Central Plains Bancshares(US:CPBI)2023-11-12 16:00Financial Performance - Net income for the three months ended September 30, 2023, was $973 thousand, a decrease of 9.3% compared to $1,072 thousand for the same period in 2022 [22]. - Net income for the six months ended September 30, 2023, was $1,919 million, an increase from $1,747 million in the same period of 2022, representing a growth of approximately 9.8% [29]. - Net cash provided by operating activities decreased to $1,589 million from $2,928 million year-over-year, a decline of about 45.7% [29]. - Noninterest income totaled $681 thousand for the three months ended September 30, 2023, slightly down from $709 thousand in the same period last year, a decrease of 3.9% [22]. - The total comprehensive loss for the three months ended September 30, 2023, was $(6,808) thousand, compared to $(6,892) thousand for the same period in 2022, reflecting a decrease of 1.2% [203]. Assets and Liabilities - Total assets increased to $453,919 thousand as of September 30, 2023, up from $437,792 thousand as of March 31, 2023, representing a growth of 3.0% [19]. - Total liabilities increased to $415,437 thousand as of September 30, 2023, from $399,126 thousand as of March 31, 2023, an increase of 4.1% [19]. - Total deposits rose to $407,094 thousand as of September 30, 2023, compared to $390,952 thousand as of March 31, 2023, reflecting an increase of 4.0% [19]. - Cash and cash equivalents at the end of the period rose to $21,385 million, compared to $7,157 million at the end of the previous year, marking a substantial increase [29]. - The total amount of certificates of deposit was $99,939,000 as of September 30, 2023 [121]. Income and Expenses - Net interest income after provision for credit losses was $3,542 thousand for the three months ended September 30, 2023, compared to $3,352 thousand for the same period in 2022, marking an increase of 5.7% [22]. - The company reported total interest and dividend income of $5,033 thousand for the three months ended September 30, 2023, compared to $4,040 thousand for the same period in 2022, an increase of 24.6% [22]. - Interest expense on deposits increased by $2.2 million, or 316.8%, to $2.9 million for the six months ended September 30, 2023, compared to $691,000 for the same period in 2022 [157]. - Cash paid for interest surged to $2,150 million from $792 million, reflecting rising interest rates and increased borrowing costs [29]. - Service charges on deposit accounts increased by $59,000, or 18.1%, to $385,000 for the six months ended September 30, 2023, compared to $326,000 for the same period in 2022 [160]. Credit Losses and Provisions - The provision for credit losses was $(60) thousand for the three months ended September 30, 2023, compared to $168 thousand for the same period in 2022, indicating a significant reduction in credit loss provisions [22]. - The allowance for credit losses was $5.7 million at September 30, 2023, compared to $5.4 million at March 31, 2023, and $5.3 million at September 30, 2022 [159]. - The total allowance for loan losses as of September 30, 2023, is $5,657,000, reflecting a decrease of $60,000 from the previous quarter [98]. - Total impaired loans amounted to $850,000, with an unpaid principal balance of $1,120,000 and a specific allowance of $221,000 [105]. - The Association monitors credit risk by assessing borrowers' repayment capacity and the value of collateral, using a quarterly Loan Concentration Report [108]. Loans and Securities - The total loans as of September 30, 2023, were $367,027, with an allowance for credit losses of $5,657, leading to net loans of $361,415 [97]. - The total unrealized losses on available-for-sale investment securities amounted to $8,148, with a fair value of $50,078 [89]. - The fair value of available-for-sale investment securities as of September 30, 2023, was $54,654, down from $57,842 as of March 31, 2023 [191]. - The total real estate loans in construction reached $21,234 thousand, up from $5,755 thousand in 2022, indicating a significant increase of 269% [114]. - The Association is diversifying its loan portfolio by adding more commercial-related loans, which typically have shorter maturities and/or adjustable rates [165]. Capital and Ratios - The Association's total capital to risk-weighted assets ratio was 13.43% as of September 30, 2023, exceeding the minimum requirement of 8.00% [131]. - Tier 1 capital to risk-weighted assets ratio was 12.17% as of September 30, 2023, above the minimum requirement of 6.00% [131]. - The Association maintained a common equity tier 1 capital ratio of 12.17% as of September 30, 2023, surpassing the minimum requirement of 4.50% [131]. - The average cost of deposits increased by 141 basis points to 1.89% for the six months ended September 30, 2023, from 0.48% for the same period in 2022 [157]. - The carrying amount of loans, net, was $361,415 as of September 30, 2023, with an estimated fair value of $325,888 [190]. Regulatory and Compliance - The Association had no outstanding borrowings as of September 30, 2023, with remaining availability for FHLB borrowings of approximately $40,877,000 [127]. - The Association is not involved in any pending legal proceedings that would materially affect its financial condition or results of operations [171]. - The company is classified as an Emerging Growth Company, allowing it to delay the adoption of new accounting standards [209]. - Management evaluated subsequent events through November 13, 2023, and found no material events requiring further recognition or disclosure [212]. - The company plans to take advantage of the extended transition period under the JOBS Act, which may affect the comparability of its financial statements with those of public companies [216].