Central Plains Bancshares (CPBI) Q4 2023 earnings summary

Executive summary

• FY24 net income rose 128.4% YoY to $3.8 million, chiefly reflecting a much lower credit-loss provision than in FY23; net interest income before provision increased to $14.5 million.

• Assets reached $463.3 million, up 5.8% YoY, as net loans grew 7.5%; deposits declined 4.0% to $375.1 million, partly reflecting conversion-related transactions.

• Completed a mutual-to-stock conversion and public offering on October 19, 2023, issuing 4,130,815 shares at $10 each for $41.3 million gross proceeds.

Financial highlights

• Interest and dividend income was $21.0 million vs. $16.1 million; interest expense increased to $6.5 million from $2.7 million.

• Net interest income before provision was $14.5 million vs. $13.4 million; after provision, it was $14.4 million vs. $10.5 million.

• Provision for credit losses was $88,000 vs. $2.9 million; FY23 provision included a $2.4 million commercial non-real-estate loan charge-off.

• Non-interest income rose 25.2% to $2.9 million; non-interest expense increased 16.3% to $12.6 million, including $161,000 of ESOP expense after conversion.

• Net income was $3.759 million vs. $1.646 million; FY24 basic and diluted EPS was $2.19, while FY23 EPS was not applicable because shares were not outstanding before conversion.

Outlook and guidance

• Management expects sufficient funds for current commitments and anticipates retaining a significant portion of maturing time deposits, based on deposit retention experience and current pricing strategy.

• Certificates of deposit excluding retirement accounts totaling $92.2 million mature within one year; reduced retention could prompt higher deposit rates or use of available borrowing lines, raising interest expense.

• A Lincoln branch to replace the existing loan production office is anticipated to open in Q2 2025.