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Total interest and dividend income was relatively stable at $5.7 million for both quarters ended March 31, 2016 and March 31, 2015. Total average interest earning assets increased by 3.3% for the quarter ended March 31, 2016 compared to the quarter ended March 31, 2015, while the weighted average yield on interest earning assets decreased by 10 basis points due to the flattening yield curve and the prolonged low interest environment.

Total interest expense was also relatively steady for the quarter ended March 31, 2016, compared with the same quarter in the previous year. The weighted average rate paid on interest-bearing liabilities was approximately 90 basis points and 92 basis points for the quarters ending March 31, 2016 and March 31, 2015, respectively.

The net interest margin was 3.28% for the three months ended March 31, 2016, compared with 3.22% and 3.35% for the three months ended December 31, 2015, and March 31, 2015, respectively.

Due to our continued strong asset quality, the loan loss provision was zero for the most recent quarter compared with $150,000 for the three months ended March 31, 2015. Net loan charge-offs were only $138,000, or 0.12% (annualized) of total average loans, for the three months ended March 31, 2016. As of March 31, 2016, the Company's allowance for loan losses was $6.3 million and represented 1.35% of total loans.

Non-interest income decreased to $810,000 for the quarter ended March 31, 2016, compared with $924,000 for the same period of the prior fiscal year, mainly due to a decrease in overdraft fee income and electronic banking fee income as a result of a change in our product mix.

Total non-interest expense decreased slightly by $54,000 to $4.4 million for the quarter ended March 31, 2016, compared with the quarter ended March 31, 2015, as we continue to reduce expenses through operational efficiencies. During the current three month period, occupancy expense increased due to contractual rent payments due from two retail branches that closed during the current quarter in the amount of $187,000. During the current six month period, occupancy expense decreased due to efficiencies and cost savings realized over recent periods through management initiatives including branch closures and technology improvements. Occupancy costs consist primarily of office rental and depreciation expenses.

Total assets increased $21.7 million to $601.8 million as of March 31, 2016, from $580.1 million as of September 30, 2015. Over the same time period, total loans increased $16.0 million, or 3.5% (not annualized). The loan growth over the first half of fiscal 2016 is encouraging and is primarily due to commercial loan growth and loans purchased from two branches within our footprint. Total deposits were $473.8 million at March 31, 2016, an increase of $17.5 million or 3.8%, from their balances at September 30, 2015, mainly due to deposits purchased in the amount of $27.1 million, offset by decreases in balances of brokered deposits in the amount of $10.3 million. "Our strategy continues to be based on attracting core deposits and building customer relationships in the markets and communities we reside in, as we continue to develop new products and services based on our customer's needs," explained Schaefer.

Non-accruing loans were $1.2 million at March 31, 2016, compared with $748,000 at September 30, 2015. Non-performing assets as a percentage of total assets increased slightly to 0.38% as of March 31, 2016, from 0.37% as of September 30, 2015.

At March 31, 2016, the Bank's total capital to risk weighted assets was 16.0%, tier 1 capital to risk weighted assets was 14.7% and the tier 1 leverage capital ratio to adjusted total assets was 10.2%.

About the Company

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. The Company's stock trades on the NASDAQ Global Market under the symbol "CZWI."

Cautionary Statement Regarding Forward-Looking Statements

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 Company's operations and business environment. These uncertainties include general economic conditions, in particular, relating to consumer demand for the Bank's products and services; the Bank'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; the Bank's ability to maintain required capital levels and adequate sources of funding and liquidity; maintaining capital requirements may limit the Bank'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 the Bank; the Bank'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 the Bank; fluctuation of the Company's stock price; the Bank's ability to attract and retain key personnel; the Bank'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, 2015 filed with the Securities and Exchange Commission on December 7, 2015. 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.