Consumers Bancorp, Inc. Reports Q1 Fiscal Year 2025 Results

Consumers Bancorp, Inc., headquartered in Minerva, Ohio, has released its financial results for the first quarter of fiscal year 2025, ending September 30, 2024. The company reported a net income of $2.2 million, reflecting a 6.3% increase from the previous quarter.

Financial Highlights

For the three-month period ended September 30, 2024, Consumers Bancorp, Inc. reported:

• Net income of $2.2 million, up from $2.1 million in the previous quarter.
• Earnings per share (EPS) of $0.72, compared to $0.67 in the previous quarter and $0.78 in the same period last year.
• Net interest income of $8.0 million, slightly down from $8.2 million in the same period last year.
• Net interest margin of 2.92%, down from 2.99% in the previous quarter and 3.09% in the same period last year.
• Total loans increased by $7.4 million, or an annualized 3.9%.
• Total deposits increased by $25.9 million, or an annualized 10.7%.
• Shareholders’ equity increased by $9.6 million, or $3.07 per share.

Business and Operational Highlights

The company saw a significant increase in total loan production, which amounted to $43.4 million during the first quarter, an 18.8% increase over the previous quarter. The loan portfolio continues to perform well with low net charge-offs and nonaccrual balances, indicating resilient commercial and consumer borrowers.

Other income increased by $236 thousand, or 20.4%, compared to the same period last year, driven by higher debit card interchange income, mortgage banking revenue, and service charges on deposit accounts.

Strategic Initiatives and Corporate Developments

Consumers Bancorp, Inc. has been able to reduce the initial pricing on money market accounts and time deposits due to a 50-basis point cut in the discount rate in September 2024. This has led to a downward trend in account yields as guaranteed money market rate periods expire and time deposits renew at lower rates.

The company also reported a 15.1% increase in shareholders’ equity, attributed to a reduction in the accumulated other comprehensive loss from the mark-to-market of available-for-sale securities and net income for the quarter.

Management's Perspective

Ralph J. Lober II, President and Chief Executive Officer, commented on the results, highlighting the easing of competitive pressures on deposit pricing and the positive impact of the discount rate cut on the market value of the bank’s securities portfolio. He also noted the strong performance of the loan portfolio and the expectation of a downward trend in the cost of funds in future quarters.

Future Outlook

The company expects the cost of funds to trend downward in future quarters as the trends in money market accounts and time deposits work their way through the respective portfolios. Additionally, the loan portfolio is expected to continue performing well, supported by resilient commercial and consumer borrowers.

SEC Filing: CONSUMERS BANCORP INC /OH/ [ CBKM ] - 8-K - Oct. 21, 2024