Central Plains Bancshares(CPBI) - 2024 Q3 - Quarterly Report

Financial Performance - Cash and cash equivalents decreased by $4.9 million, or 29.4%, to $11.7 million at December 31, 2023, from $16.6 million at March 31, 2023[204] - Interest and dividend income increased by $1.2 million, or 28.4%, to $5.4 million for the three months ended December 31, 2023, compared to $4.2 million for the same period in 2022[212] - Interest expense increased by $833,000, or 96.7%, to $1.7 million for the three months ended December 31, 2023, compared to $861,000 for the same period in 2022[213] - Net interest income less provision for credit losses increased by $2.7 million, or 316.5%, to $3.6 million for the three months ended December 31, 2023, compared to $854,000 for the same period in 2022[214] - Total interest-earning assets averaged $431.5 million for the three months ended December 31, 2023, with an average yield of 5.04%[208] - For the nine months ended December 31, 2023, net cash provided by operating activities amounted to $4.2 million, primarily due to net income of $2.9 million[317] - The Company experienced a net decrease in cash and cash equivalents of $4.9 million during the same period[317] Loan Portfolio - Gross loans held for investment increased by $22.3 million, or 6.3%, to $376.1 million at December 31, 2023, from $353.7 million at March 31, 2023, with commercial real estate loans increasing by $21.4 million, or 20.8%[205] - The Company targets new commercial real estate loan originations to small- and midsize owners and investors, with loans secured by various property types[319] - Commercial real estate loans generally have terms and amortization periods up to 20 years, with loan-to-value ratios limited to 75%[319] - The Company aims to diversify its loan portfolio by adding more commercial-related loans, which typically have shorter maturities and/or adjustable rates[311] Equity and Liabilities - Total liabilities increased to $399.8 million as of December 31, 2023, compared to $379.8 million at March 31, 2023[210] - Total equity increased to $40.9 million as of December 31, 2023, from $37.1 million at March 31, 2023[210] Strategic Initiatives - The company is focused on entering new markets and capitalizing on growth opportunities as part of its future strategy[201] - The Company completed the sale of 4,130,815 shares of common stock at a price of $10.00 per share, resulting in net proceeds of $39.4 million after expenses of $1.9 million[302] - The Company invested $19.7 million of the net proceeds into the Association's operations and retained the remaining amount for general corporate purposes[302] Funding and Borrowing - The company had no borrowings at December 31, 2023, and has generally utilized cash from increased deposits to fund operations[206] - As of December 31, 2023, the Association had remaining availability for FHLB borrowings of approximately $40.9 million[315] - The Company has the ability to participate in the Federal Reserve Board's Bank Term Funding Program if needed[315] Market Conditions - Interest rates have a significant impact on the Company's performance, more so than inflation, due to the monetary nature of its assets and liabilities[318]