CITIZENS COMMUNITY BANCORP, INC. (NASDAQ:CZWI) Files An 8-K Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review
Item 4.02. Non-Reliance on Previously Issued Financial Statements
or a Related Audit Report or Completed Interim Review.
of Citizens Community Bancorp, Inc. (the Company), upon the
recommendation of management and after discussion with Baker Tilly
Virchow Krause, LLP, the Companys independent registered public
accountants, determined that the Companys unaudited interim and
audited annual financial statements for the fiscal years ended
September 30, 2014 and 2015 and the unaudited interim financial
statements for the quarterly periods ended December 31, 2015, March
31, 2016 and June 30, 2016 (the Restated Periods), should not be
relied upon due to errors identified in such financial statements
related to the accrual for professional expenses for the Restated
Periods. In addition, investors should no longer rely upon the
preliminary earnings release for the quarterly period ended
September 30, 2016, the reports of Baker Tilly Virchow Krause, LLP
for the fiscal years ended September 30, 2014 and 2015, and other
communications relating to these consolidated financial statements.
annual audit of consolidated financial statements for the fiscal
year ended September 30, 2016. Management determined that certain
professional and other expense accrual items were overstated during
the fiscal years ended September 30, 2014 and 2015 resulting in
understatement of the Company’s net income for the quarterly and
annual periods ended September 20, 2014 and 2015. During the fiscal
year ended September 30, 2016, management reversed these overstated
accrued expenses which resulted in an overstatement of quarterly
and annual net income for the year ended September 30, 2016. The
Company has determined that it will provide a comprehensive
restatement for all Restated Periods in the Companys upcoming
Annual Report on Form 10-K to be filed with respect to the fiscal
year ended September 30, 2016. The Company expects to disclose
under Item 9A to Form 10-K that its disclosure controls and
procedures were not effective as of September 30, 2016 because of a
material weakness in the Companys evaluation of its expense
accruals.
Financial Reporting
above, including assessing the need for additional remediation
steps and implementing additional measures to remediate the
underlying causes that gave rise to the material weakness.
being implemented at the time of this filing by management:
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the addition of experienced accounting staff;
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a thorough review of the finance and accounting departments
to ensure that the areas of responsibilities are properly matched to the staff competencies and that the lines of communication and processes are as effective as possible; |
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a thorough review of the processes and procedures used in the
Companys accounting; and |
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development of a standardized method for the review,
approval, and tracking of accrued expenses. |
timetable for the implementation of the foregoing remedial measures
and will monitor their implementation.
the control deficiencies the Company has identified and strengthen
its internal control over financial reporting. The Company is
committed to continuous improvement of the Companys internal
control processes and will continue to diligently review the
Companys financial reporting controls and procedures. As the
Company continues to evaluate and work to improve internal control
over financial reporting, the Company may determine to take
additional measures to address control deficiencies or determine to
modify certain of the remediation measures described above.
About CITIZENS COMMUNITY BANCORP, INC. (NASDAQ:CZWI)
Citizens Community Bancorp, Inc. is a bank holding company of Citizens Community Federal N.A. (the Bank). The Company is engaged in consumer, small commercial and agricultural banking activities, through the Bank. As of September 30, 2015, it had approximately $460 million in deposits. Through all of its branch locations, in Wisconsin, Minnesota and Michigan, the Bank provides a range of commercial and consumer banking products and services to customers, including online and mobile banking options. It offers a range of loans, such as commercial loans, agricultural loans and residential mortgages. Its Investment portfolio consists of securities available for sale and securities held to maturity. Its primary sources of funds are deposits; amortization, prepayments and maturities of outstanding loans; other short-term investments, and funds provided from operations. As of September 30, 2015, its total gross outstanding loans before net deferred loan costs were approximately $448,100. CITIZENS COMMUNITY BANCORP, INC. (NASDAQ:CZWI) Recent Trading Information
CITIZENS COMMUNITY BANCORP, INC. (NASDAQ:CZWI) closed its last trading session down -0.05 at 12.33 with 3,363 shares trading hands.
