Central Plains Bancshares, Inc.

Previous wording

Management’s discussion and analysis of financial condition and results of operations at June 30, 2025 and March 31, 2025 and for the three months ended June 30, 2025 and 2024 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, 2025 and March 31, 2025 and for the three and six months ended September 30, 2025 and 2024 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 decreased $7.8 million, or 1.5%, to $500.9 million at June 30, 2025 from $508.7 million at March 31, 2025. The decrease was primarily due to a $20.8 million, or 72.4%, decrease in total cash and cash equivalents, partially offset by a $11.0 million, or 2.7% increase in gross loans.

Current wording

Total Assets. Total assets increased by $1.3 million, or 0.3%, to $510.0 million at September 30, 2025, compared to $508.7 million at March 31, 2025. The increase primarily reflects a $708,000, or 22.8%, increase in accrued interest receivable and a $434,000, or 3.4%, increase in premises and equipment, net. Gross loans grew by $20.1 million, or 5.0%, partially offset by a $19.8 million, or 69.0% decrease in total cash and cash equivalents.

Previous wording

Cash and cash equivalents. Cash and cash equivalents decreased $20.8 million, or 72.4%, to $7.9 million at June 30, 2025 from $28.7 million at March 31, 2025. This decrease was primarily due to an increase in loan funding and a decrease 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 $19.8 million, or 69.0%, to $8.9 million at September 30, 2025, from $28.7 million at March 31, 2025. This decrease was primarily attributable to increased loan funding and a reduction in total deposits. Management continues to monitor liquidity based on alternative uses of funds and prevailing market conditions.

Previous wording

Investment Securities Available for Sale. Securities available-for-sale increased $1.7 million, or 2.9%, to $61.1 million at June 30, 2025 from $59.4 million at March 31, 2025. During the three-month period, we purchased $3.4 million in securities and received $2.1 million in principal payments. Additionally, net unrealized losses on the securities portfolio decreased by $400,000.

Current wording

Investment Securities Available for Sale. Securities available-for-sale increased $301,000, or 0.5%, to $59.7 million at September 30, 2025, from $59.4 million at March 31, 2025. During the six-month period, we purchased $3.4 million in securities and received $4.2 million in principal payments. Additionally, net unrealized losses on the securities portfolio decreased by $1.1 million.

Previous wording

Gross Loans. Loans increased $11.0 million, or 2.7%, to $413.2 million at June 30, 2025 from $402.2 million at March 31, 2025. This growth was driven by increases across all loan categories, except for land development and SIDs and other consumer loans. The largest increase occurred in agriculture loans, which increased $4.9 million, or 11.3%, to $47.7 million at June 30, 2025, from $42.8 million at March 31, 2025, which was primarily due to additional agriculture business sought by the Association.

Current wording

Gross Loans. Loans increased $20.1 million, or 5.0%, to $422.3 million at September 30, 2025, from $402.2 million at March 31, 2025. Growth was driven by increases across all loan categories except land development and SIDs, residential real estate and other consumer loans. The largest increase occurred in agricultural loans, which rose $8.3 million, or 19.4%, to $51.1 million from $42.8 million, primarily due to additional agricultural business sought by the Association.

Previous wording

Premises and Equipment, Net. Premises and equipment increased $500,000, or 3.7%, to $13.4 million at June 30, 2025 from $12.9 million at March 31, 2025. The increase is primarily due to the final construction billing 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. As of June 30, 2025, both full service locations were open to the public.

Current wording

Premises and Equipment, Net. Premises and equipment increased $434,000, or 3.4%, to $13.3 million at September 30, 2025, from $12.9 million at March 31, 2025. The increase reflects final construction billings for two new branch offices in Lincoln and Hastings, Nebraska. Both full-service branches were open to the public as of September 30, 2025, and are expected to enhance service coverage and support customer engagement.

Previous wording

Total Deposits. Total deposits decreased $15.6 million, or 3.7%, to $400.6 million at June 30, 2025 from $416.2 million at March 31, 2025. This decrease was primarily driven by funds leaving the Association that were held in a 1031 exchange. Management continues to actively monitor deposit balances and interest rates to maintain adequate liquidity.

Current wording

Total Deposits. Total deposits decreased $8.0 million, or 1.9%, to $408.2 million at September 30, 2025, from $416.2 million at March 31, 2025. The decrease was primarily driven by funds leaving the Association that were held in a 1031 exchange. Management continues to actively monitor deposit balances and interest rates to maintain adequate liquidity.

Previous wording

Noninterest-bearing deposits decreased $500,000, or 0.8%, to $64.0 million at June 30, 2025 from $64.5 million at March 31, 2025. Time certificates of deposit increased $3.5 million, or 2.9%, to $126.2 million from $122.7 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 June 30, 2025 and March 31, 2025.

Current wording

Noninterest-bearing deposits decreased $517,000, or 0.8%, to $64.0 million at September 30, 2025, from $64.5 million at March 31, 2025. Time certificates of deposit increased $17.4 million, or 14.2%, to $140.1 million from $122.7 million, as long-term customers sought higher-yield deposit options. Additionally, the Association acquired $10.1 million in brokered time deposits, with a balance of $17.4 million at September 30, 2025, and $7.3 million at March 31, 2025.

Previous wording

Borrowings. Outstanding borrowings increased to $8.5 million at June, 30 2025. We had no outstanding borrowings at March 31, 2025. 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 wording

Borrowings. Outstanding borrowings increased to $8.5 million at September, 30 2025, compared to no borrowings at March 31, 2025. While borrowings have been limited in recent periods, the Association has generally utilized deposit growth to fund operations. Management remains prepared to access FHLB advances if necessary to support additional loan funding.

Previous wording

Stockholders' Equity. Stockholders' equity increased $1.3 million, or 1.6% to $84.6 million at June 30, 2025 from $83.3 million at March 31, 2025. This increase was primarily driven by net income of $988,000, 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 $352,000, net of the related tax effect, is due to changes in market interest rates during the three-month period ended June 30, 2025.

Current wording

Stockholders' Equity. Stockholders' equity increased $2.9 million, or 3.4% to $86.2 million at September 30, 2025, from $83.3 million at March 31, 2025. The increase was primarily driven by net income of $1.9 million and a $1.1 million decrease in unrealized losses on securities valuations, net of tax, partially offset by share repurchases under the Company's stock repurchase program. The decrease in the unrealized losses reflects changes in market interest rates during the six-month period ended September 30, 2025.

Previous wording

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. 154,397 shares remain available to be repurchased under the program as of June 30, 2025. During the three months ended June 30, 2025, the Company repurchased 17,464 shares with a weighted average price of $14.74, for a total value of $260,000.

Current wording

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 program may be suspended, terminated or modified at any time based on market conditions, repurchase costs, alternative investment opportunities, liquidity, and other factors. Repurchases will be made at management’s discretion at prices deemed attractive and in the best interests of the Company and its stockholders, subject to availability, market conditions, trading price, alternative uses of capital, and financial performance. Open market purchases will comply with Rule 10b-18 of the Securities and

Previous wording

Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024

Current wording

Comparison of Operating Results for the Three and Six Months Ended September 30, 2025 and 2024

Previous wording

Interest and Dividend Income. Interest and dividend income increased $670,000, or 11.3%, to $6.6 million for the three months ended June 30, 2025 from $5.9 million for the three months ended June 30, 2024. 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 $636,000, or 10.3%, to $6.8 million for the three months ended September 30, 2025, compared to $6.1 million for the same period in 2024. The increase was primarily driven by higher yields on interest-earning assets and loan growth.

Previous wording

Net Interest Income. Net interest income before provision for credit losses increased $523,000, or 13.2%, to $4.5 million for the three months ended June 30, 2025 compared to $4.0 million for the three months ended June 30, 2024.

Current wording

Net Interest Income. Net interest income before provision for credit losses increased $527,000, or 13.0%, to $4.6 million for the three months ended September 30, 2025 compared to $4.1 million for the same period in 2024.

Previous wording

Our interest rate spread increased 28 basis points to 3.05% for the three months ended June 30, 2025, compared to 2.77% for the three months ended June 30, 2024, and our net interest margin increased 22 basis points to 3.75% for the three months ended June 30, 2025 compared to 3.53% for the three months ended June 30, 2024.

Current wording

Our interest rate spread increased 35 basis points to 3.13% for the three months ended September 30, 2025, compared to 2.78% for the same period in 2024. Our net interest margin increased 28 basis points to 3.85% for the three months ended September 30, 2025 compared to 3.57% for the same period in 2024.

Previous wording

Provision for Credit Losses. During the three months ended June 30, 2025, we recorded a reversal of provision for credit losses of $3,000 and $5,000 for the three months ended June 30, 2024.

Current wording

Provision for Credit Losses. During the three months ended September 30, 2025, we recorded a provision for credit losses of $89,000 and $4,000 for the same period in 2024.

Previous wording

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. In addition, the OCC, as an integral part of its examination process, will periodically review our allowance for credit losses, and as a result of such reviews, we may have to adjust our allowance for credit losses.

Current wording

We will continue to evaluate the estimated future credit loss impact of current market conditions, which will depend on credit quality, macroeconomic forecasts, and the composition of our loan and securities portfolios. In addition, the OCC periodically reviews our allowance for credit losses as part of its examination process, which may result in adjustments.

Previous wording

The table above indicates that at June 30, 2025, we would have experienced a 0.50% decrease in NII in the event of a gradual, one-year 200 basis point increase in market interest rates, and a 0.69% 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, 2025, we would have experienced a 0.17% decrease in NII in the event of a gradual, one-year 200 basis point increase in market interest rates, and a 0.16% decrease 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, 2025, we would have experienced a 0.32% decrease in MVE in the event of an instantaneous parallel 200 basis point increase in the market interest rates and a 15.81% 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, 2025, we would have experienced a 3.23% increase in MVE in the event of an instantaneous parallel 200 basis point increase in the market interest rates and a 10.07% 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 $32.5 million at June 30, 2025. 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 $4.5 million from a private bankers’ bank at June 30, 2025.

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 $32.0 million at September 30, 2025. The FHLB has sole discretion to deny additional advances. We could significantly increase our borrowing capacity from the FHLB of 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, 2025.

Previous wording

For the three months ended June 30, 2025, cash flows from operating, investing, and financing activities resulted in a net decrease in cash and cash equivalents of $20.8 million. Net cash used in operating activities amounted to $96,000, primarily due to a change of $1.5 million in accounts payable, accrued expenses and other liabilities and a change of $333,000 in accrued interest payable, partially offset by net income of $1.0 million, depreciation of $195,000, stock based compensation of $185,000 and changes of other assets of $157,000. Net cash used in investing activities amounted to $13.0 million, primarily due to a net increase in loans of $11.0 million and the purchase of available-for-sale investment securities of $3.4 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $2.1 million. Net cash used in financing activities amounted to $7.7 million, primarily due to a decrease in deposits of $15.6 million, partially offset by proceeds from short term FHLB advances of $8.0 million.

Current wording

Net cash provided by operating activities amounted to $1.0 million, primarily due to net income of $1.9 million, depreciation of $478,000, stock based compensation of $376,000 and changes of other assets of $170,000, partially offset by changes in accrued expenses and other liabilities of $1.6 million and accrued interest receivable of $708,000. Net cash used in investing activities amounted to $20.2 million, primarily due to a net increase in loans of $20.1 million and the purchase of available-for-sale investment securities of $3.4 million, partially offset by proceeds from paydowns of available-for-sale investment securities of $4.2 million. Net cash used in financing activities amounted to $584,000, primarily due to a decrease in deposits of $8.0 million, partially offset by proceeds from short term FHLB advances of $8.5 million.

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. 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

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.