Citizens Community Bancorp Inc.

Current report

Failure to maintain an effective system of internal control and disclosure controls and procedures could have a material adverse effect on our results of operations, financial condition and stock price. As disclosed in Part I - Item 4. Controls and Procedures, management has identified a material weakness in our internal control over financial reporting and, as a result, concluded that our internal control over financial reporting and our disclosure controls and procedures were not effective as of September 30, 2026. We are currently working to remediate the material weakness. However, there can be no assurance that these remediation efforts will be successful. In addition, these remediation efforts will place a burden on management and may result in additional expenses. If we are unable to remediate this material weakness, or are otherwise unable to maintain effective internal control over financial reporting or disclosure controls and procedures, our ability to record, process and report financial information accurately, and to prepare financial statements within required time periods, could be adversely affected, which could subject us to litigation or investigations requiring management resources and payment of legal and other expenses, result in violations of applicable securities laws, prejudice our ability to meet NASDAQ listing requirements, negatively affect investor confidence in the accuracy and completeness of our financial statements, and adversely impact the trading price of our securities.

Previous report

Our business could be materially and adversely affected due to the actions of activist stockholders. On June 4, 2026, a group of stockholders led by Andrew Schornack (the “Reporting Persons”) filed a Schedule 13D reporting beneficial ownership of approximately 9.1% of our outstanding common stock (as amended through Amendment No. 3 filed July 29, 2026). On July 27, 2026, the Reporting Persons asked for a seat on the Company’s Board of Directors, which request has been taken under advisement and will be considered by the Governance and Nomination Committee of the Board of Directors (the “Committee”) at a forthcoming Committee meeting. Assuming the Committee determines to recommend the creation of a vacancy, the Committee would evaluate such nominee (once he or she has been identified by the Reporting Persons) in accordance with the Company’s Corporate Governance Guidelines. There can be no assurance that the Committee will recommend, or that the Board will approve, the appointment of the Reporting Persons’ nominee to the Board. Any escalation by this group into a proxy contest or other adversarial action could increase costs, divert management attention, create uncertainty, and materially harm our business, stock price, and ability to consummate value-maximizing transactions.