Central Plains Bancshares Inc
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
CPBI$20.80+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092868
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0000950170-24-125525
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 122 current paragraphs.
79 unchanged; 24 reworded; 13 added; 3 removed; 1 previous and 6 current paragraphs rearranged.
Tables are not compared: 6 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
Premises and Equipment, Net. Premises and equipment increased $2.4 million, or 40.7%, to $8.3 million at September 30, 2024 from $5.9 million at March 31, 2024. The increase is primarily due to the construction of two new branch offices in Lincoln and Hastings, Nebraska. These new branches are expected to enhance our service coverage in these areas and support growth in customer engagement. The projects are on track for completion in the second quarter 2025.
Current report
Borrowings. The Company had no outstanding borrowings at September 30, 2024, and March 31, 2024. While borrowings have been limited in recent periods, the Association has generally utilized the increase in deposits to fund operations. However, management remains prepared to access FHLB advances if necessary to support additional loan funding.
Current report
Stockholders' Equity. Stockholders' equity increased $3.3 million, or 4.0% to $81.6 million at September 30, 2024 from $78.3 million at March 31, 2024. This increase was primarily driven by net income of $1.9 million, ESOP shares committed to be released of $71,000 and a decrease in the unrealized loss position on securities valuations. The decrease in the unrealized loss position of $1.4 million, net of the related tax effect, is due to changes in market interest rates during the six-month period ended September 30, 2024.
Current report
Represents investments in municipal bonds.
Current report
General. For the three months ended September 30, 2024, we had net income of $952,000, compared to net income of $973,000 for the three months ended September 30, 2023. For the six months ended September 30, 2024 and September 30, 2023, net income remained consistent at $1.9 million.
Current report
Interest income on loans increased $2.0 million, or 22.4%, to $10.9 million for the six months ended September 30, 2024 from $8.9 million for the six months ended September 30, 2023. The average balance of loans increased $28.3 million, or 8.0%, to $383.6 million for the six months ended September 30, 2024 from $355.3 million for the six months ended September 30, 2023. This increase was primarily due to our continued focus on growing our loan portfolio consistent with maintaining asset quality. Our yield on loans increased 66 basis points to 5.68% for the six months ended September 30, 2024 from 5.02% for the six months ended September 30, 2023. The increase in yield was due to increases in market interest rates.
Current report
Interest income on securities increased $278,000, or 35.3%, to $1.1 million for the six months ended September 30, 2024 from $787,000 for the six months ended September 30, 2023, due to an 84 basis point increase in the average yield from 2.68% for the six months ended September 30, 2023 to 3.52% for the six months ended September 30, 2024. The average balance of securities increased $1.8 million, or 3.1%, to $60.6 million for the six months ended September 30, 2024 from $58.8 million for the six months ended September 30, 2023.
Current report
Interest expense increased $1.0 million, or 35.3%, to $4.0 million for the six months ended September 30, 2024 compared to $3.0 million for the six months ended September 30, 2023, due to higher costs of interest-bearing liabilities.
Current report
Interest expense on deposits increased $1.0 million, or 36.7%, to $3.9 million for the six months ended September 30, 2024 compared to $2.9 million for the six months ended September 30, 2023. The increase was due to a 64 basis point increase in the average cost of deposits to 2.53% for the six months ended September 30, 2024 from 1.89% for the six months ended September 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and an increase in the average balances of certificates of deposit of $24.1 million to $101.8 million for the six months ended September 30, 2024 from $77.7 million for the six months ended September 30, 2023.
Current report
Net interest income before provision for credit losses increased $1.2 million, or 17.7%, to $8.0 million for the six months ended September 30, 2024 compared to $6.8 million for the six months ended September 30, 2023.
Current report
Our interest rate spread increased two basis points to 2.77% for the six months ended September 30, 2024, compared to 2.75% for the six months ended September 30, 2023, and our net interest margin increased 29 basis points to 3.55% for the six months ended September 30, 2024 compared to 3.26% for the six months ended September 30, 2023.
Current report
Noninterest income decreased $92,000, or 6.9%, to $1.2 million for the six months ended September 30, 2024 from $1.3 million for the six months ended September 30, 2023. Servicing fees on loans decreased $94,000, or 58.0%, to $68,000 for the six months ended September 30, 2024 compared to $162,000 for the six months ended September 30, 2023.
Current report
Noninterest expense increased $1.2 million, or 20.0% to $7.0 million for the six months ended September 30, 2024 from $5.8 million for the six months ended September 30, 2023. Salaries and employee benefits expense increased $593,000, or 18.6%, to $3.8 million for the six months ended September 30, 2024 from $3.2 million for the six months ended September 30, 2023, due to additional lenders hired by the Association. Additionally, the Association entered into an Employee Stock Ownership Plan at the closing of the conversion, which resulted in additional ESOP related expenses of $71,000 during the six months ended September 30, 2024. Other general and administrative expenses increased $533,000, or 66.5%, to $1.3 million for the six months ended September 30, 2024 from $801,000 for the six months ended September 30, 2023, due to a combination of increases in insurance, auditing and consulting fees. These additional fees relate to public filing requirements and further regulatory compliance consulting.
Removed paragraphs (3)
Previous report
Borrowings. Outstanding borrowings increased to $2.0 million at June, 30 2024. We had no outstanding borrowings at March 31, 2024. We have had limited borrowings in recent periods, as we have generally been able to utilize cash provided by our increase in deposits to fund our operations, although we will utilize FHLB advances as needed to support increased loan funding.
Previous report
Stockholders' Equity. Stockholders' equity increased $922,000, or 1.2% to $79.2 million at June 30, 2024 from $78.3 million at March 31, 2024. This increase is the result of net income of $903,000 and ESOP shares committed to be released of $33,000, for the three months ended June 30, 2024, which was offset by an increase in other comprehensive loss of $14,000.
Previous report
General. Net income decreased $43,000, or 4.5%, to $903,000 for the three months ended June 30, 2024, compared to net income of $946,000 for the three months ended June 30, 2023. The decrease in net income is primarily the result of an increase in non-interest expense, primarily related to salaries and employee benefits and other general and administrative expenses, which was partially offset by an increase in net interest income.
Reworded paragraphs (24)
Previous wording
Management’s discussion and analysis of financial condition and results of operations at June 30, 2024 and March 31, 2024 and for the three and three months ended June 30, 2024 and 2023 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this Quarterly Report on Form 10-Q.
Current wording
Management’s discussion and analysis of financial condition and results of operations at September 30, 2024 and March 31, 2024 and for the three and six months ended September 30, 2024 and 2023 is intended to assist in understanding the financial condition and results of operations of the Company. The information contained in this section should be read in conjunction with the unaudited financial statements and the notes thereto appearing in Part I, Item 1, of this Quarterly Report on Form 10-Q.
Previous wording
Total Assets. Total assets increased $3.3 million, or 0.7%, to $466.6 million at June 30, 2024 from $463.3 million at March 31, 2024. The increase was driven primarily due to a $9.3 million, or 2.5%, increase in loans, net.
Current wording
Total Assets. Total assets increased $18.7 million, or 4.0%, to $482.0 million at September 30, 2024 from $463.3 million at March 31, 2024. The increase was primarily due to an $18.8 million, or 5.0%, increase in net loans.
Previous wording
Cash and cash equivalents. Cash and cash equivalents decreased $6.0 million, or 51.9%, to $5.5 million at June 30, 2024 from $11.5 million at March 31, 2024. This decrease was primarily due to an increase in loan funding and a decrease in interest bearing deposits in other banks. We regularly review our liquidity position based on alternative uses of available funds as well as market conditions.
Current wording
Cash and cash equivalents. Cash and cash equivalents decreased $1.6 million, or 13.8%, to $9.9 million at September 30, 2024 from $11.5 million at March 31, 2024. This decrease was primarily due to an increase in loan funding, partially offset by an increase in total deposits. We continue to monitor our liquidity position based on alternative uses of available funds and prevailing market conditions.
Previous wording
Investment Securities Available for Sale. Securities available-for-sale decreased $215,000, or 0.4%, to $60.1 million at June 30, 2024 from $60.4 million at March 31, 2024. We purchased $1.9 million in securities, received principal payments of $2.1 million, had net premium amortization and discount accretion of $25,000 and had a decrease in the net unrealized losses on the securities portfolio of $18,000 during the three month period ended June 30, 2024.
Current wording
Investment Securities Available for Sale. Securities available-for-sale decreased $683,000, or 1.1%, to $59.7 million at September 30, 2024 from $60.4 million at March 31, 2024. During the six-month period, we purchased $1.9 million in securities, received $4.4 million in principal payments, and recorded net premium amortization and discount accretion of $47,000. Additionally, net unrealized losses on the securities portfolio decreased by $1.4 million.
Previous wording
Loans, net. Our loans, net, increased $9.3 million, or 2.5%, to $383.7 million at June 30, 2024 from $374.4 million at March 31, 2024. We experienced increases in all loan categories except for commercial non-real loans and other consumer loans. The largest increase was in residential real estate loans, which increased $5.5 million, or 3.7%, to $155.4 million at June 30, 2024, from $149.9 million at March 31, 2024.
Current wording
Loans. Loans increased $18.8 million, or 5.0%, to $399.1 million at September 30, 2024 from $380.2 million at March 31, 2024. This growth was driven by increases across all loan categories, except for commercial non-real estate loans and other consumer loans. The largest increase occurred in agriculture loans, which increased $16.7 million, or 84.8%, to $36.4 million at September 30, 2024, from $19.7 million at March 31, 2024, which was primarily due to additional agriculture lenders hired by the Association.
Previous wording
Total Deposits. Total deposits increased $1.6 million, or 0.4%, to $376.7 million at June 30, 2024 from $375.1 million at March 31, 2024. The increase in deposits is primarily within time deposits as the Company continued to offer a competitive CD special during the three months ended June 30, 2024. Management continues to actively monitor the deposit balances and interest rates offered to maintain an adequate level of liquidity.
Current wording
Total Deposits. Total deposits increased $16.7 million, or 4.4%, to $391.8 million at September 30, 2024 from $375.1 million at March 31, 2024. The increase was primarily driven by higher balances in time deposits and money market accounts, as the Association offered a competitive certificate of deposit special during the six-month period ended September 30, 2024. Management continues to actively monitor deposit balances and interest rates to maintain adequate liquidity.
Previous wording
Noninterest-bearing deposits increased $1.5 million, or 2.3%, to $68.4 million at June 30, 2024 from $66.9 million at March 31, 2024. Time certificates of deposit increased $1.3 million, or 2.6%, to $114.7 million at June 30, 2024 from $113.4 million at March 31, 2024, as we believe that long-term customers have sought higher-yield deposits as a result of recent increases in market interest rates. We also had brokered time deposits of $2.2 million at June 30, 2024. The Company had no brokered time deposits at March 31, 2024.
Current wording
Noninterest-bearing deposits increased $2.3 million, or 3.5%, to $69.2 million at September 30, 2024 from $66.9 million at March 31, 2024. Time certificates of deposit increased $3.6 million, or 3.1%, to $117.0 million from $113.4 million, as long-term customers sought higher-yield deposit options in response to prior increases in market interest rates. Additionally, the Association held $7.3 million in brokered time deposits at September 30, 2024, whereas no brokered time deposits were held at March 31, 2024.
Previous wording
Comparison of Operating Results for the Three Months Ended June 30, 2024 and June 30, 2023
Current wording
Comparison of Operating Results for the Three and Six Months Ended September 30, 2024 and 2023
Previous wording
Interest and Dividend Income. Interest and dividend income increased $1.1 million, or 24.0%, to $5.9 million for the three months ended June 30, 2024 from $4.8 million for the three months ended June 30, 2023. The increase was due primarily to an increase in interest income on loans, which is our primary source of interest income, due to increases in market interest rates and loan growth.
Current wording
Interest and Dividend Income. Interest and dividend income increased $1.1 million, or 22.2%, to $6.1 million for the three months ended September 30, 2024 from $5.0 million for the three months ended September 30, 2023. The increase was due primarily to an increase in interest income on loans, which is our primary source of interest income, due to increases in market interest rates and loan growth.
Previous wording
Interest income on loans increased $988,000, or 22.9%, to $5.3 million for the three months ended June 30, 2024 from $4.3 million for the three months ended June 30, 2023. The average balance of loans increased $19.9 million, or 5.5%, to $378.4 million for the three months ended June 30, 2024 from $358.5 million for the three months ended June 30, 2023. The increase was primarily due to our continued focus on growing our loan portfolio consistent with maintaining asset quality. Our yield on loans increased 79 basis points to 5.61% for the three months ended June 30, 2024 from 4.82% for the three months ended June 30, 2023. The increase in yield was due to increases in market interest rates.
Current wording
Interest income on loans increased $1.0 million, or 21.9%, to $5.6 million for the three months ended September 30, 2024 from $4.6 million for the three months ended September 30, 2023. The average balance of loans increased $31.0 million, or 8.7%, to $388.9 million for the three months ended September 30, 2024 from $357.9 million for the three months ended September 30, 2023. The increase was primarily due to our continued focus on growing our loan portfolio consistent with maintaining asset quality. Our yield on loans increased 63 basis points to 5.76% for the three months ended September 30, 2024 from 5.13% for the three months ended September 30, 2023. The increase in yield was due to increases in market interest rates over the period.
Previous wording
Interest income on securities increased $145,000, or 37.4%, to $533,000 for the three months ended June 30, 2024 from $388,000 for the three months ended June 30, 2023, due to a 91 basis point increase in the average yield from 2.59% for the three months ended June 30, 2023 to 3.50% for the three months ended June 30, 2024. The average balance of securities increased $1.1 million, or 1.9%, to $61.0 million for the three months ended June 30, 2024 from $59.9 million for the three months ended June 30, 2023.
Current wording
Interest income on securities increased $133,000, or 33.3%, to $532,000 for the three months ended September 30, 2024 from $399,000 for the three months ended September 30, 2023, due to a 77 basis point increase in the average yield from 2.77% for the three months ended September 30, 2023 to 3.54% for the three months ended September 30, 2024. The average balance of securities increased $2.5 million, or 4.4%, to $60.2 million for the three months ended September 30, 2024 from $57.7 million for the three months ended September 30, 2023.
Previous wording
Interest Expense. Interest expense increased $514,000, or 35.9%, to $1.9 million for the three months ended June 30, 2024 compared to $1.4 million for the three months ended June 30, 2023, due to higher costs of interest-bearing liabilities.
Current wording
Interest Expense. Interest expense increased $540,000, or 34.8%, to $2.1 million for the three months ended September 30, 2024 compared to $1.6 million for the three months ended September 30, 2023, due to higher costs of interest-bearing liabilities.
Previous wording
Interest expense on deposits increased $558,000, or 41.0%, to $1.9 million for the three months ended June 30, 2024 compared to $1.4 million for the three months ended June 30, 2023. The increase was due to a 74 basis point increase in the average cost of deposits to 2.49% for the three months ended June 30, 2024 from 1.75% for the three months ended June 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and an increase in the average balances of certificates of deposit of $24.5 million to $98.1 million for the three months ended June 30, 2024 from $73.6 million for the three months ended June 30, 2023.
Current wording
Interest expense on deposits increased $499,000, or 32.9%, to $2.0 million for the three months ended September 30, 2024 compared to $1.5 million for the three months ended September 30, 2023. The increase was due to a 64 basis point increase in the average cost of deposits to 2.58% for the three months ended September 30, 2024 from 1.94% for the three months ended September 30, 2023. The increase in the average cost of deposits was due to the higher interest rate environment and an increase in the average balances of certificates of deposit of $24.0 million to $105.5 million for the three months ended September 30, 2024 from $81.5 million for the three months ended September 30, 2023.
Previous wording
Net Interest Income. Net interest income after provision for credit losses increased $609,000, or 18.1%, to $4.0 million for the three months ended June 30, 2024 compared to $3.4 million for the three months ended June 30, 2023.
Current wording
Net Interest Income. Net interest income before provision for credit losses increased $576,000, or 16.5%, to $4.1 million for the three months ended September 30, 2024 compared to $3.5 million for the three months ended September 30, 2023.
Previous wording
Our interest rate spread increased seven basis points to 2.77% for the three months ended June 30, 2024, compared to 2.70% for the three months ended June 30, 2023, and our net interest margin increased 38 basis points to 3.53% for the three months ended June 30, 2024 compared to 3.15% for the three months ended June 30, 2023.
Current wording
Our interest rate spread decreased six basis points to 2.78% for the three months ended September 30, 2024, compared to 2.84% for the three months ended September 30, 2023, and our net interest margin increased 25 basis points to 3.57% for the three months ended September 30, 2024 compared to 3.32% for the three months ended September 30, 2023.
Previous wording
Provision for Credit Losses. For the three months ended June 30, 2024 and 2023, a reversal of the provision for credit losses was recorded based on the current allowance for credit loss ("ACL") assessment. During the three months ended June 30, 2024, we recorded a reversal of provision for credit losses of $5,000. During the three months ended June 30, 2023, we recorded a reversal of provision for credit losses of $27,000, comprised of $32,000 in reversal of provision for credit losses on loans and a $5,000 provision for credit losses on unfunded commitments. We will continue to assess and evaluate the estimated future credit loss impact of current market conditions in subsequent reporting periods, which will be highly dependent on credit quality, macroeconomic forecasts and conditions, as well as the composition of our loan and available-for-sale securities portfolios.
Current wording
During the six months ended September 30, 2024, we recorded a reversal of provision for credit losses of $1,000. During the six months ended September 30, 2023, we recorded a reversal of provision for credit losses of $92,000. We will continue to assess and evaluate the estimated future credit loss impact of current market conditions in subsequent reporting periods, which will be highly dependent on credit quality, macroeconomic forecasts and conditions, as well as the composition of our loan and available-for-sale securities portfolios.
Previous wording
Noninterest income decreased $40,000, or 6.1%, to $612,000 for the three months ended June 30, 2024 from $652,000 for the three months ended June 30, 2023. Servicing fees on loans decreased $54,000, or 62.8%, to $32,000 for the three months ended June 30, 2024 compared to $86,000 for the three months ended June 30, 2023.
Current wording
Noninterest income decreased $57,000, or 8.4%, to $624,000 for the three months ended September 30, 2024 from $681,000 for the three months ended September 30, 2023. Servicing fees on loans decreased $40,000, or 52.6%, to $36,000 for the three months ended September 30, 2024 compared to $76,000 for the three months ended September 30, 2023.
Previous wording
Noninterest expense increased $637,000, or 22.5% to $3.5 million for the three months ended June 30, 2024 from $2.8 million for the three months ended June 30, 2023. Salaries and employee benefits expense increased $279,000, or 17.8%, to $1.8 million for the three months ended June 30, 2024 from $1.6 million for the three months ended June 30, 2023, due to additional lenders added to the Company. Additionally, the Association entered into an Employee Stock Ownership Plan at the closing of the conversion, which resulted in additional ESOP related expenses of $33,000 during the three months ended June 30, 2024.
Current wording
Noninterest expense increased $530,000, or 17.7% to $3.5 million for the three months ended September 30, 2024 from $3.0 million for the three months ended September 30, 2023. Salaries and employee benefits expense increased $314,000, or 19.3%, to $1.9 million for the three months ended September 30, 2024 from $1.6 million for the three months ended September 30, 2023, due to additional lenders hired by the Association. Additionally, the Association entered into an Employee Stock Ownership Plan at the closing of the conversion, which resulted in additional ESOP related expenses of $38,000 during the three months ended September 30, 2024. Other general and administrative expenses increased $178,000, or 42.1%, to $601,000 for the three months ended September 30, 2024 from $423,000 for the three months ended September 30, 2023, due to a combination of increases in insurance, auditing and consulting fees. These additional fees relate to public filing requirements and further regulatory compliance consulting.
Previous wording
Income Tax Expense. We recognized income tax expense of $207,000 for the three months ended June 30, 2024 and an income tax expense of $232,000 for the three months ended June 30, 2023, respectively, resulting in effective rates of 18.7% for the three months ended June 30, 2024 and 19.7% for the three months ended June 30, 2023. The most significant difference between our effective tax rate and statutory rates results from investment partnership tax credits and tax-exempt municipal bond interest.
Current wording
We recognized income tax expense of $412,000 for the six months ended September 30, 2024 and income tax expense of $491,000 for the six months ended September 30, 2023, respectively, resulting in effective rates of 18.2% for the six months ended September 30, 2024 and 20.4% for the six months ended September 30, 2023. The most significant difference between our effective tax rate and statutory rates results from investment partnership tax credits and tax-exempt municipal bond interest.
Previous wording
The table above indicates that at June 30, 2024, we would have experienced a 1.18% decrease in NII in the event of a gradual, one-year 200 basis point increase in market interest rates, and a 0.54% increase in NII in the event of a gradual, one-year 200 basis point decrease in market interest rates.
Current wording
The table above indicates that at September 30, 2024, we would have experienced a 0.64% decrease in NII in the event of a gradual, one-year 200 basis point increase in market interest rates, and a 0.15% increase in NII in the event of a gradual, one-year 200 basis point decrease in market interest rates.
Previous wording
The table above indicates that at June 30, 2024, we would have experienced a 2.04% decrease in MVE in the event of an instantaneous parallel 200 basis point increase in the market interest rates and a 14.37% decrease in MVE in the event of an instantaneous 200 basis point decrease in market interest rates.
Current wording
The table above indicates that at September 30, 2024, we would have experienced a 1.13% increase in MVE in the event of an instantaneous parallel 200 basis point increase in the market interest rates and a 20.51% decrease in MVE in the event of an instantaneous 200 basis point decrease in market interest rates.
Previous wording
Liquidity. Liquidity describes our ability to meet financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the FHLB. The Association had remaining availability for FHLB borrowings of approximately $38.1 million at June 30, 2024. The FHLB has sole discretion to deny additional advances. We could significantly increase our borrowing capacity from the FHLB Topeka if we pledged additional assets as security. We also have the ability to participate in the Federal Reserve Board's Bank Term Funding Program if needed. Additionally, the Association had the capacity to borrow $5.0 million from a private bankers’ bank at June 30, 2024.
Current wording
Liquidity. Liquidity describes our ability to meet financial obligations that arise in the ordinary course of business. Liquidity is primarily needed to meet the borrowing and deposit withdrawal requirements of our customers and to fund current and planned expenditures. Our primary sources of funds are deposits, principal and interest payments on loans and securities, and proceeds from maturities of securities. We also have the ability to borrow from the FHLB. The Association had remaining availability for FHLB borrowings of approximately $40.6 million at September 30, 2024. The FHLB has sole discretion to deny additional advances. We could significantly increase our borrowing capacity from the FHLB Topeka if we pledged additional assets as security. We also have the ability to participate in the Federal Reserve Board's Bank Term Funding Program if needed. Additionally, the Association had the capacity to borrow $5.0 million from a private bankers’ bank at September 30, 2024.
Previous wording
For the three months ended June 30, 2024, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $5.9 million. Net cash provided by operating activities amounted to $505,000, primarily due to net income of $903,000 and changes of other assets of $413,000, partially offset by changes in accrued expenses and other liabilities of $981,000. Net cash used in investing activities amounted to $9.6 million, primarily due to a net increase in loans of $9.3 million and the purchase of available-for-sale investment securities of $1.9 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $2.1 million. Net cash provided by financing activities amounted to $3.2 million, primarily due to an increase in short-term FHLB advances and an increase in deposits.
Current wording
For the six months ended September 30, 2024, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $1.6 million. Net cash provided by operating activities amounted to $1.7 million, primarily due to net income of $1.9 million, depreciation of $259,000, changes in accrued interest payable of $262,000 and changes of other assets of $249,000, partially offset by changes in accrued expenses and other liabilities of $930,000. Net cash used in investing activities amounted to $19.0 million, primarily due to a net increase in loans of $18.8 million and the purchase of available-for-sale investment securities of $1.9 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $4.4 million. Net cash provided by financing activities amounted to $15.8 million, primarily due to an increase in deposits of $16.7 million.
Previous wording
For the three months ended June 30, 2023, cash flows from operating, investing, and financing activities resulted in a net increase in cash and cash equivalents of $112,000. Net cash provided by operating activities amounted to $1.2 million, primarily due to net income of $946,000. Net cash used in investing activities amounted to $12.9 million, primarily due to a net increase in loans of $11.4 million and the purchase of available-for-sale investment securities of $3.8 million , partially offset by proceeds from paydowns of available-for-sale investment securities of $2.3 million. Net cash provided by financing activities amounted to $11.9 million, primarily due to a net increase in deposits of $12.3 million. For further information, see the statements of cash flows contained in the consolidated financial statements in Part 1, Item 1 of this Quarterly Report.
Current wording
For the six months ended September 30, 2023, cash flows from operations, investing, and financing activities resulted in a net increase in cash and cash equivalents of $4.8 million. Net cash provided by operating activities amounted to $1.6 million, primarily due to net income of $1.9 million. Net cash used in investing activities amounted to $12.2 million, primarily due to a net increase in loans of $13.0 million and the purchase of available-for-sale investment securities of $3.8 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $4.7 million. Net cash provided by financing activities amounted to $15.4 million, primarily due to a net increase in deposits of $16.1 million. For further information, see the statements of cash flows contained in the consolidated financial statements in Part 1, Item 1 of this Quarterly Report.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate of interest-bearing liabilities.
Current report — wording carried from elsewhere
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
Current report — wording carried from elsewhere
Net interest margin represents net interest income divided by average total interest-earning assets.
Current report — wording carried from elsewhere
Interest and dividend income increased $2.3 million, or 23.1%, to $12.1 million for the six months ended September 30, 2024 from $9.8 million for the six months ended September 30, 2023. The increase was due primarily to an increase in interest income on loans, which is our primary source of interest income, due to increases in market interest rates and loan growth.
Current report — wording carried from elsewhere
Provision for Credit Losses. During the three months ended September 30, 2024, we recorded a provision for credit losses of $4,000. During the three months ended September 30, 2023, we recorded a reversal of provision for credit losses of $60,000.
Current report — wording carried from elsewhere
Income Tax Expense. We recognized income tax expense of $205,000 for the three months ended September 30, 2024 and income tax expense of $259,000 for the three months ended September 30, 2023, respectively, resulting in effective rates of 17.7% for the three months ended September 30, 2024 and 21.0% for the three months ended September 30, 2023.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Other general and administrative expenses increased $355,000, or 93.9%, to $733,000 for the three months ended June 30, 2024 from $378,000 for the three months ended June 30, 2023, due to a combination of increases in insurance, auditing and consulting fees. These additional fees relate to public filing requirements and further regulatory compliance consulting.