from the multi-family mortgage and construction portfolios. High repayment activity in our lender finance portfolio drove the $220 million decline in asset-based loans for the quarter. The following table presents the composition of our deposit portfolio as of the dates indicated: At March 31, 2017, core deposits totaled $12.8 billion, or 78% of total deposits, including $6.8 billion of noninterest-bearing demand deposits, or 42% of total deposits. In addition to deposit products, we also offer alternative non-depository cash investment options for select clients; these alternatives include investments managed by Square 1 Asset Management, Inc. (“S1AM”), our registered investment advisor subsidiary, and third-party sweep products.  Total off-balance sheet client investment funds at March 31, 2017 were $1.5 billion, of which $1.3 billion was managed by S1AM. A provision for credit losses of $24.7 million was recorded in the first quarter of 2017 compared to $23.2 million in the fourth quarter of 2016. The first quarter provision consisted of $24.5 million for non-purchased credit impaired (“Non-PCI”) loans and leases and $0.2 million for PCI loans; this compares to $21.0 million and $2.2 million for the fourth quarter of 2016.  The level of provision for the first quarter of 2017 was mainly attributable to specific provisions for impaired loans that were classified or impaired at December 31, 2016 and general provisions from increased general reserve loss factors which are influenced by net charge-off experience. The allowance for Non-PCI credit losses to Non-PCI loans and leases coverage ratio was 1.08% and 1.05% at March 31, 2017 and December 31, 2016. The following tables show roll forwards of the allowance for credit losses for the periods indicated: The gross charge-offs for the first quarter of 2017 included approximately $12.5 million related to two healthcare cash flow loans for which $7.5 million of specific reserves were recorded as of the prior quarter-end. Approximately $5.5 million of the gross charge-offs were associated with four venture capital loans for which $3.2 million of specific reserves were recorded as of the prior quarter-end. The annualized ratio of net charge-offs to total average loans for the quarter ended March 31, 2017 was 0.48%. All acquired loans are recorded initially at their estimated fair value including an estimate of credit losses. The table below presents two alternative views of credit risk coverage ratios for Non-PCI loans reflecting adjustments for acquired loans and leases and associated purchase accounting discounts: The following table presents Non-PCI loan and lease credit quality metrics as of the dates indicated: The following table presents Non-PCI nonaccrual loans and leases and accruing loans and leases past due between 30 and 89 days by portfolio segment and class as of the dates indicated: The following table presents nonperforming assets as of the dates indicated: On April 6, 2017, PacWest announced the signing of a definitive agreement and plan of merger (the “Agreement”) whereby PacWest will acquire CU Bancorp in a transaction valued at approximately $705 million. CU Bancorp, headquartered in Los Angeles, California, is the parent of California United Bank, a California state-chartered non-member bank, with approximately $3.0 billion in assets and nine branches located in Los Angeles, Orange, Ventura, and San Bernardino counties at December 31, 2016. In connection with the transaction, California United Bank will be merged into Pacific Western Bank, the principal operating subsidiary of PacWest Bancorp. The transaction, which was approved by the PacWest and CU Bancorp boards of directors, is expected to close in the fourth quarter of 2017 and is subject to customary closing conditions, including obtaining approval by CU Bancorp’s shareholders and bank regulatory authorities. As of December 31, 2016, on a pro forma consolidated basis, the combined company would have approximately $25.0 billion in assets and 87 branches, prior to contemplated consolidations. Under terms of the Agreement, CU Bancorp shareholders will receive 0.5308 shares of PacWest common stock and $12.00 in cash for each share of CU Bancorp. Based on PacWest’s April 5, 2017 closing price of $51.72, the total value of the merger consideration is $39.45 per CU Bancorp share. PacWest Bancorp (“PacWest”) is a bank holding company with over $21 billion in assets with one wholly-owned banking subsidiary, Pacific Western Bank (the “Bank”). The Bank has 74 full-service branches located throughout the state of California and one branch in Durham, North Carolina. We provide commercial banking services, including real estate, construction, and commercial loans, and comprehensive deposit and treasury management services to small and medium-sized businesses.  We offer additional products and services through our CapitalSource and Square 1 Bank divisions. Our CapitalSource Division provides cash flow, asset-based, equipment and real estate loans and treasury management services to established middle market businesses on a national basis.  Our Square 1 Bank Division offers a comprehensive suite of financial services focused on entrepreneurial businesses and their venture capital and private equity investors, with offices located in key innovation hubs across the United States.  For more information about PacWest Bancorp, visit www.pacwestbancorp.com, or to learn more about Pacific Western Bank, visit www.pacificwesternbank.com. This release contains certain “forward-looking statements” about the Company and its subsidiaries within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company’s current business plans and expectations regarding future operating results and metrics and including statements about our expectations regarding our pending merger between the Company and CU Bancorp. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” “believe,” “forecast,” “expect,” “estimate,” “plan,” “continue,” “will,” “should,” “look forward” and similar expressions are generally intended to identify forward-looking statements. All forward-looking statements (including statements regarding future financial and operating results and future transactions and their results) involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance or achievements. These risks and uncertainties include, but are not limited to, our ability to compete effectively against other financial institutions in our banking markets; the impact of changes in interest rates or levels of market activity, especially on our loan and investment portfolios; deterioration, weaker than expected improvement, or other changes in the state of the economy or the markets in which we conduct business (including the levels of IPOs and M&A activities); changes in credit quality and the effect of credit quality on our provision for loan and lease losses and allowance for loan and leases losses; our ability to attract deposits and other sources of funding or liquidity; our capital requirements and our ability to generate capital internally or raise capital on favorable terms; the costs and effects of legal, compliance and regulatory actions, changes and developments, including the impact of adverse judgments or settlements in litigation, the initiation and resolution of regulatory or other governmental inquiries or investigations, and/or the results of regulatory examinations or reviews; the Company’s ability to complete the proposed CU Bancorp transaction, including by obtaining regulatory approvals and approval by the shareholders of CU Bancorp, or any future transaction, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies, in each case within expected timeframes or at all; changes in the Company’s stock price before completion of the CU Bancorp merger, including as a result of the financial performance of the Company or CU Bancorp before closing; and our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including the Annual Report on Form 10-K for the year ended December 31, 2016, and particularly the discussion of risk factors within that document. All forward-looking statements included in this release are based on information available at the time of the release. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise except as required by law. ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION AND WHERE TO FIND IT Investors and security holders are urged to carefully review and consider each of PacWest’s and CU Bancorp’s public filings with the SEC, including but not limited to their Annual Reports on Form 10-K, their proxy statements, their Current Reports on Form 8-K and their Quarterly Reports on Form 10-Q. The documents filed by PacWest with the SEC may be obtained free of charge at PacWest’s website at www.pacwestbancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from PacWest by requesting them in writing to PacWest Bancorp, 9701 Wilshire Boulevard, Suite 700, Beverly Hills, CA 90212; Attention: Investor Relations, by submitting an email request to investor-relations@pacwestbancorp.com or by telephone at (310) 887-8521. The documents filed by CU Bancorp with the SEC may be obtained free of charge at CU Bancorp’s website at www.cubancorp.com or at the SEC’s website at www.sec.gov. These documents may also be obtained free of charge from CU Bancorp by requesting them in writing to CU Bancorp, 818 W. 7th Street, Suite 220, Los Angeles, CA 90017; Attention: Investor Relations, or by telephone at 818-257-7700. PacWest intends to file a registration statement with the SEC which will include a proxy statement of CU Bancorp and a prospectus of PacWest, and each party will file other documents regarding the proposed transaction with the SEC. Before making any voting or investment decision, investors and security holders of CU Bancorp are urged to carefully read the entire registration statement and proxy statement/prospectus, when they become available, as well as any amendments or supplements to these documents, because they will contain important information about the proposed transaction. A definitive proxy statement/prospectus will be sent to the shareholders of CU Bancorp seeking any required shareholder approvals. Investors and security holders will be able to obtain the registration statement and the proxy statement/prospectus free of charge from the SEC’s website or from PacWest or CU Bancorp by writing to the addresses provided for each company set forth in the paragraphs above. PacWest, CU Bancorp, their directors, executive officers and certain other persons may be deemed to be participants in the solicitation of proxies from CU Bancorp shareholders in favor of the approval of the transaction. Information about the directors and executive officers of PacWest and their ownership of PacWest common stock is set forth in the proxy statement for PacWest’s 2017 annual meeting of stockholders, as previously filed with the SEC. Information about the directors and executive officers of CU Bancorp and their ownership of CU Bancorp common shares is set forth in the proxy statement for CU Bancorp’s 2016 annual meeting of shareholders, as previously filed with the SEC. Shareholders may obtain additional information regarding the interests of such participants by reading the registration statement and the proxy statement/prospectus when they become available. This press release contains certain non-GAAP financial disclosures for return on average tangible equity, tangible common equity ratio, tangible book value per share, net interest margin excluding acquired loan discount accretion, loan and lease yield excluding acquired loan discount accretion, and adjusted allowance for credit losses to loans and leases. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.  In particular, the use of return on average tangible equity, tangible common equity ratio, and tangible book value per share is prevalent among banking regulators, investors and analysts.  Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of return on average equity, equity to assets ratio, book value per share, net interest margin, loan and lease yield, and allowance for credit losses to loans and leases, respectively. The reconciliations for the following GAAP financial measures to the non-GAAP financial measures are presented earlier in this press release: (1) net interest margin to net interest margin excluding acquired loan discount accretion, (2) loan and lease yield to loan and lease yield excluding acquired loan discount accretion, and (3) allowance for credit losses to loans and leases to adjusted allowance for credit losses to loans and leases. The reconciliations for the following GAAP financial measures to the non-GAAP financial measures are presented below: (1) return on average equity to return on average tangible equity, (2) equity to assets ratio to tangible common equity ratio, and (3) book value per share to tangible book value per share.


EAU CLAIRE, Wis., May 01, 2017 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the "Company") (Nasdaq:CZWI), the parent company of Citizens Community Federal N.A. (the “Bank”), today reported GAAP earnings increased 38% to $934,000, or $0.17 per diluted share, in its fiscal second quarter of 2017, ended March 31, 2017, compared to GAAP earnings of $675,000, or $0.13 per diluted share, for the second fiscal quarter one year ago.  GAAP earnings remained relatively flat from $940,000, or $0.18 per diluted share, for the preceding quarter.  For the first six months of fiscal 2017, the Company reported earnings increased 23% to $1.9 million, or $0.35 per diluted share, from $1.5 million, or $0.29 per diluted share, in the first six months of fiscal 2016. Excluding merger expenses related to the recently announced Agreement and Plan of Merger (the "Merger Agreement") with Wells Financial Corp. ("Wells") (OTCQB:WEFP), and costs for closing four branches last November, core earnings (non-GAAP) increased 13% to $933,000 million, or $0.17 per core diluted share (non-GAAP)for Q2 fiscal 2017, compared to $825,000, or $0.15 per core diluted share (non-GAAP), a year ago and declined 31% from $1.3 million, or $0.26 per core diluted share in the preceding quarter.  For the first six months of fiscal 2017, core earnings (non-GAAP) were $2.3 million, or $0.43 per core diluted share, up from $1.7 million, or $0.32 per core diluted share, in the first six months one year ago. Core earnings is a non-GAAP measure that we believe provides additional understanding of the underlying business performance and trends related to core business activities.  For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table "Reconciliation of GAAP Earnings and Core Earnings (non-GAAP)". “We achieved record earnings for the first six months of fiscal 2017, fueled by 15% year-over-year growth in loans and a 12% increase in deposits, primarily as a result of the Community Bank of Northern Wisconsin ("CBN") acquisition,” said Stephen Bianchi, President and Chief Executive Officer.  “As we continue to focus on strategically expanding our franchise through acquisitions, we are simultaneously building our commercial lending business and service capabilities to replace the transactional indirect paper and on balance sheet one to four family loan portfolios which have been declining.  Gain on sale from mortgages decreased as home purchases slowed seasonally and refinancing activity decreased after rates rose following the election.  We were also internally focused on upgrading our mortgage lending system to support future originations.  Agricultural lending grew through acquired loans from our recent acquisition by 133%, but organic demand was muted due to weak commodity prices and tight margins for operators." Second Quarter Fiscal 2017 Financial Highlights: (at or for the periods ended March 31, 2017, compared to March 31, 2016 and /or December 31, 2016.) Total assets grew 11% to $668.5 million at March 31, 2017, compared to $601.8 million at March 31, 2016, and declined 3% from $686.4 million at December 31, 2016.  The increase in total assets from a year ago, primarily reflects higher loans outstanding primarily due to the CBN acquisition, while the decline in total assets on a linked quarter basis, is mainly due to the decision made to discontinue indirect lending and reduced emphasis on one to four family residential portfolio loans. Total net loans grew 15% to $529.0 million at March 31, 2017, from $460.2 million at March 31, 2016, and decreased 3% from $543.0 million at December 31, 2016.  The increase in loans year-over-year was primarily due to the CBN acquisition, which included $111.7 million of net loans.  The decline in the loan balances from the immediate prior quarter was primarily due to decreased levels of one to four family loans and a decreased investment in indirect consumer loans.  At the same time, commercial and agricultural loan balances increased over the past quarter reflecting increased emphasis on internally underwritten loans.  Since September 30, 2016, commercial and agricultural loan balances have increased $12.5 million from $198.5 million at September 30, 2016 to $211.0 million at March 31, 2017. At March 31, 2017, commercial and agricultural real estate and non-real estate loans totaled 39.4% of the total loan portfolio.  One to four family residential real estate loans represented 31.1% of the total loan portfolio, while consumer related non-real estate loans totaled 29.5% of the total loan portfolio - down from 31.7% in the preceding quarter. Total deposits grew 12% to $530.9 million at March 31, 2017, compared to $473.8 million at March 31, 2016, and declined slightly from $535.1 million at December 31, 2016.  Non-interest bearing demand deposits represented 9% of total deposits; interest bearing demand deposits and savings, each accounted for 10% of the deposit mix, and money market accounts represented 23% of total deposits at March 31, 2017.  At March 31, 2016, non-interest bearing and interest bearing demand deposits each represented 6% of total deposits; savings deposits accounted for 7% of the deposit mix, and money market accounts represented 28% of total deposits.  The change in composition of deposits from one year ago, reflects a combination of deposit run-off related to the announced closure of the four Eastern Wisconsin branches, as well as previous branch closures, and an increase in commercial deposit accounts from the CBN acquisition. Federal Home Loan Bank ("FHLB") advances and other borrowings totaled $61.5 million at March 31, 2016, compared to $71.5 million at March 31, 2017.  To facilitate the purchase of CBN in May 2016, the Company obtained an adjustable-rate, $11.0 million loan with a maturity date of May 15, 2021.  In March 2017, the Bank prepaid $9.8 million in FHLB borrowings with an average rate of 2.10% and average remaining maturity of 13.17 months.  The prepayment fee totaled $104,000 and is included in other non-interest expense for the current three and six months ended, March 31, 2017.  The Bank replaced these FHLB borrowings with shorter term borrowings maturing in one month at 0.75%. The weighted average remaining term of the borrowings at March 31, 2017 was 2.59 months compared to 8.32 months at September 30, 2016. Nonperforming assets (“NPAs”) totaled $7.0 million, or 1.05% of total assets, at March 31, 2017, compared to $7.4 million, or 1.08% of total assets, three months earlier, and $2.3 million, or 0.38% of total assets, at March 31, 2016.  The increase in NPAs at March 31, 2017, was primarily due to the deterioration of two larger, acquired agricultural loans as reported three months earlier. The allowance for loan and lease losses at March 31, 2017, totaled $5.8 million and represented 1.09% of total loans, compared to $6.3 million and 1.35% of total loans at March 31, 2016.  Net charge off loans totaled $82,000 and represented 0.06% of average loans on an annualized basis, at March 31, 2017.   One year earlier, net charge offs totaled $138,000 and represented 0.12% of average loans on an annualized basis. Tangible common stockholders' equity was 8.89% of tangible assets at March 31, 2017, compared to 8.55% at September 30, 2016.  Tangible book value per common share was $11.19 at March 31, 2017 compared to $11.22 at September 30, 2016. Capital ratios for the Bank continued to remain well above regulatory requirements with Tier 1 capital to risk weighted assets of 13.6% at March 31, 2017, up from 12.9% at September 30, 2016.  Tier 1 leverage capital to adjusted total assets improved to 9.8% at March 31, 2017 compared to 9.3% at September 30, 2016.  These regulatory ratios were higher than the required minimum levels of 6.00% for Tier 1 capital to risk weighted assets and 4.00% for Tier 1 leverage capital to adjusted total assets. Primarily due to growth in the loan portfolio, net interest income increased 13% to $5.2 million for the second quarter of fiscal 2017, compared to $4.6 million for the second quarter of fiscal 2016.  Net interest income declined 6% from $5.6 million on a linked quarter basis mainly due to a reduction in the loan portfolio.  For the first six months of fiscal 2017, net interest income grew 17% to $10.8 million, compared to $9.2 million for the first six months of fiscal 2016. The net interest margin (“NIM”) was 3.31% for the fiscal second quarter of 2017, compared to 3.28% for the same quarter one year earlier, and 3.36% for the preceding quarter ended December 31, 2016.  For the first six months of fiscal 2017, the NIM expanded 9 basis points to 3.34% compared to 3.25% for the first six months of fiscal 2016.  The year-over-year higher quarterly margin was primarily due to higher earning asset yields. No provision for loan losses was recorded during the first six months of fiscal 2017.  “We haven’t taken any provision for loan losses since the first quarter of fiscal 2016,” said Mark Oldenberg, EVP and Chief Financial Officer.   “The balance of the allowance for loan and lease losses was $5.8 million, or 1.09% of our loan portfolio at March 31, 2017.” Net charge offs were $82,000 for the second quarter of fiscal 2017, compared to $138,000 a year ago and $151,000 for the first quarter of fiscal 2017.  Allowance for loan and lease losses totaled 1.09%, at March 31, 2017, compared to 1.35% at March 31, 2016 and 1.08%, at December 31, 2016. Noninterest income increased $394,000 to $1.2 million for the second quarter of fiscal 2017, compared to $810,000 one year ago, and declined from $1.3 million for the immediate prior quarter.  For the first six months of fiscal 2017, noninterest income increased 43% to $2.5 million, compared to $1.8 million for the first six months of fiscal 2016, mainly due to gains on payoffs from purchased credit impaired loans in the amount of $206,000 during the first fiscal quarter of 2017, an increase in secondary market fee income generated from customer mortgage activity due to advantages over the ARM loan portfolio mortgage offerings and an increase in commercial loan origination and servicing fee income.  Settlement proceeds increased $283,000 in the current three month period ended March 31, 2017.  "In March 2017, the Bank received litigation settlement proceeds from a JP Morgan Residential Mortgage Backed Security (RMBS) claim in the amount of $283,000.  This JP Morgan RMBS was previously owned by the Bank and sold in 2011," said Oldenberg. Total noninterest expense was $5.0 million in the second quarter of fiscal 2017 compared to $4.4 million for the quarter ended March 31, 2016.  The increase in expenses for the current quarter was primarily related to salaries and related benefits cost increases due to the addition of new employees related to the CBN acquisition and professional services related to the Wells acquisition.  The FHLB borrowings prepayment fee totaled $104,000 and is included in other non-interest expense for the current three and six months ended, March 31, 2017.  For the first six months of fiscal 2017, noninterest expense increased to $10.5 million compared to $8.5 million for the first six months of fiscal 2016. In addition to the increased costs mentioned above, occupancy expense increased during the first fiscal quarter of 2017, primarily due to rent termination costs related to the four branch closures in Eastern Wisconsin. These financial results are preliminary until the Form 10-Q is filed in May 2017. Citizens Community Federal N.A., a wholly owned subsidiary of Citizens Community Bancorp, Inc., is a full-service national bank based in Altoona, Wisconsin, serving more than 50,000 customers in Wisconsin, Minnesota and Michigan through 16 branch locations. Subsequent to the branch closures in June 2017, the Company will operate through 14 branch locations. The Company’s stock trades on the NASDAQ Global Market under the symbol “CZWI.” This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, any securities in any jurisdiction pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of any applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Additional Information About The Proposed Transaction and Where To Find It Investors are urged to read the Merger Agreement for a more complete understanding of the terms of the transactions discussed herein. This release does not constitute a solicitation of any vote or approval. In connection with the merger, the Company will be filing with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 and other relevant documents. STOCKHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 TO BE FILED BY THE COMPANY WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED BY THE COMPANY WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The Registration Statement, including the proxy statement/prospectus, and other relevant materials (when they become available), and any other documents filed by the Company with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. Documents filed by the Company with the SEC, including the registration statement, may also be obtained free of charge from the Company’s website http://www.snl.com/IRWebLinkX/corporateprofile.aspx?iid=4091023 by clicking the “SEC Filings” heading, or by directing a request to the Company’s CEO, Stephen Bianchi at sbianchi@ccf.us. The directors, executive officers and certain other members of management and employees of Wells may be deemed to be “participants” in the solicitation of proxies for stockholder approval. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of stockholder approval will be set forth in the proxy statement/prospectus and the other relevant documents to be filed with the SEC. Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of Citizens Community Federal N.A. (“CCFBank”). These uncertainties include the timing to consummate the proposed transaction; the risk that a condition to closing of the proposed transaction may not be satisfied and the transaction may not close; the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained or is obtained subject to conditions that are not anticipated; the combined company’s ability to achieve the synergies and value creation contemplated by the proposed transaction; management’s ability to promptly and effectively integrate the businesses of the two companies; the diversion of management time on transaction-related issues; the effects of governmental regulation of the financial services industry; industry consolidation; technological developments and major world news events; general economic conditions, in particular, relating to consumer demand for CCFBank’s products and services; CCFBank’s ability to maintain current deposit and loan levels at current interest rates; competitive and technological developments; deteriorating credit quality, including changes in the interest rate environment reducing interest margins; prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; CCFBank’s ability to maintain required capital levels and adequate sources of funding and liquidity; maintaining capital requirements may limit CCFBank’s operations and potential growth; changes and trends in capital markets; competitive pressures among depository institutions; effects of critical accounting estimates and judgments; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies overseeing CCFBank; CCFBank’s ability to implement its cost-savings and revenue enhancement initiatives, including costs associated with its branch consolidation and new market branch growth initiatives; legislative or regulatory changes or actions or significant litigation adversely affecting CCFBank; fluctuation of the Company’s stock price; CCFBank's ability to attract and retain key personnel; CCFBank's ability to secure confidential information through the use of computer systems and telecommunications networks; and the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended September 30, 2016 filed with the Securities and Exchange Commission on December 29, 2016. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release. This press release contains non-GAAP financial measures, which management believes may be helpful in understanding the Company's results of operations or financial position and comparing results over different periods.  Non-GAAP measures eliminates the impact of certain one-time expenses such as acquisition and branch closure costs and related data processing termination fees, legal costs, severance pay, accelerated depreciation expense and lease termination fees.  Merger related charges represent expenses to either satisfy contractual obligations of acquired entities without any useful benefit to the Company or to convert and consolidate customer records onto the Company platforms.  These costs are unique to each transaction based on the contracts in existence at the merger date.  Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions. (1)  Costs incurred are included as data processing, advertising, marketing and public relations, professional fees and other non-interest expense in the consolidated statement of operations. (2)  Branch closure costs include severance pay recorded in salaries and other benefits, accelerated depreciation expense and lease termination fees included in occupancy and other non-interest expense in the consolidated statement of operations. (3) Settlement proceeds includes litigation income from a JP Morgan Residential Mortgage Backed Security (RMBS) claim.  This JP Morgan RMBS was previously owned by the Bank and sold in 2011. (4) The prepayment fee, includes the cost to restructure our FHLB borrowings and is included in other non-interest expense in the consolidated statement of operations. (5)  Core earnings is a non-GAAP measure that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. (1)  Total Nonperforming assets increased due to the CBN acquisition in Fiscal 2016.  Acquired nonperforming loans were $4,322, $5,090 and $1,778 at March 31, 2017, December 31, 2016 and September 30, 2016, respectively.  Acquired real estate owned property balances were $160, $143 and $212 at March 31, 2017, December 31, 2016 and September 30, 2016, respectively. (1)  For the 3 months ended March 31, 2017, December 31, 2016 and March 31, 2016, the average balance of the tax exempt investment securities, included in investment securities, were $31,445, $31,986 and $28,565 respectively.  The interest income on tax exempt securities is computed on a tax-equivalent basis using a tax rate of 34% for all periods presented. (1)  For the 6 months ended March 31, 2017 and March 31, 2016, the average balance of the tax exempt investment securities, included in investment securities, were $31,738 and $27,455 respectively.  The interest income on tax exempt securities is computed on a tax-equivalent basis using a tax rate of 34% for all periods presented.


EAU CLAIRE, Wis., May 01, 2017 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the "Company") (Nasdaq:CZWI), the parent company of Citizens Community Federal N.A. (the “Bank”), today reported GAAP earnings increased 38% to $934,000, or $0.17 per diluted share, in its fiscal second quarter of 2017, ended March 31, 2017, compared to GAAP earnings of $675,000, or $0.13 per diluted share, for the second fiscal quarter one year ago.  GAAP earnings remained relatively flat from $940,000, or $0.18 per diluted share, for the preceding quarter.  For the first six months of fiscal 2017, the Company reported earnings increased 23% to $1.9 million, or $0.35 per diluted share, from $1.5 million, or $0.29 per diluted share, in the first six months of fiscal 2016. Excluding merger expenses related to the recently announced Agreement and Plan of Merger (the "Merger Agreement") with Wells Financial Corp. ("Wells") (OTCQB:WEFP), and costs for closing four branches last November, core earnings (non-GAAP) increased 13% to $933,000 million, or $0.17 per core diluted share (non-GAAP)for Q2 fiscal 2017, compared to $825,000, or $0.15 per core diluted share (non-GAAP), a year ago and declined 31% from $1.3 million, or $0.26 per core diluted share in the preceding quarter.  For the first six months of fiscal 2017, core earnings (non-GAAP) were $2.3 million, or $0.43 per core diluted share, up from $1.7 million, or $0.32 per core diluted share, in the first six months one year ago. Core earnings is a non-GAAP measure that we believe provides additional understanding of the underlying business performance and trends related to core business activities.  For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table "Reconciliation of GAAP Earnings and Core Earnings (non-GAAP)". “We achieved record earnings for the first six months of fiscal 2017, fueled by 15% year-over-year growth in loans and a 12% increase in deposits, primarily as a result of the Community Bank of Northern Wisconsin ("CBN") acquisition,” said Stephen Bianchi, President and Chief Executive Officer.  “As we continue to focus on strategically expanding our franchise through acquisitions, we are simultaneously building our commercial lending business and service capabilities to replace the transactional indirect paper and on balance sheet one to four family loan portfolios which have been declining.  Gain on sale from mortgages decreased as home purchases slowed seasonally and refinancing activity decreased after rates rose following the election.  We were also internally focused on upgrading our mortgage lending system to support future originations.  Agricultural lending grew through acquired loans from our recent acquisition by 133%, but organic demand was muted due to weak commodity prices and tight margins for operators." Second Quarter Fiscal 2017 Financial Highlights: (at or for the periods ended March 31, 2017, compared to March 31, 2016 and /or December 31, 2016.) Total assets grew 11% to $668.5 million at March 31, 2017, compared to $601.8 million at March 31, 2016, and declined 3% from $686.4 million at December 31, 2016.  The increase in total assets from a year ago, primarily reflects higher loans outstanding primarily due to the CBN acquisition, while the decline in total assets on a linked quarter basis, is mainly due to the decision made to discontinue indirect lending and reduced emphasis on one to four family residential portfolio loans. Total net loans grew 15% to $529.0 million at March 31, 2017, from $460.2 million at March 31, 2016, and decreased 3% from $543.0 million at December 31, 2016.  The increase in loans year-over-year was primarily due to the CBN acquisition, which included $111.7 million of net loans.  The decline in the loan balances from the immediate prior quarter was primarily due to decreased levels of one to four family loans and a decreased investment in indirect consumer loans.  At the same time, commercial and agricultural loan balances increased over the past quarter reflecting increased emphasis on internally underwritten loans.  Since September 30, 2016, commercial and agricultural loan balances have increased $12.5 million from $198.5 million at September 30, 2016 to $211.0 million at March 31, 2017. At March 31, 2017, commercial and agricultural real estate and non-real estate loans totaled 39.4% of the total loan portfolio.  One to four family residential real estate loans represented 31.1% of the total loan portfolio, while consumer related non-real estate loans totaled 29.5% of the total loan portfolio - down from 31.7% in the preceding quarter. Total deposits grew 12% to $530.9 million at March 31, 2017, compared to $473.8 million at March 31, 2016, and declined slightly from $535.1 million at December 31, 2016.  Non-interest bearing demand deposits represented 9% of total deposits; interest bearing demand deposits and savings, each accounted for 10% of the deposit mix, and money market accounts represented 23% of total deposits at March 31, 2017.  At March 31, 2016, non-interest bearing and interest bearing demand deposits each represented 6% of total deposits; savings deposits accounted for 7% of the deposit mix, and money market accounts represented 28% of total deposits.  The change in composition of deposits from one year ago, reflects a combination of deposit run-off related to the announced closure of the four Eastern Wisconsin branches, as well as previous branch closures, and an increase in commercial deposit accounts from the CBN acquisition. Federal Home Loan Bank ("FHLB") advances and other borrowings totaled $61.5 million at March 31, 2016, compared to $71.5 million at March 31, 2017.  To facilitate the purchase of CBN in May 2016, the Company obtained an adjustable-rate, $11.0 million loan with a maturity date of May 15, 2021.  In March 2017, the Bank prepaid $9.8 million in FHLB borrowings with an average rate of 2.10% and average remaining maturity of 13.17 months.  The prepayment fee totaled $104,000 and is included in other non-interest expense for the current three and six months ended, March 31, 2017.  The Bank replaced these FHLB borrowings with shorter term borrowings maturing in one month at 0.75%. The weighted average remaining term of the borrowings at March 31, 2017 was 2.59 months compared to 8.32 months at September 30, 2016. Nonperforming assets (“NPAs”) totaled $7.0 million, or 1.05% of total assets, at March 31, 2017, compared to $7.4 million, or 1.08% of total assets, three months earlier, and $2.3 million, or 0.38% of total assets, at March 31, 2016.  The increase in NPAs at March 31, 2017, was primarily due to the deterioration of two larger, acquired agricultural loans as reported three months earlier. The allowance for loan and lease losses at March 31, 2017, totaled $5.8 million and represented 1.09% of total loans, compared to $6.3 million and 1.35% of total loans at March 31, 2016.  Net charge off loans totaled $82,000 and represented 0.06% of average loans on an annualized basis, at March 31, 2017.   One year earlier, net charge offs totaled $138,000 and represented 0.12% of average loans on an annualized basis. Tangible common stockholders' equity was 8.89% of tangible assets at March 31, 2017, compared to 8.55% at September 30, 2016.  Tangible book value per common share was $11.19 at March 31, 2017 compared to $11.22 at September 30, 2016. Capital ratios for the Bank continued to remain well above regulatory requirements with Tier 1 capital to risk weighted assets of 13.6% at March 31, 2017, up from 12.9% at September 30, 2016.  Tier 1 leverage capital to adjusted total assets improved to 9.8% at March 31, 2017 compared to 9.3% at September 30, 2016.  These regulatory ratios were higher than the required minimum levels of 6.00% for Tier 1 capital to risk weighted assets and 4.00% for Tier 1 leverage capital to adjusted total assets. Primarily due to growth in the loan portfolio, net interest income increased 13% to $5.2 million for the second quarter of fiscal 2017, compared to $4.6 million for the second quarter of fiscal 2016.  Net interest income declined 6% from $5.6 million on a linked quarter basis mainly due to a reduction in the loan portfolio.  For the first six months of fiscal 2017, net interest income grew 17% to $10.8 million, compared to $9.2 million for the first six months of fiscal 2016. The net interest margin (“NIM”) was 3.31% for the fiscal second quarter of 2017, compared to 3.28% for the same quarter one year earlier, and 3.36% for the preceding quarter ended December 31, 2016.  For the first six months of fiscal 2017, the NIM expanded 9 basis points to 3.34% compared to 3.25% for the first six months of fiscal 2016.  The year-over-year higher quarterly margin was primarily due to higher earning asset yields. No provision for loan losses was recorded during the first six months of fiscal 2017.  “We haven’t taken any provision for loan losses since the first quarter of fiscal 2016,” said Mark Oldenberg, EVP and Chief Financial Officer.   “The balance of the allowance for loan and lease losses was $5.8 million, or 1.09% of our loan portfolio at March 31, 2017.” Net charge offs were $82,000 for the second quarter of fiscal 2017, compared to $138,000 a year ago and $151,000 for the first quarter of fiscal 2017.  Allowance for loan and lease losses totaled 1.09%, at March 31, 2017, compared to 1.35% at March 31, 2016 and 1.08%, at December 31, 2016. Noninterest income increased $394,000 to $1.2 million for the second quarter of fiscal 2017, compared to $810,000 one year ago, and declined from $1.3 million for the immediate prior quarter.  For the first six months of fiscal 2017, noninterest income increased 43% to $2.5 million, compared to $1.8 million for the first six months of fiscal 2016, mainly due to gains on payoffs from purchased credit impaired loans in the amount of $206,000 during the first fiscal quarter of 2017, an increase in secondary market fee income generated from customer mortgage activity due to advantages over the ARM loan portfolio mortgage offerings and an increase in commercial loan origination and servicing fee income.  Settlement proceeds increased $283,000 in the current three month period ended March 31, 2017.  "In March 2017, the Bank received litigation settlement proceeds from a JP Morgan Residential Mortgage Backed Security (RMBS) claim in the amount of $283,000.  This JP Morgan RMBS was previously owned by the Bank and sold in 2011," said Oldenberg. Total noninterest expense was $5.0 million in the second quarter of fiscal 2017 compared to $4.4 million for the quarter ended March 31, 2016.  The increase in expenses for the current quarter was primarily related to salaries and related benefits cost increases due to the addition of new employees related to the CBN acquisition and professional services related to the Wells acquisition.  The FHLB borrowings prepayment fee totaled $104,000 and is included in other non-interest expense for the current three and six months ended, March 31, 2017.  For the first six months of fiscal 2017, noninterest expense increased to $10.5 million compared to $8.5 million for the first six months of fiscal 2016. In addition to the increased costs mentioned above, occupancy expense increased during the first fiscal quarter of 2017, primarily due to rent termination costs related to the four branch closures in Eastern Wisconsin. These financial results are preliminary until the Form 10-Q is filed in May 2017. Citizens Community Federal N.A., a wholly owned subsidiary of Citizens Community Bancorp, Inc., is a full-service national bank based in Altoona, Wisconsin, serving more than 50,000 customers in Wisconsin, Minnesota and Michigan through 16 branch locations. Subsequent to the branch closures in June 2017, the Company will operate through 14 branch locations. The Company’s stock trades on the NASDAQ Global Market under the symbol “CZWI.” This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, any securities in any jurisdiction pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of any applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Additional Information About The Proposed Transaction and Where To Find It Investors are urged to read the Merger Agreement for a more complete understanding of the terms of the transactions discussed herein. This release does not constitute a solicitation of any vote or approval. In connection with the merger, the Company will be filing with the Securities and Exchange Commission (“SEC”) a Registration Statement on Form S-4 and other relevant documents. STOCKHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 TO BE FILED BY THE COMPANY WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED BY THE COMPANY WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The Registration Statement, including the proxy statement/prospectus, and other relevant materials (when they become available), and any other documents filed by the Company with the SEC, may be obtained free of charge at the SEC’s website at www.sec.gov. Documents filed by the Company with the SEC, including the registration statement, may also be obtained free of charge from the Company’s website http://www.snl.com/IRWebLinkX/corporateprofile.aspx?iid=4091023 by clicking the “SEC Filings” heading, or by directing a request to the Company’s CEO, Stephen Bianchi at sbianchi@ccf.us. The directors, executive officers and certain other members of management and employees of Wells may be deemed to be “participants” in the solicitation of proxies for stockholder approval. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of stockholder approval will be set forth in the proxy statement/prospectus and the other relevant documents to be filed with the SEC. Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of Citizens Community Federal N.A. (“CCFBank”). These uncertainties include the timing to consummate the proposed transaction; the risk that a condition to closing of the proposed transaction may not be satisfied and the transaction may not close; the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained or is obtained subject to conditions that are not anticipated; the combined company’s ability to achieve the synergies and value creation contemplated by the proposed transaction; management’s ability to promptly and effectively integrate the businesses of the two companies; the diversion of management time on transaction-related issues; the effects of governmental regulation of the financial services industry; industry consolidation; technological developments and major world news events; general economic conditions, in particular, relating to consumer demand for CCFBank’s products and services; CCFBank’s ability to maintain current deposit and loan levels at current interest rates; competitive and technological developments; deteriorating credit quality, including changes in the interest rate environment reducing interest margins; prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; CCFBank’s ability to maintain required capital levels and adequate sources of funding and liquidity; maintaining capital requirements may limit CCFBank’s operations and potential growth; changes and trends in capital markets; competitive pressures among depository institutions; effects of critical accounting estimates and judgments; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies overseeing CCFBank; CCFBank’s ability to implement its cost-savings and revenue enhancement initiatives, including costs associated with its branch consolidation and new market branch growth initiatives; legislative or regulatory changes or actions or significant litigation adversely affecting CCFBank; fluctuation of the Company’s stock price; CCFBank's ability to attract and retain key personnel; CCFBank's ability to secure confidential information through the use of computer systems and telecommunications networks; and the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended September 30, 2016 filed with the Securities and Exchange Commission on December 29, 2016. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release. This press release contains non-GAAP financial measures, which management believes may be helpful in understanding the Company's results of operations or financial position and comparing results over different periods.  Non-GAAP measures eliminates the impact of certain one-time expenses such as acquisition and branch closure costs and related data processing termination fees, legal costs, severance pay, accelerated depreciation expense and lease termination fees.  Merger related charges represent expenses to either satisfy contractual obligations of acquired entities without any useful benefit to the Company or to convert and consolidate customer records onto the Company platforms.  These costs are unique to each transaction based on the contracts in existence at the merger date.  Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions. (1)  Costs incurred are included as data processing, advertising, marketing and public relations, professional fees and other non-interest expense in the consolidated statement of operations. (2)  Branch closure costs include severance pay recorded in salaries and other benefits, accelerated depreciation expense and lease termination fees included in occupancy and other non-interest expense in the consolidated statement of operations. (3) Settlement proceeds includes litigation income from a JP Morgan Residential Mortgage Backed Security (RMBS) claim.  This JP Morgan RMBS was previously owned by the Bank and sold in 2011. (4) The prepayment fee, includes the cost to restructure our FHLB borrowings and is included in other non-interest expense in the consolidated statement of operations. (5)  Core earnings is a non-GAAP measure that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. (1)  Total Nonperforming assets increased due to the CBN acquisition in Fiscal 2016.  Acquired nonperforming loans were $4,322, $5,090 and $1,778 at March 31, 2017, December 31, 2016 and September 30, 2016, respectively.  Acquired real estate owned property balances were $160, $143 and $212 at March 31, 2017, December 31, 2016 and September 30, 2016, respectively. (1)  For the 3 months ended March 31, 2017, December 31, 2016 and March 31, 2016, the average balance of the tax exempt investment securities, included in investment securities, were $31,445, $31,986 and $28,565 respectively.  The interest income on tax exempt securities is computed on a tax-equivalent basis using a tax rate of 34% for all periods presented. (1)  For the 6 months ended March 31, 2017 and March 31, 2016, the average balance of the tax exempt investment securities, included in investment securities, were $31,738 and $27,455 respectively.  The interest income on tax exempt securities is computed on a tax-equivalent basis using a tax rate of 34% for all periods presented.


News Article | February 15, 2017
Site: www.eurekalert.org

Modern computer technology is based on the transport of electric charge in semiconductors. But this technology's potential will be reaching its limits in the near future, since the components deployed cannot be miniaturized further. But, there is another option: using an electron's spin, instead of its charge, to transmit information. A team of scientists from Munich and Kyoto is now demonstrating how this works. Computers and mobile devices continue providing ever more functionality. The basis for this surge in performance has been progressively extended miniaturization. However, there are fundamental limits to the degree of miniaturization possible, meaning that arbitrary size reductions will not be possible with semiconductor technology. Researchers around the world are thus working on alternatives. A particularly promising approach involves so-called spin electronics. This takes advantage of the fact that electrons possess, in addition to charge, angular momentum - the spin. The experts hope to use this property to increase the information density and at the same time the functionality of future electronics. Together with colleagues at the Kyoto University in Japan scientists at the Walther-Meißner-Institute (WMI) and the Technical University of Munich (TUM) in Garching have now demonstrated the transport of spin information at room temperature in a remarkable material system. In their experiment, they demonstrated the production, transport and detection of electronic spins in the boundary layer between the materials lanthanum-aluminate (LaAlO2) and strontium-titanate (SrTiO3). What makes this material system unique is that an extremely thin, electrically conducting layer forms at the interface between the two non-conducting materials: a so-called two-dimensional electron gas. The German-Japanese team has now shown that this two-dimensional electron gas transports not only charge, but also spin. "To achieve this we first had to surmount several technical hurdles," says Dr Hans Hübl, scientist at the Chair for Technical Physics at TUM and Deputy Director of the Walther-Meißner-Institute. "The two key questions were: How can spin be transferred to the two-dimensional electron gas and how can the transport be proven?" The scientists solved the problem of spin transfer using a magnetic contact. Microwave radiation forces its electrons into a precession movement, analogous to the wobbling motion of a top. Just as in a top, this motion does not last forever, but rather, weakens in time - in this case by imparting its spin onto the two-dimensional electron gas. The electron gas then transports the spin information to a non-magnetic contact located one micrometer next to the contact. The non-magnetic contact detects the spin transport by absorbing the spin, building up an electric potential in the process. Measuring this potential allowed the researchers to systematically investigate the transport of spin and demonstrate the feasibility of bridging distances up to one hundred times larger than the distance of today's transistors. Based on these results, the team of scientists is now researching to what extent spin electronic components with novel functionality can be implemented using this system of materials. The research was funded by the German Research Foundation (DFG) in the context of the Cluster of Excellence "Nanosystems Initiative Munich" (NIM). Strong evidence for d-electron spin transport at room temperature at a LaAlO3/SrTiO3 interface. R. Ohshima, Y. Ando, K. Matsuzaki, T. Susaki, M. Weiler, S. Klingler, H. Huebl, E. Shikoh, T. Shinjo, S.T.B Goennenwein and M. Shiraishi. Nature Materials, Advanced Online Publication 13. Februar 2017.

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