Central Plains Bancshares(US:CPBI)2024-08-07 20:30Financial Position - Total assets increased by $3.3 million, or 0.7%, to $466.6 million at June 30, 2024, from $463.3 million at March 31, 2024, primarily driven by a $9.3 million, or 2.5%, increase in net loans [78]. - Net loans rose by $9.3 million, or 2.5%, to $383.7 million at June 30, 2024, with residential real estate loans increasing by $5.5 million, or 3.7% [80]. - Total deposits increased by $1.6 million, or 0.4%, to $376.7 million at June 30, 2024, with non-interest-bearing deposits rising by $1.5 million, or 2.3% [81]. - Stockholders' equity increased by $922,000, or 1.2%, to $79.2 million at June 30, 2024, driven by net income of $903,000 [82]. - Cash and cash equivalents decreased by $6.0 million, or 51.9%, to $5.5 million at June 30, 2024, due to increased loan funding [79]. - Investment securities available for sale decreased by $215,000, or 0.4%, to $60.1 million at June 30, 2024 [79]. Income and Expenses - Net income decreased by $43,000, or 4.5%, to $903,000 for the three months ended June 30, 2024, compared to $946,000 for the same period in 2023 [88]. - Interest and dividend income increased by $1.1 million, or 24.0%, to $5.9 million for the three months ended June 30, 2024, primarily due to an increase in interest income on loans [88]. - Interest income on loans rose by $988,000, or 22.9%, to $5.3 million for the three months ended June 30, 2024, with an average loan balance increase of $19.9 million, or 5.5% [89]. - Net interest income after provision for credit losses increased by $609,000, or 18.1%, to $4.0 million for the three months ended June 30, 2024 [91]. - Non-interest income decreased by $40,000, or 6.1%, to $612,000 for the three months ended June 30, 2024, with servicing fees on loans dropping by $54,000, or 62.8% [96]. - Total non-interest expense increased by $637,000, or 22.5%, to $3.5 million for the three months ended June 30, 2024, driven by higher salaries and employee benefits [97]. - Salaries and employee benefits expense increased by $279,000, or 17.8%, to $1.8 million for the three months ended June 30, 2024 [97]. Interest Rates and Margins - The average yield on loans increased to 5.61% for the three months ended June 30, 2024, compared to 4.82% for the same period in 2023 [84]. - The interest rate spread increased by seven basis points to 2.77% for the three months ended June 30, 2024, while the net interest margin increased by 38 basis points to 3.53% [92]. - The average cost of deposits rose by 74 basis points to 2.49% for the three months ended June 30, 2024, due to a higher interest rate environment [91]. Liquidity and Borrowings - Outstanding borrowings increased to $2.0 million at June 30, 2024, from no borrowings at March 31, 2024 [81]. - The company continues to monitor deposit balances and interest rates to maintain adequate liquidity [79]. - The Association had remaining availability for Federal Home Loan Bank (FHLB) borrowings of approximately $38.1 million as of June 30, 2024 [110]. - The company has the capacity to borrow $5.0 million from a private bankers' bank as of June 30, 2024 [110]. Cash Flow - For the three months ended June 30, 2024, net cash provided by operating activities was $505,000, primarily due to net income of $903,000 [112]. - Cash flows from investing activities resulted in a net outflow of $9.6 million, mainly due to a net increase in loans of $9.3 million [112]. - The Association's cash and cash equivalents decreased by $5.9 million for the three months ended June 30, 2024 [112]. Market Sensitivity - As of June 30, 2024, a gradual 200 basis point increase in market interest rates would result in a 1.18% decrease in Net Interest Income (NII) while a decrease of the same magnitude would lead to a 0.54% increase in NII [104]. - The estimated Market Value of Equity (MVE) would decrease by 2.04% with an instantaneous 200 basis point increase in market interest rates and by 14.37% with a decrease of the same amount [107]. - The MVE as of June 30, 2024, is $100,561,000, with a base MVE of $102,654,000 [106]. Compliance and Governance - The certifications of the Principal Executive Officer and Principal Financial Officer were completed in accordance with the Sarbanes-Oxley Act of 2002 [31.1][31.2]. - The Inline XBRL Instance Document is embedded within the Interactive Data File, indicating compliance with financial reporting standards [101.INS]. - The report was signed by the Chairman of the Board, President, and Chief Executive Officer, Steven D. Kunzman, and the Chief Financial Officer, Bradley M. Kool, on August 7, 2024 [127].