Central Plains Bancshares (CPBI) Q2 2023 earnings summary

Executive summary

• Q2 net income was $973,000, down 9.2% YoY; H1 net income rose 9.8% to $1.9 million as higher loan income was largely offset by rising deposit costs.

• Total assets reached $453.9 million at September 30, up 3.7% from March 31, supported by loan growth and higher cash; deposits increased 4.1%.

Financial highlights

• Q2 interest income rose 24.6% YoY to $5.0 million, while interest expense increased 198.3% to $1.6 million; net interest income was $3.5 million in both periods.

• H1 net interest income was $6.8 million, essentially unchanged YoY; provision for credit losses was a $92,000 credit versus $320,000 expense in H1 2022.

• H1 noninterest income increased 4.2% to $1.3 million and noninterest expense rose 3.7% to $5.8 million; net income increased to $1.9 million from $1.7 million.

• H1 cash and cash equivalents increased $4.8 million to $21.4 million; operating cash flow was $1.6 million, investing outflow $12.2 million and financing inflow $15.4 million.

Outlook and guidance

• At September 30, a gradual 200-bp rate increase was modeled to reduce one-year net interest income 0.98%; a 200-bp decrease was modeled to increase it 0.31%.

• Liquidity sources include deposits, loan and securities repayments, ~$40.9 million of remaining FHLB borrowing availability, $5.0 million private-bank capacity and potential Bank Term Funding Program access.