SCHEDULE: Citizens Community Bancorp Stakeholder Group Seeks Board Changes

A group of investors has amended their Schedule 13D filing, disclosing their belief that Citizens Community Bancorp's stock is undervalued and indicating discussions about potential board director changes.

Summary

• A group of reporting persons, including Gale Hoese, Andrew Schornack, Jill Schornack, David Schornack, Denise Schornack, Jonathan Hoese, Tamara Retka, Noah Retka, and Joseph Schornack, have filed an amendment to their Schedule 13D.
• They collectively beneficially own 878,472.49 shares of Citizens Community Bancorp, Inc. common stock, representing 9.1% of the class.
• The reporting persons acquired these shares for investment purposes, believing the stock is undervalued relative to the company's intrinsic value, earnings potential, and franchise value.
• They are experienced community banking operators and intend to support the Issuer's growth and enhance long-term shareholder value.
• Discussions have occurred with the Issuer's management regarding potential changes to the board of directors, including the addition of directors nominated by the reporting persons.
• The reporting persons may acquire additional shares or dispose of existing shares based on market conditions and other factors.
• They reserve the right to develop future plans or proposals to maximize their investment value.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive filing, indicating investor confidence in the company's underlying value and a proactive approach to potentially improving governance and strategy, though the activist nature introduces some uncertainty.

Positives

• The reporting persons believe Citizens Community Bancorp's stock is undervalued, suggesting potential for price appreciation.
• They possess expertise in community banking operations and aim to support the company's growth and enhance shareholder value.
• The group has engaged in discussions with management regarding board composition, indicating a proactive approach to governance.
• The reporting persons hold a significant stake (9.1%) in the company, aligning their interests with other shareholders.

Negatives

• The filing indicates a potential for activism and pressure on management regarding board composition, which could create uncertainty.
• The reporting persons' intention to potentially acquire more shares or dispose of shares could lead to market volatility.

Risks

• Potential for proxy contests or shareholder disputes if disagreements arise regarding board composition or strategy.
• Market volatility and general economic conditions could impact the value of the investment.
• The reporting persons' future actions, such as acquiring or disposing of shares, could influence the stock price.

Future Outlook

The reporting persons intend to review their investment continuously and may acquire additional shares or dispose of shares based on various factors. They also plan to continue discussions with the Issuer's management and board regarding potential changes to the board of directors and other strategic matters.

Management Comments

• The Reporting Persons acquired their shares of Common Stock for investment purposes.
• The Reporting Persons believe the shares are undervalued relative to the Issuer's intrinsic value, long-term earnings potential, and franchise value.
• The Reporting Persons believe the Issuer possesses an attractive community banking platform with strong deposit-gathering capabilities, disciplined credit management, and favorable market positioning in Wisconsin and Minnesota.
• The Reporting Persons intend to use their experience to support the Issuer's continued growth and the enhancement of long-term value for all shareholders.
• On July 27, 2026, certain of the Reporting Persons discussed with the Issuer's management potential changes in the composition of the board of directors of the Issuer and the addition of one or more directors nominated by the Reporting Persons.

Industry Context

StockSavvy.ai notes that this filing reflects a common trend in the community banking sector where experienced operators and investors seek to influence or take control of undervalued institutions to unlock shareholder value through operational improvements or strategic transactions.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for increased share value if the reporting persons' strategy is successful; potential for short-term volatility due to activist involvement.
• Management and Board: Increased scrutiny and potential pressure to implement changes proposed by the reporting persons.
• Employees and Customers: Indirect impact through potential strategic shifts or operational improvements driven by new board members.

Next Steps

• Continued dialogue with Citizens Community Bancorp's management and board of directors regarding board composition.
• Potential proposals for changes to the board of directors or management.
• Ongoing review of investment in Citizens Community Bancorp.
• Potential acquisition or disposition of additional shares of Common Stock.

Key Dates

Recommendation

The filing indicates a significant stake by experienced investors who believe the company is undervalued and are seeking board changes. While this suggests potential for positive change, the outcome is uncertain and depends on future discussions and actions. A 'hold' position allows investors to monitor developments without committing to new capital or exiting existing positions.

Keywords

Citizens Community Bancorp, Schedule 13D, Beneficial Ownership, Investment Purpose, Board of Directors, Shareholder Value, Community Banking, Activism