SCHEDULE: Fourthstone Group Discloses 5.32% Stake in Citizens Community Bancorp

Fourthstone LLC and its affiliates have reported a passive beneficial ownership of 5.32% in Citizens Community Bancorp Inc., totaling 525,039 shares.

Summary

• Fourthstone LLC, along with its affiliated entities Fourthstone Master Opportunity Fund Ltd, Fourthstone GP LLC, Fourthstone QP Opportunity Fund LP, Fourthstone Small-Cap Financials Fund LP, and L. Phillip Stone, IV, collectively reported beneficial ownership of 525,039 shares of Citizens Community Bancorp Inc. common stock.
• This aggregate ownership represents 5.32% of the Issuer's outstanding common stock.
• The shares were acquired in the ordinary course of business as a registered investment adviser and are not held for the purpose of changing or influencing control of the Issuer.
• The percentage of class is based on 9,870,287 shares of Common Stock outstanding as of August 7, 2025, according to the Issuer's 10-Q filing on that date.
• Fourthstone LLC holds 525,039 shares with shared voting and dispositive power, representing 5.32% of the class.
• Fourthstone Master Opportunity Fund Ltd holds 409,034 shares with shared voting and dispositive power, representing 4.14% of the class.
• Fourthstone GP LLC holds 116,005 shares with shared voting and dispositive power, representing 1.18% of the class.
• Fourthstone QP Opportunity Fund LP holds 109,443 shares with shared voting and dispositive power, representing 1.11% of the class.
• Fourthstone Small-Cap Financials Fund LP holds 6,562 shares with shared voting and dispositive power, representing 0.07% of the class.
• L. Phillip Stone, IV, as Managing Member of Fourthstone LLC and Fourthstone GP, may be deemed to beneficially own 525,039 shares with shared voting and dispositive power, representing 5.32% of the class.

Sentiment

Score: 5

Explanation: Neutral, as this is a routine disclosure of beneficial ownership by a passive investor, not indicative of positive or negative company performance or strategic changes.

Future Outlook

NA

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

This filing indicates a significant passive investment by an investment adviser in a community banking institution. Such investments are common in the financial services sector, where institutional investors seek exposure to regional banks without intending to influence management or control.

Stakeholder Impact

• Shareholders: Increased institutional ownership may be seen as a vote of confidence, but the passive nature means no immediate strategic changes are expected.

Key Dates

Recommendation

This Schedule 13G filing merely discloses a passive beneficial ownership stake by Fourthstone LLC and its affiliates in Citizens Community Bancorp Inc. It explicitly states that the shares were not acquired for the purpose of changing or influencing control. As such, the filing provides no new information regarding the company's financial performance, strategic direction, or operational outlook that would warrant a change in investment recommendation. It's a routine disclosure of a significant, but passive, institutional holding. Therefore, a 'hold' recommendation is appropriate as there's no new fundamental information to alter an existing investment thesis.

Keywords

Citizens Community Bancorp Inc., Fourthstone LLC, Schedule 13G, Beneficial Ownership, Common Stock, Investment Adviser, Passive Investment, Financial Services, Banking Sector