Central Plains Bancshares (CPBI) Q3 2024 earnings summary

Executive summary

• Q3 net income was $951,000 versus $937,000 YoY; 9M net income was $2.8 million versus $2.9 million, as stronger net interest income was offset by higher expenses and lower noninterest income.

• Net loans grew 6.6% from March 31 to $399.0 million; deposits rose 5.1% to $394.3 million, supporting asset growth.

Financial highlights

• Q3 interest and dividend income increased 14.8% YoY to $6.2 million; 9M increased 20.1% to $18.3 million, driven primarily by loan growth and higher yields.

• Q3 net interest income before provision rose 10.2% YoY to $4.1 million; 9M rose 15.1% to $12.2 million.

• Q3 noninterest income fell 26.3% to $656,000, including a decline in other income after a prior-year recovery of a previously written-off receivable; 9M fell 14.7% to $1.9 million.

• Q3 noninterest expense rose 7.5% YoY to $3.5 million; 9M rose 15.5% to $10.5 million, reflecting higher staffing, equity-plan costs, insurance, audit and consulting fees.

• Q3 income before tax was $1.19 million and net income was $951,000; basic and diluted EPS was $0.25 versus $0.31 YoY.

Outlook and guidance

• Two new branch offices in Lincoln and Hastings, Nebraska, were under construction and expected to be completed in Q2 2025.

• Liquidity management includes available FHLB borrowing capacity of $40.5 million, subject to FHLB approval, and $5.0 million of private bankers’ bank capacity; access to the Bank Term Funding Program is also available if needed.

• Credit-loss estimates will continue to be assessed against credit quality, macroeconomic forecasts and conditions, and loan and securities portfolio composition.