Consumers Bancorp, Inc. (CBKM) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net income to $2,236,000 from $2,410,000 in the same quarter the previous year. This decrease is attributed to a reduction in net interest income and an increase in noninterest expenses.
Net interest income for the quarter was $8,043,000, down from $8,154,000 in the previous year. The decline is primarily due to the rapid increase in short-term market rates causing interest-bearing liabilities to reprice faster than interest-earning assets.
A provision for credit losses on loans of $77,000 was recorded, compared to $40,000 in the previous year. The allowance for credit losses as a percentage of loans remained at 1.04%.
Noninterest income increased by $236,000, or 20.4%, primarily due to a $79,000 securities loss in the prior year period and increases in debit card interchange income and gains from mortgage banking activity.
Noninterest expenses increased by $423,000, or 6.8%, mainly due to higher salaries, benefits, and software expenses.
The company reported total assets of $1,123,853,000 as of September 30, 2024, an increase from $1,097,089,000 as of June 30, 2024. Total loans increased by $7,359,000, and total deposits increased by $25,912,000 during the quarter.
Available-for-sale securities increased to $272,757,000 from $264,802,000 in the previous quarter, with an unrealized loss of $26,051,000 due to rising market interest rates.
The company's net interest margin decreased to 2.92% from 3.09% in the previous year, with the cost of funds increasing to 2.56% from 1.91%.
The filing also details the company's liquidity management strategies, including reliance on deposits, borrowings, and securities to meet funding needs.
Consumers Bancorp's capital ratios remained above regulatory requirements, with a common equity tier 1 capital ratio of 11.13% and a total risk-based capital ratio of 12.13% as of September 30, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Consumers Bancorp, Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email [email protected].