Central Plains Bancshares Inc
For the period ended Dec 31, 2024. Filed Feb 11, 2025.
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.
Dec 31, 2024 · Filed Feb 11, 2025
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 2024-09-30; filed 2024-11-12.
0000950170-24-125525
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-11.
0000950170-25-017946
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 122 previous paragraphs and 123 current paragraphs.
84 unchanged; 36 reworded; 3 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 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 (3)
Current report
On October 22, 2024, the Company adopted a program to repurchase up to 200,000 shares, or 5%, of its then outstanding common stock. The repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares. Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interests of both the Company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the Securities and Exchange Commission and other applicable legal requirements. 190,614 shares remain available to be repurchased under the program as of December 31, 2024. As of December 31, 2024, the Company has repurchased 9,386 shares with a weighted average price of $14.59, for a total value of $137,000.
Current report
Noninterest income decreased $234,000, or 26.3%, to $656,000 for the three months ended December 31, 2024 from $890,000 for the three months ended December 31, 2023. Other income decreased $262,000, or 92.3%, to $22,000 for the three months ended December 31, 2024 compared to $284,000 for the three months ended December 31, 2023, due to a recovery of a previously written off receivable recorded during the three months ended December 31, 2023. Servicing fees on loans decreased $34,000, or 51.5%, to $32,000 for the three months ended December 31, 2024 compared to $66,000 for the three months ended December 31, 2023.
Current report
Noninterest income decreased $326,000, or 14.7%, to $1.9 million for the nine months ended December 31, 2024 from $2.2 million for the nine months ended December 31, 2023. Other income decreased $290,000, or 83.1%, to $59,000 for the nine months ended December 31, 2024 compared to $349,000 for the nine months ended December 31, 2023, due to a recovery of a previously written off receivable recorded during the nine months ended December 31, 2023. Servicing fees on loans decreased $128,000, or 56.1%, to $100,000 for the nine months ended December 31, 2024 compared to $228,000 for the nine months ended December 31, 2023.
Removed paragraphs (2)
Previous report
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 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.
Reworded paragraphs (36)
Previous 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.
Current wording
Management’s discussion and analysis of financial condition and results of operations at December 31, 2024 and March 31, 2024 and for the three and nine months ended December 31, 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 $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.
Current wording
Total Assets. Total assets increased $21.0 million, or 4.5%, to $484.3 million at December 31, 2024 from $463.3 million at March 31, 2024. The increase was primarily due to a $24.6 million, or 6.6%, increase in net loans.
Previous 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.
Current wording
Cash and cash equivalents. Cash and cash equivalents decreased $4.9 million, or 42.0%, to $6.6 million at December 31, 2024 from $11.5 million at March 31, 2024. This decrease was primarily due to an increase in loan funding and construction of two new branch locations, 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 $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.
Current wording
Investment Securities Available for Sale. Securities available-for-sale decreased $3.4 million, or 5.5%, to $57.0 million at December 31, 2024 from $60.4 million at March 31, 2024. During the nine-month period, we purchased $3.0 million in securities, received $6.5 million in principal payments, and recorded net premium amortization and discount accretion of $62,000. Additionally, net unrealized gains on the securities portfolio increased by $222,000.
Previous 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.
Current wording
Loans. Loans increased $24.7 million, or 6.5%, to $404.9 million at December 31, 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 $24.4 million, or 123.9%, to $44.1 million at December 31, 2024, from $19.7 million at March 31, 2024, which was primarily due to additional agriculture lenders hired by the Association.
Previous wording
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 wording
Premises and Equipment, Net. Premises and equipment increased $4.4 million, or 75.1%, to $10.3 million at December 31, 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 of 2025.
Previous 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.
Current wording
Total Deposits. Total deposits increased $19.2 million, or 5.1%, to $394.3 million at December 31, 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 nine-month period ended December 31, 2024. Management continues to actively monitor deposit balances and interest rates to maintain adequate liquidity.
Previous 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.
Current wording
Noninterest-bearing deposits increased $922,000, or 1.4%, to $67.8 million at December 31, 2024 from $66.9 million at March 31, 2024. Time certificates of deposit increased $3.4 million, or 3.1%, to $116.8 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 December 31, 2024, whereas no brokered time deposits were held at March 31, 2024.
Previous wording
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 wording
Stockholders' Equity. Stockholders' equity increased $3.0 million, or 3.8% to $81.3 million at December 31, 2024 from $78.3 million at March 31, 2024. This increase was primarily driven by net income of $2.8 million, ESOP shares committed to be released of $118,000, a decrease in the unrealized loss position on securities valuations offset by the repurchase of outstanding shares of the Company's common stock repurchase program. The decrease in the unrealized loss position of $176,000, net of the related tax effect, is due to changes in market interest rates during the nine-month period ended December 31, 2024.
Previous wording
Comparison of Operating Results for the Three and Six Months Ended September 30, 2024 and 2023
Current wording
Comparison of Operating Results for the Three and Nine Months Ended December 31, 2024 and 2023
Previous wording
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 wording
General. For the three months ended December 31, 2024, we had net income of $951,000, compared to net income of $937,000 for the three months ended December 31, 2023. For the nine months ended December 31, 2024, we had net income of $2.8 million, compared to net income of $2.9 million for the nine months ended December 31, 2023.
Previous 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.
Current wording
Interest and Dividend Income. Interest and dividend income increased $805,000, or 14.8%, to $6.2 million for the three months ended December 31, 2024 from $5.4 million for the three months ended December 31, 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 $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.
Current wording
Interest income on loans increased $756,000, or 15.5%, to $5.6 million for the three months ended December 31, 2024 from $4.9 million for the three months ended December 31, 2023. The average balance of loans increased $28.7 million, or 7.8%, to $396.6 million for the three months ended December 31, 2024 from $367.9 million for the three months ended December 31, 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 38 basis points to 5.70% for the three months ended December 31, 2024 from 5.32% for the three months ended December 31, 2023. The increase in yield was due to increases in market interest rates over the period.
Previous 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.
Current wording
Interest income on securities increased $87,000, or 19.7%, to $529,000 for the three months ended December 31, 2024 from $442,000 for the three months ended December 31, 2023, due to a 48 basis point increase in the average yield from 3.15% for the three months ended December 31, 2023 to 3.63% for the three months ended December 31, 2024. The average balance of securities increased $2.1 million, or 3.8%, to $58.3 million for the three months ended December 31, 2024 from $56.2 million for the three months ended December 31, 2023.
Previous wording
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 wording
Interest and dividend income increased $3.1 million, or 20.1%, to $18.3 million for the nine months ended December 31, 2024 from $15.2 million for the nine months ended December 31, 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 $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 wording
Interest income on loans increased $2.8 million, or 19.9%, to $16.6 million for the nine months ended December 31, 2024 from $13.8 million for the nine months ended December 31, 2023. The average balance of loans increased $30.5 million, or 8.5%, to $390.0 million for the nine months ended December 31, 2024 from $359.5 million for the nine months ended December 31, 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 54 basis points to 5.66% for the nine months ended December 31, 2024 from 5.12% for the nine months ended December 31, 2023. The increase in yield was due to increases in market interest rates.
Previous wording
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 wording
Interest income on securities increased $365,000, or 29.7%, to $1.6 million for the nine months ended December 31, 2024 from $1.2 million for the nine months ended December 31, 2023, due to a 74 basis point increase in the average yield from 2.83% for the nine months ended December 31, 2023 to 3.57% for the nine months ended December 31, 2024. The average balance of securities increased $1.7 million, or 2.9%, to $59.6 million for the nine months ended December 31, 2024 from $57.9 million for the nine months ended December 31, 2023.
Previous 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.
Current wording
Interest Expense. Interest expense increased $421,000, or 24.9%, to $2.1 million for the three months ended December 31, 2024 compared to $1.7 million for the three months ended December 31, 2023, due to higher costs of interest-bearing liabilities.
Previous 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.
Current wording
Interest expense on deposits increased $423,000, or 25.0%, to $2.1 million for the three months ended December 31, 2024 compared to $1.7 million for the three months ended December 31, 2023. The increase was due to a 35 basis point increase in the average cost of deposits to 2.59% for the three months ended December 31, 2024 from 2.24% for the three months ended December 31, 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 $21.7 million to $109.8 million for the three months ended December 31, 2024 from $88.1 million for the three months ended December 31, 2023.
Previous wording
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 wording
Interest expense increased $1.5 million, or 31.5%, to $6.2 million for the nine months ended December 31, 2024 compared to $4.7 million for the nine months ended December 31, 2023, due to higher costs of interest-bearing liabilities.
Previous wording
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 wording
Interest expense on deposits increased $1.5 million, or 32.4%, to $6.1 million for the nine months ended December 31, 2024 compared to $4.6 million for the nine months ended December 31, 2023. The increase was due to a 46 basis point increase in the average cost of deposits to 2.57% for the nine months ended December 31, 2024 from 2.11% for the nine months ended December 31, 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 $20.8 million to $101.8 million for the nine months ended December 31, 2024 from $81.0 million for the nine months ended December 31, 2023.
Previous 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.
Current wording
Net Interest Income. Net interest income before provision for credit losses increased $384,000, or 10.2%, to $4.1 million for the three months ended December 31, 2024 compared to $3.7 million for the three months ended December 31, 2023.
Previous 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.
Current wording
Our interest rate spread decreased three basis points to 2.78% for the three months ended December 31, 2024, compared to 2.81% for the three months ended December 31, 2023, and our net interest margin increased eight basis points to 3.55% for the three months ended December 31, 2024 compared to 3.47% for the three months ended December 31, 2023.
Previous wording
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 wording
Net interest income before provision for credit losses increased $1.6 million, or 15.1%, to $12.2 million for the nine months ended December 31, 2024 compared to $10.6 million for the nine months ended December 31, 2023.
Previous wording
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 wording
Our interest rate spread increased four basis points to 2.71% for the nine months ended December 31, 2024, compared to 2.67% for the nine months ended December 31, 2023, and our net interest margin increased 20 basis points to 3.53% for the nine months ended December 31, 2024 compared to 3.33% for the nine months ended December 31, 2023.
Previous wording
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 wording
Provision for Credit Losses. During the three months ended December 31, 2024, we recorded a provision for credit losses of $57,000. During the three months ended December 31, 2023, we recorded a provision for credit losses of $191,000.
Previous 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.
Current wording
During the nine months ended December 31, 2024, we recorded a provision for credit losses of $56,000. During the nine months ended December 31, 2023, we recorded a provision for credit losses of $99,000. 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 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.
Current wording
Noninterest expense increased $248,000, or 7.5% to $3.5 million for the three months ended December 31, 2024 from $3.3 million for the three months ended December 31, 2023. Other general and administrative expenses increased $180,000, or 38.3%, to $650,000 for the three months ended December 31, 2024 from $470,000 for the three months ended December 31, 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
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.
Current wording
Noninterest expense increased $1.4 million, or 15.5% to $10.5 million for the nine months ended December 31, 2024 from $9.1 million for the nine months ended December 31, 2023. Salaries and employee benefits expense increased $638,000, or 12.5%, to $5.7 million for the nine months ended December 31, 2024 from $5.1 million for the nine months ended December 31, 2023, due to additional lenders hired by the Association. Additionally, the Company implemented the 2024 Equity Incentive Plan on November 26, 2024, and began recognizing expense associated with this plan in December 2024. Other general and administrative expenses increased $713,000, or 56.1%, to $2.0 million for the nine months ended December 31, 2024 from $1.3 million for the nine months ended December 31, 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 $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.
Current wording
Income Tax Expense. We recognized income tax expense of $240,000 for the three months ended December 31, 2024 and income tax expense of $218,000 for the three months ended December 31, 2023, respectively, resulting in effective rates of 20.2% for the three months ended December 31, 2024 and 18.9% for the three months ended December 31, 2023.
Previous 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.
Current wording
We recognized income tax expense of $652,000 for the nine months ended December 31, 2024 and income tax expense of $709,000 for the nine months ended December 31, 2023, respectively, resulting in effective rates of 18.9% for the nine months ended December 31, 2024 and 19.9% for the nine months ended December 31, 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 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.
Current wording
The table above indicates that at December 31, 2024, we would have experienced a 0.77% decrease in NII in the event of a gradual, one-year 200 basis point increase in market interest rates, and a 0.20% 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 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.
Current wording
The table above indicates that at December 31, 2024, we would have experienced a 0.75% decrease in MVE in the event of an instantaneous parallel 200 basis point increase in the market interest rates and a 14.73% 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 $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.
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 $40.5 million at December 31, 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 December 31, 2024.
Previous 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.
Current wording
For the nine months ended December 31, 2024, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $4.8 million. Net cash provided by operating activities amounted to $2.4 million, primarily due to net income of $2.8 million, depreciation of $389,000, and changes of other assets of $381,000, partially offset by changes in accrued interest payable of $227,000, changes in accrued interest receivable of $610,000 and changes in accrued expenses and other liabilities of $646,000. Net cash used in investing activities amounted to $26.0 million, primarily due to a net increase in loans of $24.7 million and the purchase of available-for-sale investment securities of $3.0 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $6.5 million. Net cash provided by financing activities amounted to $18.8 million, primarily due to an increase in deposits of $19.2 million.
Previous 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.
Current wording
For the nine months ended December 31, 2023, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $4.9 million. Net cash provided by operating activities amounted to $4.2 million, primarily due to net income of $2.9 million. Net cash used in investing activities amounted to $21.4 million, primarily due to a net increase in loans of $22.0 million and the purchase of available-for-sale investment securities of $6.0 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $7.0 million. Net cash provided by financing activities amounted to $12.3 million, primarily due to the proceeds from the issuance of common stock. For further information, see the statements of cash flows contained in the consolidated financial statements in Part 1, Item 1 of this Quarterly Report.